Kuantum Papers Limited · NSE:KUANTUM
Kuantum Papers — Investor Presentation (July 2021)
34 slides from Kuantum Papers's investor presentation, July 2021
Slide 1: Investor Presentation — July 2021
% Kuantum Papers ltd Paper Maters INVESTOR PRESENTATION — JULY 2021
Slide 2: Executive Summary
y Executive Summary Wy) Kuantum Papers ltd We Kuantum Papers % Poper Raters Kuantum Papers Ltd., is one of the largest Agro based FY21 FINANCIALS paper manufacturers in India and is committed to (INR Mn) manufacturing wood free, high quality maplitho, creamwove, copier and specialty paper. Revenues
Slide 3: Company Overview
le Kuantum Papers % 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 450 TPD, after completion of their backward integration project
Slide 5: Board of Directors
a ¥ Board of Directors miata Poles > Peper Nokes oe 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 spi
Slide 6: Key Management Team
We Kuantum Papers > Poper Pakers Sanjay Khosla - Vice President (Marketing) - Key Management Team 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 w
Slide 7: Geographical Presence & Sales Model
y Geographical Presence & Sales Model Jammu & Kashmir 2% Punjab Delhi Haryana 31% Bihar 16% 39% Assam Uttar Pradesh 4% 10% Rajasthana J Gujarat 2% West Bengal Maharashtra 6% 5% Madhya Pradesh Odisha % Telangana Chhattisgarh Geographical Presence Region-wise Sales for FY21 at Kuantum Papers > Poper P
Slide 8: FSC certification since 2011
Secured FSC® certification since 2011, License Code FSC-C109585.
Slide 9: Marquee Clientele
. NY) Marquee Clientele manson Rona V7, A VEE Limited Camlin d Best Price KOKUYO poate / 2 Wholesale GRE MAGIC Ax. ttarperCollins @yAJANTA BOOKS easiness eeeaperColling: MAAN LEN i OXFORD Me macmuillan ~ bol Ne elcl usiveany mss @ Pearson arihant i han SG B82 288%. 2882, o . Lotus Global MR vaceen p
Slide 10: Key Strengths
¥ 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
we Kuantum Papers % Paper Makers BUSINESS OVERVIEW 11
Slide 12: Current Manufacturing Facilities
¥ Current Manufacturing Facilities Segment Capacity We Kuantum Papers > Peper Nokes * Total Capacity: 380 TPD * Agro based pulp: 200 TPD * Wood pulp: 180 TPD * Total capacity: 450 TPD * Machine 1 - 30 TPD Machine 2 - 35 TPD Machine 3 - 115 TPD Machine 4 - 270 TPD * Total Capacity: 700 Solids TPD * N
Slide 13: Manufacturing Process
y Manufacturing Process Rial Pie Chemical Recovery Plant Co-gen Power | ~~ plant Caustic Soda Recovery Vv , Agro Pulp Mill Wood Pulp Mill E> E> Effluent Treatmen' Black Liquor (a a Paper . . Manufacturing Pulp Cooking & Washing Pulp Screening & PM1, PM2, PM3 Bleaching &PM4 Raw Material “as Cutting A
Slide 14: Raw Material Sourcing
¥ Raw Material Sourcing ey Kuantum Papers 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 Res
Slide 15: Technical Collaboration with Tanovis AG
. . . . a) ¥ Technical Collaboration with Tanovis AG manson Rona 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 process t
Slide 16: Technical Collaboration with Specialty Minerals, USA
F Technical Collaboration with Specialty Minerals, USA a The company has a COLLABORATION with Specialty Minerals Inc. / * We have a first-of-its-kind backward integrated PCC (Precipitated / qeMINERALS Calcium Carbonate) Plant in an Agro based operations in the world, set up in collaboration with Spe
Slide 17: Social Farm Forestry Program
. *) ¥ Social Farm Forestry Program lien > Poper Pakers * 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 init
Slide 18: 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. K-one ' K-oNneE K-one | K-oNeE | KEO
Slide 19: Specialty Papers
