West Coast Paper Mills Limited · NSE:WSTCSTPAPR
West Coast Paper Mills — Investor Presentation (August 2023)
58 slides from West Coast Paper Mills's investor presentation, Aug 14, 2023
Slide 1: Exchange filing cover letter: Updated Investor Presentation
ZZQ:BM:268:SHARE:07: August 14, 2023 To: To: BSE Limited National Stock Exchange of India Ltd. Corporate Services Listing Department Floor 25, P.J.Towers, Exchange Plaza Dalal Street Bandra-Kurla Complex, MUMBAI – 400 001 Bandra [East] MUMBAI-400 051 Dear Sirs, Sub: Updated Investor Presentation Ref
Slide 2: Investor Presentation | August 2023
Investor Presentation | August 2023
Slide 3: Safe Harbor
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 an
Slide 4: About West Coast Paper Mills
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 technolo
Slide 5: Key Highlights: Pulp to Paper Excellence
Key Highlights: Pulp to Paper Excellence 1955 22+ 3,20,000 Countries MTPA Established in Countries Manufacturing capacity 4,000+ 70+ ISO 9001-2015 QMS ISO 14001-2015 EMS ISO 45001-2018 OH & SMS Employee Our Distribution Certifications Strength Network 4
Slide 6: A Look Back at Our Company's History
A Look Back at Our Company's History 2008 : Production capacity increased to 2019: Applied for permission from 1,80,000 TPA pollution control board to increase 2009 : Raised INR 855 crores via production to 450,000 TPA in Preference shares, non- existing plant 1995 : Installed 1.05 MW wind power con
Slide 7: Many Firsts to Our Credit
Many Firsts to Our Credit 1 First in Asia to install twin-wire Papriformer paper machine 2 First to introduce captive plantations in India First in India to introduce a chemical recovery boiler of 1100 TPD Solids 3 First to use synthetic wire on paper machine in India 4 Firing per day capacity First
Slide 8: APL Acquisition: Consolidation of Leadership Position
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 – 3,10,349 Mtpa Sales Volume – 2,50,238 Mtpa Revenue – ₹ 2,810 Crores Revenue – ₹ 2,098 Crores EBITDA – ₹ 948 Crores EBITDA – ₹
Slide 9: About Andhra Paper Limited
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 p
Slide 10: Business Diversification via Optical Fibre Cable Manufacturing
Business Diversification via Optical Fibre Cable Manufacturing About Cable Business Product Portfolio • The company under its cable division – ‘West Coast Optilinks’, operates a State of the art 1. Optical Fibre Cables manufacturing facility in a Hi-Tech Electronics zone at Mysuru 2. FRP ROD Cables
Slide 11: Experienced Board of Directors
Experienced Board of Directors SHRI S.K. BANGUR SMT. SHASHI DEVI BANGUR SHRI VIRENDRAA BANGUR Chairman & Managing Director Director Joint Managing Director He is a well-respected industrialist and philanthropist who serves as the She is a prominent member of the renowned Bangur family and serves as
Slide 12: Experienced Board of Directors
Experienced Board of Directors SHRI SUDARSHAN SOMANI SMT. SUDHA G. BHUSHAN SHRI SHIV RATAN GOENKA Director Director Director With more than 30 years of experience, he has worked in both London and A highly respected Finance professional and co-founder of Taxpert As Chairman and Managing Director of
Slide 13: Dynamic Management Team
Dynamic Management Team Paper & Paper Board Division Cable Division SHRI RAJENDRA JAIN SHRI. RAJESH BOTHRA SHRI. PRAMOD SRIVASTAV Executive Director Chief Financial Officer CEO – Cable Division A qualified Chartered Accountant and A qualified CA professional with over 34 With a background in the tel
Slide 14: Industry Dynamics in Our Favour
Industry Dynamics in Our Favour
Slide 15: Paper Industry & Consumption
Paper Industry & Consumption INDIAN PAPER MARKET RISING PRODUCTION OF CONSUMPTION PAPER INDUSTRY 22 Newsprint 20 10% Specialty paper (Tissue paper and others) 10% 10.11 4.87 Packaging: Carton Boards & 2.43 Container Boards 0.75 1.1 Writing & Printing (Corrugated Boards) 0.11 0.34 Paper (coated and 5
