The passion of Ruchira
Overview
We have often been asked 'What kind of a Company is Ruchira Papers?'
To say that we are a paper manufacturer does not indicate anything significant. In view
of this, we decided that It would dedicate our overview this year on what we truly are and
what drives us.
Governance
At Ruchira, we are a governance-committed Company. We believe that governance is not
peripheral to our existence but integral. In a world that is increasingly concerned with
the 'how' over the 'what', we believe that the quality of our governance is reflected in
our integrity, stakeholder focus, strategic discipline, functional consistency and
repeatability.
Direction
At Ruchira, we possess a strategic clarity of where we are headed. We are not driven as
much by the obsession to be the largest paper company in India as much as we are driven by
the zeal to be one of the best - in terms of quality, customer respect, realisations per
kg and consumption of natural resources per unit of production.
Best over biggest
At Ruchira, we believe that success is derived from the best at what we can do. This is
of critical relevance in the capital-intensive paper sector marked by a perception that
scale is more important than scope. We believe that the most passionately run mid-sized
paper company can deliver operating efficiencies better than a number of larger
competitors (as in our case). As an extension of this conviction, we believe that a focus
on passion-driven competence enhances asset utilisation, revenues and profitability
leading to a reinvestment cycle that enhances scale. This validates what we have always
believed: that passion generates scale and sustainability; not the other way around.
Hands-on
At Ruchira, the technocrat promoters are engaged in running the Company. We engage with
every day issues and we engage with the strategic while we continue to inspire
professionals who work with us. The result is that Ruchira is promoter-and
professionally-driven The Company is adequately manned in senior positions that has helped
enhance specialisation, capabilities, growth and outperformance.
Compliances
At Ruchira, we believe that our business continuity is derived from a culture of
compliances - with the laws of the land and listing authorities. At our Company, we have
instituted a robust commitment to statutory compliances through a team that owns this
responsibility. These compliances are reported to respective authorities (where
applicable) in terms of various forms/report filings well within the prescribed time.
Reinvestment
At Ruchira, we believe that in a business where the upside is vast, there will always
be a premium on corporate austerity, accrual maximisation and reinvestment. This
reinvestment makes it possible to invest in various debottleneckings/ modernisation and
up-gradations, which ultimately translated into an ability to generate more from the given
equipment comparable with some of the best productivity standards among peer companies.
More from less
At Ruchira, we recognise that we are engaged in a business where realisations are
outside our control. What we have within our control is the management of equipment,
processes and protocols that make it possible to get product manufacture right for the
first time and every time. Over time, this commitment has translated into the ability to
generate more from less-whether it is about increasing production capabilities from our
manufacturing assets, or generating a better yield from our raw material resources or
maximising the use of steam or enhancing per person productivity.
Punching above our weight
At Ruchira, we represent an unusual combination - of a Company seeking to punch
technologically above its weight when it comes to generating a higher throughput or
moderating costs lower than sectoral benchmarks but otherwise remaining cautious when it
comes to debt or debtor discipline. The result is that even as we have grown over the
years, we have selected to under-borrow and remain adequately liquid through market
cycles.
Ongoing upgradation mode
At Ruchira, because we are present in a capital-intensive business, we recognise that
there will always be a need to upgrade or modernise.
As a matter of prudence, we initiate expansion programmes only when a large part of the
debt related to the previous debottlenecking/ upgradation/ modernisation has been repaid.
Besides, our capital expenditure is linked to projects with attractively short paybacks,
protecting our medium-term profitability.
Lateral opportunities
At Ruchira, we are focused on revenue maximisation from our given equipment. The result
is that we are perpetually engaged in ascertaining the right product mix in response to
marketplace demands and developments. During the year under review, the Company extended
to the manufacture of copier paper expected to enhance realisations of writing &
printing paper, strengthening our profitability.
No speculative positions
At Ruchira, we see our role as an efficient convertor of resource or raw material into
the finished product.
This strategic clarity has translated into a few imperatives: investments in conversion
efficiency, lower material use, high financial returns, enhanced quality focus and the
complete absence of any speculative positions on our raw materials or finished products
that could potentially distract us from our organisational focus. The result of this
approach is not just a consistent focus on the manufacture of paper of the highest
quality; it is also a focus on selling as much as fast as we can, resulting in a short
receivables cycle that protects our liquidity across market cycles.
Integration
At Ruchira, we believe that in a competitive business, success is derived from an
aggregation of moderate margins across process and products. In our integrated operations,
where one end product becomes the raw material for the other, the overall impact is
anything but moderate. This integration represents the heart of our sustainability.
The management,
Ruchira Papers Limited.