JK Paper Limited - Knowledge Platform€¦ · Source – Wood resource intl.; McKinsey Analysis Q4 2011, Global Tree Farm Economics Review 2012 During FY 16-17, Current wood requirement

JK Paper Limited An Industry benchmark with Power Packed Brands

Pulp & Paper Industry of India

Presentation

Presenter : Sandeep Bhalla

7th Nov, 2016

Not to be shared any part or full presentation without permission of J K Paper Ltd.

Global and Indian Pulp & Paper Industry Outlook

J K PAPER …….Creating Lasting Impressions

2

Global Market Change in Paper Market Dynamics

World Paper & Paperboard Demand Growth 1995-2014

Source: Poyry

Transition from graphic papers to packaging and from ‘the West’ to ‘the East’

283

183 175

1115 125

215

400

325

Increase - 100 to 225


3

Global Market India is the Fastest Growing Paper Market Globally

World Paper Market Outlook by Region up to 2030

Source: Poyry

Paper market growth in India is foreseen to reach 4.1%/a through 2030


4

Global Market Indian Per Capita Consumption is Way below World Average

Source: PPI

224 218

159 156

75 66

47 30 29

12 8

55

150

100

50

0

200

Wo r l d Pe r Capita C o n s u m p t io n

250

(Paper + Board) in Kgs -2014

11


5

Economic and income growth, population growth (changing demographics – urbanization, young population), rapidly changing lifestyles, improving living standards, etc.

Greater emphasis on education and literacy by the Government

Growth in organized retail and demand for better quality paper are the major drivers for writing and printing paper

Demand for better quality packaging of FMCG products marketed through organized retail, rising healthcare spends, over-the-counter medicines and increasing preference for ready-to-eat foods are the key demand drivers for paperboard

Make in India will further boost demand for Packaging


6

Indian Paper Market Key Drivers for Growth

Indian Market

Packaging Driving the Growth Growth of middle class population and development of retail are foreseen to

support packaging board demand growth in India

Indian Paper and Paperboard Demand up to 2030

Source: Poyry


7

14.0

26.4

5.7

Indian Market


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Growth of Per Capita Paper Consumption in India In spite of the good growth in foreseeable future, per capita consumption of paper

and paperboard in India will remain relatively low by global standards

Indian Paper consumption per capita up to 2030

1. The growth follows the expected increase in GDP per capita from the current 1700 USD to 4000 USD, assuming that especially in graphic paper grades the income elasticity of demand will be below 1.00 due to the digitalisation.

2. Global average stagnates due to the declining graphic paper consumption, and sluggish demand growth in developed markets.

3. In China, the growth of per capita consumption slows down

-Growth from 30kg to 75kg through 2000-15; Increase up to 92kg by 2030.

4. Decline of per capita consumption continues in developed regions – the USA in particular.

-Decline from 340kg to 224kg through 2000- 15; Further decline down to 170kg by 2030

Source: Poyry

1.1

2.4

4.9

5

.9

6.8

7

.5 1

0.1

1

1.2

14

.1

15

.1

17

.0

18

.5

24

.5

26

.4

-

5.0

10.0

15.0

20.0

25.0

30.0 1

98

0-8

1

19

90

-91

20

00

-01

20

05

-06

20

10

-11

20

15

-16

20

21

-22

20

29

-30

Mill

ion

To

ns

Production (Million Tons) Consumption (Million Tons)

