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This presentation and the following discussion may contain “forward looking statements” by Ruchira
Papers Limited (“Ruchira” or “RPL” or the “Company”) that are not historical in nature. These
forward looking statements, which may include statements relating to future results of operations,
financial condition, business prospects, plans and objectives are based on the current beliefs,
assumptions, expectations, estimates and projections of the management 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 and unknown
risks, uncertainties and other factors, some of which are beyond RPL’s control and difficult to
predict, that could cause actual results, performance or achievements to differ materially from
those in the forward looking statements.
Such statements are not and should not be construed as a representation of future performance or
achievements of RPL. In particular, such statements should not be regarded as a projection of future
performance of RPL. It should be noted that the actual performance or achievements of RPL may
vary significantly from such statements.
Disclaimer
Business Strategy
Growth Drivers & Outlook
Company Overview
Facilities Overview
Financial Overview
INDEX
Company Profile
Ruchira Papers Limited is engaged in manufacturing of Writing and Printing paper & Kraft paper.
The Company's white writing and printing paper is used in the fabrication of note books and writing
material.
The coloured paper is used in the fabrication of spiral notebooks, wedding cards, shade cards,
children's colouring books, coloured copier paper and bill books.
Its Kraft paper finds applications in the packaging industry for making corrugated boxes/cartons and
for other packaging requirements.
The company also manufactures special grade of Kraft paper called 'DTY Grade' and 'POY Grade' which
are used to produce textile tubes and paper core-pipes.
The manufacturing plant is in Himachal Pradesh with a total production of 66,426 MT and 50,351 MT of
Kraft paper & Writing and Printing paper respectively in FY17. The plant also has an integrated
chemical recovery plant.
4
Promoters’ Profile
Jatinder Singh, aged 62 years, is an Engineering Graduate from Punjab University. He is one of the Promoters
of Ruchira Papers Limited and has been looking after the affairs of the company as a Whole Time Director.
Over the years, he has acquired deep insight into the working of Paper Industry. He has been looking
after the Finance, Administration and Raw Material Procurement of the company.
Shri Jatinder Singh
Chairman & Whole Time
Director
Subhash Garg, aged 74 years, is Law graduate and has expertise in field of taxation. He is one of the
Promoters of Ruchira Papers Limited and has been looking after the affairs of the company as a Whole Time
Director. He has been looking after the Taxation, Marketing and Sales functions of Ruchira Papers Limited
since its inception and having rich marketing experience.
Shri Subhash Chander Garg
Co-Chairman & Whole
Time Director
Umesh Garg, aged 67 years is a Graduate and has been associated with Ruchira Papers Limited right from the
conceptual stage. He is one of the Promoters of Ruchira Papers Limited. He is controlling day-to-day affairs of
the Company as the Managing Director. He has been the key man in the selection of various machineries and
all expansion projects were executed under his guidance. He has been looking after the Production,
Maintenance and Technical aspects of the company.
Shri Umesh Chander Garg
Managing Director
5
Vision & Core Values
Respect for the individual
Giving each person room to
contribute and grow
Respect for knowledge
To acquire and apply leading
edge expertise in all aspects of
our business
Team performance
The team comes first; none of
us is as good as all of us
Honesty
To be principled,
straight-forward and fair in all
dealing
Flexibility
Adapting ourselves
to always stay a step ahead of
change
Integrity
Maintaining
the highest standards of
professionalism
6
Products Profile
Manufactured by using agriculture residues, such as Bagasse, wheat
straw, sarkanda and indigenous and imported waste paper.
Production 2016-17: 66,426 MT
Kraft PaperUsed in the packaging industry especially in making corrugated boxes /
cartons and other packaging requirements. Special
features of the Company’s Kraft Paper are the load bearing
capacity and tensile strength, which make it suitable for
corrugated packing applications.
Writing & Printing PaperUsed in the fabrication of note books and writing material; coloured
paper is used in the fabrication of spiral notebooks, wedding cards,
shade cards, children’s colouring books, coloured copier paper and bill
books.
Manufactured by using agricultural residues, such as wheat straw, Baggase,
sarkanda and other materials.
Production 2016-17: 50,351 MT
7
Business Strategy
Growth Drivers & Outlook
Company Overview
Facilities Overview
Financial Overview
INDEX
Focus Areas
Margin Driven
We are not a revenue-focused paper company. We
are a margins driven company instead.
