09 May, 14:34 - Indian

SENSEX 79346.29 (-1.23)

Nifty 50 23965.45 (-1.27)

Nifty Bank 53504.45 (-1.58)

Nifty IT 35814.5 (-0.52)

Nifty Midcap 100 52916.55 (-0.59)

Nifty Next 50 62235.55 (-0.84)

Nifty Pharma 20981.6 (-0.63)

Nifty Smallcap 100 15969.65 (-1.32)

09 May, 14:34 - Global

NIKKEI 225 37503.33 (1.56)

HANG SENG 22867.74 (0.40)

S&P 5700.25 (0.07)

LOGIN HERE

companylogoGenus Paper & Boards Ltd

You are Here : Home > Markets > CompanyInformation > Company Background
BSE Code : 538961 | NSE Symbol : GENUSPAPER | ISIN : INE949P01018 | Industry : Paper |


Chairman's Speech

Dear Shareholders,

It gives me an immense pleasure to present before you the performance of your Company for FY 2023-24. Being established as the major player in paper industry known for superior quality of Kraft Paper, Duplex Board and Writing and Printing Paper (WPP), we continue our journey on the path of growth and excellence with true spirit.

The paper packaging industry experienced a good growth over the last decade, owing to substrate choice changes, new market expansion, ownership dynamics, and government initiatives to ban plastics and encouraging paper based products. Sustainability and environmental issues continue to be emphasized, and various innovations catering to paper and paper board packaging are expected to drive market growth in India.

The Indian Paper and Paperboard Packaging Market size is estimated at USD 12.87 billion in 2024, and is expected to reach USD 17.74 billion by 2029, growing at a CAGR of 6.63% during the forecast period (2024-2029).

Paper-based packaging to preserve food products has advanced significantly in recent years. For example, corrugated board packaging for transporting fresh fruits and vegetables has become increasingly popular. The layers of the corrugated board need to bond at high temperatures to kill bacteria. The recyclability of grooved boards prevents repeated use, reducing cross-contamination.

The paper packaging industry in India is segmented by product type which includes folding cartons, corrugated boxes and other product types and by end-user industry such as food, beverage, healthcare, personal care and household care, hardware and electrical products and other end-user industries and the market studies shows the demand for paper and paperboard packaging products like folding cartons, corrugated boxes, and others, which are frequently used for packaging food and beverage products, such as juices, milk, and cereals. Over the last many quarters, the Kraft Packaging industry has faced challenges on excess supply front due to diversion of exports supply to domestic supply leading to pressure on Net sales realization coupled with increase in input costs.

There are numerous grades of paperboard packaging. Paperboard is the most common material used to make containers like folding cartons. Paperboard requires pulping, optional bleaching, refining, sheet forming, drying, calendaring, and winding to manufacture paper.

In addition, in an increasingly eco-friendly world, sustainable packaging plays a vital role in reducing the environmental impact of packaging materials. It reduces waste through the use of biodegradable, recyclable and compostable materials contributing to the circular economy. Adopting sustainable packaging practices also increases customer loyalty, as customers are more likely to support businesses that share their environmental values.

Over the last few years, the industry has upgraded itself by investing in clean and green technologies in order to meet the growing needs of the consumers and has emphasized more on sustainability and environmental issues.

We, at Genus, are focusing more on upgrading our technologies and improving our machines which will further bring more value to the products to be ahead of our competitors in future and for this, we need to constantly upgrade it if, we have to move ahead of time. We use the virgin pulp and the best grades of recycled paper for our production in both the units situated at Moradabad and Muzaffarnagar, respectively. The Company has during the year commenced the production of writing and printing paper at one of its machine line which gave an edge to the Company by diversifying the product line. The Kraft Paper industry during last many quarters has witnessed a supply excess situation in India due to many internal and external factors beyond control. We have taken up a project for backward integration for producing pulp for WPP products and improving the quality factor in other products too by invested in machinery for pulp making section and focused on automation. India is a growing country and if this kind of growth persists in the near future, then packaging and WPP will certainly have a huge requirement. We are now in the process of implementing several new initiatives to further strengthen the Company and expand more. These are expected to result in significant additional improvements in the coming couple of years.

You will be reassured to know that your Company has taken proper steps to ensure the smooth continuation of operation in respond to any unexpected events in the future and took all possible cost control measures across the organisation, mainly to preserve liquidity. With these steps, the Company has emerged to meet its business commitments and financial obligations and further plans to diversify into writing/printing/white/cupboard, etc. to deviate itself from sole dependence on packaging and duplex.

Performance in FY 23-24

Your Company has generated annual revenue of Rs. 651.03 Crores in FY24 against FY23 revenue of Rs. 655.12 Crores. The EBIDTA (Earnings before Interest, Tax, Depreciation and Amortization) stood at Rs. 56.16 Crores (Previous Year Rs. 24.25 Crores) and PAT (Profit after Tax) stood at Rs. 5.66 Crores (Previous Year Rs. (13.73) Crores) with EPS (Earning per Share) of Rs. 0.22 (Previous Year Rs. (0.53)) at the face value of Re. 1.

The year under review witnessed various fluctuations in higher raw material costs, fuel (coal) costs, and reduction in Net Selling Rate (NSR). The global uncertainty impacted the demand-supply significantly resulting into reduced margins. However, some improvements in demand has been witnessed thereby firming up NSR in recent QY.

The Company would continue to focus on its key strengths to achieve healthy growth by further enhancement of quality. Though we enjoy premium in pricing compared to other market players, we hope to improve the sales realization further due to our thrust on quality and brand positioning. We are constantly looking for growth opportunities in the manner most beneficial to all Stakeholders.

Acknowledgement

As we place our feet firmly on new journey to capitalize on exciting opportunities and make our business sustainable, I take the opportunity to thank my colleagues on the Board for their invaluable guidance in progressing the Company on the right path. I thank the entire team for their persistent perseverance in delivering up to the customers' expectations. I also take the opportunity to thank all our stakeholders for their unforgettable support in our journey and multiple endeavors.

Yours truly Ishwar Chand Agarwal

   

Capital Market Publishers India Pvt. Ltd

401, Swastik Chambers, Sion Trombay Road, Chembur, Mumbai - 400 071, India.

Formed in 1986, Capital Market Publishers India Pvt Ltd pioneered corporate databases and stock market magazine in India. Today Capitaline corporate database cover more than 35,000 listed and unlisted Indian companies. Latest technologies and standards are constantly being adopted to keep the database user-friendly, comprehensive and up-to-date.

Over the years the scope of the databases has enlarged to cover economy, sectors, mutual funds, commodities and news. Many innovative online and offline applications of these databases have been developed to meet various common as well as customized requirements.

While all the leading institutional investors use Capitaline databases, Capital Market magazine gives access to the databases to individual investors through Corporate Scoreboard. Besides stock market and company-related articles, the magazine’s independent and insightful coverage includes mutual funds, taxation, commodities and personal finance.

Copyright @ Capital Market Publishers India Pvt.Ltd

Designed, Developed and maintained by CMOTS Infotech (ISO 9001:2015 Certified)

Site best viewed in Internet Explorer Edge ,   Google Chrome 115.0.5790.111 + ,   Mozilla Firefox 115.0.3 + ,   Opera 30.0+, Safari 16.4.1 +