West Coast Paper Mills Limited · NSE:WSTCSTPAPR
West Coast Paper Mills — Investor Presentation (November 2023)
58 slides from West Coast Paper Mills's investor presentation, Nov 14, 2023
Slide 1: Exchange cover letter: Updated Investor Presentation
ZZQ:AIM:411:SHARE:07 November 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 R
Slide 2: Investor Presentation November 2023
_1v West Coast Paper Mills Ltd. 44 „0_ -my' Your Partner ln Progress.. Investor Presentation I November 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
i 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 techno
Slide 5: Key Highlights: Pulp to Paper Excellence
111 Key Highlights: Pulp to Paper Excellence 1955 22+ 3,20,000 Countries MTPA O 00 O 00 0 000 Established in Countries Manufacturing capacity 4,000+ 70+ r—••• f ISO 9001-2015 QMS MI. 600 0 ISO 14001-2015 EMS El Ei El ISO 45001-2018 OH & SMS Employee Our Distribution Certifications Strength Network
Slide 6: A Look Back at Our Company's History
i 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 conv
Slide 7: Many Firsts to Our Credit
i Many Firsts to Our Credit 0 First in Asia to install twin-wire Papriformer paper machine • > 0 First to introduce captive plantations in India • 0 First to use syntheticwire on paper machine in India • ) 0 First in India to introduce a chemical recovery boiler of 1100 TPD Solids Firing per day cap
Slide 8: APL Acquisition: Consolidation of Leadership Position
APL Acquisition: Consolidation of Leadership Position Al% PLAndhra Paper Limited 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 —
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 __PLAndhr
Slide 10: Business Diversification via Optical Fibre Cable Manufacturing
111 Business Diversification via Optical Fibre Cable Manufacturing I 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 Ca
Slide 11: Experienced Board of Directors
111 Experienced Board of Directors SHRI S.K. BANGUR Chairman & 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 r() SMT. SHASHI DEVI BANGUR Director She is a prominent member of th
Slide 12: Experienced Board of Directors
111 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 Directo
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
i Paper Industry & Consumption INDIAN PAPER MARKET RISING PRODUCTION OF CONSUMPTION PAPER INDUSTRY 22 I Newsprint 20 10% Specialty paper (Tissue paper and others) 10% At 10.11 4.87 Packaging: Carton A. Boards & Container Boards 0.75 1.1 2.43 (Corrugated Boards) 0.11 0.34 Writing & Printing ,-1 2000-
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 Rising literacy rates, increasing India is Fastest Growing number of schools and universities Paper Market in the in the country and higher student High Capital Intensity World enrolments Economies of Scale R
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
i Core Business Strategy Bring strategic alignment Digital Transformation Setting up clear and coherent goals based on sound market Adopting newtechnologies and processes to improve a nalysis and future aspirations and a ligningthe organisation with operations, enhance customer experiences, and driv
Slide 20: What Sets Us Apart
What Sets Us Apart
Slide 21: Wesco Brand Created - Premium Paper Brand
111 Wesco Brand Created - Premium Paper Brand Exclusive range crafted especially for the hi-tech business Participated in Expo NI! .7co da Is 116 Finest Range of premium office paper of International standards, Tailor-made to suit all kinds of high-end = office printers 0 ill 4: r, c wa-co — Bon 1/0
Slide 22: Product Portfolio Across Different Segments Ranging from 52-600 GSM
Product Portfolio Across Different Segments Ranging from 52-600 GSM tcp Business Stationary Printing & Writing -14w j an - • LAF • I. 11 Security & Hi-value Grades Paper MG Varieties (Machine-Glazed) .705' • COMPUTER !MAE Mr- Cr= $A Cup Stock & Coated Duplex Board P A IACSCO Product A A A V v Or, ,.
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 11[11M "" VrOPPRIM p r il "atikir""- 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 Karn
Slide 24: Self Sufficiency in all Utilities - Water, Power & Steam generation
111 Self Sufficiency in all Utilities - Water, Power & Steam generation i i i 2. Power 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 In-house Capacities with
Slide 25: Wood Procurement Strategy
D 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 & pro
Slide 26: Our Manufacturing Facilities
Our Manufacturing Facilities — —I Installed Capacity: 2,60,000 TPA r---, r Installed Capacity: 3,20,000 TPA • 4,0 e - FIBRELINE PAPER MACHINE DUPLEX BOARD MACHINE L PAPER CAPACITY UTILISATION OVER THE YEARS (%) 95 98 93 98 91 72 FY 18 FY 19 FY20 FY21 FY22 FY23
Slide 27: Images of Our Manufacturing Facility
Images of Our Manufacturing Facility I NA 11. ' 112 3 11"" lir A., 4 / 11114' Immeriaritikir ear - An.21.1" 1111 1 , ftmordeple 'V -Jim '11 J _ad' 1111111 .4•Inite•11.11111 A. Orgt,
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 75% of the dealers have been associated w
Slide 30: Our Global Footprints
• Our Global Footprints ...t. d. -.7.... - al- -... Export Regions VT' ✓ Uganda ✓ Ghana ✓ Nigeria I Kenya ✓ Tanzania I Angola ✓ Cameroon ✓ Senegal if • ✓ Ethiopia *If I Madagascar ✓ Rwanda ✓ Malawi ✓ Burundi ✓ Mozambique ✓ Congo ✓ Nepal I Sri Lanka ✓ Greece ✓ Turkey I Egypt ✓ Iraq ✓ Qatar a.
