Company Overview
Business Overview
Tabl
e of
Con
tent
s
2
Industry Overview
Financial Overview
Tabl
e of
Con
tent
s
About Us
Incorporated in 1980.We take great pride in
creating a quality range of‘Tree-Free’ papers for
writing, high-volume printand packaging
Writing & Printing paperfinds its applications in printing andstationery, comprising note books,
writing & publishing material, spiralnotebooks, greeting cards, coloring
books, colored copier paper, billbooks, dairies and calendars etc
Facilities located in HimachalPradesh for manufacturing ofKraft Paper and Writing and
Printing Paper
One of the Largest manufacturers of‘Kraft’ and ‘Writing & Printing’
paper in Northern India fromAgro Residue
Kraft paper contributed 43% torevenues in 2017-18
4
Writing & Printing paperfinds its applications in printing andstationery, comprising note books,
writing & publishing material, spiralnotebooks, greeting cards, coloring
books, colored copier paper, billbooks, dairies and calendars etc
Kraft paper finds its application inmanufacturing of corrugated boxes,
cartons and other packaging material
WPP contributed 57% torevenues in 2017-18
PAT growing at 25.77% CAGR
A low debt company withDebt to Equity ratio at
0.21x
Pan India presence through strongnetwork of distributors and dealers
Our Journey
2007-08:LaunchedWriting &Printing paperproduction in2008
Productionincreased byde-bottleneckingat variousintervals postfrom 2008 oncontinuousbasis
2015-16:Certified forFSC chain ofcustody byRainforestAlliance
2017-18: a)ImplementedModernizationand De-bottleneckingprogrammeeb) AnnouncedGreenfieldproject forWriting andPrinting Paperat ChamkaurSahib, Punjab,
5
Incorporatedin 1980
1983-CommencedCommercialproduction ofKraft Paperwith 2310 TPA
1992-1994 :PM-2 installedformanufacturingof Kraft Paperandproductioncapabilityincreased to21000 TPA
2006-07:Came up withan IPO and gotlisted on BSE& NSE.
2007-08:LaunchedWriting &Printing paperproduction in2008
Productionincreased byde-bottleneckingat variousintervals postfrom 2008 oncontinuousbasis
2015-16:Certified forFSC chain ofcustody byRainforestAlliance
2017-18: a)ImplementedModernizationand De-bottleneckingprogrammeeb) AnnouncedGreenfieldproject forWriting andPrinting Paperat ChamkaurSahib, Punjab,
Management Team
•Subhash Chander Garg, aged 76 years, is Law graduate and hasexpertise in field of taxation. He is one of the Promoters of RuchiraPapers Limited and has been looking after the affairs of the companyas a Whole Time Director. He has been looking after the Taxation,Marketing and Sales functions of Ruchira Papers Limited since itsinception and has acquired rich marketing experience.
Mr. Subhash ChanderGarg
(Co-Chairman & Whole TimeDirector)
•Jatinder Singh, aged 64 years, is an Engineering Graduate fromPunjab University. He is one of the Promoters of Ruchira PapersLimited and has been looking after the affairs of the company as aWhole Time Director. Over the years, he has acquired deep insightinto the working of Paper Industry. He has been looking afterthe Finance, Administration and Raw Material Procurement of thecompany.
Mr. Jatinder Singh(Chairman & Whole Time
Director)
6
•Subhash Chander Garg, aged 76 years, is Law graduate and hasexpertise in field of taxation. He is one of the Promoters of RuchiraPapers Limited and has been looking after the affairs of the companyas a Whole Time Director. He has been looking after the Taxation,Marketing and Sales functions of Ruchira Papers Limited since itsinception and has acquired rich marketing experience.
