JK Paper - Good To Script Your Success Story

JK Paper is the market leader in branded copier paper segment and is one of the top two leaders in coated paper and high-end packaging boards.

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The company’s products are sold through an extensive distribution network of 188 wholesalers, 10 depots and 4 regional marketing offices and cover nearly 4,000 dealers. The company has two large integrated paper manufacturing units known as JK Paper Mills in Rayagada, Odisha and Central Pulp Mills, in Songadh, Gujarat. The company’s product portfolio includes office papers, packaging boards, printing and writing papers and also specialty papers. The company is a leading exporter of branded copier papers from India with exports to 35 countries.

The company has recently made a substantial investment of approximately 1775 crore in expanding and modernizing the capacity at Rayagada. It involved state-of-the-art machines with 1,65,000 TPA of paper capacity and pulp mill with a capacity of 2,15,000 TPA. This has significantly reduced water and energy usage. The company enjoys a pan-India presence and its brands enjoy a strong recall value due to efficient marketing. The company’s flagship brand JK Copier is one of the more popular copier brands in the country. The company completed the takeover of Sirpur Paper Mills in August 2018 after the National Company Law Tribunal (NCLT) approved the 782 crore (including incremental CapEx towards modernization) resolution plan.

Industry

The paper industry has witnessed a turnaround in fortunes since the FY17. The domestic demand for paper remained strong on the back of the closure of stressed domestic capacities, which led to supply constraints. The industry received a further tailwind as raw material prices and power prices trended southwards. As these costs form almost 80 percent of the operating cost, the profitability of paper companies has spiked.