Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (November 2020)
32 slides from Kuantum Papers's investor presentation, November 2020
Slide 1: Investor Presentation — November 2020
a Kuantum Papers ltd % Roper Makers INVESTOR PRESENTATION — NOVEMBER 2020
Slide 2: Executive Summary
¥ Executive Summary Ww Kuantum Papers ltd Kuantum Papers Ltd., is one of the largest Agro based paper manufacturers in India and is committed to manufacturing wood free, high quality maplitho, creamwove, copier and specialty paper. The company has an Integrated manufacturing facility of 125,000 MTPA
Slide 3: Company Overview
NY) Kuantum Papers we 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 375 TPD. Due to its location in the foothills of the Shivalik ran
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
y Key Management Team Roshan Garg - CFO and 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 2002 and has
Slide 7: Geographical Presence & Sales Model
¥ Geographical Presence & Sales Model Jammu & Kashmir Punjab 9 8% Delhi 37% Haryana 11% Uttar Pradesh 12% Rajasthan Gujarat 3% West Bengal Maharashtra / 5% 4% Madhya Pradesh 2% Telangana Chhattisgarh ; 1] 1% i Geographical e Presence Region-wise Sales for FY20 Ww Kuantum Papers > Paper eke Order bas
Slide 8: FSC certification since 2011
Secured FSC® certification since 2011, License Code FSC-C109585.
Slide 9: Marquee Clientele
y Marquee Clientele Ww Kuantum Papers ™ Paper Makers Camlin& Best Price gu Me KOKUYO pomeml /| 4 Wholesale er Hil Sev = GRE HI z id BOOKS MAG IC AN s HarperCollins TAXMANN' was $A | macmillan eSonas education OXFORD UNIVERSITY PRESS BB CAMBRIDGE @p Universiry press UN AGEN PRAKASHAN - THOMSONPRESS &
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: Business Overview
W Kuantum Papers Paper Makers BUSINESS OVERVIEW 11
Slide 12: Current Manufacturing Facilities
y Current Manufacturing Facilities Segment * Total Capacity: 220 TPD * Agro based pulp: 150 TPD Capacity * Wood pulp: 70 TPD * Total capacity: 450 TPD * Machine 1 - 30 TPD * Machine 2 - 35 TPD * Machine 3 - 115 TPD + Machine 4 - 270 TPD * Total Capacity: 200 Solids TPD We) Kuantum Papers ™ Paper Mak
Slide 13: Manufacturing Process
: * ¥ Manufacturing Process oY < Oe #)- ~~ e < | Recovery Sr Co-gen Power NN plant Caustic Soda Recovery Agro Pulp Mill Wood Pulp Mill cs Ec —- Paper a . Manufacturing Raw Material @ Cutting Pulp Cooking & Washing Pulp Screening & , PM1, PM2, PM3 Aggregation Bleaching &PM4 Warehousing & Distribution
Slide 14: Raw Material Sourcing
. . Ge) y Raw Material Sourcing uantum Papers Kuantum has an integrated Pulping facility with separate Agro Pulping and Wood Pulping streets. Currently, we produce 220 MT of Pulp per day for paper manufacturing. Kuantum uses the following agro residues in its Agro Pulping Street (150 TPD) : Raw Mate
Slide 15: 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 16: 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 reMINERALS Calcium Carbonate) Plant in an Agro based operations in the world, set up in collaboration with Sp
Slide 17: Social Farm Forestry Program
* 4 y Social Farm Forestry Program seanaet pape ™ Paper 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. * The
Slide 18: 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 19: Specialty Papers
y Specialty Papers Category Brand GSM Range Colour Krayo 49-130 sarin Kosmo Color 60-130 : Ledger Kreda Ledger 58-90 Kedexa Ledger 58-90 Executive Bond Kuantum Bond 70-100 Color Copier Kaleela 72 Cartridge Kosmo cartridge 60-130 Stiffner Kosmo Stiffner 68-180 Parchment Kosmo Parchment Ns 105 2 - Kos
Slide 20: Backward Integration & Modernisation Project
% Paper Makers BACKWARD INTEGRATION & MODERNISATION PROJECT 20
Slide 21: Project Upgradation Plan
¥ Project Upgradation Plan A transformative effort undertaken for up-gradation, replacement and addition of machinery across these 3 units will lead the company to: * Cost reduction leading to better EBITDA margins and profitability * Optimize paper production * Improvement in the Topline Pulping Fa
Slide 22: Project Benefits
. . * y Project Benefits masgdinsces > Roper 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 23: Future Growth Strategy
* y Future Growth Strategy kuantur Papers Strengthening of Plant through Project Upgradation across Wood Pulping, CRP & Co-Generation Power plant Focusing on cost optimization and quality enhancement Creating a portfolio of higher proportion of value added specialty products from additional pulping
Slide 24: Foray into New Specialty Products
y Foray into New Specialty Products S No. Product Product Photo Product Description Ley, Kuantum Papers ™ Paper Makers Industries Used in Greaseproof paper is made under hygienic 1 Food Grade conditions from pure wood pulp which gives | Food Packaging -OGR excellent grease resistance and oil hold ou
Slide 25: Industry Overview
Ww Kuantum Papers Paper Makers INDUSTRY OVERVIEW 25
Slide 26: Paper Industry
Ww y Paper Industry Kehna Ropes ™ Paper Makers The Indian paper industry accounts for about 4% of the world's production of paper. The estimated Trend in W&P P: D d turnover of the industry is INR 70,000 Cr (domestic market size of INR 80,000 Cr) and its contribution to - rene Int ‘aper Demani the e
Slide 27: Financial Overview
4 Kuantum Papers Paper Makets FINANCIAL OVERVIEW 27
Slide 28: Income Statement
A, y Income Statement uanturn Papers Particulars (INR Mn) FY18 FY19 FY20 H1-FY21 Operational Income 7,143 7,935 7,447 1,162 Total Expenses 5,668 6,379 6,262 1,275 EBITDA 1,475 1,556 1,185 (113) EBITDA Margins (%) 20.65% 19.61% 15.91% NA Other Income 36 88 88 70 Depreciation 194 251 317 169 Finance C
Slide 29: Balance Sheet
Ww Balance sheet Kaunninirupaes m Paper aters Assets (INR Mn) Fy19 FY20 H1-FY21 Eq s (INR Mi FY19 FY20 H1-FY21 Non-current assets Equity Property, plant and equipment 9,638 10,201 10,117 Equity share capital 87 87 87 Capital work-in-progress 541 3,096 3,793 Other equity 7,579 8,230 7,988 Investment
Slide 30: Financial Highlights
Ww Financial Highlights Kehna Ropes Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 593 729 779 7935 7.44 1,475 4556 eazy 143 1 5,258 al 245 FYi6 FY17,—=s«#FY8~=—SFY9.—~—s*FY20 Fyi6 = FY17,—=s«#FY18—=—sFYA9.~—s=FY20 FYI6.sFYI7.—s«#FYAB~=—sFYA9.~—s«FY20
Slide 31: Capital Market Data
Capital Market D “Y apita ar et ata Kuantum Papers >» BoperMekers 100% 5 80% - —Kuantum 60% — Sensex 40% - 20% ~ 0% -20% 40% - -60% T T T T T T T r T T Nov/19 Dec/19 Jan/20 Feb/20 Mar/20 Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Price Data (315t October, 2020) INR Shareholding Pattern as on 3
Slide 32: 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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