Blue Ocean Strategy
We are not in business to capture market share.
We are driven by the prospect of finding new
applications for our products (expanding the
market instead).Niche Products
We are not in business only to mass-market. We are
excited by the prospect of manufacturing
niche products fetching the highest realizations. Environment Friendly
We are not in business to consume finite
environment resources. We are committed
to the use of renewable agro-based resources.Under Leveraged
We are present in a capital-intensive sector marked
by large debt. We are under-borrowed;
we have virtually frozen the use of incremental
working capital.Working Capital Management
Most paper companies have long receivables and
large inventory. Ruchira Papers enjoys superior
terms of trade; its superior product quality has
translated into negligible finished stocks.
9
Innovative ProcessUntil some years ago, there was no economic use for the straw
that remained after farmers harvested their cereal crops in
Himachal Pradesh, Haryana and Punjab. Nearly 90% of the
remaining stalks were burned to clear fields for the next harvest.
An innovative program by Ruchira helped transform
straw into a cash crop for thousands of farmers;
while enhancing air quality and reducing carbon
dioxide emission
Traditional pulping employs harsh chemical
processes. Ruchira’s Enzymatic Process eliminated
the use of harsh chemicals, consumes up to 40% less
energy and 90% less water than traditional methods.
The Process promoted the use of renewable crop,
reducing the demand for wood-based fiber. Reduced
cost from the transportation of wood-based molded
to lighter, stronger alternative.
The Process helped reduced CO2 emission by 25%
compared with conventional wood fiber pulping.
10
Profiting from Efficiency
• Recorded 15.11% growth in
Revenues and 64.61%
increase in PAT in FY17.
• EBITDA margin improved by
206 bps to 15.16% and PAT
margin improved by 231 bps
to 7.68% in FY17.
Company’s any-market and any-product
competitiveness has been derived from just
three words; “Profiting from efficiency”
Ruchira Papers has emerged among the most
competitive agro-based paper manufacturers in
India today – and also one of the fastest growing.
The company moderated costs, absorbed
cost increases, widened product applications,
strengthened value-addition and increased viability.
In a competitive paper manufacturing industry
(Writing & Printing and Kraft), it is virtually
impossible to pass cost increases to customers.
11
Business Strategy
Growth Drivers & Outlook
Company Overview
Facilities Overview
Financial Overview
INDEX
• 100% excise exemption for ten years from 30 March 2008 for Writing and Printing unit
• Concessional central sales tax at 1.5% (2% in other states)
• Capital investment subsidy @ 15% of investment in plant and machinery, subject to a ceiling of Rs. 30 Lakh
• Lower power tariff in Himachal Pradesh compared to neighbouring states
Manufacturing Plants…1
13
14
Manufacturing Plants…2
• Our paper machine is state of the art having most advanced technology and equipped with latest parts.
• In paper machine, dilution head box is installed for more accurate CD profile control-interface with on line QCS (Quality control
system-scanner) to maintain 2 sigma basis weight, caliper & moisture control.
• Our GSM range for Writing and Printing Paper is 49 to 170 and for Kraft Paper it is 100 GSM to 450 GSM. Machine is equipped
with top former for two side de-watering, better filler distribution on both sides of paper and to minimize two sidedness.
• During FY16, we implemented a Rs 38.69 cr production debottlenecking programme.
• The debottlenecking programme will lead to an increase in production from 99,000 TPA to 128,000 TPA - out of which 116,776
TPA was achieved in FY17 and balance will be achieved in FY 18.
• The programme also helped amortise fixed overheads efficiently and strengthened overall competitiveness.
Manufacturing Plants…3
Chemical Recovery Plant - Conventional Recovery system
with 2.5 MW turbine running independently on Recovery
boiler steam.
Effluent Treatment Plant - Our ETP is based on Activated
Sludge process, adopted internationally all over world in
Pulp & Paper Industry. It consists of Equalisation tank,
Saveall, Primary Clarifier, Aeration and Secondary
Clarifier.
15
16
• The major utilities required for
manufacturing paper are power, fuel, and
water.
• In the Writing & Printing Plant, the Company
set up 8.1 MW power co-generation plant for
captive power consumption.
• Agricultural residues (bio-mass) are used as
fuel comprising rice husk, bagasse, forest
waste plants and pet coke.