Indian Market Demand & Supply – Present and Outlook

Source – Poyry, Report of Working Group on Pulp and Paper Sector

1. Estimated turnover – Rs 50,000 Cr (USD 8 Billion).

2. Capacity – 17.0 Miilion TPA (Over 700 mills)

3. Employment – Direct 0.5 Million, Indirect 15 Million

4. Exchequer Contri. – Rs. 3000 Cr (USD 450 Million)

5. Investment made in last 5 years by paper industry – Over Rs 20,000 Cr (USD 3 Billion)

6. Investment required by 2030 for new capacities - Rs 50,000 Cr (USD 8 Billion).

Composition of Paper Industry by Raw Material Source

2015

Wood Based 31%

Agri Based 22%

Recycled Fibre Based 47%


10

Consumption CAGR 1980-81 to 2015-16

8.2%

Consumption CAGR 2015-16 to 2029-30

4.1%

Indian Pulp & Paper Industry - Challenges


10

Challenges of Indian Pulp & Paper Industry


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1. High Fibre Cost

2. Lower Economies of Scale & Comparatively Old

Technology

3. High Energy Cost

4. Zero duty imports from ASEAN

High Fibre Cost in India Delivered Wood Cost – Comparison of Countries

45


12

62

74

78

82

92

10

0

10

5 1

30

16

5 200

180

160

140

120

100

80

60

40

20

0

Ru

ssia

Bra

zil

Thai

lan

d

Sou

ther

n U

SA

Ch

ile

Fin

lan

d

Ind

on

esia

Vie

tnam

Au

stra

lia

Ind

ia

US

$ p

er

dry

to

n

•Prices in India are higher than most other countries

•All countries except India have favorable policies for plantations

Note : Transport distance is 50-200 Km Globally, 150-2000 Km in India Source – Wood resource intl.; McKinsey Analysis Q4 2011, Global Tree Farm Economics Review 2012

During FY 16-17, Current wood requirement of the industry is 23.5 Mn tons, out of which 10.2 Mn Ton is for paper Industry. Expected availability is 19.1 Mn tons (gap of 4.4 Mn Tons). Gap will reduce to 2.2 Mn ton by 2018-19.

Indian Pulp & Paper Industry - Performance Trend


13

Green Rating Project of the Centre for Science & Environment Progress made by Industry (1/7)

Note : Centre for Science and Environment (CSE) is a not-for-profit public interest research and advocacy organisation based in New Delhi


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15



16



17



19



19



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JK Paper Limited and

Initiatives to Bridge the Technological Gaps


21

JK Paper Ltd is one of the leading companies of JK Organisation – A prominent business house of India founded over 100 years ago

Tyre Cement

Agri Genetics

V-Belts- Oil Seals & Power Transmission Systems

Clinical Research

Hospital & Health services

USD 4 Billion

23 manufacturing plants

Present in 100 countries

More than 30,000 employees

Paper

Education

Dairy Products

Defence Electronics


22

JK’S BRANDS ARE INDUSTRY BENCHMARKS IN RESPECTIVE PRODUCT CATEGORIES Plants with state of the art technology and minimal environmental impact

Panoramic view of the Unit JKPM (Orissa) -295,000 tpa)

Panoramic view of Unit : CPM (Surat, Gujarat) – 160,000 tpa

Copier Paper (Market Leader – Mkt. Share is 27%)


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Coated Paper Mkt. Share is 12%)

Packaging Board Mkt. Share is 11%)

Strategic Geographical Presence

• Strategic location

– JKPM located close to raw material sources

– CPM located close to large end customers & port

• Strong distribution reach

– 4 regional offices

– 14 warehouses

– 192 distributors

– over 4,000 dealers

UNIT : CPM

Pulp (tpa) 60,500

Paper (tpa) 55,000

Pkg. Boards (tpa) 90,000

Total Production Capacity Saleable Product : 455,000 tons per annum (tpa) Pulp : 275,500 tpa (BD)

UNIT : JKPM

Pulp (tpa)

Paper (tpa)

215,000

291,000

Combined strength of ~ 4800 employees

Product Mix Uncoated paper Coated Paper Packaging Board Saleable Pulp Total


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2,91,000 MT 55,000 MT 90,000 MT 19,000 MT

4,55,000 MT

78 Years Journey Of JK Paper Ltd.

1938

1962

1992

2005

2007

2013

First Integrated Pulp & Paper company in India & 3rd Paper Company in the World to get Award for TPM Excellence – First Category from JIPM

First Paper Mill to get ISO 9001 & ISO 14001. Also obtained OHSAS 18001

First to Invest in World class Pulp Mill (Fiber line from Metso) in India

First to Brand Copier Paper in Indian Market

First to introduce Surface-size wood free paper in India

Awarded FSC-COC certification in 2011

Golden Peacock Environment Management Award in 2013;

