West Coast Paper Mills Limited has informed the Exchange about Investor Presentation
ZZQ:BM:36:SHARE:07: March 06, 2023
To:
To:
BSE Limited Corporate Services Floor 25, P.J.Towers, Dalal Street MUMBAI – 400 001
Dear Sirs,
Sub: Investor Presentation.
National Stock Exchange of India Ltd. Listing Department Exchange Plaza Bandra-Kurla Complex, Bandra [East] MUMBAI-400 051
We enclose herewith Investor Presentation for Key Highlights, Industry Dynamics &
Core Business Strategy, Environmental Sustainability and Financial Highlights etc.
Please take the same on record.
Thanking you,
Yours faithfully, For WEST COAST PAPER MILLS LTD.
BRAJMOHAN PRASAD COMPANY SECRETARY M.NO.F7492
Encl : a.a.
Investor Presentation March 2023
Safe Harbor
This presentation and the accompanying slides (the “Presentation”), which have been prepared by West Coast Paper Mills Limited (the “Company’), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the Company’s ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections.
All Maps used in the Presentation are not to scale. All data, information and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness.
West Coast Paper Mills Ltd
2
About West Coast Paper Mills
West Coast Paper Mills Limited (WCPM) is one of the oldest and the largest producers of paper for printing, writing, and packaging in India
WCPM enjoys a pedigree of standing over the past 68 years. The company's vision in constant upgradation of its process and technology to offer uniform quality of customized products, the "wood to paper" process mastery and product research have enabled the mill to produce a wide portfolio of wood free papers and boards of highest quality
MISSION To attain customer loyalty by providing the highest standards of quality products suitable for various business segments and for all age groups across India and the world
To focus on innovative production processes through constant research and development as well as to use a raw material and technology that is environment friendly and that further caters to the interests of the future generations
VISION To excel in serving the demands of paper and paper products worldwide
West Coast Paper Mills Ltd
3
Key Highlights: Pulp to Paper Excellence
1955
22+
Countries
3,20,000
MTPA
Established in
Countries
Manufacturing capacity
4,000
70+
Employee Strength
Our Distribution Network
Certifications
ISO 9001-2015 QMS ISO 14001-2015 EMS ISO 45001-2018 OH & SMS
West Coast Paper Mills Ltd
4
Many Firsts to Our Credit
1
3
5
7
9
First in Asia to install twin-wire Papriformer paper machine
First to use synthetic wire on paper machine in India
First in India to install Drum Chipper, Disk Refiners, Rotary Limekiln, 500 TPD Solids Firing Chemical Recovery Boiler & FBC Coal-fired Boiler
First to establish and use sulphuric acid in India as a protective agent in conventional bleaching
First in India to use 100% hardwood, replacing bamboo
11
First company in India that has successfully established a well-equipped Research Centre attached with a Paper Mill
2
4
6
8
10
12
First to introduce captive plantations in India
First in India to introduce a chemical recovery boiler of 1100 TPD Solids Firing per day capacity
Installed and commissioned Single Largest BD Bleached Pulp Plant of capacity 725 TPD
Installed & commissioned state of the art Paper Machine No. 6 with a capacity of 500 TPD
Installed 34.5 MW TG Set in the year 2010 and now the Total Captive Power Plant Capacity is 74.8MW
Expertise in effectively incorporating upto 50% imported hardwood chips from South Africa & Australia in the pulp manufacturing process, if required
West Coast Paper Mills Ltd
5
APL Acquisition: Consolidation of Leadership Position
West Coast Paper Mills
Andhra Paper
Installed Capacity – 3,20,000 Mtpa
Installed Capacity – 2,40,000 Mtpa
Sales Volume – 3,03,715 Mtpa
Sales Volume – 2,40,479 Mtpa
Revenue – Rs. 1,985 Crores
Revenue – Rs. 1,380 Crores
EBITDA – Rs. 436 Crores
PAT – Rs. 218 Crores
EBITDA – Rs. 266 Crores
PAT – Rs. 140 Crores
COST EFFECTIVE ACQUISITION + COST SYNERGIES = MARKET LEADERSHIP + STRENGTHENING OF BRAND + EPS ACCRETIVE
West Coast Paper Mills Ltd
Note: Data for FY 21-22
6
About Andhra Paper Limited
Andhra Paper Limited, one of the largest integrated paper and pulp manufacturers in Andhra Pradesh & India was established in 1964 with a production capacity of 240,000 TPA of Paper and 181,500 TPA of Virgin Pulp. It is the only Paper Mill using virgin pulp in AP
APL has presence in all segments of Papers viz; Writing, Printing, Industrial & Copier papers with an export share of 20% earnings in foreign exchange. West Coast Paper Mills Limited acquired 72.2% stake in Andhra Paper Limited in 2019. With this acquisition, the company is on a transformational journey to further consolidate its leadership position in the Indian Paper Sector
The organization has declared a capital expenditure of around Rs. 450 crores for upgrading its current equipment, aiming to enhance operational efficiency. This investment is expected to bring about significant improvements in the company's operations, streamlining processes and increasing productivity. By modernizing its machinery, the company is positioning itself for long-term growth and competitiveness in the market
Ownership Structure
Key Financial Highlights for Q3FY23:
72%
Revenue (₹ in Crs)
EBITDA & EBITDA Margin
PAT & PAT Margin
17.90%
41.48%
10.76%
29.81%
+65%
571
+282%
237
+357%
170
28%
346
WCPL
Public
West Coast Paper Mills Ltd
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Q3FY22
Q3FY23
7
62
37
One of the largest Optical Fibre Cable Manufacturer
About Cable Business
Product Portfolio
•
•
•
The company under its cable division – ‘West Coast Optilinks’, operates a State of the art manufacturing facility in a Hi-Tech Electronics zone at Mysuru
The cable division of the company is being headed by Mr. Virendraa Bangur, having 22 years of experience in the sector
The division contributes ~6% to the total sales with an EBITDA margin of approximately 5%
1. Optical Fibre Cables
2.