¥ Specialty Papers Category Brand 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 Bf 68-130
Slide 20: Backward Integration & Modernisation Project
we Kuantum Papers % Paper Makers BACKWARD INTEGRATION & MODERNISATION PROJECT (Completed in March’21) 20
Slide 21: Backward Integration Project: Pulping Facilities
¥ Backward Integration Project completed in Mar’21 a m Paper Makers A transformative effort undertaken for up-gradation, replacement and addition of machinery across these 3 areas which are: 1. Pulping Facilities 2. Chemical Recovery Plant 3. Co-Gen Power Plant Pulping Facilities Capacity Expansion
Slide 22: Backward Integration Project: Chemical Recovery Plant
¥ Backward Integration Project completed in Mar’21 a > Poper Pakers Chemical Recovery Plant \ Fug 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 major components: * Recovery Boiler * Evaporator *
Slide 23: Backward Integration Project: Co-Gen Power Plant
¥ Backward Integration Project completed in Mar’21 a m Paper Makers Co — Gen Power Pla 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 captive Co-generation Power Plant in which we have added: + Ahigh pressure CFBC
Slide 24: Project Benefits
y Project Benefits Additional benefits of Caustic Recovery & Co -Gen power generation, resulting in cost reductions and operating efficiencies in the Optimizing the Pulp making process integration of Chemical Recovery Plant, Co-Gen Power and own Hard Wood Pulp Mill leading to significant improvement
Slide 25: Future Growth Strategy
¥ Future Growth Strategy kuanturn 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 e
Slide 26: Foray into New Specialty Products
¥ Foray into New Specialty Products S No Product Product Description a Kuantum Papers m Paper Makers Industries Used 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 out | Industries proper
Slide 27: Industry Overview
te Kuantum Papers % Paper Makers INDUSTRY OVERVIEW ah
Slide 28: Paper Industry
y Paper Industry In terms of paper production, India contributes about 4.2% to the global market. Domestic paper demand grew by 7.5% in the last decade, while global average growth was 0.5%. Currently, the Indian paper industry is valued at INR 70,000 crore, and it is highly fragmented with over 800
Slide 29: Financial Overview
* Kuanturm Papers * Paper Makers FINANCIAL OVERVIEW
Slide 30: Income Statement
¥ Income Statement Particulars (INR Mn) Fy19 FY20 Operational Income 7,935 7,447 Total Expenses 6,379 6,262 EBITDA 1,556 1,185 EBITDA Margins (%) 19.61% 15.91% Other Income 88 88 Depreciation 251 317 348 Finance Cost 284 304 277 Exceptional Item - - 86 PBT 1,109 652 (318) Tax 330 (66) (191) Profit A
Slide 31: Balance Sheet
¥ Balance sheet Kuantum % Roper Raters Assets (INR Mn) FY20 FY21 FY20 Fy21 Non-current assets Property, plant and equipment 10,201 14,263 stent share capital 87 87 F 7 Other equity 8,230 8,085 Capital k-in- 3,096 205 . DIST WOPe UDIOBTSSS z Total equity 8,317 8,172 Investment property 79 78 Liabilit
Slide 32: Financial Highlights
Financial Highlights Operational Revenue (INR Mn) EBITDA (INR Mn) & EBITDA Margin (%) 1475 1,556 zaaz 737,447 6,427 I | li i FY17. ss FY18—s FY19.— FY20.—FY21 FYI7, ss FY18— FY9.— ss FY20.—FY21. Net Debt to Equity Net Worth (INR Mn) 8317 8,172 0.81 FY17 FY18 FY19 FY20 Fy21 FY17 FY18 FY19 FY20 FY21 Q
Slide 33: Capital Market Data
2 ov Capital Market Data mine Peneee 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 ——Kuantum =—=——=Sensex Price Data (31% Marc! INR Shareholding Pattern as on 31* March, 2021 Face Value 1.0 Market Price 66.8 pe 52
Slide 34: Disclaimer
. : % ¥ Disclaimer smnton Papre > Poper Pakers 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 i