Ist Prize in National Energy Conservation Award 2015

Installed 1st Fine Paper Machine at Unit - JKPM (Odisha)

Started Manufacturing Straw Board at Bhopal with a capacity of 3,600 TPA

Acquired Unit - CPM in Gujarat

Installed Coating Plant at Unit - JKPM

Installed Premium Packaging Board Plant at Unit - CPM

Installed State of the art New Fiber Line & High Speed Paper Machine at Unit – JKPM (1,65,000 MT)

(Total Current Capacity 4,55,000 MT)


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JK Paper Ltd. – Optimising Economies of Scale & Introducing New Generation State of the Art Technology

Fibreline (215,000 TPA)

Paper Machine (165,000 TPA)

New Project at Unit : JKPM (Commissioned in Aug, 2013)

1. Addition of New Fibreline with

Continuous digester & ECF technology & stopped young old Fibreline

2. Addition of state of the Art Copier Machine - 4th of its kind in world


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Power Plant

A4 Cutting Line Robotic Palletizer

JK Paper Ltd. – Optimising Economies of Scale & Introducing New Generation State of the Art Technology

New Project at Unit : JKPM (Commissioned in Aug, 2013)

1. Installed new Power Plant with High

Pressure CFB & Recovery Boiler with New Turbines. Old boilers & TGs stopped.

2. Atomised converting lines with ASRS. Paper is not touched with hand till dispatch.

ASRS - WIP Reels ASRS – Finished Goods


JK Paper (Unit – JKPM) Consumption –Utilities & Furnish /T Paper

13891368

13561369

1287

1211

1100

1150

1200

1250

1300

1350

1400

1450

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Power Kwh/T Paper

1.90 2.06

1.88

1.53

1.02

0.81

-

0.50

1.00

1.50

2.00

2.50

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Coal T/T Paper

86 8480

64

46 43

0

10

20

30

40

50

60

70

80

90

100

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Water M3/T Paper

861 856 858

833

777 775

720

740

760

780

800

820

840

860

880

2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Furnish Kg Pulp/T paper

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Power Consumption further reduced to 1131 during Q2 2115-16. The world

best for integrated Pulp & Paper mill producing UWF is around 1050


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Major Energy Conservation Schemes Implemented by JK Paper Ltd.

1. Firing of Petcoke in lime kiln along with efficient burner– 1st company in Pulp & Paper industry in India to install this technology

2. Reduction of frequency of TG from 50 Hz to 49.2 Hz.

3. Saving heat energy going into the cooling tower, Utilization of return condensate water of 85 0c into the Deaerator of LFB instead of DM water available at 50 oc.

4. Reduction in power by changing lighting transformer TAP position (reduction of voltage).

5. Replaced existing Screw & Reciprocating Compressors with Centralized Centrifugal Compressor System.

6. Reduction in cooling tower fan power consumption by decrease in blade angle & installed VFD.

7. Debottlenecking of various plants to increase productivity with almost similar energy consumption.

8. Optimization of steam extraction in turbine to save power.

9. Increase in power factor from 0.88 to 0.96 by installation of capacitors in different PCCs & MCCs.

10. Replacement of old Steam & Condensate system in Paper Machines with energy efficient system.

11. Installation of LEDs.

12. Installation of VFDs wherever valves are in throttled condition.

13. Replacement of energy inefficient motors with energy efficient motors.

14. Replacement of old equipments like pumps, vacuum pumps etc with energy efficient equipments.

15. Improved condensate Recovery from 70% to 82%.


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Major Energy Conservation Ideas Under Exploration by JK Paper Ltd.

1. Power savings by voltage regulation.

2. Reduction in heads of various pumps.

3. Installation of Micro TG in place of PRDS.

4. Collection of non condensable gases (DNCGs) to convert in to methanol and reduce FO consumption in lime kiln .

5. Unitization of equipments of old Plant i.e. Refiners, etc.

Thank you…


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Documents

JK Paper Limited - Knowledge Platform€¦ · Source – Wood resource intl.; McKinsey Analysis Q4 2011, Global Tree Farm Economics Review 2012 During FY 16-17, Current wood requirement