Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (November 2020)
33 slides from Kuantum Papers's investor presentation, Nov 24, 2020
Slide 1: Regulation 30 disclosure covering letter
KPL/SEs/IP 24.11.2020 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 Present
Slide 2: Investor Presentation – November 2020
INVESTOR PRESENTATION – NOVEMBER 2020
Slide 3: Executive Summary
Executive Summary • Kuantum Papers Ltd., is one of the largest Agro based paper manufacturers in India and is FY20 FINANCIALS committed to manufacturing wood free, high (INR Mn) quality maplitho, creamwove, copier and specialty paper. Revenues • The company has an Integrated manufacturing INR 7,447
Slide 4: Company Overview
) Na Kuantum Papers He Poper Makers i 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) backward village of Hoshiarpur, Punjab. • They started their commercial operations with 30 TPD and are currently operating at 375 6,427 7,143 7,935 7,447 TPD.
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 Roshan Garg - CFO and President (Finance) Sanjay Khosla - Vice President (Marketing) A qualified Chartered Accountant (CA) & Company Secretary (CS) by An MBA in Marketing, he has 25 years of experience in Sales and profession, he has 30 + years of work experience in Corporate Fin
Slide 8: Geographical Presence & Sales Model
Geographical Presence & Sales Model Jammu & Kashmir Punjab 8% Delhi Haryana 37% 11% Assam Uttar Pradesh 2% 12% Rajasthan 4% Order Order based based Manufacturing manufacturing: • The production is entirely order based and manufacturing is undertaken after the company receives advance orders from dea
Slide 9: Company History and Milestones
Company History and Milestones • Established • Record breaking with a capacity • PCC Plant in Production & Sales: of 30 TPD with collaboration with exceeded 125,000 MT PM 1&2 • Composite Project Specialty Minerals Inc, • Highest Revenues and with PM 4 -250 TPD, USA was installed Profits Chemical Rec
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 Project upgradation plan will 90+ dealers lead to improved EBITDA margins to 30%+ Long standing relationship with dealers, many Improved infrastructure of paper machines in associated with the company for over 3 decad
Slide 12: Business Overview
Ww Kuanturm Papers ie Poper Mokets BUSINESS OVERVIEW a
Slide 13: Current Manufacturing Facilities
Current Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Power Generation Segment • Total Capacity: 220 TPD • Total capacity: 450 TPD • Total Capacity: 200 Solids • Co-Gen Power Plant: • Agro based pulp: 150 TPD • Machine 1 - 30 TPD TPD • Turbines - 16 MW Capacity •
Slide 14: 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 15: Raw Material Sourcing
Raw Material Sourcing 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 Material Mix as of FY20 Agro
Slide 16: 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 17: 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 18: 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 19: 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 20: Specialty Papers
Specialty Papers Category Brand GSM Range Colour Krayo 49-130 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 Kosmo Parchment B
Slide 21: Backward Integration & Modernisation Project
BACKWARD INTEGRATION & MODERNISATION PROJECT 20
Slide 22: 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 Faci
Slide 23: 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 24: Future Growth Strategy
Future Growth Strategy 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 efficiency achieved
Slide 25: 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 26: Industry Overview
Ww Kuantum Papers ‘th Poper Makers INDUSTRY OVERVIEW 25
Slide 27: Paper Industry
Paper Industry • The Indian paper industry accounts for about 4% of the world's production of paper. The estimated turnover of the industry is INR 70,000 Cr (domestic market size of INR 80,000 Cr) and its contribution to Trend in W&P Paper Demand the exchequer is around INR 5,000 Cr. Moreover, paper
Slide 28: Financial Overview
a) 4 # Se Kuantum Papers ihe Poper Makers FINANCIAL OVERVIEW 27
Slide 29: Income Statement
Income Statement 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 Cost 246 284 304 154
Slide 30: Balance sheet
Balance sheet Assets (INR Mn) FY19 FY20 H1-FY21 Equity & Liabilities (INR Mn) 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 property 80 79
Slide 31: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) PAT (INR Mn) & PAT Margin (%) 593 729 12 779 718 1,475 1,556 35.00% 7,935 7,447 7,143 30.00% 10.21% 9.82% 9.64% 6,427 1,166 1,185 9.23% 7.0 5,258 20.65% 19.61% 25.00% 4.66% 645 18.14% 20.00% 245 15.91% 2.0 15.00% 1
Slide 32: Capital Market Data
Capital Market Data 100% 80% Kuantum 60% Sensex 40% 20% 0% -20% -40% -60% 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 (31st October, 2020) INR Shareholding Pattern as on 30th September, 2020 Face Value 1.0 Market Price 39.9 Public, 29.70% 52 Week H/
Slide 33: 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
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