Slide 16: Paper Industry & Consumption
Paper Industry & Consumption Growth is primarily driven by paper-based packaging:- Packaging industry is thriving, with paper packaging (paperboard and kraft paper) accounting for more than half of paper production and growing at a 7-8% CAGR due to the rise in e-commerce, domestic pharmaceutical dem
Slide 17: Industry Dynamics - Consolidation is Inevitable
Industry Dynamics - Consolidation is Inevitable Consolidation in the Industry is Inevitable 2 out of 3 paper mills in India have already been closed Rising literacy rates, increasing [As per IPMA] India is Fastest Growing number of schools and universities Paper Market in the in the country and high
Slide 18: Investment Proposition
Investment Proposition Integrated pulp mill Expect favorable paper Pan India Presence for Multiple product Strong Promoter steadily Strong with ample water and cycle to sustain Marketing offerings with a focus on Balance Sheet increasing stake in the Credit Rating power profitability higher margin p
Slide 19: Core Business Strategy
Core Business Strategy Bring strategic alignment Digital Transformation Setting up clear and coherent goals based on sound market Adopting new technologies and processes to improve analysis and future aspirations and aligning the organisation with operations, enhance customer experiences, and drive
Slide 20: What Sets Us Apart
What Sets Us Apart
Slide 21: Wesco Brand Created – Premium Paper Brand
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: Copy Plus: Documate: Copy Gold: WESCO Bond: Multi
Slide 22: Product Portfolio Across Different Segments Ranging from 52-600 GSM
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 21
Slide 23: One of the Largest Single Location Plants
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’ Las
Slide 24: Self Sufficiency in all Utilities - Water, Power & Steam generation
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 ▪ Round the year water ▪ Four coal fired FBC boilers & ▪ Four captive turbo generators availability from river Kali two chemical recovery boilers
Slide 25: Wood Procurement Strategy
Strong Backward Integration for Key Raw Material Supply • Inhouse plantations across 2,463 acres of Strong Backward linkages with farming communities/farm forestry is the way land forward to get key raw material/wood fibre for pulp production Paper Making Process • Improving the productivity & profi
Slide 26: Our Manufacturing Facilities
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 (%) 95 98 93 98 91 72 FY 18 FY 19 FY20 FY21 FY22 FY23 25
Slide 27: Images of Our Manufacturing Facility
Images of Our Manufacturing Facility 26
Slide 28: Strong Commitment to Quality and R&D
Strong Commitment to Quality and R&D Quality Control Research & Development Strong customer focused research 24x7 Quality Control Activity initiative, comprising a sophisticated Research center and qualified Machines equipped with advanced professionals online process and quality control systems for
Slide 29: One of the Largest Dealer Network in India
One of the Largest Dealer Network in India Distribution Presence across the One of the Largest dealer network in the country Key Highlights - Distribution country Network o Andhra Pradesh o Assam Network of 70+ dealers and 6 zonal offices in India o Haryana o Dadra & Nagar Haveli 75% of the dealers
Slide 30: Our Global Footprints
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 29
Slide 31: Testimony to Strive Excellence
Testimony to Strive Excellence National Environmental Awards Special Commendation Award (IPMA) at the Paperex-2015 1st prize in Best State Level Safety Safe Industrial Award (2016) Boiler Category (2017) Award for Rejuvenation of Water Tanks 30
Slide 32: Awards & Accolades
Awards & Accolades Safety Award National Safety Trophy Facilitation Ceremony function “UTTHAMA SURAKSHA (2019) held by National Safety Council - PURASKAR” from National Karnataka Chapter Safety Council 31
