Ruchira Papers: Reboot, Resilient, Rebound

-These attributes were validated when Ruchira Papers Limited (RPL) retained its profitability and growth in the most challenging year (FY20-21) in its existence.

-Ruchira Papers diversified its product mix from kraft paper to writing & printing and copier paper, broad basing its portfolio.

Sirmaur | The Pulp and Paper Times:

Ruchira Papers manufactures and markets kraft paper as well as writing & printing paper. The Company is a prominent player in these segments in Northern India.
“A number of factors indicated that Ruchira Papers was a company marked by a distinctive passion. This passion was validated during the year under review, easily the most challenging in our existence. During a year marked by extensive demand destruction for the products that we manufacture and market.” Ruchira Papers’ management says in its Annual report for FY 20-21.

The Management says the big message would be that of resilience. Over the years, Ruchira Papers had deepened its recall around austerity and passion. However, the Company and the sector had hardly been tested. It was only during the last financial year that the sector (and others as well) came under severe scrutiny: demand for the Company’s products declined, one business was severely affected by the close of educational institutions and the result was a year-on-year revenue degrowth.

On the question of various initiatives that helped RPL perform creditably despite the sectorial weakness, The management replied that company continued to manufacture a high paper quality; this resulted in a traction in demand from trade partners; this helped protect trade terms; the receivables cycle marginally increased to 57 days of turnover equivalent compared with 48 days in the previous year; the Company’s working capital was drawn to the extent of around 85% of its sanctioned limit. The big message: even in the most challenging phase of the Company’s existence, the Company continued to protect its working capital hygiene.

Describing its outlook for FY 21-22, the management explains that the objective will be to match the Company’s performance at pre-Covid levels, despite slower offtake during the first quarter of the current financial year. The reasons for our optimism comprise the sustained offtake of kraft paper, traction for copier paper, low debt, increased vaccination and the possibility of schools reopening by the later part of this calendar year.

“RPL is attractively placed to capitalise: it will sweat its manufacturing capacity, repay its old long-term debt in three quarters and grow its unimpaired Balance Sheet from this point around maximised volume and value” The report says.

RPL is responsive to changes in marketplace dynamic and emerging opportunities. During the last financial year, the Company moderated its exposure to Writing & Printing paper following the closure of educational institutions. In spite of this, Ruchira strengthened its product range, launching copier paper and bleached kraft paper to strengthen offtake and average realisations.


During the FY20-21 RPL achieved total production of 123974 MT as against production of 134048 MT in FY 20. The Production of the Kraft Paper Unit was 81709 MT as against production of 82453 MT in FY 20. The production of Writing and Printing Paper was 42265 MT as against production of 51595 MT in FY 20.
Aggregate sales stood at INR 415.42 Crores in FY20-21 against INR 481.01 Crores in FY19-20, a decline on account of a decrease in the production of writing and printing paper a due to the lockdown imposed by the Central government. RPL reported a profit after tax of INR 4.99 Crores as compared to INR 27.37 Crores in the previous year. 


During the year FY 20-21, no major expansion undertaken by the company. RPL has implemented its modernization and upgradation programme by modifying the existing size press with the installation of new film size press, replacement of power turbine with higher efficiency, up gradation of recovery boiler and ETP up gradation having capex of INR 44 Crore (approx.).

Ruchira Papers is engaged in the business of manufacturing of Kraft Paper and Writing & Printing Paper. The Kraft Paper is being manufactured by using waste paper and agriculture residues, such as Bagasse, wheat straw, sarkanda etc. The Writing and Printing Paper is being manufactured by using agricultural residues, such as wheat straw, Baggase, sarkanda, Softwood Pulp and other fillers. The company has made proactive investments in chemical recovery, effluent treatment and power co-generation plants on the one hand and the consumption of renewable agro-based raw material on the other.

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