FRP ROD Cables
3. Glass Roving
FY22 Production : 63630 Kms of cables
Revenue Break-up
Key Financials
Paper Business
94.0%
Revenues : Rs. 116 Crs
6.0%
Cable Business
EBITDA : Rs. 6 Crs
West Coast Paper Mills Ltd
Note: Data for FY 21-22
8
Experienced Board of Directors
SHRI S.K. BANGUR Chairman & Managing Director
SMT. SHASHI DEVI BANGUR Director
SHRI VIRENDRAA BANGUR Joint Managing Director
He is a well-respected industrialist and philanthropist who serves as the Chairman and Managing Director of West Coast Paper Mills Ltd., which is part of the Bangur Group of Companies. He is a visionary leader who has made a significant impact in the business world and has a reputation for being an excellent manager. Aside from his business achievements, he is also known for his philanthropic work and is associated with a number of charitable organizations.
She is a prominent member of the renowned Bangur family and serves as a Non-Executive Director of West Coast Paper Mills Ltd. She has a diverse portfolio of responsibilities and holds positions as a Director in several companies. Her experience and expertise in the business world make her a valuable asset to the companies she is associated with. Her presence in these organizations is a testament leadership skills, and dedication to excellence.
to her knowledge,
With a diverse background in the industrial and corporate sectors, he has a IT, special electronics, optical fiber, telephone and power cable, and plantations.
interest in various fields such as paper, newsprint, chemicals,
SHRI SAURABH BANGUR Vice Chairman
SHRI RAJENDRA JAIN Executive Director & CFO
He is a highly accomplished business leader and member of the prominent Bangur family. He also holds a key position as Joint Managing Director on the recently acquired Andhra Paper Limited, further solidifying his reputation as a successful and experienced business executive. With his diverse background and experience, he continues to be a valuable asset to the companies he is involved in.
A qualified Chartered Accountant and Company Secretary. Mr Jain has hands- on experience in various aspects of business operations including strategic continuous and planning, manufacturing, improvement. His expertise is a valuable asset to the company.
financial management,
West Coast Paper Mills Ltd
9
Experienced Board of Directors
SHRI SUDARSHAN SOMANI Director
SMT. ARPITA VINAY Director
SHRI SHIV RATAN GOENKA Director
With more than 30 years of experience, he has worked in both London and Dubai, actively trading in India and other countries. He has extensive experience in both soft and hard commodities, specializing in non-ferrous metals and ores, agricultural products, and waste papers.
With over 18 years of experience in financial services, encompassing wealth management and private banking, she was part of the core team that established Centrum Wealth Management. She holds a degree in electrical engineering and an MBA in finance from the Faculty of Management Studies (FMS) in Delhi.
As Chairman and Managing Director of Bengal Beverages Private Limited, which is part of the Goenka Group of Companies, he is overseen by a board of directors. A visionary and highly regarded industrialist, Shri S.R. Goenka belongs to the renowned Goenka family, which is well known for its philanthropic endeavors.
SHRI ASHOK KUMAR GARG Director
SHRI VINOD B. AGARWALA Director
With over 39 years of diverse banking experience, he is a former Executive Director of Bank of Baroda and is currently affiliated with several well-known companies that provide financial services.
As a lawyer, he is an Advocate on Record at the Supreme Court of India, a Solicitor at the High Court of Bombay, and a Solicitor in England and Wales. He boasts a wealth of legal and leadership experience spanning over five decades.
West Coast Paper Mills Ltd
10
Dynamic Management Team
Paper & Paper Board Division
Cable Division
SHRI RAJENDRA JAIN Executive Director & CFO
A qualified Chartered Accountant and Company Secretary. Mr Jain has hands-on experience in various aspects of business operations including strategic planning, manufacturing, financial management, and continuous improvement. His expertise is a valuable asset to the company.
SHRI. ANUJ TAYAL Sr. VP - Technical
an
(Chemical Engineer), boasts
this A B.Tech. individual 4 decades of experience in the industry. His expertise has been recognized through their authorship of several articles for the IPPTA
impressive
SHRI. P. C. MALOO Sr. VP - Marketing
A law graduate with ACS and ACMA designations and over 3 decades of experience in sales and marketing bringing in invaluable expertise.
SHRI. PRAMOD SRIVASTAV CEO, West Coast Optilinks
With a background in the telecommunications industry and a focus on optic fibers and optical cable, he has built a highly successful career with 34 years of expertise. His extensive experience has allowed him to gain a deep understanding of the industry and its trends enabling them to stay ahead of the curve and provide valuable insights to the company.
SHRI. ASHOK KUMAR SHARMA Sr. VP - Finance & Accounts
A qualified CA professional with ample years of experience and having deep understanding of financial management providing and valuable insights and drive successful outcomes for the company.
accounting
practices
SHRI. RAMESH BIJAPUR Sr. VP - Human Resource
He holds a Master's degree in Personnel Management (MPM) with a focus on human resources and has more than 28 years of experience in the industry.
