Shree Ajit Pulp And Paper inks MoU with Gujarat government
Vapi-based Shree Ajit Pulp and Paper is in the news for its acquisition of NR Agarwal’s unit-two. The production is expected to commence in Q4 of FY 2022-23. As WhatPackaging? magazine had reported earlier, SAPPL is notching robust growth. The kraft paper specialist has recorded the highest-ever production of 1,02,752 MT in FY 21-22. As Abhay Avadhani and Aditya Ghosalkar report the production capacity of the Unit-II will be 82500 MTS per annum
04 Apr 2023 | By Abhay Avadhani & Aditya Ghosalkar
Ajit Pulp targets export quality grade of kraft paper of 80-300 GSM and 20-35 BF - Natural and Ajit Gold Shade
Shree Ajit Pulp and Paper Limited (SAPPL) has signed a Memorandum of Understanding (MoU) with the government of Gujarat for expansion of Unit II situated at Plot No.1, Plot 1/B, Phase I, GIDC, Vapi- 396195, Dist. Valsad, Gujarat.
The agreement was signed in the presence of the chief minister of Gujarat, as well as other ministers and government dignitaries. Gautam Shah, CMD, SAPPL and Yogesh Kabaria, independent director, SAPPL as well as Milan Desai, advisory board member were present.
As per the SAPPL website, “Shree Ajit was incorporated as a private limited company on 23 March 1995 and converted to public limited company on 13 November 1995. The company came out with the public issue of equity shares worth Rs 315-lakhs in the month of October 1996 and at present is listed on Bombay Stock Exchange.”
The latest consolidated quarterly numbers for SAPPL state net sales at Rs 86.62-cr in December 2022 down 18.88% from Rs 106.79-cr in December 2021. Meanwhile quarterly net profit at Rs 15.41-cr in December 2022 up 187.93% from Rs 5.35-cr in December 2021.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stands at Rs 10.78-cr in December 2022 up 7.58% from Rs 10.02-cr in December 2021.
Today, SAPPL is one of the leading kraft paper manufacturers in India. The group manufactures premium grade kraft paper – testliner, single wire and multilayer testliner, triple wire with GSM range of 80–300 and a BF range of 20–35.
Owing to the demand in the kraft paper segment, SAPPL has invested in enhancing its production capabilities through the acquisition.
Gautam Shah, the chairman and managing director of SAPPL, has said in the company's annual report FY 21-22 "To sustain in the fiercer competitive market and to enhance the production capacity, your company has successfully completed the acquisition of unit-two from NR Agarwal, situated at plot 1 and 1/B, phase-one, GIDC, Vapi, Gujarat. After certain upgradation of the equipment at said unit-two, the production capacity of the unit-two will be 82,500 MTS per annum."
Shah added, “This acquisition will lead us to a new success story. The production at unit-two is expected to commence during the last quarter of the current financial year. And like in the past years, this year too I am happy to report that not a single man-hour was lost on account of any industrial disturbance in the year 2021-22.”
The current installed production capacity of SAPPL is 1.08-lakh MTPA. It has received approval to expand this to 1.2-lakh MTPA. The new unit from NR Agarwal will have a production capacity of 0.82-lakh MTPA. This will take the total capacity to more than 2-lakh MTPA.
SAPPL produces 100% recycled products. Shah said, "We customise our products as per customer’s requirements as customer satisfaction is our ultimate goal. Our quality kraft paper is used by various top MNCs in India and globally to package their valuable goods."
SAPPL - at a glance
SAPPL manufactures multi-layer testliner and testliner paper from 80 to 350 GSM and 18 to 35 BF. This product is deployed for making corrugated boxes, duplex cartons, and corrugated small e-flute as packaging material.
Also, SAPPL has two windmills of total capacity of 2.75 MW in Gujarat state, set up for captive consumption. These are in operation. SAPPL has a wheeling arrangement with GETCO and DGVCL whereby the set off is given to the company for generation of electricity from the wind mills. The company has put in efforts to reduce specific energy consumption. Some major initiatives include: a 2.0 MW cogeneration plant as well as replacement of conventional light fitting with LED fitting across the manufacturing unit.
SAPPL has seen a significant thrust in technology absorption, These include upgradation of existing product and process to save cycle time, energy consumption and overall operational efficiency; as well as optimisation of products and processes to minimise waste generation and address environmental operational efficiency.
Two areas which grabbed the attention of the WhatPackaging? were: fresh water consumption further reduced by recycling the machine back water at machine, pulp mill and vacuum pumps along with water consumption being further reduced by installation of IBS shower system.
Also, the development of in-house domain expertise to support product development. Especially through control over the grammage variation of paper by installation of Metso and Valmet QCS systems.