SATIA INDUSTRIES LIMITED INVESTOR PRESENTATION January 2019 1
Executive Summary Company Overview Key Clientele • SIL has long standing • Incorporated in 1980, Satia relationship with State Industries Limited (SIL), is one Text book Corporations of the biggest and completely and around 50% of integrated Wood and Agro revenue comes from based paper manufacturer. these organisations. • SIL’s products are extensively • The remaining revenue used in the printing of books, attributes to the Public directories, envelopes, and Private Sector diaries, calendars, computer Companies. stationery, copy manufacture annual reports, etc. Manufacturing and Distribution Network: FY18 Financial Snapshot • Manufacturing plant based out of Muktsar with capacity to manufacture over 1,00,000 Revenue EBITDA EBITDA Margin MT per annum. INR 6,723 Mn INR 1,521 Mn 22.62% • Completely integrated manufacturing operations with 3 paper machines, 100% in- house power generation and adequate PAT PAT Margin ROE ROCE effluent treatment plant. INR 687 Mn 10.22% 31% 26% • Strong Distribution Network: 70 dealers and 3 branch offices. 2
Company Overview 3
About The Company Revenue (INR Mn) & EBITDA Margin (%) 6,723 7,000 5,919 6,000 4,501 5,000 23% 23% 19% 3,757 4,000 16% 3,000 • Incorporated in 1980 by Dr. Ajay Satia, Satia Industries Limited (SIL) started its commercial 2,000 production of printing and writing paper at Muktsar, Punjab in 1984. FY16 FY17 FY18 H1-FY19 • SIL is one of the biggest Wood and Agro based paper plants in India manufacturing paper Revenue (INR Mn) EBITDA Margins % using wood chips, veneer waste, wheat straw, sarkanda, etc. • The Company has a fully integrated manufacturing facility, which includes paper machines, pulping machinery, chemical recovery plant and power generation plant. Raw Materials Used of Total Volumes • Fully integrated production facility gives superior advantage in terms of cost efficiency Waste Paper Based and environmental compliance, ultimately leading to superior margin profile compared to 5% peers. • With a view to meet environment challenges and improve the quality of pulp; Oxygen Wood delignification and ECF pulping has been introduced by the Company. Based • The product profile includes Super Snow White, Snow White, Photocopier paper, Map 30% litho, Colored paper, Ledger paper, Cartridge paper, Duplicating, bond paper - with and Agro Based 65% without watermarks and Chromo (Art) paper from GSM range 42 to 200 GSM. • Satia Industries Limited markets its products through dealer network located all over India and through Branches at Jaipur, Delhi & Chandigarh. 4
Key Management Personnel R.K. Bhandari (MBA) - Joint Managing Director Looks after marketing and other administrative responsibilities since the last 32 years Chirag Satia - Executive Director Chirag has been driving force behind new inititatives since he joined in 2015 and looks after Finance, Accounts and Dr. Ajay Satia Commercial Operations. His enterprising spirit and forward looking vision has added new energy to the workforce. Chairman & M.D A.C. Ahuja – Director Ex. Executive Director IFCI, Delhi Hardev Singh - Director (Technical) • Dr. Satia set up the integrated paper Has a wide experience in installation of projects Arun Kumar Gupta - Director (Independent) mill in 1984. Senior Chartered Accountant • His vision to adopt technological Ashok Kumar Gupta - Director (Independent) changes and economies of scale along with timely capital infusion has brought A CAIIB and has 35 years of experience in Banking the unit among the best in the industry Dr. Priti Lal Shivhare (MSC, Ph.D. Chemistry) - Director (Independent) in terms of pulping strength, power A scientist in Central Pulp and Paper Research Institute, Saharanpur, (U.P) self-sufficiency, effluent treatment and Inder Dev Singh – Director (Independent) meeting the environmental norms. A retired personnel of PNB and has studied B.Com. and LLB and is a CAIIB • Dr. Satia has a passion for work and Dinesh Sharma – Director (Independent) possesses unparalleled enterprising Masters in Chemical Engineering spirit for expansion and modernisation. • S. K. Arora – Director (Independent) His greatest strength lies in building Senior Chartered Accountant and retaining a strong and trusted team which has turned his dreams into Ashok Khurana (C.A.) - VP-Finance reality. R. K. Dhuria – Company Secretary L.L.B. 5