SHRI. RAJESH BOTHRA VP - Corporate Finance
treasury
A qualified CA professional with over 34 years of expertise in finance, taxation, and successfully navigate complex financial situations and provide valuable insights to the organization.
and
to
West Coast Paper Mills Ltd
11
Industry Dynamics in Our Favour
Industry Dynamics - Consolidation is Inevitable
India is Fastest Growing Paper Market in the World
increasing Rising literacy rates, number and universities in the country and higher student enrolments
schools
of
rising
proportion
urbanisation
coupled Rapid with of organised retail and increasing preference for ready-to-eat food products
rising per capita Increasing GDP, income & expenditure consequently leading to increase in per capita consumption of paper
awareness,
Higher environmental concerns to & substitution of plastic with paper products
leading
Consolidation in the Industry is Inevitable 2 out of 3 paper mills in India have already been closed [As per IPMA]
High Capital Intensity
Economies of Scale
Technology Upgradation
Cost of Environmental Compliance
Threat from Imports
Advent of GST
Industry Acquisition
Source: ICRA, Investec, IPMA
West Coast Paper Mills Ltd
13
GROWTH IN DEMAND
MARKET SHARE GAIN
Investment Proposition
Integrated pulp mill with ample water and power
Expect favorable paper cycle to sustain profitability
Pan India Presence for Marketing
Multiple product offerings with a focus on higher margin products
Strong Balance Sheet
Promoter steadily increasing stake in the company
Strong Credit Rating
Y
• Operates a 725 tpd integrated pulp mill in Dandeli, Karnataka with 74.8 MW captive power and year-round water access from the Kali River
• The region receives rainfall, 150-200
ample averaging cm
West Coast Paper Mills Ltd
strong
cycle India
paper Expect to realization persist and in support elevated margins for profitable companies with varying levels backward of integration
larger,
WCPM offers multiple in Writing & variants Printing, Packaging and Value-added products to commercial and premium segments and focuses margin on products, to improved realizations
leading
higher
• WCPM boasts a wide network distribution with dealers 70+ across India and 6 zonal offices in major ensuring cities, efficient product and service reach to end- users
• 75% of dealers have been the with company for over 15 years
• WCPM has free cash flow, resulting in a low Net Debt/Equity of 0.26x
• With average annual Free Cash Flow of over -Rs200cr in the past the 5 well- company positioned fund future expansion and seeks geographical expansion opportunities
years, is to
• The
promoter
has increased steadily their shareholding in from the company 52.4% in to 56.0% in FY18
FY12
• They provided capital of injections for Rs.472.5mn expansion in FY11 and Rs.179mn to reduce debt in FY13
Long Term IND AA /Stable and Short-Term IND A1+
14
Core Business Strategy
Bring strategic alignment Setting up clear and coherent goals based on sound market analysis and future aspirations and aligning the organisation with these goals.
01
10
Digital Transformation Adopting new technologies and processes to improve operations, enhance customer experiences, and drive growth.
Achieve operational efficiencies Improve key operational indicators such as process changeovers, waste generation, overall equipment efficiency (OEE), and shop floor management practices.
02
09
Market expansion Entering new markets, either domestically or internationally, to increase sales and reach new customers.
Pursue strategic sourcing Strategic sourcing of raw materials to reduce cost and achieving performance excellence.
03
08
Customer focus Building strong relationships with customers through quality products and excellent customer service.
Improve Sales and channel management Evaluation of existing sales channels and making changes to optimize their efficiency and effectiveness.
04
07
Innovation Developing new and innovative paper products to stay ahead of the competition.
Cost optimization Implementing cost-saving measures such as using efficient production processes and reducing waste.
05
06
Sustainability Implementing environmentally friendly practices in production and promoting eco-friendly paper products.
West Coast Paper Mills Ltd
15
What Sets Us Apart
Wesco Brand Created – Premium Paper Brand
Exclusive range crafted especially for the hi-tech business
Participated in Expo
Finest Range of premium office paper of International standards, Tailor-made to suit all kinds of high-end office printers
B2B: Multi-purpose Office Paper
Copy Plus: Premium Business Paper
Documate: Multi-purpose Office Paper
Copy Gold: A Versatile Multi-functional Paper
WESCO Bond: Multi-purpose Office Paper
West Coast Paper Mills Ltd
17
Product Portfolio Across Different Segments Ranging from 52-600 GSM
Business Stationary
Printing & Writing
Security & Hi-value Grades Paper
MG Varieties (Machine-Glazed)
Cup Stock & Coated Duplex Board
West Coast Paper Mills Ltd
18
One of the Largest Single Location Plant
Economies of Scale Benefits
Capacity 3,20,000 TPA
Favourable plant location provides us an edge in sourcing raw-materials and ensuring adequate water supply
Located in ‘Dandeli Town in Uttara Kannada district in Karnataka on a 240 acres of leasehold land’
Last mile connectivity through a ‘Broad gauge railway line on Miraj-Bangalore section at Alnavar Junction, with railway lines that run up to the factory’
Surrounded by a ‘Dense forest and raw-material procurement is done from Karnataka State & from the near by states of Tamil Nadu, Andhra Pradesh and Maharashtra
Located on the Banks of the Kali River, the mill ensures adequate water supply for its day to day operations
Note: Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness
West Coast Paper Mills Ltd
Dandeli Located ~650 km southeast of Mumbai
19
Self Sufficiency in all Utilities - Water, Power & Steam generation
Resources needed
1. Water
2. Power
3. Steam
Requirement
~50000 KL/day
~50 MWh
~345 tph
In-house Capacities
Self-sufficiency
▪ Round the year water
availability from river Kali ▪ The mill has water drawal permission of 1,00,000 KL/day
▪
Four captive turbo generators with power generating capacity of 74.80 MWh
▪
Four coal fired FBC boilers & two chemical recovery boilers generating sufficient steam to meet the existing requirements.