Slide 31: Testimony to Strive Excellence
Testimony to Strive Excellence National Environmental Awards Special Commendation Award (IPMA) at the Paperex-2015 N AT141NAL- ENyPRONIME MTN- RWAR Da (IRMA !1;tr•Fi.i . IR. Ay.. .oirr;f !PIE wer. .7.1•:;::•Er L rr.; byl./.1,..V.,Feerm.i.m.4,5cw0 Lugo. Ufts.5c.FIRKits.:+;. Dar, .Creramv.}. ce2thele4
Slide 32: Awards & Accolades
111 Awards & Accolades '" 11 I 1.111 o NATIONAL SAFETY COUNCIL ATAKA CHAPTER ,,004,64,441kAsx '141:6 acvAri fry A AC. National Safety Council ar KARNATAKA CHAPTER Safety Awards - 2019 -.7 1.) IITTHAMA SURAKSHA PUHASKAHA Inroplly & Cutificato West Coast Paper Mills Ltd. Dandeli In recognition of thei
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'
111 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
Slide 36: Tree Improvement Programme
Tree Improvement Programme 11=16 West Coast Paper Mills Ltd. Your partner in progress__ 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 qual
Slide 37: Reduction Burden on Environment
Reduction Burden on Environment V AL... 44 4 1 .41 ' - 1141111111M/AiiM Hi§ Primary Clarifier - Pulp Secondary Clarifier - Pulp Diffused Aeration System Sludge loading Mist Cooling System Greenery at Effluent Treatment Plant I A - I11 60.44 A- • Primary Clarifier - Paper . i. Sludge Handling - Paper
Slide 38: Ensuring Safety and Health in the Workplace
111 Ensuring Safety and Health in the Workplace r rt' 4 .311 V- • Fire Hydrant Point Fire Hydrant Pumps Full-fledged Hospital Villagers' medical check-up 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
Slide 39: Contribute to the Common Good
MO Contribute to the Common Good Free Child Health Check-up s'"'t• Cr- ?3, & Treatment Camp '6 "'" =wets% • evauen wtr "Serving the community ivEST Bus Shelter at rrv,n UEri ID. G. Gaonthan, for a better tomorrow.." 1 II... FIN- Tr Dandeli Distribution of Desk & Benches to Schools & Colleges • Distr
Slide 40: Way Forward
Way Forward
Slide 41: Key Growth Drivers
Key Growth Drivers 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 education and lit
Slide 42: Expansion Plans - Optic Fibre Cable
111 Expansion Plans - Optic Fibre Cable ESTIMATED TARGET MELINE COST PRODUCTS se• • 120 crores in Optical Fibre • ,•5tr, •It.f Phase I and Optic By July 2024 • - -• Fibre Cables $- 55 crores in _ . • Phase II ESTIMATED SOURCE OF I REVENUE FUNDING ro " I4 n ,••••••7 Revenue of Mix of Debt and 275 cro
Slide 43: Cost Optimization is Continuous Discipline
i Cost Optimization is Continuous Discipline Wood & Pulp Volume Mix (%) Sales & Raw Material Explanation (in ‘ Crore) 3000 - e • 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 C
Slide 44: Expansion & Rebuilding of Machines to Improve Productivity & Efficiency
111 Expansion & Rebuilding of Machines to Improve Productivity & Efficiency CAPEX of 2,381Crores (2008-23) U300 mn investment towards 201: • PM-6 Rebuild &jobs debottlenecking and modernization of NFL,Recy& PM • Expansion to increase (2010 capacity to 320,000 TPA PM-3 Rebuild &Jobs of 0 Enmas Recy B
Slide 45: Financial Highlights
Financial Highlights
Slide 46: Q2 & H1 FY24 Financial Highlights (Standalone)
Q2 & H1FY24 Financial Highlights (Standalone) Revenue in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 32.9% 30.1% 32.3% 29.59% 20.8% 20.6% -2% 0 0 C 723 706 247 242 156 156 -11 228 224 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Revenue in Crs) EBITDA &
Slide 47: Standalone Income Statement Q2FY24
