Chairman's Speech

Dear Shareholders,

Good Morning.

Since requisite quorum is present I declare the meeting as open. As informed 142 members are present in person and 9 members are present by proxy. It gives me immense pleasure to welcome you all at the 34th Annual General Meeting of your Company.  

All the Board members are present except Shri S. Balasubramanian, Independent Director who could not attend the Annual General Meeting today due to his preoccupation. Moving ahead, I feel highly satisfied with the all-round performance of your company for the financial year 2015-16 by maintaining its Leadership in newsprint segment and extending the market presence for Multi-Layer Coated Board segment.


Our Founder Members

The commissioning of Multi-Layer Coated Board plant at Balasore, Odisha has been successfully completed and resulted in an increase in production capacity from 1,45,000 TPA to 2,77,000 TPA. During the year your Company registered a growth in the turnover from Rs.521.02 crores in 2014-15 to Rs.538.80 crores in 2015-16 and profit after tax (PAT) has shown growth from Rs.12.17 crores in 2014-15 to Rs.27.92 crores in 2015-16.

Many initiatives of efficiency enhancement and cost reduction have been undertaken and implemented. The Company is in the process of installing balancing equipment during current year for marginal enhancement in overall capacity from 2,77,000 TPA to 3,00,000 TPA. The fully automated Multi-Layer Coated Board facility will help your Company to scale up the operations and also propel to be amongst the leading paperboard businesses in the country.

Overall, the performance of the Company has been satisfactory despite economic and industrial challenges. With the expansion project is now fully functional, the Company’s performance is expected to improve substantially in the coming years. The company focuses only on high-end segment of virgin fiber board with its brands Emami Maxo Fold & Emami Glamkot and also developed Emami Eco Strong brand for recycled board and established as quality manufacturer in the country.

Market growth for the virgin grade segment continued to be robust due to increasing thrust on good quality packaging for consumer products. In spite of competition from established manufacturers, the company has achieved 100% capacity utilization in March 2016 and sold its product to leading printers for high-end use. The Coated Board Plant has started commercial operation on 25th March, 2016 and is now operating consistently and delivering superior quality paperboard. The adoption of advanced technology in this plant has helped in reducing consumption of wood pulp, Chemical, water and energy while improving margins for the Company.

The company intends to leverage the scale of operations and technology advantage, to reduce input cost further while delivering enhanced performance of its paperboards. Domestic paper and paperboard industry is currently estimated at 13.4 million tonnes per annum, out of which paperboards is 2.6 million tonnes per annum and is expected to grow at around 8% CAGR aided by Value Added Paperboards (VAP) at 12% CAGR. The growth potential of the VAP grade is expected to be driven by the higher GDP growth, increasing demand from rural markets, branded packaged products, shift from low end packaging and growth in organized retail. The need for differentiated packaging, coupled with change in lifestyles will continue to drive demand for paperboards and the company will maintain its position in this attractive market.

Your companys approach towards environmental protection is guided by Environmental Policy, commitment towards a sustainable planet and a clean environment as well as a healthy workplace for employees. The Company focuses on environmental management not only to comply with the applicable regulatory regime but also to strives to contribute positively to the communities around its operations.

It is a matter of great pride that Companys endeavor and commitment to achieve higher level of operational performance and environmental excellence has been recognized at various forums. During the year under review, your Company won various awards and honors for Safety, Environment protection, serving the community as good corporate citizen and for the outstanding contribution in the field of large scale industry sector.

Emami Paper Mills Limited through its CSR activities takes up programs that benefit the communities in & around its place of work and ensure over a period of time, enhancement in the quality of life & economic well‐being of the local people and thereby establishing its presence as a good corporate citizen in the field of - Eradication of hunger, Healthcare, Sanitation and Drinking Water, Promoting Education and vocational skill development, Environmental sustainability, Animal Welfare, Rural Infrastructure.

The company takes pride for its sense of responsibility towards the community and environment and the way it is duty bound for enrichment of the life of less privileged people and protection of the environment around its area of operation. The company has taken its social responsibility as a part of its operating policy and gearing its social activities to promote inclusive and sustained growth. The Company’s philosophy is to achieve long term value to serve the best interest of all stakeholders - shareholders, customers, employees, Government and the society at large.

I appreciate the confidence and faith reposed by the shareholders in the Board and the Management team which has, in my view, geared up to take on more challenges. I can say with confidence the Company will improve its performance further in the coming years. This is however only possible through tireless efforts; dedication and commitment of our team who have helped us reach where we are now and look forward to their continued commitment in the journey forward.

Thanking you,


Executive Chairman

Date : 10th August, 2016
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