JK Paper Limited Commemorates Golden Jubilee at BSE Thrust on Exports and Brand Building in Domestic Markets

JK Paper Ltd., One of the India’s largest paper companies celebrated 50 golden years of listing on Bombay Stock Exchange (BSE) with a commemorative golden jubilee bell ringing ceremony at the BSE. While highlighting the Company’s significant achievements and key milestones on the momentous occasion, Mr. Harsh Pati Singhania, Vice Chairman and Managing Director, presented a special memento to BSE officials in the presence of the honourable members of the Board of Directors and senior management – Mr Udayan Bose (Director), Mr. Shailesh Haribhakti (well known management consultant and a former director on the Board), Mr. O. P. Goyal (Wholetime Director), Mr. A. S. Mehta (President), Mr. V. Kumaraswamy (CFO) amongst others. Gracing the occasion were several luminaries from the corporate and financial world as well as trade partners, stakeholders and business associates.

Mr. Harsh Pati Singhania, Vice Chairman and Managing Director, JK Paper Ltd., said, “Marking a historical moment in India’s corporate history, JK Paper, a part of the over 100-year old JK Organisation, today achieves a rare feat of golden jubilee milestone after listing in 1965. In fact, JK Organisation has been in the Paper Industry for over 75 years starting with a 3600 TPA Board mill at Bhopal (Straw Products Ltd) in 1938. Today, JK Paper commands leadership position in the paper industry with a combined capacity of 4,55,000 TPA at its plants in Gujarat and Odisha

“As we commemorate our golden jubilee, we celebrate the journey of the Company as a leader and a socially and environmentally responsible corporate wherein JK’s brands are industry benchmarks in their respective categories. JK is the absolute market leader in the Copier Paper segment with a current share of 26%. We are amongst the leading players in Coated Paper and Packaging Board. While the Copier Market in India grew by 6% in FY 2014-15, our Copier Volumes went up by 31%. The way forward is to explore new distribution avenues; enhance customer connect and re-establish premium positioning of JK Maplitho grades,” Mr. Singhania said while talking about future growth plans.

It recently made a major investment of Rs 1775 Cr. to augment capacities of Uncoated Paper at its Unit JKPM in Odisha. The new units include a Fibreline (215,000 TPA), Paper Machine (165,000 TPA), a 55 MW Power Plant, A4 Cutting Line and Robotic Palletizer. It is gratifying to note that in the 7 quarters that the new project has been in operation its Sales in uncoated segments have increased from 35,514 MT per quarter to 65,271 MT, up by 84%. This has been possible due to the strength its brands command in the marketplace. Cost of production has gone down and margins have increased due to this fully automated plant. The energy cost has come down significantly because of the new plant and there is an effective utilisation of raw materials. The Company has re-entered the Maplitho segment which it pioneered and introduced in the 1960s. In the Copier segment, the Company has it has added several new brands to offer its customer a wider basket to choose from.

Exports

JK Paper is actively involved in market expansion beyond the shores of India to ultimately have a global footprint for its products. The Company is exporting to more than 40 countries including Sri Lanka, Bangladesh, Middle East, Africa, Australia, Singapore, Malaysia etc. JK Paper's flagship brand JK Copier is the largest selling copier brand in Sri Lanka. The Company’s exports at over 40,000 tonnes in 2014-15 went up by nearly 150% over the previous year. The company aims to further increase its exports by 25% during the current year. It is heartening to note that the Company’s products are being well accepted in several countries.

Domestic markets

For the domestic market, the Company is expanding distribution network, focusing on tier II & III markets. JK Paper Ltd. has a strong distribution reach with 4 regional offices, 11 warehouses, 180 distributors and over 4,000 dealers. It has a combined strength of 4,800 employees at its plants in Gujarat and Odisha. JK Paper Limited is the largest producer of Photocopier Paper with Brands like JK Copier, JK Easy Copier, Sparkle, etc. JK Paper’s other popular brands include JK Cote, JK Excel Bond, JK SHB Maplitho, JK TuffCote, JK Ultima, and JK PureFil all of which enjoy great popularity. It is also amongst the top two producers of Coated Paper and Packaging Boards in India. It largely focusses on value added products like Copier, Coated Paper, Virgin Fibre Packaging Boards and High end Maplitho Paper. In order to supplement its supplies and meet customers’ needs, the Company sources papers from overseas players.

First-in-class

The Company has several milestones during the last five decades: First paper company to get TPM Certification from JIPM, Japan - 3rd Paper Company in the world, first Paper Mill to get ISO 9001 & ISO 14001, obtained OHSAS 18001, first to Brand Paper in the Indian Market, first to introduce Surface-size woodfree paper, etc.

Sustainability

The Company is pursuing enriching the green cover through Social Farm Forestry. On plantation front, JK Paper will continue to plant 16,000 to 17,000 hectares every year in the radius of 200 kms of its plant. Till date, JK Paper has planted over 1.33 lakh hectares of land covering the states of Orissa, Andhra Pradesh, Chattisgarh, Gujarat, Maharashtra & West Bengal. The farm forestry activity since 1990 has cumulatively provided income to over 45,000 farmers. JK Paper has signed an Emission Reduction Purchase Agreement (ERPA) with the Bio Carbon Fund of the World Bank covering 3500 Ha mainly owned by small and marginal farmers associated with JK Paper's plantation program. This program provides additional income for participating farmers, besides reducing harmful green house gases and global warming.

JK Paper’s new plant consumes 50% less water and has managed to reduce coal consumption by 45% - significant pointers to its commitment to reduce the load on environment.