Surplus
100% Self-Sufficient Surplus of ~24 MWh
Sufficient
West Coast Paper Mills Ltd
20
Strong Backward Integration for Key Raw Material Supply
•
•
Inhouse plantations across 2,463 acres of land
Strong Backward linkages with farming communities/farm forestry is the way forward to get key raw material/wood fibre for pulp production
Improving the productivity & profitability of farmlands
Paper Making Process
y g e t a r t S t n e m e r u c o r P d o o W
• 100% domestic procurement in FY22
• Reliance on imported material reduced significantly from 43% in FY18 to ZERO in FY22
• Also, distributes seedlings to the farmers at concessional rates to source plantations without any commitments
• Pulpwood consumption of more than
10 lakhs MT per annum
• Plantation across 52,700 acres
• Captive plantation across 51,000
acres
• 1,700 acres land on lease at
Kulwalli
West Coast Paper Mills Ltd
Pulping
Sheet Formation & Dewatering
Converting & Finishing
• WCPM has fully
integrated pulp mill with in-house pulping capacity of 725 tpd
•
It has modernized its old 300 tpd pulp mill with ECF (Elemental Chlorine Free) in FY11
•
•
Self-sufficient in Power with captive power generating capacity of 74.8 MW
Chemical recovery plant of 1600 tpd, with recovery capability of almost 97.5%
•
End-to-end processing with sheeting, rewinding & cutting procedures
21
Our Manufacturing Facilities
Installed Capacity: 2,60,000 TPA
Installed Capacity: 3,20,000 TPA
FIBRELINE
PAPER MACHINE
DUPLEX BOARD MACHINE
PAPER CAPACITY UTILISATION OVER THE YEARS
91
95
98
93
101
101
93*
72
West Coast Paper Mills Ltd
*On 23 days Annual shut taken of Enmas Recy Boiler
22
FY 18
FY 19
FY20
FY21
FY22
Q1 FY23
Q2 FY23
Q3 FY23
Images of Our Manufacturing Facility
West Coast Paper Mills Ltd
23
Strong Commitment to Quality and R&D
Quality Control
Research & Development
24x7 Quality Control Activity
Machines equipped with advanced online process and quality control systems for continuous monitoring of the quality parameters
The Autoline, a quality control equipment in the new paper manufacturing machine is the first ever such investment by a paper Mill in India
Focus on improving the quality benchmark which translates into high customer satisfaction and a loyal off-take
‘’WCPM’s contemporary cutting-edge technology processes and equipment along with a team of dedicated trained professionals ensure that customers always get consistently high-quality products”
Strong customer focused research initiative, comprising a sophisticated Research center and qualified professionals
Instrumental in mastering the wood to paper technology into an innovation-driven dependable product sought by repeat Indian and global customers
Close monitoring of customer feedback derived by the customer service cell, based on which new products are developed
Company stands ISO 9001certified for quality in process management, ISO 14001 for effective environment management & ISO 45001 for operational health & safety management services
West Coast Paper Mills Ltd
24
One of the Largest Dealer Network in India
Distribution Presence across the country
One of the Largest dealer network in the country
o Andhra Pradesh – Guntur
o Bihar - Patna
o Chhattisgarh – Raipur
o Delhi
o Gujarat - Ahmedabad | Surat
o Karnataka - Hubli | Bangalore | Coimbatore |
Belgaum | Dandeli | Mysore | Dharwad
o Kerala - Kochi | Ernakulam |
Thiruvananthapuram
o Madhya Pradesh - Indore
o Maharashtra - Mumbai | Pune | Kolhapur
o Punjab – Jalandhar
o Rajasthan - Jaipur
o Tamil Nadu - Chennai | Madurai | Sivakasi
o Telangana - Hyderabad
o Uttar Pradesh - Varanasi | Mathura | Kanpur |
Ghaziabad
o West Bengal - Kolkata | Siliguri
West Coast Paper Mills Ltd
Punjab
Rajasthan
Uttar Pradesh
Bihar
Gujarat
Madhya Pradesh
West Bengal
Chhattisgarh
Maharashtra
Telangana
Andhra Pradesh
Karnataka
Tamil Nadu
Karnataka
Key Highlights - Distribution Network
Network of 70+ dealers and 6 zonal offices in India
75% of the dealers have been associated with the Company for over 15 years
WCPM exports its products to more than 25 countries worldwide
10%
19%
24%
47%
South
West
North
East
25
Our Global Footprints
Export Regions ✓ Uganda ✓ Ghana ✓ Nigeria ✓ Kenya ✓ Tanzania ✓ Angola ✓ Cameroon ✓ Senegal ✓ Ethiopia ✓ Madagascar ✓ Rwanda ✓ Malawi ✓ Burundi ✓ Mozambique ✓ Congo ✓ Nepal ✓ Sri Lanka ✓ Greece ✓ Turkey ✓ Egypt ✓ Iraq ✓ Qatar
West Coast Paper Mills Ltd
26
Testimony to Strive Excellence
National Environmental Awards (IPMA)
Special Commendation Award at the Paperex-2015
1st prize in Best Safe Industrial Boiler Category (2017)
State Level Safety Award (2016)
Award for Rejuvenation of Water Tanks
West Coast Paper Mills Ltd
27
Awards & Accolades
Safety Award “UTTHAMA SURAKSHA PURASKAR” from National Safety Council
National Safety Trophy (2019)
Facilitation Ceremony function held by National Safety Council - Karnataka Chapter