Mr. Subhash ChanderGarg
(Co-Chairman & Whole TimeDirector)
•Umesh Chander Garg, aged 69 years is a Graduate and has beenassociated with Ruchira Papers Limited right from the conceptualstage. He is controlling day-to-day affairs of the Company as theManaging Director. He has been the key man in the selection ofvarious machineries and all expansion projects were executed underhis guidance. He has been looking after the Production, Maintenanceand Technical aspects of the company.
Mr. Umesh ChanderGarg
(Managing Director)
•Mr. Vipin Gupta, aged 48 Years is working as professional Whole TimeDirector With the Company. He is heading the Finance and Accounts ofthe Company. He is associated with the Company for the past 26Years.. He is a Post Graduate in Commerce.
Mr. Vipin Gupta(CFO & Whole Time
Director)
Competitive Advantage
Diversified ProductPortfolio
Ruchira Papers hasdiversified into better
product mix across Kraftpaper and Writing &
Printing paper
Ruchira Papers hasdiversified into better
product mix across Kraftpaper and Writing &
Printing paper
Dedicated Workforce
The Company has a highlydedicated , skilled and
efficient employee base of1014
The Company has a highlydedicated , skilled and
efficient employee base of1014
Strong relations withCustomers and
suppliers
Understanding customerneeds, emerging trends
and accordingly providingproducts to customers isthe prime responsibility
Understanding customerneeds, emerging trends
and accordingly providingproducts to customers isthe prime responsibility
Strategic Location &PAN India Presence
Plant is located inHimachal Pradesh and
well connected to stateand national highways
Plant is located inHimachal Pradesh and
well connected to stateand national highways
Robust Balance sheet
Ruchira’s debt to equityratio is the modest in
the industry
Ruchira’s debt to equityratio is the modest in
the industry
7
Diversification helps de-risking of business in theevent of any volatility in
demand and prices
Diversification helps de-risking of business in theevent of any volatility in
demand and prices
Ruchira Papers providesextensive training to its
employees on skillbuilding
Ruchira Papers providesextensive training to its
employees on skillbuilding
Strong relations withsuppliers keeps the flow
of operations smooth
Strong relations withsuppliers keeps the flow
of operations smooth
The Company has a PANIndia distribution network
to market its products
The Company has a PANIndia distribution network
to market its products
Ruchira is comfortablyplaced in terms of short
term liquidity
Ruchira is comfortablyplaced in terms of short
term liquidity
Awards & Recognitions
Udyog Ratna Award by Himachal Pradeshin 2005 FSC Certificate (Forest Stewardship Council) from
Rain Forest Alliance, New York, USA ISO 9001 : 2015
8
Udyog Ratna Award by Himachal Pradeshin 2005 FSC Certificate (Forest Stewardship Council) from
Rain Forest Alliance, New York, USA ISO 9001 : 2015
Appreciation Award from Himachal PradeshCorrugated Box Manufactures Association in the
year 2009
Certificate of Excellencefrom INC 500 in 2013
Our Products
Manufactured by using agricultural residues, such as wheat straw, Baggase,sarkanda (80%-85%),Softwood Pulp (4% -5%) and other materials (10%-15%)
Writing and Printing paper is used in the fabrication of note books and writing &publishing material; coloured paper is used in the fabrication of spiral notebooks,wedding cards, shade cards, children’s colouring books, coloured copier paperand bill books
Contributed 57% of total revenues generated in FY2018 Writing and Printing paper brands are ‘Tarang’. ‘Safeda’, ‘Kora’, ‘Savera’, ‘Karigar’,
‘Gehua’, ‘Mela’, ‘Pahari
Writing & Printing Paper
10
Manufactured by using agriculture residues, such as Bagasse, wheat straw,sarkanda (50%-55%) and indigenous and imported waste paper(45% -50%)
Used in the packaging industry especially in making corrugated boxes / cartons andother packaging requirements
Special features of the Company’s Kraft Paper are the load bearing capacity andtensile strength, which make it suitable for corrugated packing applications.
