Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (November 2021)
38 slides from Kuantum Papers's investor presentation, Nov 9, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
\Y. Kuentum Papers ltd 1he PopeT ('1ol:eTs KPLISEs/IP 9.11.2021 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: KUANTUM Mumbai 400 051 Trad
Slide 2: Investor Presentation – November 2021
INVESTOR PRESENTATION – November 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 H1-FY22 FINANCIALS wood free, high quality maplitho, creamwove, copier and (INR Mn) specialty paper. Revenues • The company has an Integrated manufacturing facilit
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 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 associated with the company since 200
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: Overview of Current Operations
OVERVIEW OF CURRENT OPERATIONS (Post completion of Project in March’21) 11
Slide 13: 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 14: 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 15: Current Operations: Paper Machines
Current Operations Paper Machines Total capacity: 450 TPD • PM 1 - 30 TPD • PM 2 - 35 TPD • PM 3 - 115 TPD • PM 4 - 270 TPD Benefits from this project: • Increase in paper production capacity from 375 TPD to 450 TPD • Improvement in the quality of the paper produced along with better efficiency The
Slide 16: Current Operations: Pulping Facilities
Current Operations 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 Pulp: 200 TPD • Woo
Slide 17: Current Operations: Chemical Recovery Plant
Current Operations Chemical Recovery Plant Total Capacity: 700 TPD of Black Liquor Solids • New CRP : 500 Solids TPD • Existing CRP : 200 Solids TPD 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
Slide 18: Current Operations: Co-Gen Power Plant
Current Operations Co Gen Power Plant Turbines : Total 38 MW • New : 20 MW & 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 a long term basis. Kuantum has
Slide 19: Effluent Treatment Plant
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 wi
Slide 20: 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 21: 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 22: 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 23: 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 24: 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 25: Corporate Social Responsibility
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 Plantation
Slide 26: Corporate Social Responsibility
Corporate Social Responsibility CIVIL WORK UNDERTAKEN IN NEARBY VILLAGES BEFORE AFTER 25
Slide 27: 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 28: 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 29: Future Growth Strategy
Future Growth Strategy 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 28
Slide 30: 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 31: Industry Overview
Ww Kuantum Papers ‘th Poper Makers INDUSTRY OVERVIEW 30
Slide 32: Paper Industry
Paper Industry • In terms of paper production, India contributes about 4.2% to the global market. Domestic paper demand Trend in W&P Paper 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 33: Financial Overview
a) 4 # Se Kuantum Papers ihe Poper Makers FINANCIAL OVERVIEW 32
Slide 34: Income Statement
Income Statement 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 Cost 284 304 277 337
Slide 35: Balance sheet
Balance sheet Assets (INR Mn) FY20 FY21 H1-FY22 Equity & Liabilities (INR Mn) FY20 FY21 H1-FY22 Non-current assets Equity Property, plant and equipment 10,201 14,263 14,060 Equity share capital 87 87 87 Other equity 8,230 8,085 8,136 Capital work-in-progress 3,096 205 312 Total equity 8,317 8,172 8,
Slide 36: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 593 729 779 1,475 1,556 35.00% 718 10 7,935 7,447 7,143 30.00% 9.23% 10.21% 6,427 1,166 1,185 9.82% 9.64% 20.65% 19.61% 25.00% 5.0 4,039 3,486 15.91% 554 20.00% 18.14% 293 15.89% 15.00
Slide 37: Capital Market Data
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 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Kuantum Sensex Price Data (30th September, 2021) INR Shareholding Pattern as on 30th September, 2021 Face Value 1.0 Public, Market Price 80.4 29.70% 52 Week
Slide 38: 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
Kuantum Papers — Investor Presentation (November 2021) on 6ix