West Coast Paper Mills Ltd
28
Environmental Sustainability
Responsible Forestry by Forest Stewardship Council
Our Certifications
The Forest Stewardship Council (FSC) is an international certification system that promotes environmentally appropriate, socially beneficial, and economically viable management of forests and plantations
The FSC does this by setting standards on forest products, along with certifying and labelling them as eco-friendly
The Forest Stewardship Council® (FSC) mark means that the wood or paper you are buying comes from responsibly managed forests
To become FSC certified, forest operations must meet demanding environmental, social and economic requirements, as confirmed by an independent third party such as SCS Global Services
Forest Stewardship Council® (FSC) forest management certification strengthens your position in the marketplace - guaranteeing your customers that products from your forestry operations meet the world's most stringent environmental, economic, and social standards for responsible forest management
West Coast Paper Mills Ltd
30
SARA- Certified for Being a ‘Well Managed Group Plantation’
The Society for Afforestation, Research and Allied (SARA) promoted and supported by WCPM has continuously obtained certifications for developing ‘Well Managed Group Plantations’ since 2011
Formed by eminent personalities, which includes forestry, agriculture, financial experts and progressive farmers with the Objective of greening the country, meeting socio-economic and environmental conditions of rural mass
Promote & encourage tree - farming practices on low productive and degraded lands for additional income to the farmers/farming community partnering with the SARA
•
•
•
•
•
•
Establish seed orchards for getting good hybrid seeds
Undertake R&D activities in the field of forestry, horticulture and other areas
Create employment opportunities to the rural community
Practice zero wastage with respect to all the associated operations
Plan and manage the plantations in accordance with principles and criteria for the farm forestry
Protect the environment by establishing a sylva-eco system and Agroconoesis
(SARA) has obtained the certificate for being a ‘Well Managed Group Plantation’ since 2011. At present, the Company is in a position to manufacture FSC® certified products viz; FSC® -100%, FSC® -MIX in its printing & writing papers and FSC® -Recycled logo on paperboards
West Coast Paper Mills Ltd
31
Tree Improvement Programme
Research Wing
Tree Improvement Programme
• Research wing works pro-actively towards the promotion of Technology-based plantations with local districts, local communities and small holder agro forestry
• Captive plantation techniques to increase the productivity and sustainability of our plantations
• Clonal forestry used in captive
plantation captures and exploits the best combinations and re-combinations of plant genes in the shortest possible time
• Provide genetically
fast growing, disease resistant and best quality planting stock for improving the yield from the plantations, vegetative propagation is an excellent approach
superior,
• A seed carries the improvement made from the previous generation to the next generation. Best quality seeds will help in the faster and healthier growth of trees in captive plantations
• We collect and propagate full sib seeds or half sib seeds gathered from known sources or partially known sources and use the best practices and principles for plant breeding of trees
• Seed Orchards to obtain genetically improved seeds - Cuttings from the plus trees are used to establish clonal seed orchards or seedlings raised from seed collected from the plus trees are used to make seedlings in seed orchards
West Coast Paper Mills Ltd
32
Reduction Burden on Environment
Primary Clarifier - Pulp
Secondary Clarifier - Pulp
Diffused Aeration System
Sludge loading
Mist Cooling System
Greenery at Effluent Treatment Plant
Primary Clarifier - Paper
Sludge Handling - Paper
Dewatered Sludge
Bioassay Analysis for Fish Survival
Online Continuous Air Quality Monitoring Station
West Coast Paper Mills Ltd
33
Ensuring Safety and Health in the Workplace
Fire Hydrant Pumps
Fire Hydrant Point near chipper
Full-fledged Hospital
Villagers' medical check-up
The Mill has adequate fire fighting facilities. The existing fire fighting arrangements will be suitable augmented during the MDP program
The Mill has a well aid Disaster Management Plan and the same will be adopted for the proposed MDP
The Mill has full fledged Hospital located in Bangur Nagar Colony, adjacent to the Mill premises
Regular annual medical checkups are undertaken for the employees under Occupational Surveillance program
West Coast Paper Mills Ltd
34
Contribute to the Common Good
Free Child Health Check-up & Treatment Camp
Bus Shelter at Gaonthan, Dandeli
