Ruchira Papers Limited · NSE:RUCHIRA
Ruchira Papers — Investor Presentation (August 2010)
45 slides from Ruchira Papers's investor presentation, August 2010
Slide 1: Ruchira Papers Limited, August 2010
August - 2010 RUCHIRA PAPERS LIMITED
Slide 2: Agenda for the Day
Agenda for the Day Company overview. Expansion. What Went Wrong. Financial. Board of Directors. Next-Gen. Operations at Glance.
Slide 3: Background of the Company
Background of the Company Ruchira Papers Limited (“Ruchira”) Incorporated in 1980. Began Commercial Production of Kraft Paper in 1983 with 2,310 TPA capacity. Over the Years capacity of Kraft Paper Unit increased to 52,800 TPA. In 2008 Company has diversified into writing & printing paper and starte
Slide 4: Background of the Company: Location
Background of the Company Location of “RUCHIRA”: Plant is located at Kala-Amb one of the industrial hubs of Himachal Pradesh on the border of HP/ Haryana ,just 65km away from Chandigarh on Chandigarh-Dehradun highway and 55 km from Ambala. RUCHIRA was Promoted by: Shri Jatinder Singh. Shri Subash Ch
Slide 5: Progress Over the Years
Progress Over the Years Year Capacity 85800 52800 37500 33000 26400 21000 5940 2310 1983 1988 1994 1996 2003 2004 2005 2008
Slide 6: Diversification
Diversification During 2006 Company had undertaken major expansion / capacity addition and set up unit for manufacturing of Writing & Printing Paper having installed capacity of 33,000 TPA along with Power Co- Generation of 7.2MW for captive consumption and Chemical Recovery Plant by investing Rs.17
Slide 7: Main Object of IPO
Main Object of IPO Main object of IPO was to part finance New project for Writing & Printing Paper. Project cost comprised of 3 broad segments : Paper Plant 100 TPD Cost of Project Rs.135.49 Crore as Appraised by PNB Power Co- Chemical Generation Recovery
Slide 8: Cost Overrun-Ways and Means
Cost Overrun-Ways and Means Punjab National Bank had MEANS OF FINANCE (in Crore) appraised the Cost of Project at Particulars As per Actual Rs.135.49 Crore against which Appraisal Rs.176.56 Crore was invested Term Loan 93.47 105.88 for completion of Project.. IPO( From Public) 21.02 23.50 Promoters
Slide 9: Main Reasons for Delay in implementation / Cost Overrun
Main Reasons for Delay in implementation /Cost Overrun DUE TO DELAY IN FINANCIAL CLOSURE. DUE TO DELAY IN SUPPLY OF PAPER MACHINE. DUE TO MODIFICATION IN LAYOUT BUILDING COST INCREASED. ADDITIONAL CAPACITY OF 1.2 MW. STEEP INCREASE IN PRICES OF IRON & STEEL LED INCREASE IN COST OF BALANCING EQUIPMEN
Slide 10: Chemical Recovery Plant
Chemical Recovery Plant As per Central Pollution Control Board guidelines, it is mandatory to install chemical recovery plant for prevention of water pollution. Main function of Chemical Recovery Plant is to recover White Liquor from Black Liquor for captive consumption. Chemical Recovery Plant has
Slide 11: Why Chemical Recovery Plant Is Profit Centre
Why Chemical Recovery Plant Is Profit Centre. Cost and Consumption of Caustic Soda Without Chemical Recovery Units WPP Kraft % of Agro Pulp used in process 80% 40% Agro Pulp( TPA) 26400 21120 % of Caustic soda used for Cooking 38% 13% Quantity of Caustic soda Required( MT) 10032 2746 Rate of Caustic
Slide 12: Continue….
Continue…. Cost of Caustic Soda Used in process( 1278*22000) Lacs 281.10 Add Cost of White Liquor recovery: Qty of Lime required @0.75 MT for Per Tom of White Liquor recovered (0.75X(9029+2471) 8624 MT Rate of Lime PMT( F.O.R) Rs. 3900 Cost of Lime Consumed( 8624X3900) Lacs 336.37 Depreciation @ 5.2
Slide 13: Financial Indicators
Financial Indicators Installed Capacity & Capacity Utilization 2008-2009 2009-2010 Particulars Kraft Writing & Consolidated Kraft Writing & Consolidated Paper Printing Paper Printing Unit Unit Unit Unit Installed Capacity ( TPA) 52800 33000 85800 52800 33000 85800 % Capacity utilization 86.28% 61.94
Slide 14: Financial Indicators
Financial Indicators Financial Indicators ( In Crore) Company as Whole 2008-2009 2009-2010 1st Qtr ended June 2010 Sales( Net ) 160.97 199.45 61.22 EBDITA 15.95 19.37 10.86 EBDITA( % ) 9.91% 9.71% 17.74% Depreciation 6.86 10.29 2.62 PBT (1.97) (6.92) 4.17 PAT (1.59) (4.31) 4.17 EPS - - 1.86
Slide 15: Projections
Projections Installed Capacity & Capacity Utilization 2010-2011 2011-2012 Particulars Kraft Writing & Consolidated Kraft Writing & Consolidated Paper Printing Paper Printing Unit Unit Unit Unit Installed Capacity (TPA) 52800 33000 85800 52800 33000 85800 % Capacity utilization 90.00% 100.00% 93.85%
Slide 16: Projections
Projections ( In Crore) Financial Projections 2010-2011 2011-2012 Particulars Kraft Writing& Consolidate Kraft Writing& Consolidat Paper printing d Paper printing ed Paper Paper Sales 99.79 124.09 223.88 99.79 125.40 225.19 EBDITA 15.29 35.64 50.93 14.94 36.38 51.32 % 15.32% 28.72% 22.75% 14.97% 29.
