Kuantum Papers Limited

rs,

ation in books, notebooks, annual reports, directories, account books, envelopes, diaries, calendars, computer & office stationery. • Kuantum’s product offerings include maplitho, cream wove and value

rs 13,096

s to expand it to 75,000 acres by 2030. I n v e s t o r P r e s e n t a t i o n \. Kuantum Papers 13,096 12,113 ------------------------------------------- . . . . . . . . . . . . . . . .

27.49%

··············································································· H1-FY26 11,070 27.49% 21.92% 14.88% 28.96% 5,026 FY24 FY25 FY23 Paper Sales Volume (MT) 1,49,871 1,53,033 1

21.92%

······································································· H1-FY26 11,070 27.49% 21.92% 14.88% 28.96% 5,026 FY24 FY25 FY23 Paper Sales Volume (MT) 1,49,871 1,53,033 1,60,845

14.88%

······························································· H1-FY26 11,070 27.49% 21.92% 14.88% 28.96% 5,026 FY24 FY25 FY23 Paper Sales Volume (MT) 1,49,871 1,53,033 1,60,845 74,374

28.96%

······················································· H1-FY26 11,070 27.49% 21.92% 14.88% 28.96% 5,026 FY24 FY25 FY23 Paper Sales Volume (MT) 1,49,871 1,53,033 1,60,845 74,374 FY23

rs 1980

ing to 24 Countries [) 7 C O M PA N Y H I S TO RY A N D M I L E S TO N E S \. Kuantum Papers 1980 Mill established with PM 1 & 2 with a capacity of 30 TPD. 1988 PM 3 installed with a capacity of

40%

of 30 TPD. 1988 PM 3 installed with a capacity of 100 TPD. 2000 Debottlenecking done to achieve 40% improved efficiency on output. 2002 National Energy Conservation Award conferred by the Govern

10 MW

a capacity of 200 TPD with Chemical Recovery Plant of 200 TPD and Co- Generation Power Plant of 10 MW. 2018 Project KORE launched with Accenture for operational excellence. SAP S4 HANA implemented

28 MW

450 TPD. Increased Agro & Wood Pulping Capacity to 365 TPD. Power generation capacity increased by 28 MW. A new chemical recovery Plant of 500 TPD installed. 2023 Record-breaking revenues of INR 13,096

INR 13,096

by 28 MW. A new chemical recovery Plant of 500 TPD installed. 2023 Record-breaking revenues of INR 13,096 Mn and an EBITDA Margins of 29%. Successfully launched Kupstock (base paper for cups) and Sipps (

29%

t of 500 TPD installed. 2023 Record-breaking revenues of INR 13,096 Mn and an EBITDA Margins of 29%. Successfully launched Kupstock (base paper for cups) and Sipps (base paper for straw) as a repl

“2018 Project KORE launched with Accenture for operational excellence.”

“2021 Backward Integration Project completed taking installed paper capacity to 450 TPD.”

“2024 Initiated Artificial Intelligence journey with Project Nirman.”

“Commenced Plant Modernization & Capacity Expansion Project with an outlay of INR 7,350 Mn.”

“Kuantum Papers Raw Material Mix as of FY25 Imported Wood 2% Locally Procured Wood 48% Agro Residues 50% Kuantum has an integrated Pulping facility with separate Agro Pulping and Wood Pulping streets having a total capacity of 365 MT of pulp per day for paper manufacturing.”

“Kuantum launched the Social-Forestry and Plantation Project and is producing quality clonal plants of Eucalyptus and over the years has covered approximately 16,000 acres area under clonal plantation.”

ORDER BASED MANUFACTURING

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INVENTORY

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COLLECTION MECHANISM

1

Current Operating Capacity

1

Total Installed Capacity

1

Power Plant in which comprises of

1

Import-Export Scenario

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Valorem Advisors Disclaimer

1

ORDER BASED MANUFACTURING

• • The production is order based and manufacturing is undertaken after the company receives advance orders from dealers/distributors. The company does not operate on fixed SKUs. They service their dealers based on customized order sizes, rather than fixed sizes offered by most of the competitors.