Distribution of Desk & Benches to Schools & Colleges
Distribution of waste collection bins across Dandeli
‘’Serving the community for a better tomorrow..’’
West Coast Paper Mills Ltd
35
Tree Plantation initiatives at local schools
Way Forward
Expansion Plans - Optic Fibre Cable
ESTIMATED COST
TARGET PRODUCTS
TIMELINE
Rs. 120 crores in Phase I & Rs. 55 crores in Phase II
Optical Fibres and Optic Cables
By July 2024
ESTIMATED REVENUE
SOURCE OF FUNDING
Revenue of Rs. 275 crore
Mix of Debt and Internal Accruals.
West Coast Paper Mills Ltd
37
Cost Optimization is Continuous Discipline
Wood & Pulp Volume Mix (%)
Key RM as % of Sales
Explanation
55
41
4
82
17
1
95
98
100
5
0
2
0
00
2017-18
2018-19
2019-20
2020-21
2021-22
Domectic Sourcing Imported Wood Chips
Others
West Coast Paper Mills Ltd
55
54
53
52
51
50
53
53
-4%
51
50
50
49 Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
4Y CAGR - Performance
Revenue CAGR
3.4%
Gross Profit CAGR
4.9%
• Sales Performance improved due to increase in Sales Realization per tonne
• Costs per tonne reduced inspite of
increase in sales
• Improved Wood & Pulp Costs as high cost Imports were replaced with the lower cost Domestic Supply
• Power, Fuel and Electricity costs
maintained at the same levels in the last 4 years
• Water costs reduced significantly
• Upgradation in the plants &
equipment's and better R&D led to yield improvements and reductions in raw materials consumed
38
Expansion and Rebuilt of Machines to Improve Productivity & Efficiency
CAPEX of 2,100 Crores (2008-19)
PM-6 Rebuild & jobs of NFL,Recy & PM
Announced Rs. 3300 mn investment towards debottlenecking
2018
PM-3 Rebuild & Jobs of Enmas Recy Boiler
161
149
2,098
Production capacity increased to 1,80,000 TPA
2007
1,465
323
Installed 100 TPD duplex board
2002
2008-11
2012-16
2017-18
2018-19
Mega Expansion-PM- 6,NFL,Recy,Power Plant (Capacity from 1.8 to 3.2 tpa i.e. increase by 1.40 lakhs tpa )
West Coast Paper Mills Ltd
Total Capex
Commissioned 250 TPD bleach plant
1998
Installed 75 TPD duplex board machine
1996
Set up 18,000 TPA paper capacity
1959
2010
2003
• Expansion to increase capacity to 320,000 TPA
•
Installed 725 TPD fiber line replacing old Pulp line
Reached 163,750 MTPA via rebuilding and adding duplex board capacity
2001
Attained 90% sufficiency in power
1997
Added 57,750 MTPA capacity of duplex board capacity
1974
Increased capacity to 62,000 TPA
39
Financials Highlights
Q3 & 9M FY23 - Highlights
(Standalone)
Revenue (₹ in Crs)
EBITDA & EBITDA Margin
Gross Profit & Gross Profit Margin
PAT & PAT Margin
+27%
660
522
18.5%
33.7%
17.32%
33.01%
7.74%
21.4%
+131%
223
+141%
218
+178%
142
97
90
51
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Revenue (₹ in Crs)
EBITDA & EBITDA Margin
Gross Profit & Gross Profit Margin
PAT & PAT Margin
19.5%
31.3%
18.1%
31.9%
+52%
2,044
+149%
640
+169%
653
10.1%
20.6%
+210%
421
1,341
257
243
136
9MFY22
9MFY23
9MFY22
9MFY23
9MFY22
9MFY23
9MFY22
9MFY23
** Gross Profit (PBDT): Profit Before Tax + Depreciation
*Excluding Other Income ; Note: Rounded off to the nearest whole number
41
Income Statement – Q3FY23
(Standalone)
Particulars (₹ in Crores)
Revenue from Operations
Other Income
Total Revenue from Operations
Cost of Material Consumed
Purchases of stock-in-trade
Change in Inventories of Finished goods & Work in Progress
Employee Expenses
Other Expenses
Total Operating Expenses
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Exceptional Items/Share of loss from associates
Profit before Tax
Profit before Tax(%)
Tax
Profit After Tax
PAT Margin (%)
EPS (As per Profit after Tax)
Q3FY23
Q3FY22
Y-o-Y
Q2FY23
Q-o-Q
9MFY23
9MFY22
Y-o-Y
660.43
7.66
668.09
300.74
2.33
-37.01
47.71
124.05
437.81
230.28
34.47%
30.18
200.09
29.95%
12.28
0.00
187.81
28.11%
45.89
141.92
21.24%
21.49
521.76
4.17
525.93
259.53
0.00
-1.36
46.07
121.02
425.26
100.67
19.14%
35.02
65.65
12.48%
10.29
0.00
55.36
10.53%
4.25
51.11
9.72%
7.74
27.03%
128.75%
204.80%
239.24%
177.65%
723.15
25.70
748.85
312.07
0.53
-5.92
54.67
140.78
502.13
246.72
32.95%
29.78
216.94
28.97%
5.31
0.00
211.62
28.26%
55.78
155.84
20.81%
23.59
2,043.61
1,340.67
36.32
23.74
-10.78%
2,079.93
1,364.41
52.44%
919.78
5.66
-48.06
147.38
379.28
715.67
0.00
-45.75
138.59
275.43
1,404.04
1,083.94
675.88
32.50%
89.11
586.77
28.21%
22.43
0.00
564.33
27.13%
143.23
421.11
20.25%
63.76
280.47
20.56%
103.63
176.84
12.96%
37.70
0.00
139.14
10.20%
3.32
135.82
9.95%
20.56
-6.70%
-7.81%
-11.29%
-8.99%
141%
232%
306%
210%
42
Standalone Profit & Loss Statement
Particulars (₹ in Crores)
Revenue from Operations
Revenue from Trading Operations
Revenue from Operations
Other Income
Total Revenue
Cost of Materials consumed
Purchase of stock-in-trade
Changes in Inventories
Employee Benefits Expense
Other Expenses
Total Operating Expenses
EBITDA
EBITDA %
Depreciation and Amortisation Expense
Finance Costs
