Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (November 2021)
37 slides from Kuantum Papers's investor presentation, November 2021
Slide 1: Investor Presentation – November 2021
a Kuantum Papers ltd im Paper Maters INVESTOR PRESENTATION — November 2021
Slide 2: Executive Summary
y Executive Summary We Kuantum Papers ltd We Kuantum Papers > Roper ches Kuantum Papers Ltd., is one of the largest Agro based paper manufacturers in India and is committed to manufacturing H1-FY22 FINANCIALS wood free, high quality maplitho, creamwove, copier and (INR Min) specialty paper. Revenues
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: About Kuantum Papers
y 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
Slide 5: Board of Directors
y Board of Directors Ss Jagesh Khaitan - Chairman at Kuantum Papers % oper Makers 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 entrepreneuri
Slide 6: Key Management Team
ey y Key Management Team fasanturn Pe > Poper 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 asso
Slide 7: Geographical Presence and Order Based Manufacturing
Jammu & Kashmir 2% Punjab — 8% Delhi Haryana 31% Bihar 16% 3% Assam Uttar Pradesh 4% 10% Rajasthan, | Order based Manufacturi * The production is entirely order based and manufacturing is undertaken after the company receives advance orders from dealers/distributors. 7% ; * The company does not oper
Slide 8: FSC certification since 2011
Secured FSC® certification since 2011, License Code FSC-C109585.
Slide 9: Marquee Clientele
Marquee Clientele fuantum Papers & MAGIC AN HarperCollins ~@,AJANTA OXFORD M% $@| macmillan @ Pearson arihant “fs education UNIVERSITY PRESS STERLING Corus sta) movin EEE QP womowress GE — connowa 2a MBD\|sooks Piaiebooks = B==.. TAXMANN' ® - Aakash Ge GIGopsons (ga C) SUT “This list is only Illustr
Slide 10: Key Strengths
¥ 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
Ww Kuantum Papers % Paper Makers OVERVIEW OF CURRENT OPERATIONS (Post completion of Project in March’21) 11
Slide 12: Project Benefits
5 Project Benefits Additional benefits of Caustic Recovery & Co -Gen power generation, resulting in cost reductions and operating efficiencies in the Optimizing the Pulp making process integration of Chemical Recovery Plant, Co-Gen Power and own Hard Wood Pulp Mill leading to significant improvement
Slide 13: Current Manufacturing Facilities
F Current Manufacturing Facilities Segment Capacity We Kuantum Papers % oper Makers * Total Capacity: 380 TPD * Agro based pulp: 200 TPD * Wood pulp: 180 TPD * Total capacity: 450 TPD * Machine 1- 30 TPD Machine 2 - 35 TPD Machine 3 - 115 TPD Machine 4 - 270 TPD * Total Capacity: 700 Solids TPD * Ne
Slide 14: Current Operations: Paper Machines
Current Operations Kuantum Papers Paper Machines Total capacity: 450 TPD 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 PM1- 30TPD PM 2- 35 TPD PM
Slide 15: Current Operations: Pulping Facilities
F Current Operations kuantum Papers A transformative 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 Pulping Facilities Total Capacity: 380 TPD . Agro based Pul
Slide 16: Current Operations: Chemical Recovery Plant
Current Operations Ritts Pepi emical Recovery Pla 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 has
Slide 17: Current Operations: Co-Gen Power Plant
. . F current Operations mansion > Poper Makers Co Gen Power Pla Turbines : Total 38 MW * New: 20MW&8 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 on along ter
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
Slide 19: Manufacturing Process
y Manufacturing Process Aileen Pipe Chemical Recovery Plant Co-gen Power plant Caustic Soda Recovery Agro Fulp vid Wood Pulp Mill Effluent Treatmen' Paper - Manufacturin; Pulp Cooking & Washing Pulp Screening & PM1, PI2. PMS Bleaching &PM4 Raw Material “a Cuttin, Aggregation . Warehousing & Distribu
Slide 20: Raw Material Sourcing
y Raw Material Sourcing We Kuantum Papers m Paper Makers 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
Slide 21: Technical Collaboration with Tanovis AG
. . . . ) Fr Technical Collaboration with Tanovis AG mansion 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 process techn
Slide 22: Technical Collaboration with Specialty Minerals, USA
F 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 Minera
Slide 23: Social Farm Forestry Program
* rs Social Farm Forestry Program Minton Papaee > Poper Makers 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 i
Slide 24: Corporate Social Responsibility
y Corporate Social Responsibility * 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 and pathways * Tree Plantati
Slide 25: Corporate Social Responsibility
y Corporate Social Responsibility kuantum Papers CIVIL WORK UNDERTAKEN IN NEARBY VILLAGES Sy 2 59 e 4 = | 4
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 ! KE
Slide 27: Specialty Papers
y Specialty Papers Category Br: 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 TZ Cartridge Kosmo cartridge 60-130 Stiffner Kosmo Stiffner 68-180 Kosmo Parchment Ns 105 Parchment Kosmo Parchment Bf 68-130 E
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 S No Product Product Description Greaseproof paper is made under hygienic conditions from pure wood pulp which gives excellent grease resistance and oil hold out properties a Kuantum Papers m oper Makers Industries Used Food Packaging Industries Cupstock Base is a
Slide 30: Industry Overview
We Kuantum Papers % Paper Makers INDUSTRY OVERVIEW
Slide 31: Paper Industry
Ff 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 80
Slide 32: Financial Overview
4 Kuantum Papers * Paper Makers FINANCIAL OVERVIEW 32
Slide 33: Income Statement
Ww y Income Statement kuantum Papers Particulars (INR Mn) FY19 FY20 FY21 H1-FY22 Operational Income 7,935 7,447 4,039 3,486 “Total Expenses 6,379 6,262 3,746 2,932 EBITDA 1,556 1,185 293 554 EBITDA Margins (%) 19.61% 15.91% 7.25% 15.89% Other Income 88 88 100 23 Depreciation 251 317 348 238 Finance
Slide 34: Balance Sheet
Av J Balance sheet nossa yas > Poper lakers Assets (INR Mn) FY20 FY21 4H1-FY22 Equity & Li s (INR M FY20 FY21 H1-FY22 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 oihe® equity 8,230 8,085 8,136 : Tot
Slide 35: Financial Highlights
. . . . ae Financial Highlights Ais Ppa Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 593 729 779 718 1,556 7,935 1,475 7,143 7,447 9.23% F 7 3.14%) FY17-FYI8.—FY19.—sFY20._—sFY21._—«#HI-FY22 FY17.FY18 «-FY19.«s«FY20_-—«~FY21._«#H1-FY22 pay opie pvts
Slide 36: Capital Market Data
y Capital Market Data 140% 120% 100% 80% 60% 40% 20% 0% -20% Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 — Mar-21 Apr-21 ——Kuantum Sensex Price Data (30% September, 2021) INR Face Value 1.0 Market Price 80.4 52 Week H/L 102.9 / 38.3 Market Cap (Mn) 7,015.9 Equity Shares Outstanding (Mn) 87.3 1 Year Avg Tradi
Slide 37: 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
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