From the Chairman's Desk
Dear Shareholders,
I am pleased to share that we are at the beginning of a new chapter at
our Group level: the CK Birla Group is now the CKA Birla Group.
This change reflects more than a name; it marks the Group's
evolution. From our manufacturing roots, we have grown into a services-led enterprise with
technology at its core. The new identity represents better our diversified portfolio,
broader customer base and global presence. It also reaffirms our belief in people: our
teams and leaders, as central to how we build, grow and create lasting value.
As we move ahead under the CKA Birla identity, we remain committed to
build long-term trust with our customers and empower people across businesses.
For the paper industry, 2024-25 was a year marked by formidable
challenges and measured resilience. The sector grappled with multiple headwinds: rising
raw material costs, increased imports, sharper competition and evolving consumer
expectations. As pricing remained under pressure and margins tightened, companies across
the board were compelled to recalibrate their strategies and re-examine their
fundamentals. Orient Paper and Industries Limited (OPIL) was not insulated from these
macroeconomic headwinds.
Despite testing circumstances,
OPIL focused on capability building with continued investments in
technological upgrades, process improvements and operational efficiency. These efforts are
already contributing to improved quality consistency and cost optimisation and are
expected to support stronger operational margins across the medium term.
Looking ahead to 2025-26, we expect the operating environment to remain
challenging, marked by persistent margin pressures stemming from subdued realisations and
escalating input costs. Nonetheless, the continued growth in tissue and value-added
segments offers promising opportunities. Leveraging its strong technical expertise and
unwavering focus on customer needs, OPIL is equipped to navigate the evolving landscape
with resilience, agility and strategic foresight.
Our long-term vision remains rooted in sustainable and inclusive
growth. Sustainability continues to guide our operations. From expanding our plantation
footprint to empowering rural communities through agroforestry, we are building circular
value chains that are socially inclusive and environmentally sound.
With a legacy spanning across 88 years, OPIL is entering a
transformative phase. The company is working on a strategy for capacity expansion, product
diversification and market development; these initiatives are designed to future- proof
our business and stay ahead of customer needs.
As we step into the next phase of growth our focus will be on
responsible execution, value creation for all stakeholders and long-term competitiveness.
I am grateful to our shareholders, partners, employees and community stakeholders for
their continued trust and support.
Warm regards, |
CK Birla |
Chairman |
Orient Paper & Industries Limited |