PBT
PBT Margin
Exceptional Items
PBT
Tax Expenses
PAT
PAT %
EPS
FY20
1981.1
1.3
1982.5
47.6 2030.0
1043.8
0.9
-46.6
160.0
343.1
1,501.3
528.79 26.7%
166.4
72.0
290.4
14.6%
0.0
290.4
14.0
276.4
13.9%
41.85
FY21
1368.4
0.0
1368.4
10.0 1378.4
688.7
0.0
31.6
164.2
292.7
1,177.3
201.05 14.7%
153.5
65.2
-17.6
-1.3%
0.0
-17.6
-19.7
2.0
0.1%
0.31
FY22
1979.5
5.7
1985.2
30.0 2015.2
988.5
5.5
23.9
182.4
379.3
1,579.6
435.55 21.9%
138.3
52.8
244.4
12.3%
0.0
244.4
26.3
218.1
11.0%
33.02
43
Standalone Balance Sheet Statement
Equity & Liabilities (₹ in Crores)
Equity Share Capital
Other Equity
NCI
Total Equity
Financial liabilities
1. Borrowing
2. Lease Liabilities
Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non-current Liabilities
Total Non-Current Liabilities
Financial Liabilities
(ii) Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) Other Financial Liabilities
Other Current Liabilities
Current Tax Liabilities
Provisions
Total Current Liabilities
Total Equity & Liabilities
Mar’20
Mar'21
Mar’22
13.2
13.2
13.2
1282.3
1285.2
1494.3
0.0
0.0
0.0
1295.5
1298.4
1507.5
523.6
396.4
225.1
0.0
62.6
5.0
0.0
72.1
663.3
88.4
0.0
78.6
217.6
44.3
0.0
10.6
0.5
59.7
5.4
0.0
75.7
19.9
57.3
6.2
0.0
79.7
537.1
388.1
231.8
166.5
0.0
69.8
83
68.4
0.0
6.1
3.3
109.2
94.1
50.2
0.0
13.4
439.4
459.0
436.7
2398.3
2294.6
2332.4
Assets (₹ in Crores) Property, plant and equipment Capital Work-in-Progress Right of Use Asset Goodwill Intangible Assets Intangible Assets under development
Biological Assets other than Bearer Plants Financial Assets i. Investments in Subsidiary and Associates ii. Other Investments iii. Loans iv. Other Financial Assets Other non current assets Current tax assets Deferred tax assets Total Non-Current Assets Inventories Biological Assets other than Bearer Plants Financial Assets (i) Investments (ii) Trade Receivable (iii) Cash and Cash Equivalents (iv) Bank balances other than above (v) Loans (vi) Other Financial Assets Other Current assets Assets classified as held for sale Total Current Assets Total Assets
Mar’20 905.2 55.3 0.0 0.0 0.5 0.0
7.6
911.6 0.5 0.0 18.9 2.4 8.0 46.8 1939.9 0.0 0.4
0.0 101.4 1.4 2.5 2.7 2.1 23.6 0.0 458.3 2398.3
Mar'21 827.2 24.7 2.1 0.0 1.0 0.0
6.8
911.6 0.5 0.5 2.4 1.3 6.2 68.4 1,850.1 240.5 0.4
0.0 125.6 5.6 2.5 11.0 1.7 57.1 0.0 444.4 2,294.6
Mar’22 723.1 14.1 23.7 0.0 0.6 0.0
6.7
911.6 0.7 0.0 2.4 4.8 5.7 84.1 1777.7 246.3 0.0
88.5 133.6 3.0 2.1 6.0 6.1 69.0 0.0 554.7 2,332.4
44
Standalone Cash Flow Statement
Particulars (₹ in Crores)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add: Cash and cash equivalents as at 1st April
Add : Pursuant to acquisition of subsidiary
Cash and cash equivalents as at 31st March
FY20
FY21
FY22
290
195
485
91
576
-32
544
-771
225
-1
2
0
1
-18
-236
218
21
239
-0
239
-59
-177
4
1
0
6
244
80
164
259
423
-41
382
-86
-299
-3
6
0
3
45
Segmental Performance Trends
(Standalone)
Paper & Paper Board Business
Cable Business
Revenue (Rs. Crs.)
1,861
1,874
1,869
1,651
1,287
Revenue (Rs. Crs.)
118
109
116
78
81
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
EBIT (Rs. Crs.)
350
336
297
253
43
EBIT (Rs. Crs.)
20
17
11
8
4
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
*FY18, Revenue = Gross Turnover – Excise Duty
46
Q3 & 9M FY23 - Highlights
(Consolidated)
Revenue (₹ in Crs)
EBITDA & EBITDA Margin
Gross Profit & Gross Profit Margin
PAT & PAT Margin
+42%
1,239
872
18.4%
37.2%
18.3%
38.0%
10.1%
25.1%
+188%
461
+195%
471
+252%
311
160
160
88
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Q3FY22
Q3FY23
Revenue (₹ in Crs)
EBITDA & EBITDA Margin
Gross Profit & Gross Profit Margin
PAT & PAT Margin
17.4%
32.3%
17.2%
33.0%
+54%
3,563
+186%
1,150
+196%
1,175
8.9%
21.5%
+273%
766
2,310
402
398
205
9MFY22
9MFY23
9MFY22
9MFY23
9MFY22
9MFY23
9MFY22
9MFY23
** Gross Profit (PBDT): Profit Before Tax + Depreciation
*Excluding Other Income ; Note: Rounded off to the nearest whole number
47
Income Statement – Q3FY23
(Consolidated)
Particulars (₹ in Crores)
Revenue from Operations
Other Income
Total Revenue from Operations
Cost of Material Consumed
Purchases of stock-in-trade
Change in Inventories of Finished goods & Work in Progress
Employee Expenses
Other Expenses
Total Operating Expenses
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
EBIT Margin (%)
Finance Cost
Exceptional Items/Share of loss from associates
Profit before Tax
Profit before Tax(%)
Tax
Profit After Tax
PAT Margin (%)
EPS (As per Profit after Tax)
Q3FY23
Q3FY22
Y-o-Y
Q2FY23
Q-o-Q
9MFY23
9MFY22
Y-o-Y
1239.16
872.20
23.60
1262.76
517.39
2.42
-37.03
92.15
203.00
777.93
484.83
38.39%
48.28
436.55
34.57%
13.85
0.00
422.70
33.47%
111.72
310.98
24.63%
39.93
10.86
883.06
428.23
0.00
-1.07
87.12
197.67
711.94
171.11
19.38%
53.72
117.39
13.29%
11.58
0.00
105.81
11.98%
17.39
88.42
10.01%
11.82
43.0%
183.34%
271.87%
299.49%
251.69%
1209.97
17.02
