Slide 1: Stock exchange cover letter - Regulation 30 disclosure
KPL/SEs/IP 27.12.2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza Dalal Street Plot No. C/1, G Block, Mumbai 400 001 Bandra-Kurla Complex Scrip Code: 532937 Bandra (East) Scrip ID: KUANTUM Mumbai 400 051 Trading Symbol: KUANTUM Reg: Investor Presenta
Slide 2: Investor Presentation December 2023
INVESTOR PRESENTATION DECEMBER 2023
Slide 3: About Kuantum Papers
2 A B O U T K UA N T U M PA P E RS • Kuantum Papers Ltd, a leading agro and wood-based paper manufacturer started its commercial operations Operational Revenue (INR Mn) & in 1980 in an economically backward village of Hoshiarpur, Punjab. EBITDA Margins (%) • They started their production with 30 TPD
Slide 4: Board of Directors
3 B O A R D O F D I R E C TO RS Sh. Jagesh Khaitan Mr. Pavan Khaitan Chairman Vice Chairman and Managing Director Sh. Jagesh Kumar Khaitan is the Chairman of Kuantum Papers Ltd. Pavan Khaitan is a graduate in Commerce from Panjab University He was earlier the Vice Chairman and MD of Amrit Banaspati
Slide 5: Board of Directors
4 B O A R D O F D I R E C TO RS Shireen Sethi D.S Sandhawalia Vivek Bihani Bhavdeep Sardana Director (Independent) Director (Non-Independent) Director (Independent) Director (Independent) Currently the COO of Netwok1 Media Drishinder Singh Sandhawalia has Vivek Bihani is an Engineer from Bhavdeep Sa
Slide 6: Key Management Team
5 KEY MANAGEMENT TEAM Mr. Roshan Garg Mr. Sushil Kumar Khetan Mr. Sanjay Khosla Mr. Parvinder Singh Taunque Mrs. Prachi Sharma CFO CEO Operations CMO Vice President Engineering VP Corporate Strategy A qualified Chartered A seasoned Chartered An MBA in Marketing, A passionate Technocrat A seasoned Ch
Slide 7: Geographical Presence & Sales Model
6 GEOGRAPHICAL PRESENCE & SALES MODEL 1% Jammu &Kashmir ORDER BASED MANUFACTURING: Punjab 13% 1% Chandigarh • The production is order based and manufacturing is 9% Haryana undertaken after the company receives advance 37% Delhi orders from dealers/distributors. 4% 10% Assam Rajasthan 4% • The compan
Slide 8: Company History and Milestones
7 C O M PA N Y H I S TO R Y A N D M I L E S TO N E S 1980 1988 2000 2002 2005 2006 Mill established with PM 3 installed with a Debottlenecking done to National Energy Conservation Lignin Precipitation Plant Agro Pulp Mill upgraded to PM 1 & 2 with a capacity of 100 TPD. achieve 40% improved Award co
Slide 9: Marquee Clientele
8 MARQUEE CLIENTELE Investor Presentation
Slide 10: Key Strengths
9 KEY STRENGTHS Pan India presence with Cost savings through Strategic location in Punjab Superior product quality and an extensive network of executed backward with abundant availability of market focus allow us to 100+ dealers integration project has led raw materials such as Wheat charge premium
Slide 11: Overview of Current Operations
OV E RV I E W O F C U R R E N T O P E R AT I O N S
Slide 12: Manufacturing Process
11 M A N U FA C T U R I N G P R O C E S S Chemical Recovery Plant Steam Co-gen Power plant Caustic Soda Recovery Effluent Treatment Plant Agro Pulp Mill Wood Pulp Mill Black Liquor Wood Pulp Paper Manufacturing PM1, PM2, PM3 & Raw Material Pulp Cooking & Washing Pulp Screening & PM4 Cutting Aggregat
Slide 13: Current Manufacturing Facilities
12 C U R R E N T M A N U FA C T U R I N G FA C I L I T I E S Pulping Facilities Paper Machines Chemical Recovery Plant Co-Gen Power Plant Segment Total Capacity: 380 TPD Total Capacity: 450 TPD Total Capacity: 700 Solids TPD Turbines : Total 38 MW Capacity • Agro based pulp: 200 TPD • Machine 1 - 25
Slide 14: Pulping Facilities
13 P U L P I N G FA C I L I T I E S Total Capacity: 380 TPD Agro Pulp 200 TPD Wood Pulp 180 TPD • The company has eliminated its dependency on Imported Hardwood Pulp as it has become self-reliant in wood raw material, thereby reducing the cost of production. • There is also a conscious effort to rep
Slide 15: Paper Machines
14 PA P E R M A C H I N E S Total Capacity: 450 TPD PM 1 - 25 TPD PM 2 - 50 TPD PM 3 - 115 TPD PM 4 - 260 TPD • Increase in paper production capacity to 450 TPD. • The increased production has been totally absorbed by the demand pull from the market and company is operating at 100% capacity utilizat
Slide 16: Chemical Recovery Island
15 C H E M I C A L R E C O V E RY I S L A N D 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 is a HERB recovery boiler with SRS technology has been installed to process caustic from Blac
Slide 17: Co-Gen Power Plant
16 CO-GEN POWER PLANT Total Capacity : 38 MW Turbines : Boilers : Total 190 TPH New : 20 MW & 8 MW New : 130 TPH Existing Turbines: 10 MW 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 a captiv
