Chairman's Desk
 

Dear Shareholders


It gives me great pleasure in welcoming you all at the 28th Annual General Meeting of your Company. Before I proceed I would like to briefly introduce the members of the Board present at the meeting.

Now, I would like to mention certain points regarding the performance of your company:

Emami Paper Mills Limited has a place of pride in the manufacture of newsprint with a capacity of 1, 45,000 Tons per annum, the largest in India. The quality of newsprint manufactured by the company has always got excellent customers' response.


Our Founder Members


During the year, the Company has registered total sales volume of 147910 MT as against 130637 MT in 2008-09 and has become the largest manufacturer of newsprint in India. The production during the year was 142494 MT as against 136869 MT during 2008-09 and achieved capacity utilization of 98.27%.

Despite sluggish economic and recessionary market conditions, your Company has posted reasonably satisfactory performance. Emami continued to offer quality newsprint products with the adoption of modern manufacturing technology.

However, keeping in view the steady trend of the market demand and upward momentum in prices of newsprint and writing & printing paper, a dynamic management team and aggressive business approach, your Company looks for significant improvement in the performance for the current financial year.

Competitive Edge

The Company enjoys a locational edge over the other industrial players owing to its proximity to the Haldia Port (200 kms) and coal availability within 250 km ensuring lower logistics cost. Its captive power plant generates power at Rs.2.61 per unit and also utilizes a dedicated feeder of 132 KV EHT line to ensure uninterrupted supply of power. 80 percent of its newsprint is marketed within 750 km radius. The Balasore Unit is also supported by 20 M.W. captive power plant and is fully self-sufficient.

Expansion Plan

Your Company has taken necessary steps to set up 400 TPD (132000 TPA) Newsprint project at a project cost of Rs.500 crores. The project is likely to be set up in South India or at existing location at Balasore.

Besides the above, your Company is also in the process of setting up 600 TPD (200000 TPA) wood based integrated pulp and paper mill in Orissa alongwith necessary infrastructural facilities and ancillaries. Steps are being taken for evaluation of all parameters including land acquisition, utility feasibilities, cultivation of plantation, discharge of water etc. The project will be set up in 2 phases and 1st phase of 300 TPD (100000 TPA) at a project cost of Rs.1000 crores is likely to be completed in the year 2013-14.

With a proven track record of 26 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.

R.S. GOENKA
Executive Chairman

Date : 30th July 2010
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