1226.99
510.23
0.44
-4.50
94.67
241.82
842.66
384.34
31.32%
47.14
337.20
27.48%
6.68
0.00
330.52
26.94%
84.40
246.12
20.06%
32.50
3563.28
2310.30
2.92%
26.15%
29.46%
51.88
3615.16
1541.50
5.66
-54.46
273.69
647.22
2413.60
1201.56
33.24%
141.51
1060.05
29.32%
26.67
0.00
27.89%
1033.38
26.35%
28.58%
267.33
766.05
21.19%
100.49
36.44
2346.74
1194.32
2.30
-56.62
263.36
504.54
1907.92
438.82
18.70%
159.95
278.87
11.88%
41.30
0.00
237.57
10.12%
32.21
205.36
8.75%
27.63
54.05%
173.81%
280.12%
334.98%
273.03%
48
Consolidated Profit & Loss Statement
Particulars (₹ in Crores)
Revenue from Operations
Revenue from Trading Operations
Revenue from Operations
Other Income
Total Revenue
Cost of Materials consumed
Purchase of stock-in-trade
Changes in Inventories
Employee Benefits Expense
Other Expenses
Total Operating Expenses
EBITDA
EBITDA %
Depreciation and Amortisation Expense
Finance Costs
PBT
PBT Margin
Exceptional Items
PBT
Tax Expenses
PAT
PAT %
EPS
FY20
2489.3
3.6
2492.9
53.6 2546.4
1294.6
0.9
-96.2
222.9
454.4
1,876.6
669.8
26.9%
197.9
75.0
397.0
15.9%
0.0
397.0
-9.5
406.5
16.3%
56.08
FY21
2244.5
0.0
2244.5
24.7 2269.2
1095.0
0.0
78.3
313.2
505.4
1,991.9
277.3
12.4%
229.4
70.1
-22.2
-1.0%
-4.0
-26.2
-21.8
-0.4
0.0%
-0.47
FY22
3368.0
9.6
3377.7
58.2 3435.9
1641.6
7.8
47.1
358.6
689.2
2,744.3
691.6
20.5%
212.5
58.7
420.4
12.4%
0.0
420.4
74.5
345.9
10.2%
46.49
49
Consolidated Balance Sheet Statement
Equity & Liabilities (₹ in Crores)
Mar’20
Mar'21
Mar’22
Equity Share Capital
Other Equity
NCI
Total Equity
Financial liabilities
(i). Borrowing
(ii). Lease Liabilities
Other Financial Liabilities
Provisions
Deferred Tax Liabilities (Net)
Other Non-current Liabilities
Total Non-Current Liabilities
Financial Liabilities
(i) Borrowings
(ii) Lease Liabilities
(iii) Trade Payables
(iv) Other Financial Liabilities
Other Current Liabilities
Current Tax Liabilities
Provisions
Total Current Liabilities
Total Equity & Liabilities
13.2
1375.0
316.0
1704.2
13.2
1375.7
315.8
1704.6
13.2
1673.0
348.8
2035.0
534.8
405.8
235.1
0.0
78.6
8.5
125.4
72.1
819.4
88.4
0.0
208.1
253.9
67.4
0.0
89.5
8.6
61.4
5.9
118.1
75.7
675.6
256.3
4.9
204.5
114.1
94.0
0.0
83.3
27.8
59.2
7.6
109.5
79.7
518.9
210.8
4.7
275.4
129.7
76.2
0.0
92.1
707.3
3230.9
757.2
3137.5
788.9
3342.8
Assets (₹ in Crores) Property, plant and equipment Capital Work-in-Progress Right of Use Asset Goodwill Intangible Assets Intangible Assets under development Biological Assets other than Bearer Plants Financial Assets (i) Other Investments (ii) Loans (iii) Other Financial Assets Other non current assets Current tax assets (net) Deferred tax assets (net) Total Non-Current Assets Inventories Biological Assets other than Bearer Plants Financial Assets (i) Investments (ii) Trade Receivable (iii) Cash and Cash Equivalents
(iv) Bank balances other than above
(v) Loans (vi) Other Financial Assets Other Current assets Assets classified as held for sale Total Current Assets Total Assets
Mar’20 1697.5 56.9 - 183.7 128.9 0.0
7.6
18.1 0.0 11.3 37.5 13.6 46.7 2202.0 548.3
0.0
26.7 142.0 15.8
159.9
41.8 7.6 85.4 2.2 1028.9 3230.9
Mar'21 1549.7 32.2 13.5 183.7 119.6 1.4
6.8
107.8 4.0 6.2 35.3 5.2 68.4 2,134.0 411.8
0.4
112.0 203.9 21.0
70.5
62.4 5.1 114.7 1.7 1,003.5 3,137.5
Mar’22 1422.3 21.8 32.2 183.7 112.0 0.0
6.7
138.9 0.0 6.6 42.4 4.8 84.2 2055.6 395.8
0.0
333.0 242.3 27.8
32.3
106.0 11.3 137.4 1.3 1,287.2 3,342.8
50
Consolidated Cash Flow Statement
Particulars (₹ in Crores)
Cash Flow from Operating Activities
Profit before Tax
Adjustment for Non-Operating Items
Operating Profit before Working Capital Changes
Changes in Working Capital
Cash Generated from Operations
Less: Direct Taxes paid
Net Cash from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
Net increase/ (decrease) in Cash & Cash equivalent
Add: Cash and cash equivalents as at 1st April
Add : Pursuant to acquisition of subsidiary
Cash and cash equivalents as at 31st March
FY20
FY21
FY22
397.02
-225.07
622.09
77.01
699.09
50.00
649.10
-881.48
218.20
-14.19
6.92
23.03
15.76
-26.17
-290.08
263.91
73.71
337.62
-0.20
337.82
-165.95
-166.64
5.23
15.76
0.00
21.00
420.40
-222.62
643.03
44.13
687.15
-96.59
590.56
-289.02
-294.73
6.81
21.00
0.00
27.80
51
Segmental Performance Trends
(Consolidated)
Paper & Paper Board Business
Cable Business
Revenue (Rs. Crs.)
3,249
1,633
1,861
2,384
2,163
Revenue (Rs. Crs.)
118
109
129
75
81
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
EBIT (Rs. Crs.)
445
473
348
253
43
EBIT (Rs. Crs.)
21
18
11
8
9
FY18
FY19
FY20
FY21
FY22
FY18
FY19
FY20
FY21
FY22
*FY18, Revenue = Gross Turnover – Excise Duty
52
West Coast Paper Mills Limited https://www.westcoastpaper.com/
Investor Relations Advisors :
Orient Capital (a division of Link Group)
Mr. Nikunj Jain +91 9769060608 nikunj.jain@linkintime.co.in
Mr. Amar Yardi +91 7045121239 amar.yardi@linkintime.co.in
Thank You