Slide 18: Effluent Treatment Plant
17 E F F LU E N T T R E AT M E N T P L A N T The company has up-graded existing Effluent Treatment Plant with an objective of parameters of treated effluent as well as to be ‘future ready’ to meet all Environmental norms. Effluent Treatment Low COD Street-1 High COD Street-2 is with facility had bee
Slide 19: Raw Material Sourcing
18 R AW M AT E R I A L S O U R C I N G 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): Raw Material
Slide 20: Technical Collaboration with Tanovis AG
19 T E C H N I C A L C O L L A B O R AT I O N W I T H TA N OV I S A G 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 21: Technical Collaboration with Specialty Minerals, USA
20 T E C H N I C A L C O L L A B O R AT I O N W I T H S P E C I A LT Y M I N E R A L S , U S A The company has a collaboration with Specialty Minerals Inc. Kuantum, have a first-of–its-kind backward integrated PCC (Precipitated Calcium Carbonate) Plant in an Agro based operations in the world, set u
Slide 22: Social Farm Forestry Program
21 S O C I A L FA R M F O R E S T R Y P R O G R A M 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. Kuantum launched t
Slide 23: Writing and Printing Products
22 WRITING AND PRINTING PRODUCTS Our extensive product portfolio covers high-quality Agro and Wood based Maplitho, Copier, Specialty and Creamwove papers. Category Brand GSM Range KOSHEEN 54-120 KRESTO 52-120 MAPLITHO KOSMO LITHO WHT 54-150 KOSMO LITHO CRM 54-150 K.ONE 65-80 KALEELA 72 COPIER KONQUE
Slide 24: Specialty Paper Product Range
23 S P E C I A LT Y PA P E R P R O D U C T R A N G E Brand GSM Range KUANTUM BOND 85-100 KRAYO 49-68 KOSMO LITHO 60-90 KREDA 58-95 KOSMO CARTRIDGE WHT 60-170 KOSMO CARTRIDGE CRM 60-170 KOSMO PARCHMENT 80-105 KOSMO STIFFNER AF 80-130 KOSMO STIFFNER 60-200 KOSMO ENFOLD WHT 58-150 KOSMO ENFOLD LHT 58-1
Slide 25: Future Growth Strategy
24 F U T U R E G R O W T H S T R AT E GY Debottlenecking and Leveraging single use upgrading plant plastic ban by operations to increase developing a production capacity portfolio of specialty by ~ 25% and further products for a optimize cost sustainable future Setting up Harnessing the power of Spe
Slide 26: Corporate Social Responsibility
25 C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y Installation of Tree Plantation Sewerage in Government Treatment Plant schools & at Saila Khurd, Panchayat Bharatpur Jattan Lands. and Raniala. Financial Donated washing Assistance to machine to local Government hospitals so the Schools and
Slide 27: Kuantum for Earth
26 K UA N T U M F O R E A R T H Sustainability Commitment Carbon Footprint Reduction Water Conservation Priority Wastewater Utilization Future Water Consumption Kuantum is deeply committed to The company has taken Deemed of paramount Treated wastewater is utilized Reduction Goal sustainability, as r
Slide 28: Industry Overview
INDUSTRY OVERVIEW
Slide 29: Paper Industry
28 PA P E R I N D U S T R Y • The Indian paper industry accounts for about 5% of the world’s production of INDIA IS EMERGING AS A paper. Currently, the Indian paper industry is valued at INR 80,000 crore, and it is DOMESTIC MARKET SHARE % KEY EXPORTER OF highly fragmented with over 800 paper compani
Slide 30: Financial Overview
FINANCIAL OVERVIEW
Slide 31: Historical Income Statement
30 H I S TO R I C A L I N C O M E S TAT E M E N T PARTICULARS (INR MN) FY21 FY22 FY23 H1-FY24 Operational Income 4,039 8,304 13,096 6,110 Total Expenses 3,746 7,114 9,304 4,209 EBITDA 293 1,190 3,792 1,901 EBITDA Margins (%) 7.25% 14.33% 28.96% 31.11% Other Income 100 38 36 18 Depreciation 348 462 4
Slide 32: Balance Sheet
31 BALANCE SHEET ASSETS (INR MN) FY22 FY23 H1-FY24 EQUITY & LIABILITIES (INR MN) FY22 FY23 H1-FY24 Non-Current Assets Equity Property, plant and equipment 14,006 14,068 14,350 Equity share capital 87 87 87 Other equity 8,218 9,581 10,397 Capital work-in-progress 289 306 374 Total Equity 8,305 9,668
Slide 33: Financial Highlights
32 FINANCIAL HIGHLIGHTS Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margins (%) 13,096 35.00% 1,362 3,792 30.00% 31.11% 1,078 8,304 25.00% 6,110 28.96% 20.00% 1,901 10.40% 17.64% 4,039 15.00% 293 1,190 10.00% 134 7.25% 14.33% 5.00% (127) 1.61% 0.00% FY21 FY22
Slide 34: Capital Market Data
33 C A P I TA L M A R K E T D ATA Share Price Movement (Up to 30th September, 2023) 100% 80% 60% 40% 20% 0% Oct-22 Nov-22 Dec-22 Jan-23 Jan-23 Mar-23 Apr-23 May-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 -20% Kuantum Sensex Price Data (30th September, 2023) INR Shareholding Pattern as on 30th September,
Slide 35: Disclaimer
34 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 th
Slide 36: Thank You
Thank You