Though India is the second most populous country in the world, its per capita paper consumption compares poorly with global standards; while per capita paper consumption in India is only 10 kg, the world average is much higher at about 54 kg. This demonstrates that there is significant headroom for growth in paper consumption in India.
The world is moving towards a connected, Internet based economy.
Subramanian P – Looks like some big investor sitting with 5.30% stake
The foundations of India’s largest bagasse-based tableware unit within existing complex in Faizabad. The 11.5-TPD capacity is expected to be ope-rationalized by 1st April, 2017 and will have the flexibility to be progressively scaled-up to its maximum capacity 23-TPD, which will be operational by 1st April, 2019.
What is special on Compostable tableware ?
Today, the available disposable tableware products made of thermocol and plastic are carcinogenic (cancer-causing) and harmful to the environment too on account of their non-biodegradability. In this context, bagasse composed disposable tableware products are both health- and environment-friendly and cost competitive.
Compostable tableware made from sugarcane waste has no negative effects on health as it is made using natural and renewable materials. This also makes it suitable for use in microwave ovens to heat food. On the other hand, polystyrene contains toxic substances suspected to be carcinogens and neurotoxins that are hazardous to humans. Polystyrene food containers leach styrene when they come into contact with warm food or liquid, causing human contamination and pose a health risk to people.
Anticipate the 11.5-TPD capacity plant to commence commercial production towards the end of 2016-17 with a progressive capacity scale-up to 23-TPD by 1st April, 2019.
Company products will be marketed under the ‘Chuk!’ brand across India and in the mature markets of the US, Europe and Australia.
At full capacity operations, the Compostable tableware mfg unit has a revenue potential of ` 130 crore per annum with late double-digit EBIDTA margins potential.
The sheer potential of the Compostable tableware market (the projected size of the disposable packaging food products sector is expected to grow to 3,800 crore by 2020) is big boost and being the first mover will have advantages.
Emerged stronger in surviving through debt restructuring and remained profitable through out the last year, reflecting the same highest net profit accretion during the last quarter of the year 2015-16 at ` 1.57 crore.
Management targets growth of 21% in the current fiscal, which is surely met considering organised retail and the boom in e-commerce, offers huge potential for growth and giving a boost to the packaging sector.
The plant is located near the agriculture belt of the Indo-Gangetic plains and source our raw material locally within a radius of 200 km, from farmers who sell their agriculture waste directly to company.
There is considerable awareness in the environment and some metro cities such as Bangalore banning the plastic and supporting the paper package leading to growth for paper companies.
Promoter allotted 70 lakh shares @15rs recently increasing the stake to 42% , most of these funds will be used for plant construction at the existing plant.
The Company has achieved sales of paper 37,664 MT (Kraft Paper 60% & Poster Paper 40%) and salable pulp of 4,553 MT during the year ended 31st March, 2016 against sales of paper 36,198 MT (Kraft Paper of 60% and Poster Paper 40%) and salable pulp of 6,093 MT in the previous year ended 31st March, 2015.
The Company has achieved a Gross turnover of `182.03 crores in the current year ended 31st March, 2016 against `180.77 crores in the previous year. Reserves as on 31st March, 2016 stood at `14.86 crores as compared to `11.10 crores of the preceding year 31st March, 2015.