Contributed 43% to the revenue in FY2018 Kraft paper brands include ‘Multani’, ‘Maati’, ‘Khadi’. Also manufactures special tube grade paper known as DTY and POY.
Kraft Paper
Plant Location & Capabilities
• Plant located at Kala Amb, in District Sirmaur of Himachal Pradesh
and well connected to state and national highways
• For Writing Paper & Printing unit the Company has set up 8.1 MW
Power Co-generation plant for captive purpose to get
uninterrupted power supply for its operations.
• The Company has set up ‘Chemical Recovery Plant’ for process of
black liquor generated during the process for captive consumption.
• The Company ‘s water requirement is sourced from ground water
through tube-wells.
11
• Plant located at Kala Amb, in District Sirmaur of Himachal Pradesh
and well connected to state and national highways
• For Writing Paper & Printing unit the Company has set up 8.1 MW
Power Co-generation plant for captive purpose to get
uninterrupted power supply for its operations.
• The Company has set up ‘Chemical Recovery Plant’ for process of
black liquor generated during the process for captive consumption.
• The Company ‘s water requirement is sourced from ground water
through tube-wells.
4970
6
4772
2
5402
1
5202
8 6642
6
6800
0
4079
1
4142
5
4338
7
4707
4
5053
1
4742
5
9049
7
8914
7
9740
8
9910
2 1169
57
1154
25
0
20000
40000
60000
80000
100000
120000
140000
FY13 FY14 FY15 FY16 FY17 FY18
In M
etric
Ton
nes
Kraft Writing Total
Production (In MT)
Industry Highlights
The domestic demand of paper in India has been growing at a CAGR of 6.6% and is likely to touch 18.5 million tonnes in 2018-19.
Of which, Printing and Writing segment demand is expected to grow at a CAGR of 4.2% and reach 5.3 million tonnes in FY19. ThePackaging Paper and Board segment is expected to grow at a CAGR of 8.9% and reach 9.7 million tonnes in FY19.
In spite of the sustained growth witnessed by the industry, the per capita paper consumption in India stands at a little over 13 kg which iswell below the global average of 57 kg and significantly below 200 kg in North America. This gap is a clear indication of the huge growthopportunity that lies ahead for the paper sector in India.
As per IPMA’s (Indian Paper Mills Association) estimates, this industry contributes approximately Rs 4,500 crore to the exchequer andprovides employment to over 5 lakh people across approximately 750 paper mills.
13
India's share of the Global PaperMarket
229
74
13
57
0
50
100
150
200
250
US China India World
Per Capita Consumption of Paper (kg)
20%
51%
17%12%
31%
49%
4%
16%
P&W Packaging Speciality Newsprint
World
India
India vs. World - Segment wise consumption
4%
96%
India Global
Source: IPMA & CARE report
Paper Industry Financials
2126 20282254 2347
26103002
513 508 534 624 656 713
0500
100015002000250030003500
FY12 FY13 FY14 FY15 FY16 FY17
Thou
sand
Tonn
es
Imports Exports
9.3
12.8
15.3
02468
1012141618
FY08 FY13 FY16
Domestic Paper Demand (In Mn tonnes)
14
4.75.3
7.5
9.7
2.5
0.60.6 0.8
0
2
4
6
8
10
12
FY16 FY19P
Printing & Writing Packaging Paper & Board Newsprint Speciality
Segment wise Demand for FY19P (In Mn tonnes)
20%
51%
17%12%
31%
49%
4%
16%
0%
10%
20%
30%
40%
50%
60%
P&W Packaging Speciality Newsprint
Global India
India vs. World - Segment wise consumption
Source: IPMA & CARE report
Demand Drivers-Indian Paper Industry
DemandDrivers
Rising incomelevels. Growing
per capitaexpenditure
Govt. boost to theeducation sector
& increasingliteracy rate
Rising circulation
Increase in the number of colleges and institutions, risingenrolment numbers, rising literacy (continuedgovernment spending on education through the SarvaShiksha Abhiyan) is expected to lead to an increasedexpenditure on textbooks, notebooks and other assortedpaper products thereby driving demand.
