Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (August 2021)
35 slides from Kuantum Papers's investor presentation, Aug 26, 2021
Slide 1: Kuantum Papers Ltd – Exchange Filing Cover Letter
Kuanturn Papers Ltd lhe PopeT MoteTs KPLISEs/IP 26.08.2021 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. CIl, G Block, Mumbai 400 001 Bandra-Kurla Complex Scrip Code: 532937 Bandra (East) Scrip ID: KUANTl!M Mumbai 400 051 Trading
Slide 2: Investor Presentation – August 2021
INVESTOR PRESENTATION – AUGUST 2021
Slide 3: Executive Summary
Executive Summary • Kuantum Papers Ltd., is one of the largest Agro based paper manufacturers in India and is committed to manufacturing FY21 FINANCIALS wood free, high quality maplitho, creamwove, copier and (INR Mn) specialty paper. Revenues • The company has an Integrated manufacturing facility o
Slide 4: Company Overview
Kuantum Papers % Poper Makers COMPANY OVERVIEW
Slide 5: About Kuantum Papers
About Kuantum Papers • Incorporated in 1980, Kuantum Papers started its commercial operations in an economically Operational Revenue (INR Mn) & EBITDA backward village of Hoshiarpur, Punjab. Margin • They started their commercial operations with 30 TPD and are currently operating at 450 7,143 7,935
Slide 6: Board of Directors
Board of Directors Sh. Jagesh Khaitan - Chairman • Sh. Jagesh Khaitan is the Chairman of Kuantum Papers Ltd. He was earlier the Vice Chairman and MD of Amrit Banaspati Co. Ltd. and remained President of Indian Vanaspati Producers Association IVPA. • His entrepreneurial spirit and passion has been on
Slide 7: Key Management Team
Key Management Team Roshan Garg - CFO and President (Finance) Sanjay Khosla - Vice President (Marketing) A qualified Chartered Accountant (CA) & Company Secretary (CS) by An MBA in Marketing, he has 25 years of experience in Sales and profession, he has 30 + years of work experience in Corporate Fin
Slide 8: Geographical Presence & Sales Model
Geographical Presence & Sales Model Jammu & Kashmir 2% Punjab 8% Delhi Haryana 31% Bihar 16% 3% Assam Uttar Pradesh 4% 10% Rajasthan 7% Order Order based based Manufacturing manufacturing: • The production is entirely order based and manufacturing is undertaken after the company receives advance ord
Slide 9: Company History and Milestones
Company History and Milestones Backward Integration Project completed in • Record breaking March’21 • PCC Plant in Production & Sales: • Increased Agro & exceeded 125,000 MT Wood Pulping collaboration with Capacity to 200 TPD • Composite Project Specialty Minerals Inc, • Highest Revenues and & 180 T
Slide 10: Marquee Clientele
Marquee Clientele *This list is only Illustrative and not exhaustive 9
Slide 11: Key Strengths
Key Strengths Pan India presence with an extensive network of Cost savings through executed Backward 90+ dealers Integration Project will lead to improved EBITDA margins in the range of 28-30% Long standing relationship with dealers, many Improved infrastructure of paper machines in associated with
Slide 12: Business Overview
Ww Kuantum Papers ie Poper Mokets BUSINESS OVERVIEW a
Slide 13: Current Manufacturing Facilities
Current Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Co-Gen Power Plant Segment • Total Capacity: 380 TPD • Total capacity: 450 TPD • Total Capacity: 700 Solids • Turbines : Total 38 MW • Agro based pulp: 200 TPD • Machine 1 - 30 TPD TPD ➢ New : 20 MW & 8 MW • W
Slide 14: Manufacturing Process
Manufacturing Process Chemical Recovery Plant Steam Co-gen Power Caustic Soda plant Recovery Effluent Treatment Agro Pulp Mill Wood Pulp Mill Plant Black Liquor Paper Manufacturing Raw Material Pulp Cooking & Washing Pulp Screening & Cutting PM1, PM2, PM3 Aggregation Bleaching & PM4 Warehousing & Di
Slide 15: Raw Material Sourcing
Raw Material Sourcing Kuantum has an integrated Pulping facility with separate Agro Pulping and Wood Pulping streets having a total capacity of 380 MT of pulp per day for paper manufacturing. Kuantum uses the following agro residues in its Agro Pulping Street (200 TPD) : Agro Residue % Content in Ag
Slide 16: Technical Collaboration with Tanovis AG
Technical Collaboration with Tanovis AG The company has a COLLABORATION with Tanovis AG (formerly Granit Recherché Development SA) FOR THE LIGNIN PRECIPITATION PLANT • Tanovis AG, is a Swiss company with global operations. It is in the business of providing process technologies & innovative products
Slide 17: Technical Collaboration with Specialty Minerals, USA
Technical Collaboration with Specialty Minerals, USA The company has a COLLABORATION with Specialty Minerals Inc. • We have a first-of–its-kind backward integrated PCC (Precipitated Calcium Carbonate) Plant in an Agro based operations in the world, set up in collaboration with Specialty Minerals Inc
Slide 18: Social Farm Forestry Program
