Mr. Punamchand Malu
Managing Director
Mr. Banwarilal Malu
Joint Managing Director


Dear shareholders,

Your Company has posted another year of impressive results when viewed in the light of the challenging business environment. For the year under review the Company recorded total income of Rs.253,46.68 Lakhs and booked proft before tax of Rs.4,25.67 Lakhs.



The Indian Paper & Paper board industry will continue to grow at a CAGR of 6-7% during the next 5 years to approx 19.8 million tons. The segment wise break up and usage of paper & paper products in India in FY 2017 is Writing & Printing Paper 30%, Packaging and Paperboard around 47%, Newsprint 19% and Speciality and other paper about 5%. The segment wise share is likely to remain same in coming years. The segment wise growth will be lead by speciality paper at around 9-10% as the economy matures, followed by paperboard at 7-8% , Writing and Printing paper at 5-6% and Newsprint at 4.5-5%.

The Indian paper industry continues to remain fragmented in nature due to logistics costs and scattered demand over the large landscape. The paper industry caters to the regional demands and this limits the large volume capacity addition. The overall growth in the W&P segment is expected to be at 5.5%-6.5%. The W&P paper demand will be lead by the Copier and Coated paper where the copier paper is expected to grow at 9-9.5% and Coated paper at 5%. The maplitho and creamwove segment will continue to grow at a pace of about 4%.

Newsprint demand is expected to grow at a moderate pace of about 4-5% over the next couple of years, the demand will be driven by the gradual rise in the literacy rates and steady growth of Newspaper circulation at about CAGR of 3-3.5%. There is unlikely to be any new capacity addition in the Newsprint segment, the share of imports may rise to about 68% and the capacity utilization of the domestic producers will also rise. The industry will also be supported by rise in the advertisement revenue due to increased economic activity of a proactive government, leading to increase in the number of pages per copy.

The demand of Paper and Paper Board is set to rise to robust 7-8%. The demand is  expected to be led by FMCG and Pharmaceuticals due to the growth in the rural markets, availability of credit for consumer durables and increasing spend on the health care. The electronics and e-commerce are other sectors which will lead the demand growth. The rising affordability leading to shorter replacement cycles, multiple ownership of durable products and rise in e-commerce which fulfills the aspiration of the people in the remotest corner of India is going to be the demand generator in the economy. The increased use of packaging of fruits and vegetables also lends its share in increasing the demand for the paper board.

The per capita consumption of paper in India is a mere 11-12 kg in comparison to world average of 57 kg. The growth of paper industry is directly correlated to the growth in the economy, with the Indian economy expected to grow at a healthy pace, the paper industry will perform better in the coming years.


The implementation of the GST law, which is the single biggest change in the business environment of modern India alongwith the emphasis of the Central Government in curtailing the unreported economic activity is going to be a big disruptor. This is going to transfer the scale in favour of more organized and formal economic activity.

The implementation of the GST has removed the trade barriers caused by individual state taxation and smoothened the flow of goods across state borders. The growth prospects of paper & paper board industry are closely aligned with that of the economy in general and the growth in paper industry has historically followed the national GDP growth rate. The company is located centrally and equidistant from major markets. Therefore, the implementation of the GST act will open new frontiers and possibilities for the company.

In the recent past the paper industry has seen consolidation of capacities where in small and marginal players have closed down and efficient responsive managements have increased the production capacities by brownfield and green field expansions. There has been a shake up in the writing and printing paper segments where even the established producers have been forced to close down production. The demand growth forecast and closure of existing plants has opened new avenues for the existing players. The industry is poised to witness increased capacity utilisations and realisations in coming years.

Our company has been actively participating in the ongoing changes in the industry keeping in line with the trends in the industry. The company has focused on increasing the production of packaging and paper board segment as the robust growth in e-commerce, FMCG, Consumer goods, Healthcare etc. is likely to drive the paper board demand in coming years. The company has also focused in increasing its share in W&P segment as rising litereacy, school enrolment drive and formalization of the economy will lead to increased growth in this segement. The company has been focused on its Newsprint business, it is likely to benefit from implementation of the GST as it will be able to get credit on the input tax under the GST regime. The major customers are situated in away states, they will be able to take the benefit of input tax credit, making the products of the company more competitive. The governments focus to kick start the economy by focusing the expenditure on infrastructure thereby increasing the print advertisement spend which is expected to increase the number of pages and copies of newspaper. Increase in the general level of literacy and continued rise in the readership will further add to the growth prospects of the Newsprint Division. The company has been adapting its product portfolio to compete in emerging market conditions.

The company is likely to witness the benefits of better realisation in the coming year due to the change in the business environment, efforts taken by it in the past years to increase the quality & production and to diversify its product portfolio. The company continues to focus on the long term and it continues its drive for sustainable growth.


Your Directors wish to place on record their gratitude to Bankers, Customers, Business Associates for the co-operation and support and to the Shareholders, dealers and suppliers, staff and workers for their contribution to the companys growth. 


 Nagpur: 11th August 2017   PUNAMCHAND MALU
Managing Director
Joint Managing Director
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