The per capita personal disposable income surged from Rs73,476 in FY12 to Rs. 1,19,296 in FY17 at a CAGR of 10.2%.Also, the per capita private final consumption expendituretoo rose from Rs 40,250 in FY12 to Rs.68,049 in FY17 at aCAGR of 11.1%. The growth in country’s per capita GDP inturn has increased the disposable income of the populaceultimately driving the country’s consumption.
15
DemandDrivers
Rapid urbanizationand increased
consumption byearning
population
Requirement ofbetter qualitypackaging of
FMCG productsmarketed through
organized retail
Aspirations of higher income, higher standard of living etc.has drawn more and more people from villages to settle intowns and cities. This transition from rural to urban areashas led to an increase in the demand. Earning populationshas grown from 55.4% to 66.2% which will driveconsumption going forward
As per the Audit Bureau of Circulation (ABC), thecirculation of print media reached 62 million copies a dayin 2016, implying a 10 year CAGR of nearly 5%.
Packaging needs of industries such as FMCG,Pharmaceuticals, Food & beverages, textiles etc. hasshown consistent growth over the last few years whichhas led to increased demand for packaging paper.
Source: Annual report & CARE report
Key Challenges-Indian Paper Industry
• Inadequate availability of rawmaterial domestically possesses amajor constraint for the IndianPaper Industry
• Dependence on imports of pulp,wastepaper and even pulpwood tomeet their raw material needs andoften have to pay premium whichimpacts profitability
• On account of cheaper imports thedomestic industry has facedchallenges in pricing its products.
• With FTAs and lower costs, importsare expected to continuechallenging the domestic industryin the medium term
Competitionfrom
imports
Access toquality and
costcompetitiveraw material
16
• Indian Paper Industry is largelyfragmented and is prone to usingoutdated technology
• Usage of outdated technology,both the raw material as well aspower consumption is higher ascompared to a modern paper mill
• Adverse changes in climate canaffect the business operations
• The paper industry market isextremely volatile and issusceptible to risks that arise fromchanges in demand, price,competition, customers, suppliersand raw materials.
Technology
Climatechange riskand Market
risk
Quarterly Highlights
110.92
118.7
107.33
100102104106108110112114116118120
Q1FY19 Q1FY18 Q4FY18
*Revenue from Operations (Rs. In cr)
19.6322.51
12.97
0
5
10
15
20
25
Q1FY19 Q1FY18 Q4FY18
EBIDTA (Rs. In cr)
* Net of Excise
18
14.76
18.13
8.90
0
5
10
15
20
Q1FY19 Q1FY18 Q4FY18
PBT (Rs. In cr)
9.66
11.81
6.14
0
2
4
6
8
10
12
14
Q1FY19 Q1FY18 Q4FY18
PAT (Rs. In cr)
* Net of Excise
Q1FY19 Performance Highlights
Q1FY19 Performance Overview
• Revenue from operations stood at Rs. 110.92 cr;
• EBIDTA at Rs. 19.63 cr; EBIDTA margins stood at
Rs. 17.69 %
• PAT at Rs. 9.66 cr; PAT margins stood at Rs.
8.71%
• EPS stood at Rs. 4.30
Net Sales Realization:WPP: NSR was Rs. 55766/- PMT.
Kraft Paper: NSR was Rs. 25435/- PMT
Production highlights:WPP: Production during Q1FY19 was12392 MT.
Kraft Paper: Production during Q1FY19was 17785 MT
19
• Revenue from operations stood at Rs. 110.92 cr;
• EBIDTA at Rs. 19.63 cr; EBIDTA margins stood at
Rs. 17.69 %
• PAT at Rs. 9.66 cr; PAT margins stood at Rs.