Slide 33: Environmental Social Governance
Environmental Social Governance
Slide 34: Responsible Forestry by Forest Stewardship Council
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 sett
Slide 35: SARA- Certified for Being a 'Well Managed Group Plantation'
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 for
Slide 36: Tree Improvement Programme
Tree Improvement Programme Research Wing Tree Improvement Programme • Research wing works pro-actively towards the • Provide genetically superior, fast growing, disease promotion of Technology-based plantations with resistant and best quality planting stock for local districts, local communities and
Slide 37: Reduction Burden on Environment
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 Continuou
Slide 38: Ensuring Safety and Health in the Workplace
Ensuring Safety and Health in the Workplace Fire Hydrant Point Full-fledged Hospital Villagers' medical check-up Fire Hydrant Pumps near chipper The Mill has adequate fire The Mill has a well aid The Mill has full fledged Regular annual medical fighting facilities. The existing Disaster Management P
Slide 39: Contribute to the Common Good
Contribute to the Common Good Free Child Health Check-up & Treatment Camp ‘’Serving the community Bus Shelter at Gaonthan, for a better tomorrow..’’ Dandeli Distribution of Desk & Benches to Schools & Colleges Distribution of waste collection bins across Dandeli Tree Plantation initiatives at local
Slide 40: Way Forward
Way Forward
Slide 41: Key Growth Drivers
Key Growth Drivers 01 02 03 Greater emphasis on education and Low per capita paper consumption Growth in organized retail literacy by the government The low per capita paper consumption The Indian government's focus on Organized retail and e-commerce in India, at just over 15 kg compared to educatio
Slide 42: Expansion Plans - Optic Fibre Cable
Expansion Plans - Optic Fibre Cable ESTIMATED TARGET TIMELINE COST PRODUCTS ₹ 120 crores in Optical Fibre Phase I and Optic By July 2024 & Fibre Cables ₹ 55 crores in Phase II ESTIMATED SOURCE OF REVENUE FUNDING Revenue of Mix of Debt and ₹ 275 crore Internal Accruals 41
Slide 43: Cost Optimization is Continuous Discipline
Cost Optimization is Continuous Discipline Wood & Pulp Volume Mix (%) Sales & Raw Material Explanation (in ₹ Crore) 3000 • Sales Performance improved due to 2500 increase in Sales Realization per tonne 2000 • Reduction in cost per tonne over the 1500 years 1000 • Improved Wood & Pulp Costs as high-c
Slide 44: Expansion & Rebuilding of Machines to Improve Productivity & Efficiency
Expansion & Rebuilding of Machines to Improve Productivity & Efficiency CAPEX of 2,381 Crores (2008-23) Announced ₹3300 mn investment 2018 PM-6 Rebuild & jobs towards debottlenecking of NFL,Recy & PM • Expansion to increase 2010 capacity to 320,000 TPA PM-3 Rebuild & Jobs of Enmas Recy Boiler • Inst
Slide 45: Financial Highlights
Financial Highlights
Slide 46: Q1FY24 Financial Highlights (Standalone)
Q1FY24 Financial Highlights (Standalone) Revenue (₹ in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 30.0% 37.8% 29.3% 37.0% 18.6% 24.1% -1% +26% +27% +30% 660 651 252 246 161 199 194 123 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Revenue (₹ in Crs) EBI
Slide 47: Standalone Income Statement – Q1FY24
Standalone Income Statement – Q1FY24 Particulars (₹ in Crores) Q1FY24 Q1FY23 Y-o-Y Q4FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 651.4 660.0 766.7 2810.3 1985.2 Other Income 13.9 3.0 9.3 45.7 30.0 Total Revenue from Operations 665.3 663.0 0.34% 776.1 -14.28% 2856.0 2015.2 41.72% Cost of Mater
Slide 48: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particulars (₹ in Crores) FY21 FY22 FY23 Revenue from Operations 1368.4 1985.2 2810.3 Other Income 10.0 30.0 45.7 Total Revenue 1378.4 2015.2 2856.0 Cost of Materials consumed 688.7 988.5 1221.5 Purchase of stock-in-trade 0.0 5.5 7.3 Changes in Inventories 31.6 23.
