Product
The Company is engaged in the manufacturing of Kraft Paper and Writing & Printing Paper. Kraft Paper finds its application in the packaging Industry especially for making Corrugated Boxes / Cartons and for other packaging requirements. The special feature of its Kraft Paper is load bearing Capacity and tensile Strength which makes its most suitable for Corrugated packing application. Writing & Printing Paper is used for multiple purposes.
Progress over the years
The Company initially set up Agro Waste Paper Mill for manufacturing of Kraft Paper and commenced its operations with a small 2310 TPA Capacity. Over the Years, the Company has undertaken several phases of expansion and the Production Capacity of Kraft Paper since then has increased from 2310 TPA to 52800 TPA.
The company had set up 33000 TPA unit for manufacturing of writing & printing paper adjoining to its existing unit in March,2008.
Company’s Approach and Perception
The Company has been maintaining pace with the changing technology in the Paper Industry. Since the start of Commercial production in 1983, the company has been regularly upgrading its Works.
Ruchira Papers has also demonstrated deep commitment to the cause of preserving the environment by adopting environmental friendly practices leading to energy conservation and ultimately savings add to the bottom line. The Company also lays due emphasis on power conservation. CII (Confederation of Indian Industry) energy audit team conducted a Detailed Energy Audit of Ruchira Papers including all thermal and electrical equipments. Various energy saving proposals were suggested and since then the company has been in the process of implementing the proposals in a phased manner. Implementation of some of the proposals has resulted into reduced power consumption (per ton of paper) which has added to the profitability and economic viability of the Company. The Company was also accredited with an appreciation letter from CII for contributing to the power conservation. The Company has set up and properly maintained essential effluent control facilities as per the norms of The Pollution Control Board.
Incentives and benefits enjoyed by Ruchira
Our Company being located in Himachal Pradesh, is enjoying the following benefits:
- 100% excise duty exemption upto June 09, 2013 subject to Government notifications issued from time to time for Kraft unit. Also 100% excise exemption for Ten Years from 30.03.2008 for Writing & Printing Unit.
- 100% income tax exemption for first five years with effect from Assessment year 2008-09 and there after 30% exemption for next five years.
- Concessional rates of central sales tax at 1% against 2% in other states.
- Capital Investment subsidy @ 15 % of investment in Plant and Machinery, subject to a ceiling of Rs. 30 Lacs.
- Power Tariff in Himachal Pradesh is cheaper comparatively than neighboring states.
Opportunities in Writing & Printing Paper Segment
The ever increasing demand for Writing and Printing paper in domestic as well as international markets has thrown up a plethora of opportunities to the Company to diversify into Writing and Printing paper segment. Backed by buoyant economy coupled with the commitment of Government to increase literacy and growing awareness of quality paper among the consumers, this industry is on the threshold of a promising future. By delivering the international quality products and improving the operational efficiency and also by harnessing its inherent strengths, the Company has diversified into Writing and Printing paper.
Future Outlook for Paper Industry and Prospects
The demand for paper in India is growing led by the government s enhanced spending on education. This places India among the fastest growing markets in the world. The Indian Paper Industry is highly fragmented with nearly 700 manufacturing units spread across the country , with installed capacity ranging from 5 tonnes per day to over 1000 tonnes per day. The Industry has grown at a 6% CAGR over the last few years and is estimated to grow at a 7.6% CAGR over the next 2-3 years, showing strong correlation with India s GDP Growth. At present, the total paper capacity in the country is six million tones. While the integrated producers account for about two million tonnes, the remaining capacity is scattered amongst a large number of stand alone producers. Further, much of the fresh investment in going into writing and paper as this segment of the market is growing at 12-13 per cent per annum.
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