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Now, I would like to mention certain points regarding the
performance of your company:
Your Company reported another strong performance this year as it
extended its leadership in newsprint segment. Your Company
continued its dominance in being the lowest cost newsprint
manufacturer and extended its market presence. This allowed the
company to deliver superior value to the stakeholders.
Net Sales grew 11.42% from Rs.385.78 crores in 2009-10 to
Rs.429.84 crores in 2010-11 due to significant increase in
existing business volumes. The Company also achieved a record
production of 144712 MT during the year achieving plant capacity
utilization of almost 100%.
Your company registered a 54% growth in profit before tax to
Rs.18.11 crores in 2010-11 against Rs.11.78 crores in 2009-10.
Profit after taxation also jumped over 98% from Rs.6.99 crores
in 2009-10 to Rs.13.87 crores.
In view of the paper market condition looking much favorable,
the working results of the company are expected to be
significantly better in the coming years.
OPERATIONS AND OUTLOOK
Your Company is the largest manufacturer of Newsprint in India
and registered an overall improved performance in 2010-11, where
all business verticals and sub-segments grew at a robust pace.
The average realization in newsprint and writing and printing
paper increased by 17 per cent over 2009-10.
Emami Paper's philosophy is to actively engage with the
customers not only in providing them with the right quality of
products but also to provide solutions to their need through its
dedicated technical service team. This has helped in attaining
quick market penetration in high end newsprint sector.
The Company continued its excellence in operations with
modernized technology, backed by efficient intellectual capital
- resulting in zero breakdowns or rejections.
Paper industry is poised for growth and has a linear
relationship with GDP of our economy. With the GDP expected to
be at around 9 percent during 2011-12, the paper industry will
grow simultaneously at 8 per cent over the next 10 years. This
will translate into positive results for the Company and higher
returns for our stakeholders.
EXPANSION PLAN
In line with the planned expansion projects, the Company has
firmed up plans for installing Printing & Writing Paper Machine
of 175,000 tpa and Elemental Chlorine Free (ECF) Bamboo/Wood
Pulp Mill of 150,000 tpa, Captive Power Plant of 32 MW along
with required Water Intake and Treatment facilities at a project
cost of Rs.1225 crores in the 1st Phase. Approvals are in
process for land acquisition, environment clearance, water
clearance and financial tie-up among others.
As a part of above, the Company has acquired state of the art
used Paper Machine from Sweden. It has also floated global
tender for the main process equipment. Location of the these
facilities adjacent to the existing mill at Balasore provides
advantage in terms of utilization of available resources, well
established infrastructure and proximity to the coalfield, port,
railway siding and highway facilities.
With a proven track record of 27 years Emami Paper Mills Limited
is today the lowest cost newsprint manufacturer equipped with
the best recycling technology in the world. 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.
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