Paper Industry Report 2018 (1).pdf

However the industrys profitability improved in fy17

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However, the industry’s profitability improved in FY17 due to cost control measures undertaken by the company, benign pricing environment and deleveraging, consequently, the metrics (debt/ equity as well as interest cover) improved 0.0% 21.8% 8.5% 16.3% 10.4% -0.5% 3.4% 9.0% - 5,000 10,000 15,000 20,000 2010 2011 2012 2013 2014 2015 2016 2017 Chart 18: Revenue Growth Revenue (Rs cr) Revenue Growth 4.9% 4.7% 5.8% 5.3% 5.4% 6.1% 6.3% 5.8% 1.4x 1.3x 1.4x 1.4x 1.5x 1.6x 1.7x 1.6x 2.5x 2.3x 1.4x 1.4x 1.3x 1.2x 1.2x 1.8x 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 0.0x 0.5x 1.0x 1.5x 2.0x 2.5x 3.0x 2010 2011 2012 2013 2014 2015 2016 2017 Chart 20: Debt Level Interest as a % of Sales Total Debt/Equity(x) Interest Cover(x) 18.5% 17.1% 13.5% 13.4% 12.9% 13.0% 13.6% 17.2% 5.5% 4.4% 1.5% 1.3% 1.3% 1.2% 0.0% 3.1% 0% 5% 10% 15% 20% 2010 2011 2012 2013 2014 2015 2016 2017 Chart 19: Margins EBITDA Margin PAT Margin
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Industry Research I Paper 14 Concluding remarks The domestic paper demand in India grew from 9.3 million tonnes in FY08 to 15.3 million tonnes in FY16 at a CAGR of 6.4%. CARE Ratings expects the paper demand to grow at a CAGR of 6.6% and reach 18.5 million tonnes in 2018-19. The Packaging Paper and Board segment (CAGR: 8.9%) is expected to grow the fastest, while Newsprint segment (CAGR: 2.5%) is expected to grow the slowest. With FTAs and lower costs, imports are expected to continue challenging the domestic industry in the medium term
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Industry Research I Paper 15 Appendix Typical paper manufacturing process Paper manufacturing process by type of raw-material
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Industry Research I Paper 16 P&W Segments Category Main Varieties Applications UWF High-quality uncoated papers ranging from 70-250 gsm are used in copiers, for fine writing and printing, for archival copying and offset printing Creamwoven A non-surfaced sized paper mainly used for low end printing products such as textbooks, examination paper, stationery, etc Maplitho A non-surfaced/surfaced sized paper mainly used for high-end printing products such as diaries, calendars, annual reports, brochures, catalogues, premium notebooks, etc Copier Paper Mainly used for copying, typing, plain paper faxes, general stationery Bond Paper Mostly used for letterheads and for image building stationery CWF Medium to heavy weight papers produced from chemical pulp, whose weights range from 90- 300 gsm. Mainly used for company brochures, annual reports, high end magazines and books Art paper/board China clay coatings done on both sides of the paper. It is used for brochures, calendars, magazine covers, magazine text, etc. Chromo paper/board It is blade-coated paper with high gloss feature, where only one-side needs to be coated. Mainly used for self-adhesive stickers, calendars, posters, labels, etc UM Light weight grade paper based on mechanical or recycled fibre, whose weight ranges from 45- 60 gsm. Mainly used to print a host of short print life applications Telephone directory Good quality standard newsprint used for directory purpose Yellow pages Used for printing classified addresses and information in directory Supercalendered Used for magazines, offset printing, inserts and flyers, etc CM Light to medium weight coated papers produced from mechanical or recycled fibre, whose paper weights range from 35-115 gsm. Mainly used for magazines, higher quality advertising and other
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  • Fall '19
  • Packaging Paper & Board

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