By newsvoir.com
Satia Industries Limited (SIL) (BSE: 539201 | NSE: SATIA) is one of the biggest and completely integrated Woods and Agro-based printing & writing paper manufacturers. SIL’s products are extensively used to print books, directories, envelopes, diaries, calendars, computer stationery, copy manufacture annual reports, etc.
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Dr. Ajay Satia, CMD
The company has notified BSE and NSE that it is seeking to appraise and seek permission to bid for the acquisition of Ballarpur Industries Ltd. (BILT) and seek permission for the appointment of PricewaterhouseCoopers Pvt. Ltd. (PWC) as advisors to assist it in acquiring Ballarpur Industries Ltd.
The company is in expansion mode and has invested Rs. 500 Cr CAPEX to purchase additional land and ordered New European Paper Manufacturing Machinery. The company has also received final Environmental Clearance from the Ministry of Environment & Forests, Delhi.
The company has its ultra-modern, completely integrated manufacturing unit in Punjab with the capacity to manufacture over 1,05,000 MT per annum with 3 paper machines and 100% in house power generation, along with state of the art effluent treatment plant, paper machines, pulping machinery, and also a chemical recovery plant.
The company has plans to make best in a class facility by focusing on modernization of its existing plant and machinery; quality up-gradation by increasing wood pulp in its raw material mix and making surface sized paper for high-speed multi-color printing, and plans to double its production capacity by setting up a new paper machine in its existing premises, whereby the profitability may increase substantially conveyed this to Prittle Prattle News through Press Release.
The Paper industry in India is the fastest-growing major paper market in the world. Free trade Agreements with ASEAN and South Korea led to an increase in exports at 10 YR CAGR of 15% and 8%, respectively. With the booming conditions in the paper industry and increasing growth due to the ban on plastics, the consumption in the Indian market is expected to rise, and the company will benefit substantially with increased profitability.
The company is planning to exploit opportunities currently going on in the Indian market, causing a shift towards more paper & wood-based food plates and cutlery. For this segment, the company is planning for an initial capital outlay of INR 15-18 crores and has partnered with an MNC into food brands.
Backward Integration: Power Capacity and Eucalyptus Plantation.
The company has a 33 MW of power capacity as the industry is power intensive. Out of 33 MW, 19-22 MW is utilized for its internal capacity. The rest is transferred to grids in the form of Renewable Energy Certificates as energy generated by Satia is in the form of Biomass energy. This in-house energy generation provides an edge over one of its peers. The power consumption rate for the company’s own production is at INR 2-2.5/unit; it stands at INR 5-7/unit. The company also has a Eucalyptus plantation on 540 acres, which consumes waste treated water from paper plants. With the above new developments and Major Acquisition plans, this share may present an excellent investment opportunity.