Manufacturing Plants…4
Business Strategy
Growth Drivers & Outlook
Company Overview
Facilities Overview
Financial Overview
INDEX
Growth Drivers & Outlook
Keener emphasis on
education
Faster economic
growth
Growth in the
number of printing
presses
Growing disposable
incomes
Increased demand for
packaging material
(driving Kraft paper
demand)
• India is one of the fastest growing markets for paper in
the world, with a growth rate of ~6% and demand is
projected to increase to ~23.5 mn tonnes by 2024-25,
from the current 13.10 mn tonnes.
• Indian paper industry is estimated to grow at a CAGR of
7.6% over the next couple of years, in line with India’s
GDP growth.
• A spate of investments in writing paper manufacturing
units is expected to prop the growth rate up to ~13%
per annum.
• Despite the continued focus on digitisation, India’s
demand for paper is expected to rise by 53% over the
next six years, primarily due to a sustained increase in
the number of school going children in rural areas.
• Growing consumerism, modern retailing, rising literacy
(continued government spending on education through
the Sarva Shiksha Abhiyan) and the increasing use of
documentation will keep demand for writing and
printing paper buoyant.
18
Business Strategy
Growth Drivers & Outlook
Company Overview
Facilities Overview
Financial Overview
INDEX
Q4FY17 Result Highlights
89.68 102.59 114.75
10.02%
15.86%
13.28%
4.49%
7.85% 8.07%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
0
20
40
60
80
100
120
140
Q4FY16 Q3FY17 Q4FY17
In R
s, C
rore
Total Revenue EBITDA Margin (%) PAT Margin (%)
20
Result Highlights (over last 4 years)
320.13 346.56 362.58 417.38
15.24%
11.31%
13.10%
15.16%
4.77%
3.70%
5.37%
7.68%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
0
50
100
150
200
250
300
350
400
450
FY14 FY15 FY16 FY17
In R
s. C
rore
Total Revenue EBITDA Margin (%) PAT Margin (%)
21
Result Metrics (over last 4 years)
95.95 105.28 120.7 152.75
15.92%
12.19%
16.13%
20.98%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
0
20
40
60
80
100
120
140
160
180
FY14 FY15 FY16 FY17
In R
s. C
rore
Networth RoE
130.94 125.24 144.13 176.05
29.71%
24.72%
27.14%
30.49%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
0
20
40
60
80
100
120
140
160
180
200
FY14 FY15 FY16 FY17
In R
s. C
rore
Capital Employed RoCE
235.99 241.47 274.27 293.74
89,14797,408 99,132
116,777
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
0
50
100
150
200
250
300
350
FY14 FY15 FY16 FY17
In M
etr
ic T
onne
In R
s. C
rore
Gross Block Production
61.95%58.81%
62.35% 62.19%
38.05%41.19%
37.65% 37.81%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
FY14 FY15 FY16 FY17
WPP (% of Revenue) Kraft Paper (% of Revenue)
22
Result Metrics (over last 4 years)
46.91%
54.13%50.71% 51.22%
20.87% 19.43%16.81% 16.85%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
FY14 FY15 FY16 FY17
Raw Material (% of Revenue) Power & Fuel (% of Revenue)
26,509
24,702
27,667
25,154
23,000
23,500
24,000
24,500
25,000
25,500
26,000
26,500
27,000
27,500
28,000
FY14 FY15 FY16 FY17
In R
s.
Capital Cost Per Tonne
23
1261.4 1243.21162.9 1141
460.3 449.2 422.66 392
22.94
18.97 18.80
14.14
51.77 50.48
45.56 45.62
0.00
10.00
20.00
30.00
40.00
50.00
60.00
0
200
400
600
800
1000
1200
1400
FY14 FY15 FY16 FY17
Wate
r Consu
mpti
on (
metr
e c
ube p
er
tonne)
Pow
er
Consu
mpti
on (
unit
s per
tonne)
WPP Kraft WPP Kraft
41,425 43,38747,074
50,351
47,722
54,02152,028
66,426
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
FY14 FY15 FY16 FY17
In M
etr
ic T
ons
WPP Kraft
Mr. Vipin Gupta (Chief Financial Officer & Executive Director);
Mr. Vishav Sethi (Company Secretary)
Ruchira Papers Ltd.
Ph: +91-80-53800897
Email: [email protected];
Mr. Parin Narichania
Concept Investor Relations
Mo: +91 9930025733
Email: [email protected]
Thank You