Key Milestones Power Additional Power generation Started production using a Production cogeneration Increased capacity capacity of 10.45 MW and single paper machine with the crossed plant (5MW) of the power plant New Solar plant with capacity capacity of 4,950 MTPA 10,000 MTPA was installed to 23.30 MW 2.29 MW were installed 1984 1993 2003 2016-17 2011-12 1980 1989 1998 2006 2014-15 2017-18 Incorporation Second paper Third paper machine A Chemical The Capacity of Chemical Added Solar of the machine was and 200 MTD pulp Recovery Plant and Recovery Plant enhanced to 400 Capacity of 3.25 Company installed mill were installed. power plant (5MW) TPD Solids and also installed a MW and achieved were installed Pulp Bleaching Plant production of 1,13,517 MT 6
Geographical Presence Region-wise sales for FY18 Region-wise sales for FY18 Jammu & Kashmir Delhi 1.6% 16.3% Punjab Uttar Pradesh 11.3% 11.6% Haryana Assam 3.4% 2.3% Rajasthan West Bengal 8.3% 3.1% Gujarat Bihar 2.2% 0.6% Maharashtra Madhya Pradesh 14.8% 5.1% Distributors (70) Telangana Chhattisgarh 3.1% 8.4% Branch Offices (3) Export and Others Odisha Manufacturing Plant 5.2% (Muktsar) 2.7% 7
Manufacturing Facilities Pulping Facilities Paper Machines Chemical Recovery Plant Power Generation Segment • • • • Total Capacity: 400 TPD Total capacity: 350 TPD Total Capacity: 600 Solids Thermal Power: 33.75 MW TPD • • • Agro based pulp: 200 TPD Machine 1: 100 TPD Solar Power: 5.54 MW Capacity • • Wood pulp: 120 TPD Machine 2: 100 TPD • • Waste paper pulp: 80 TPD Machine 3: 150 TPD • Continuous • Capacity of paper machines • Installed • Installed Digester for two Chemical three turbine cooking pulp, oxygen varies with operating speed Recovery boilers with a capex generating sets at a total delignification and chlorine and GSM of paper. of INR 850 Mn to process black capex of INR 871.6 Mn and a • Proposed: 300 TPD, already dioxide bleaching has been liquor for reconversion into solar power plant at capex of installed. applied for Environment caustic soda. INR 224.2 Mn. Description Clearances • Project • It also helps in environment target for commissioning is two and a compliance. half years subject to all Govt. permissions. 8
Paper Making Process Stage 1 Continuous Cooked Cooking Elemental Unbleached Pulp & Stage 2 with caustic Chlorine Black Cleaned Pulp soda which Free Stock Preparation Liquor Agro Brown Wet Raw Washing, passes Bleaching Stage 3 Residue Pulp Washing Material Refining, (Sodium through (Environ- Paper Making Stage 4 Screening & Lignate) steam at ment 65% Cleaning Converting Sheet Forming-> 165 Degree Friendly) Wet Sheet and Finishing Celsius White Pulp Wastewater Black Liquor De-watering Different types of Sheeting through 3 stages: Pulp (Agro, wood, Clarifier & Biogas Caustic Soda Vacuum Suction, imported wood) is Plant Recovery Section mixed in different Pressing, proportions as per Evaporation (Drying) the required quality Rewinding additives like AKD, PAC, whitening Wood Requires higher amount of Calendaring for Agent, Wet End Caustic Soda Chips smoothness and Additives and Fillers (Sodium Hydroxide) evenness 30% Cutting Roll Forming Hydra Refined & Imported pulper stored in a Wood Pulp (disintegrat chest ion) 5% 9
Effluent Treatment Recovery Boiler Calcium Carbonate Inorganic Organic matter burns and (Limestone) matter acts as fuel Treated with Sold in markets Black Liquor becomes Calcium Sodium (Sodium Hydroxide Sodium Hydroxide (Caustic Soda) Carbonate Lignate) Reused after 90 -95% recovery rate Wheat straw Waste water from Final effluents are first wet washing paper machine is Maximum circulation treated at the Effluent waste water is clarified and reused in of bleaching plant Treatment Plant & used to produce washing of pulp in filtrate then passed to the Biogas bleaching stages Eucalyptus Plantations 10
Top Clients Bal Bharti Kokuyo Riddhi Paper Products Pvt. Ltd. Odisha State Bureau of Textbook M. P. Pathyapustak Nigam Chhattisgarh Pathya Pustak Nigam Navneet Prakashan Rajasthan Rajya Pathyapustak Mandal Rajeev Prakashan Allahbad Indian Railways 11
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