Standalone Income Statement Q2FY24 in Crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Revenue from Operations 706 723 651 1,358 1,383 Other Income 50 26 14 64 29 Total Revenue from Operations 757 749 1.05% 665 13.74% 1422 1412 0.72% Cost of Material Consumed 316 312 311 627 619 Purchases of s
Slide 48: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement 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-i n-trade 0.0 5.5 7.3 Changes in Inventories 31.6 23.9 -28.9 Employee Benefits Expense 164.2
Slide 49: Standalone Balance Sheet Statement
1110 Standalone Balance Sheet Statement ity & Liabilities ( in Crores) FY21 FY22 FY23 SEP-23 l ia2=1 111. I Equity Share Capital 13.2 13.2 13.2 13.2 Property, pl a nta nd equipment 827.2 723.1 642.6 611.8 Capital Work-in-Progress 24.7 14.1 23.9 50.9 Other Equity 1285.2 1494.3 2037.3 2293.5 Right of
Slide 50: Standalone Cash Flow Statement
Standalone Cash Flow Statement Cash Flow from Operating Activities Profit before Tax -17.6 244.4 799.4 417.8 Adjustment for Non-Operating Items 218.0 164.5 108.2 14.7 Operating Profit before Working Capital Changes 200.4 408.9 907.5 403.0 Changes in Working Capital 38.9 14.5 -64.9 23.2 Cash Generate
Slide 51: Segmental Performance Trends (Standalone)
1p (Standalone) 1 Segmental Performance Trends Paper & Paper Board Business Cable Business Revenue ( in Crs) 2,616 195 P I■ r 1,861 1,874 1,869 118 109 116 1,287 1,264 93 81 FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 L H1FY24 EBIT ( in Crs) EBIT ( in Crs) 803 20 17 15 381 10 350 336 8
Slide 52: Q2FY24 Financial Highlights (Consolidated)
Q2FY24 Financial Highlights (Consolidated) Revenue in Crs) EBITDA & EBITDA Margin Gross Profit & Gross Profit Margin PAT & PAT Margin 31.3% 36.6% I 30.80% 27.66% 20.1% 23.7% 1,210 • 1,194 384 10% 1—(10%)-1, 378 246 11% 346 340 219 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Revenue in Cr
Slide 53: Consolidated Income Statement — Q2 & H1 FY24
p Consolidated Income Statement — Q2 & HI. FY24 rs (Z in Crores) Q2FY24 Q2FY23 Y-o-Y Q1FY24 Q-o-Q H1FY24 H1FY23 Revenue from Operations 1,194 1,210 1,139 2,332 2,324 Other Income 35 17 35 70 28 Total Revenue from Operations 1,229 1227 0.18% 1174 4.73% 2403 2352 2.15% Cost of Material Consumed 540 51
Slide 54: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars ( in Crores) FY22 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-i n-trade 0.0 7.8 7.5 Changes in Inventories 78.3
Slide 55: Consolidated Balance Sheet Statement
Consolidated Balance Sheet Statement Equity & Liabilities V in Crores) FY21 FY22 FY23 sets ( in Crore FY21 Equity Share Capital 13.2 13.2 13.2 13.2 Property, plant and equipment 1,549.7 1,422.3 1,338.0 1,324.5 Capital Work-in-Progress 32.2 21.8 53.3 89.1 Other Equity 1,375.7 1,673.0 2,567.5 2,948.6
Slide 56: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement es) 21 FY22 FY23 ep- Cash Flow from Operating Activities Profit before Tax -26.1 420.4 1477.8 672.9 Adjustment for Non-Operating Items -290.1 -222.6 -176.7 -20.6 Operating Profit before Working Capital Changes 263.9 643.0 16545 693.5 Changes in Worki ng Ca pital 73.7
Slide 57: Segmental Performance Trends (Consolidated)
i Segmental Performance Trends (Consolidated) 1 Paper & Paper Board Business Cable Business Revenue (T in Crs) Revenue (T in Crs) 4,712 208 p 3,249 118 129 2,384 2,224 109 108 6 2,163 1,861 81 FY19 FY20 FY21 FY22 FY23 H1FY24 FY19 FY20 FY21 FY22 FY23 H1FY24 EBIT (T in Crs) MISIIIEM 1,516 21 18 18 348
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 : A 11143e0 Product orient capital Orient Capital (a division of Link Group) Mr. Nikunj Jain Mr. Amar Yardi 4-1V- ,,g g4 g +91 9769060608 nikun
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