8.71%
• EPS stood at Rs. 4.30
Net Sales Realization:WPP: NSR was Rs. 55766/- PMT.
Kraft Paper: NSR was Rs. 25435/- PMT
Commenting on the financial performance of the company Mr. Jatinder Singh, Chairman & Whole TimeDirector, Ruchira Papers Limited, said, “We are back on the track after the successful implementation ofmodernization programme undertaken during Q4 of FY18. Further in Kraft paper unit we have stabilizedour capabilities to manufacture the products which we had proposed during implementation ofmodernization and upgradation programme and have received good response for these value addedproducts manufactured by us. The quality of product of paper has been accepted in the market. We arehopeful to get the same reflected in topline and bottom-line of Q2 of FY19 onwards. It was a toughquarter no doubt however with value additions successfully implemented we are well on track”
Revenue Break-up & Margins
15.24%
11.40%
13.10%
15.33%
16.57%
7.68%8.50%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
200
250
300
350
400
450
500
Perc
enta
ge (%
)
Rs. I
n cr
ore
61.9
5%
58.8
1%
62.3
5%
62.1
9%
57.8
3%30.00%
40.00%
50.00%
60.00%
70.00%
Perc
enta
ge (%
)
20
320.13 346.56 362.58 417.1 447.6
4.77%
3.70%
5.37%
0.00%
2.00%
4.00%
6.00%
0
50
100
150
200
FY14 FY15 FY16 FY17 FY18
Perc
enta
ge (%
)
Rs. I
n cr
ore
Total Revenue EBIDTA Margins (%) PAT Margins (%)61
.95%
58.8
1%
62.3
5%
62.1
9%
57.8
3%
38.0
5%
41.1
9%
37.6
5%
37.8
1%
42.1
7%
0.00%
10.00%
20.00%
FY14 FY15 FY16 FY17 FY18
Perc
enta
ge (%
)
WPP (% of Revenue) Kraft Paper (% of Revenue)
Financial Performance
15.28 12.8319.47
32.0538.24
05
1015202530354045
FY14 FY15 FY16 FY17 FY18
PAT (Rs. In cr)
321.93 347.92 363.73418.10 451.35
050
100150200250300350400450500
FY14 FY15 FY16 FY17 FY18
Total Income (Rs. In cr)
21
25.42 20.4431.77
46.4458.31
0
10
20
30
40
50
60
70
FY14 FY15 FY16 FY17 FY18
PBT (Rs. In cr)
48.7939.82
47.4863.96
74.17
0
10
20
30
40
50
60
70
80
FY14 FY15 FY16 FY17 FY18
EBIDTA (Rs. In cr)
Key Ratios
15.93%
12.19%
16.13%
20.98% 19.98%
23.91%
19.61%21.39%
25.15% 25.06%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
FY14 FY15 FY16 FY17 FY18
ROE ROCE
22
FY14 FY15 FY16 FY17 FY18
0.51
0.28 0.28
0.22 0.21
0
0.1
0.2
0.3
0.4
0.5
0.6
FY14 FY15 FY16 FY17 FY18
Debt to Equity
3.89 4.07
7.46
8.74
11.37
0.00
2.00
4.00
6.00
8.00
10.00
12.00
FY14 FY15 FY16 FY17 FY18
Interest Coverage ratio
Production Highlights
46.91%
54.13%50.71% 51.22%
48.18%
20.87% 19.43%16.81% 16.85% 16.92%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
FY14 FY15 FY16 FY17 FY18
Perc
enta
ge
Raw Material (% of Revenue) Power & Fuel (% of Revenue)
4142
5
4338
7
4707
4
5035
1
4742
5
4772
2
5402
1
5202
8
6642
6
6799
9
0
10000
20000
30000
40000
50000
60000
70000
80000
FY14 FY15 FY16 FY17 FY18
In M
etric
Ton
s
WPP Kraft
23
Raw Material (% of Revenue) Power & Fuel (% of Revenue) WPP Kraft
2650924702
2767624863
30434
0
5000
10000
15000
20000
25000
30000
35000
FY14 FY15 FY16 FY17 FY18
In R
s.
