Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (February 2022)
37 slides from Kuantum Papers's investor presentation, February 2022
Slide 1: Investor Presentation - February 2022
a Kuantum Papers ltd % Roper Makers INVESTOR PRESENTATION — FEBRUARY 2022
Slide 2: Executive Summary
7 a ¥ Executive Summary seanaet pape ™ Poper ier * Kuantum Papers Ltd., is one of the largest Agro based paper % manufacturers in India and is committed to manufacturing YTD FINANCIALS Gy) wood free, high quality maplitho, creamwove, copier and (INR Mn) specialty paper. Kuantum Papers ltd Revenues *
Slide 3: Company Overview
Kuantum Papers wm Paper Makers COMPANY OVERVIEW
Slide 4: About Kuantum Papers
About Kuantum Papers Incorporated in 1980, Kuantum Papers started its commercial operations in an economically backward village of Hoshiarpur, Punjab. They started their commercial operations with 30 TPD and are currently operating at 450 TPD, after completion of their backward integration project i
Slide 5: Board of Directors
F Board of Directors kuanturn Papers 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
Slide 6: Key Management Team
a y Key Management Team masgdinsces > Roper Makers Mr. Roshan Garg - CFO and Senior President (Finance) A qualified Chartered Accountant (CA) & Company Secretary (CS) by profession, he has 30 + years of work experience in Corporate Finance and Accounts in the manufacturing sector. He has been associ
Slide 7: Geographical Presence & Sales Model
Xi ¥ Geographical Presence & Sales Model Kehna Ropes ™ Paper Mokers| Jammu & Kashmir 2% Punjab 9 8% Delhi Haryana 31% Bihar 16% 3% Assam Uttar Pradesh 4% 10% Rajasthan, Order based Manufacturing * The production is entirely order based and manufacturing is undertaken after the company receives advan
Slide 8: Secured FSC certification since 2011
Secured FSC® certification since 2011, License Code FSC-C109585.
Slide 9: Marquee Clientele
Ww y Marquee Clientele kuanturm Papers i Best Pricey \ gaming Saw aN TPC Limited Bc agi ante BOOKS MAGIC HarperCollins @,A JAN IA TAXMANN’ $A| macmillan OXFORD Nie NN education UNIVERSITY PRESS, @ Pearson Th STERLING Woous Global Winaceen pRakasHiAN fp THOMSONPRESS &S> CORDOVA S We Bharati Bhawan (
Slide 10: Key Strengths
y Key Strengths Pan India presence with an extensive network of 90+ dealers Long standing relationship with dealers, many associated with the company for over 3 decades Largest product Portfolio in the Paper Industry covering Maplitho, Creamwove, Copier and Specialty Paper Successful in creating a b
Slide 11: Overview of Current Operations
Wwe Kuantum Papers Paper Makers OVERVIEW OF CURRENT OPERATIONS (Post completion of Project in March’21) ial
Slide 12: Project Benefits
. . * y Project Benefits masgdinsces > Poper Makers Additional benefits of Caustic Recovery & Co -Gen power generation, resulting in cost reductions This improved pulp will enable better paper quality, which will command a and operating higher Net Realization Increased Optimizing the efficiencies in
Slide 13: Current Manufacturing Facilities
y Current Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Co-Gen Power Plant Segment * Total Capacity: 380 TPD * Agro based pulp: 200 TPD Capacity * Wood pulp: 180 TPD * Total capacity: 450 TPD * Machine 1- 30 TPD * Machine 2 - 35 TPD * Machine 3 - 115 TPD * Machin
Slide 14: Current Operations
. AY F Current Operations Kuanturn Papers ™ Paper Mokers| Benefits from this project: 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: 450 TPD PM1- 30TPD PM2- 35
Slide 15: Current Operations: Pulping Facilities
y Current Operations Kuantum Papers Atransformative effort undertaken for up-gradation, replacement and addition of machinery across these 3 areas at a cost of 4400 mn: 1. Pulping Facilities 2. Chemical Recovery Plant 3. Co-Gen Power Plant Pul Facilities Total Capacity: 380 TPD ° Agro based Pulp: 20
Slide 16: Current Operations: Chemical Recovery Plant
Current Operations Mista Pa Chemical Recovery PI Sill Total Capacity: 700 TPD of Black Liquor Solids + New CRP : 500 Solids TPD + Existing CRP : 200 Solids TPD Achemical recovery plant of 500 TPD supplied by Andritz has been installed to process caustic from Black Liquor The Chemical Recovery Plant
Slide 17: Current Operations: Co-Gen Power Plant
: Ww F Current Operations uanturn Papers ™ Paper Mokers| Co Gen Power Pla Turbines : Total 38 MW - New:20MW && MW * — Existing Turbines: 10 MW Boilers : Total 190 TPH * New: 130 TPH * Existing : 60 TPH The need of the hour is to be self-sufficient in power requirement in order to sustain operations
Slide 18: Effluent Treatment Plant