Slide 49: Standalone Balance Sheet Statement
Standalone Balance Sheet Statement Equity & Liabilities (₹ in Crores) FY21 FY22 FY23 Assets (₹ in Crores) FY21 FY22 FY23 Equity Share Capital 13.2 13.2 13.2 Property, plant and equipment 827.2 723.1 642.6 Capital Work-in-Progress 24.7 14.1 23.9 Other Equity 1285.2 1494.3 2037.3 Right of Use Asset 2.
Slide 50: Standalone Cash Flow Statement
Standalone Cash Flow Statement Particulars (₹ in Crores) FY21 FY22 FY23 Cash Flow from Operating Activities Profit before Tax -17.6 244.4 799.4 Adjustment for Non-Operating Items -235.6 164.5 108.1 Operating Profit before Working Capital Changes 218.0 408.9 907.5 Changes in Working Capital 21.4 14.5
Slide 51: Segmental Performance Trends (Standalone)
Segmental Performance Trends (Standalone) Paper & Paper Board Business Cable Business Revenue (₹ in Crs) Revenue (₹ in Crs) 2,616 195 1,861 1,874 1,869 118 109 116 1,287 81 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 EBIT (₹ in Crs) EBIT (₹ in Crs) 803 20 17 15 350 336 8 297 4 43 FY19 FY20 FY2
Slide 52: Q1FY24 Financial Highlights (Consolidated)
Q1FY24 Financial Highlights (Consolidated) Revenue (₹ in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 29.5% 36.6% 24.9% 32.3% 18.6% 23.7% +2% +29% +30% +33% 1,114 1,139 430 423 278 332 326 209 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Revenue (₹ in Cr
Slide 53: Consolidated Income Statement – Q1FY24
Consolidated Income Statement – Q1FY24 Particulars (₹ in Crores) Q4FY23 Q4FY22 Y-o-Y Q3FY23 Q-o-Q FY23 FY22 Y-o-Y Revenue from Operations 1138.6 1114.2 1357.5 4920.8 3377.7 Other Income 35.1 11.3 25.7 77.6 58.2 Total Revenue from Operations 1173.7 1125.4 4.29% 1383.2 -15.14% 4998.4 3435.9 45.48% Cos
Slide 54: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (₹ in Crores) FY21 FY22 FY23 Revenue from Operations 2,244.5 3,377.7 4,920.8 Other Income 24.7 58.2 77.6 Total Revenue 2,269.2 3,435.9 4,998.4 Cost of Materials consumed 1,095.0 1,641.6 2,063.2 Purchase of stock-in-trade 0.0 7.8 7.5 Changes in Invento
Slide 55: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Equity & Liabilities (₹ in Crores) FY21 FY22 FY23 Assets (₹ in Crores) FY21 FY22 FY23 Equity Share Capital 13.2 13.2 13.2 Property, plant and equipment 1,549.7 1,422.3 1,338.0 Capital Work-in-Progress 32.2 21.8 53.3 Other Equity 1,375.7 1,673.0 2,567.5 Right of U
Slide 56: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (₹ in Crores) FY21 FY22 FY23 Cash Flow from Operating Activities Profit before Tax -26.2 420.4 1,477.8 Adjustment for Non-Operating Items -2.9 -222.6 -177.0 Operating Profit before Working Capital Changes 263.9 643.0 1,654.5 Changes in Working Capital 0.7
Slide 57: Segmental Performance Trends (Consolidated)
Segmental Performance Trends (Consolidated) Paper & Paper Board Business Cable Business Revenue (₹ in Crs) Revenue (₹ in Crs) 4,712 208 3,249 118 129 2,384 2,163 109 1,861 81 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 EBIT (₹ in Crs) EBIT (₹ in Crs) 1,516 21 18 18 9 8 445 473 348 43 FY19 FY20
Slide 58: Thank You
Company : West Coast Paper Mills Limited Mr. Akhil Saraff Email: akhil.saraff@westcoastpaper.com Website: www.westcoastpaper.com Investor Relations Advisors : Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi +91 9769060608 nikunj.jain@linkintime.co.in +91 7045121239 amar.yard
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