Energy crisis
Government Support
Manufacturing Industry
Indian Manufacturing
China Plus One Strategy
SmallcaseHQ
Supply Chain Disruptions
Indian Paper Industry
Printing and Writing
Packaging and Paper Board
Duplex Boards
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Niveshaay's Manufacturing Series Continue: Indian Paper Industry
Indian Manufacturing is getting a boost
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@smallcaseHQ @arvind_kothari @KabraGunjan
#India #China
Indian Manufacturing is getting a boost
Subscribe to our China Plus One Strategy-India Rising! to get exposure to more such cos.
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@smallcaseHQ @arvind_kothari @KabraGunjan
#India #China
Supply Chain Disruptions, High Energy Prices globally, government support through PLI is surely promoting Indian Manufacturing to become competitive globally in some sectors
#JKPaper #IndianPaperIndustry #ManufacturingIndustry #energy #EnergyCrisis #supplychain
#JKPaper #IndianPaperIndustry #ManufacturingIndustry #energy #EnergyCrisis #supplychain
Thread:
Indian Paper Industry: Tactical Play on JK Paper
Classification:
1.Printing and Writing (30%)
- Coated & Uncoated: Creamwove, Maplitho, Copier
2. Packaging and Paper Board (46%)
- Duplex Boards
- Kraft Paper
3. Speciality Papers(9%)
- Tissue Paper
4. Newsprint(15%)
Indian Paper Industry: Tactical Play on JK Paper
Classification:
1.Printing and Writing (30%)
- Coated & Uncoated: Creamwove, Maplitho, Copier
2. Packaging and Paper Board (46%)
- Duplex Boards
- Kraft Paper
3. Speciality Papers(9%)
- Tissue Paper
4. Newsprint(15%)
Paper can be produced by any of the following Raw Materials:
1. Wood Pulp : Hardwood and Softwood
2. Waste Paper
3. Agri Residue
Raw Materials used in producing paper will help you in identifying which company to invest in based on the industry dynamics.
1. Wood Pulp : Hardwood and Softwood
2. Waste Paper
3. Agri Residue
Raw Materials used in producing paper will help you in identifying which company to invest in based on the industry dynamics.
Recent Trends in the Industry
1. Severe shortage of waste paper led to rise in prices
Collection remained low and EU banned exports of waste paper in Oc'21
2. High demand and scant supply in Europe also driving increase in paper prices
1. Severe shortage of waste paper led to rise in prices
Collection remained low and EU banned exports of waste paper in Oc'21
2. High demand and scant supply in Europe also driving increase in paper prices
Restricted supply and high energy cost put upward
pressure on prices
3. Paper Demand is back to normal with higher demand on packaging side
4. Paper Price Trend
pressure on prices
3. Paper Demand is back to normal with higher demand on packaging side
4. Paper Price Trend
Recent Trends have created a favorable scenario for wood pulp based producers
1. With hike in prices by recycled paper manufacturers, Wood Pulp based manufacturers also took a hike even when their raw material prices remained stable.
1. With hike in prices by recycled paper manufacturers, Wood Pulp based manufacturers also took a hike even when their raw material prices remained stable.
2. Vertically-Integrated Business Model is a huge added adv. and should be given a preference.
When wood pulp prices are higher globally, Indian cos tend to become competitive
Hardwood: Domestic secured supply
Softwood: India is import dependent
When wood pulp prices are higher globally, Indian cos tend to become competitive
Hardwood: Domestic secured supply
Softwood: India is import dependent
Why JK Paper ?
1. Mkt Leader & wood-pulp based paper manufacturer. The above 2 points fit aptly here.
1. Mkt Leader & wood-pulp based paper manufacturer. The above 2 points fit aptly here.
2. Just completed Capacity Expansion
-Packaging Board Plant Commenced in Jan 2022
-Plans to set up a corrugated packaging paper in Ludhiana
Capex- Rs. 150 crores
Peak Revenue: Rs. 150-170 crores
Commencement: Q2 FY23
Revenue Target Guidance: ~Rs. 3500 crores in FY22
-Packaging Board Plant Commenced in Jan 2022
-Plans to set up a corrugated packaging paper in Ludhiana
Capex- Rs. 150 crores
Peak Revenue: Rs. 150-170 crores
Commencement: Q2 FY23
Revenue Target Guidance: ~Rs. 3500 crores in FY22
- Acquisition of Sirpur Paper Mills
In Aug-2018, JK Paper had announced acquisition of sick company Sirpur Paper Mills. It has integrated paper and pulp mill with capacity of 1,38,000 tonnes per annum. Currently, it is operating at 80% C.U. and expected to reach 90% in Q1 FY23.
In Aug-2018, JK Paper had announced acquisition of sick company Sirpur Paper Mills. It has integrated paper and pulp mill with capacity of 1,38,000 tonnes per annum. Currently, it is operating at 80% C.U. and expected to reach 90% in Q1 FY23.
3. The company has been able to maintain sales growth and range-bound EBITDA margins
4. Rise in demand for packaging:
- Growth in E-Commerce
- Plastic Ban
- India is a growing country.
4. Rise in demand for packaging:
- Growth in E-Commerce
- Plastic Ban
- India is a growing country.
About the Company:
- ~24% mkt share in the branded copier segment, 12% in coated paper segment and 13% in packaging board segment in India
-robust distribution network: 300 trade partners and 4000 dealers
- 14% revenue derived from export markets
- ~24% mkt share in the branded copier segment, 12% in coated paper segment and 13% in packaging board segment in India
-robust distribution network: 300 trade partners and 4000 dealers
- 14% revenue derived from export markets
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