y Effluent Treatment Plant The company has up-graded existing Effluent Treatment Plant with an objective of sustained parameters of treated effluent as well as to be ‘future ready’ to meet all Environmental norms. Effluent Treatment facility had been divided into two streams: * Low COD Street-1 is w
Slide 19: Manufacturing Process
¥ Manufacturing Process Kusttum Papers , t-------@} -----4--5 Co-gen Power NN plant Caustic Soda Recovery Agro Pulp M Wood Pulp Mill Seseey Coase Effluent Treatnjent —- «@ p Paper a . Manufacturing Raw Material Cutting Pulp Cooking & Washing Pulp Screening & . PM1, PM2, PM3 Aggregation Bleaching &PM
Slide 20: Raw Material Sourcing
y Raw Material Sourcing Ww Kuantum Papers 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 Res
Slide 21: Technical Collaboration with Tanovis AG
. : . : a F Technical Collaboration with Tanovis AG sae ea ™ Paper Makers TaNovis 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
Slide 22: Technical Collaboration with Specialty Minerals, USA
F Technical Collaboration with Specialty Minerals, USA scares The company has a COLLABORATION with Specialty Minerals Inc. * We have a first-of-its-kind backward integrated PCC (Precipitated TEMINERALS Calcium Carbonate) Plant in an Agro based operations in the world, set up in collaboration with Sp
Slide 23: Social Farm Forestry Program
Xi ¥ Social Farm Forestry Program Kase Fepee ™ Paper Mokers| 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 ini
Slide 24: Corporate Social Responsibility
y Corporate Social Responsibility masgdinsces ™ Paper Makers * Actively participating in Swachh Bharat Abhiyaan through construction of prefabricated toilet facilities in surrounding villages. * Installation of Sewerage Treatment Plant at Saila Khurd, Bharatpur Jattan and Raniala * Paving of roads a
Slide 25: Corporate Social Responsibility
* y Corporate Social Responsibility kuantum Papers CIVIL WORK UNDERTAKEN IN NEARBY VILLAGES
Slide 26: Writing and Printing Products
y 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. | K-oNE’ K-oNe K-oNe} K-oNe | KEON K
Slide 27: Specialty Papers
y 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
Slide 28: Future Growth Strategy
* y Future Growth Strategy kuantur Papers Focusing on cost optimization and quality enhancement Creating a portfolio of higher proportion of value added specialty products from additional pulping efficiency achieved Strengthening of Plant Operations post the Project completion
Slide 29: Foray into New Specialty Products
y Foray into New Specialty Products Product Description Industries Used Greaseproof paper is made under hygienic conditions from pure wood pulp which gives excellent grease resistance and oil hold out properties Food Packaging Industries Cupstock Base is a single layer and multi- layer virgin grade
Slide 30: Industry Overview
Ww Kuantum Papers Paper Makers INDUSTRY OVERVIEW 30
Slide 31: Paper Industry
y Paper Industry In terms of paper production, India contributes about 4.2% to the global market. Domestic paper demand grew by 7.5% in the last decade, while global average growth was 0.5%. Currently, the Indian paper industry is valued at INR 70,000 crore, and it is highly fragmented with over 800
Slide 32: Financial Overview
4 Kuantum Papers Paper Makets FINANCIAL OVERVIEW az
Slide 33: Income Statement
Wy) y Income Statement kuanturn Papers Particulars (INR Mn) FY19 FY20 FY21 OMFY22 : Operational Income 7,935 7,447 4,039 5,784 Total Expenses 6,379 6,262 3,746 4,925 EBITDA 1,556 1,185 293 859 EBITDA Margins (%) 19.61% 15.91% 7.25% 14,85% Other Income 88 88 100 32 Depreciation 251 317 348 350 Financ
Slide 34: Balance Sheet
y Balance sheet Assets (INR Mn) FY20 FY21 4H1-FY22 Equity & Li s (INR M FY20 Non-current assets Equity Property, plant and equipment 10,201 14,263 14,060 Equity share capital 87 87 87 Capital work-in-progress 3,096 205 312 Other; equity 8,230 8,085 8,136 Total equity 8,317 8,172 8,223 Investment pro
Slide 35: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) 7,143 7935 7,447 6,427 5,784 | I I | FYI7-FY18 =—FY19.—s«FY20.—sFY21.« 9M-FY22 Net Debt to Equity 0.81 (0.85 0.61 0.32 0.34 0.37 ] [| Fy17 FY18 = FY19)-s FY20.—s FY21.=«#H1-FY22 EBITDA (INR Mn) & EBITDA Margin (%) 1,556 1,475 FY17-FY18—sFYI9.—s FY20.
Slide 36: Capital Market Data
. Cy) Capital Market Data Kehna Ropes an 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% -10% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 ————Kuantum —===Sensex Pric ita (31st December, 2021) INR Shareholding Pattern as on 31%* December, 2021 Face Value 1.0 . Public, M
Slide 37: Disclaimer
. . %) y Disclaimer aati ™ Paper Makers 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 e
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