Social Farm Forestry Program • Social farm forestry programs are green sustainable initiatives undertaken by paper companies in order to contribute to the small and marginal farmers of barren, non fertile land, apart from providing a catalyst to deforestation. • These initiatives also contribute in
Slide 19: Writing and Printing Products
Writing and Printing Products Agro and Wood based paper plants manufacturing paper using wheat straw, wood chips, sarkanda, bagasse and veneer waste. Different types of paper: Creamwove, Maplitho, Copier, Ledger, Cartridge, Stiffner, Colour, Parchment and Bond. Category Brand GSM Range KRESTO 54-120
Slide 20: Specialty Papers
Specialty Papers Category Brand GSM Range Krayo 49-130 Colour Kosmo Color 60-130 Kreda Ledger 58-90 Ledger Kodexa Ledger 58-90 Executive Bond Kuantum Bond 70-100 Color Copier Kaleela 72 Cartridge Kosmo cartridge 60-130 Stiffner Kosmo Stiffner 68-180 Kosmo Parchment Ns 105 Parchment Kosmo Parchment B
Slide 21: Backward Integration & Modernisation Project
BACKWARD INTEGRATION & MODERNISATION PROJECT (Completed in March’21) 20
Slide 22: Backward Integration Project completed in Mar'21
Backward Integration Project completed in Mar’21 A transformative effort undertaken for up-gradation, replacement and addition of machinery across these 3 areas which are: 1. Pulping Facilities 2. Chemical Recovery Plant 3. Co-Gen Power Plant Pulping Facilities Capacity Expansion Programme: • The co
Slide 23: Backward Integration Project completed in Mar'21
Backward Integration Project completed in Mar’21 Chemical Recovery Plant A chemical recovery plant of 500 TPD supplied by Andritz has been installed to process caustic from Black Liquor The Chemical Recovery Plant has three major components: • Recovery Boiler • Evaporator • Recausticizing Plant Bene
Slide 24: Backward Integration Project completed in Mar'21
Backward Integration Project completed in Mar’21 Co – Gen Power Plant The need of the hour is to be self-sufficient in power requirement in order to sustain operations on a long term basis. Kuantum has a captive Co-generation Power Plant in which we have added: • A high pressure CFBC Boiler supplied
Slide 25: Project Benefits
Project Benefits Additional benefits of This improved pulp Caustic Recovery & will enable better Co -Gen power generation, resulting paper quality, which in cost reductions will command a and operating higher Net Realization Increased Optimizing the efficiencies in the and drive profitability capaci
Slide 26: Future Growth Strategy
Future Growth Strategy Strengthening of Plant through Project Upgradation across Wood Pulping, CRP & Co-Generation Power plant Focusing on cost optimization and quality enhancement Creating a portfolio of higher proportion of value added specialty products from additional pulping efficiency achieved
Slide 27: Foray into New Specialty Products
Foray into New Specialty Products S No. Product Product Photo Product Description Industries Used in Greaseproof paper is made under hygienic Food Grade conditions from pure wood pulp which gives Food Packaging 1 -OGR excellent grease resistance and oil hold out Industries properties Cupstock Base i
Slide 28: Industry Overview
Ww Kuantum Papers ‘th Poper Makers INDUSTRY OVERVIEW 27
Slide 29: Paper Industry
Paper Industry • In terms of paper production, India contributes about 4.2% to the global market. Domestic paper Trend in W&P Paper Demand demand grew by 7.5% in the last decade, while global average growth was 0.5%. million tonnes • Currently, the Indian paper industry is valued at INR 70,000 crore
Slide 30: Financial Overview
a) 4 # Se Kuantum Papers ihe Poper Makers FINANCIAL OVERVIEW 29
Slide 31: Income Statement
Income Statement Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Operational Income 7,935 7,447 4,039 1,475 Total Expenses 6,379 6,262 3,746 1,320 EBITDA 1,556 1,185 293 155 EBITDA Margins (%) 19.61% 15.91% 7.25% 10.51% Other Income 88 88 100 15 Depreciation 251 317 348 121 Finance Cost 284 304 277 170
Slide 32: Balance sheet
Balance sheet Assets (INR Mn) FY20 FY21 Equity & Liabilities (INR Mn) FY20 FY21 Non-current assets Equity Property, plant and equipment 10,201 14,263 Equity share capital 87 87 Other equity 8,230 8,085 Capital work-in-progress 3,096 205 Total equity 8,317 8,172 Investment property 79 78 Liabilities
Slide 33: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 593 729 779 718 10 1,475 1,556 35.00% 7,935 7,447 9.23% 10.21%9.82% 9.64% 7,143 30.00% 6,427 1,166 1,185 25.00% 5.0 20.65% 19.61% 4,039 20.00% 15.91% 18.14% 293 15.00% 1,475 155 0.0 7.
Slide 34: Capital Market Data
Capital Market Data 100% 80% 60% 40% 20% 0% -20% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Kuantum Sensex Price Data (30th June, 2021) INR Shareholding Pattern as on 30th June, 2021 Face Value 1.0 Public, Market Price 76.4 29.70% 52 Week H/L 88.9 / 38.3 Mark
Slide 35: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d