COLLECTION MECHANISM

• Collection is done strictly within 5 days of date of Invoice. I n v e s t o r P r e s e n t a t i o n ' l • .. 100+ Dealers Exporting to 24 Countries [) 7 C O M PA N Y H I S TO RY A N D M I L E S TO N E S \. Kuantum Papers 1980 Mill established with PM 1 & 2 with a capacity of 30 TPD. 1988 PM 3 installed with a capacity of 100 TPD. 2000 Debottlenecking done to achieve 40% improved efficiency on output. 2002 National Energy Conservation Award conferred by the Government of India. 2005 Lignin Precipitation Plant installed in collaboration with a Swiss company. 2006 Agro Pulp Mill upgraded to 150 TPD along with the Continuous Digestor. 2007 Restructuring of ABCL took place, renamed Paper Division as ABC Paper Ltd. 2017 Specialty Paper launched. Secured ISO 9001, ISo14001, OHSAS 18001, QMS and EMS certifications. 2015 Agro Pulp Mill of 200 TPD installed along with ODL Plant. 2014 Top Former (Gapcon- Italy) and Size Press (Bellmer, Germany) installed on PM 4. 2013 On-site PCC Plant establ

Current Operating Capacity

• Machine 1 - 50 TPD • Machine 2 - 50 TPD • Machine 3 - 115 TPD • Machine 4 - 285 TPD The different configurations of the four paper machines allow Kuantum to manufacture a wide variety of surface-sized, non surface-sized and value-added specialty products. Total Capacity - 700 Solids TPD • Recovery Boiler 1 - 200 Solids TPD • Recovery Boiler 2 - 500 Solids TPD Turbines: Total Installed Capacity – 38 MW Boilers : Total Operational Capacity - 190 TPH • Boiler 1 - 60 TPH • Boiler 2 - 130 TPH The Chemical Recovery Plant operates at a high efficiency allowing recovery of over 95% of Caustic, enabling cost reductions, margin improvements and reusing pulp production runs. subsequent for The state of the art Co-Gen Power Plant ensures uninterrupted steam and power supply to process units. The 130 TPH high pressure CFBC boiler combined with a set of highly efficient extraction cum condensing turbine and an extraction cum back pressure turbine, lead to power generation at very cost effective ra

Total Installed Capacity

Turbines: 38 MW Boilers: 190 TPH • In order to be self sufficient for its Power & Steam requirements, Kuantum has a captive Co – Generation

Power Plant in which comprises of

▪ ▪ Two Boilers of 60 & 130 TPH respectively. Two state-of-the-art turbines totalling an capacity of 38MW. installed • The Co-Gen Power Plant allows the company to decrease its dependency on the State Power Grid, enabling it to maintain seamless operations at all times along with reduction in power cost. I n v e s t o r P r e s e n t a t i o n [) 17 E F F LU E N T T R E AT M E N T P L A N T \. Kuantum Papers The company has upgraded existing Effluent Treatment Plant with an objective of meeting the rightful parameters of treated effluent as well as to be ‘future ready’ to meet all Environmental norms. Low COD Street-1 is with Aerobic treatment. Effluent Treatment facility had been divided into two streams High COD Street-2 is with Anaerobic treatment. The treated effluent is used to irrigate more than 2050 acres of fields in the surrounding villages, through a network of pipelines laid by the Company at its expense. I n v e s t o r P r e s e n t a t i o n 18 R AW M AT E R I A L S O U R

Import-Export Scenario

▪ ▪ ▪ India's paper is in demand in the neighboring countries such as Sri Lanka, Bangladesh, Iran, and the UAE. Significant imports come from ASEAN countries, Japan, and China due to Free Trade Agreements. This has led to stagnation in paper export growth because of declining global pulp prices, resulting in a surplus of international products in Indian markets. Indian Industry players are lobbying for higher import duties on paper products to protect domestic production. • Consumption Patterns: India’s per capita paper consumption is currently at 15-16 kg, considerably lower than the global average of ~57 kg. With increasing GDP, rising per capita income, and higher expenditure, per capita paper consumption is on the rise. • Growth Drivers: ▪ The online retail industry is expected to grow 20-25% over the next 2-3 years, boosting packaging demand. Increasing use of computers and photocopying machines in corporate offices is fueling paper demand. ▪ ▪ Expansion of co-working spaces and n