Slide 17: Month wise Performance of Writing & Printing Unit
Month wise Performance of Writing & Printing Unit Particulars Apr-10 May-10 Jun-10 Jul-10 Installed Capacity ( TPA) 33000 33000 33000 33000 % Capacity utilization 92.51% 115.82% 107.78% 121.02% Production ( MT) 2544 3185 2964 3328 Average Selling Price ( PMT) 38301 38934 39196 38318 Turnover ( in cr
Slide 18: Comments on Financials
Comments on Financials In 1983 company has started manufacturing Kraft Paper with capacity of 2310 TPA which gradually increased to 52800 TPA. In 2006 Company had undertaken diversification project to commence manufacturing of Writing & Printing Paper with installed capacity of 33000 TPA. Production
Slide 19: Cont…
Cont….. For manufacturing of Writing & Printing paper main raw materials are 80% Agriculture residue, Imported wood pulp 8-10% and remaining 12 –10% filler material. During 2009-2010 the cost of Agriculture residue increased considerably on account of limited availability attributed to bad monsoons
Slide 20: Continue….
Continue…. In spite of above constraints Kraft Paper unit has been showing satisfactory and consistent results. Kraft Paper unit is substantially debt free unit .As on today only term liability of Rs 75.00 lakhs is outstanding. During current financial year the things has started moving in right dir
Slide 21: Continue….
Continue…. Average purchase price of Wheat straw remained at Rs.3900/- PMT showing little bit downward trend and we are further hopeful that with good monsoon the prices of agriculture residue will decrease further and it will strengthen the bottom line of Company. Our capacity utilization for Writi
Slide 22: Board of Directors
BOARD OF DIRECTORS Promoter Directors Mr. Jatinder Singh, Chairman – Born entrepreneur and Engineering Graduate from Punjab University. He has diversified into finance and administration successfully . Having experience of more than 28 years he has headed the Company into a new era. Mr. Subhash Chan
Slide 23: Other Directors
Other Directors Mr. Jaleshwar Narain Singh, Executive Director - Science Graduate and associated with Company since 15.09.1992. He is responsible for planning and overall control of production and expansion plans. Mr. Dalbir Singh, Independent Director – He is M. A. and LLB. He retired from the post
Slide 24: Next-Gen
Next-Gen The Promoter Directors have taken deep interest to groom the second generation team in specialist field of paper and allied subjects, accordingly The Board of Directors has appointed six Vice Presidents: Sh.Deepan Garg son of Shri Umesh Chander Garg is B.E.(Mechanical) with experience of 12
Slide 25: Next-Gen
Next-Gen Sh. Daljeet Singh son of Shri Jatinder Singh is Graduate with deep knowledge of Commercial and Agriculture fields has been appointed as Vice-President (Commercial). Mrs. Ruchica G Kumar daughter of Shri Subash Chander Garg is an MBA( Marketing )has knowledge and experience of 8 Years in the
Slide 26: Ruchira's Operations at Glance
Ruchira’s Operations at Glance
Slide 27: Cont…..
Cont.....
Slide 28: Cont…..
Cont..... = PY IAT XEXIR Dg Sen Dae Bie
Slide 29: Cont……
Cont……
Slide 30: Cont…….
Cont…….
Slide 31: Slide 31
Slide 32: Cont…..
Cont…..
Slide 33: Cont……
Cont......
Slide 34: Cont…….
Cont…….
Slide 35: Cont……
Cont……
Slide 36: Cont…….
Cont…….
Slide 37: Slide 37
Slide 38: Cont…….
Cont…….
Slide 39: Cont……
Cont......
Slide 40: Cont……
Cont……
Slide 41: Cont……
Cont……
Slide 42: Cont……
Cont……
Slide 43: Cont……
Cont……
Slide 44: Cont……
Cont……
Slide 45: Last but not the least: Thank You
st Last but not the least pes Obrigado 5 OMBEF CLE a Bedankt Takk \ Aah Terima Kasih inal \ yaUAm | Cnacnu6o / “tos Tak Thank You / Segekkiir Ederiz§ ZA}@}cp Gracias Sores ge 4 4 —E——