Capital Cost Per Tonne
1261 1243 1163 11411200
460 449 423 392 400
22.9418.97 18.8
14.14 12.51
51.77 50.48
45.56 45.62 43.86
0
10
20
30
40
50
60
0
200
400
600
800
1000
1200
1400
FY14 FY15 FY16 FY17 FY18
Wat
er co
nsum
ptio
n (m
etre
cube
per
tonn
e)
Pow
er co
nsum
ptio
n (U
nits
per
tonn
e)
WPP Kraft WPP. Kraft.
Key Statics & Shareholding as on 30th June, 2018
Key Investors (%) holding
Non Institutions::Dolly Khanna 1.51
61.14%
37.96%
Shareholding (%)
24
Key Statistics As on 31st July, 2018CMP (Rs.) 117.70
Market Cap (Rs. In crore) 263.90
No. of outstanding shares(Crore) 2.24
Face Value 10.00BSE Code 532785NSE Code RUCHIRA
61.14%
0.90%
Promoter & Promoter Group Institutions Non- Institutions
Disclaimer
This presentation and the following discussion may contain “forward looking statements” byRuchira Papers Limited (“Ruchira” or “RPL” or the “Company”) that are not historical innature. These forward looking statements, which may include statements relating to futureresults of operations, financial condition, business prospects, plans and objectives are basedon the current beliefs, assumptions, expectations, estimates and projections of themanagement of RPL about the business, industry and markets in which RPL operates.
These statements are not guarantees of future performance and are subject to known andunknown risks, uncertainties and other factors, some of which are beyond RPL’s control anddifficult to predict, that could cause actual results, performance or achievements to differmaterially from those in the forward looking statements.
Such statements are not and should not be construed as a representation of futureperformance or achievements of RPL. In particular, such statements should not be regardedas a projection of future performance of RPL. It should be noted that the actual performanceor achievements of RPL may vary significantly from such statements.
25
This presentation and the following discussion may contain “forward looking statements” byRuchira Papers Limited (“Ruchira” or “RPL” or the “Company”) that are not historical innature. These forward looking statements, which may include statements relating to futureresults of operations, financial condition, business prospects, plans and objectives are basedon the current beliefs, assumptions, expectations, estimates and projections of themanagement of RPL about the business, industry and markets in which RPL operates.
These statements are not guarantees of future performance and are subject to known andunknown risks, uncertainties and other factors, some of which are beyond RPL’s control anddifficult to predict, that could cause actual results, performance or achievements to differmaterially from those in the forward looking statements.
Such statements are not and should not be construed as a representation of futureperformance or achievements of RPL. In particular, such statements should not be regardedas a projection of future performance of RPL. It should be noted that the actual performanceor achievements of RPL may vary significantly from such statements.
Contact Details
Ruchira Papers Ltd.Mr. Vipin Gupta(CFO & Executive Director)Email: [email protected];
Mr. Vishav Sethi(Company Secretary)Email: [email protected]
Website : www.ruchirapapers.com
Concept Public Relations India Ltd.Mr. Pratik PatilMobile: 8291510324Email: [email protected]
Ms. Ankita VermaMobile: 8898422588Email: [email protected]
Website : www.conceptpr.com
CONCEPT IR
26
Ruchira Papers Ltd.Mr. Vipin Gupta(CFO & Executive Director)Email: [email protected];
Mr. Vishav Sethi(Company Secretary)Email: [email protected]
Website : www.ruchirapapers.com
Concept Public Relations India Ltd.Mr. Pratik PatilMobile: 8291510324Email: [email protected]
Ms. Ankita VermaMobile: 8898422588Email: [email protected]
Website : www.conceptpr.com