Genus Paper & Boards Limited is making continuous investments on technology & capacity enhancement, quality improvement, sustainable processes, as well as on reduction of steam and power consumption. Looking forward to market expansion, they have a vision to attain 35,000 tons per month of production by 2026. The company is also planning to set up a new de-inking plant, new warehousing along with all new cutters , racking system with digital traceability and other technological upgradation at its Muzaffarnagar site worth INR 150 crore. Mr. Kailash Chandra Agarwal, Managing Director & CEO of the company, along with its Business Transformation Partner, Mr. J.P. Narain, is quite upbeat about taking the company to top 10 paper manufacturing companies in India. They revealed this and much more during a joint interview with Paper Mart.
Paper Mart: Please tell us more about the evolution of Genus Paper & Boards Limited as a one-stop shop for all packaging needs of the industry.
Kailash Chandra Agarwal: Genus Paper & Boards has a long history of manufacturing kraft paper. We entered this business 20 years back and around four years ago, we acquired another facility at Muzaffarnagar. Earlier, we had two machines producing somewhere around 400 tons per day. With the addition of three more machines at Muzaffarnagar facility, we have now become a single-shop solution, meeting the entire packaging needs of the industry. Genus has evolved itself as a big player, offering complete paper and paper board solutions for all industry needs. Our journey has been quite progressive from two lines to five lines. We plan to take our volume up to 35,000 tons per month in the next one year.
We can manufacture all products in the vertical and horizontal range. We can produce kraft paper in the range of 60 GSM to 450 GSM with strength ranging between 16 BF to 40 BF. Our manufacturing facility is one of the rarest in India having such a wide range capacity. Recently, we shifted from writing & printing paper to the brown segment. Whenever the market will be good in the writing & printing segment, we will make a comeback.
PM: What factors have contributed to this marvelous growth of Genus Paper & Boards Limited?
J.P. Narain: The first and the foremost factor would be the determination and clear vision of Mr. Kailash Chandra Agarwal, MD & CEO of Genus Paper & Boards Limited. He took a certain course to realize his vision of making this company a good, single-shop packaging solution for the industry. His progressive thoughts gave him the power to create a great team. It was not an easy task to have such a costly team at an early stage of business, but Mr. Agarwal took that call and made his vision into a successful venture. He had faith in his team that they would meet and deliver on his expectations. He gave a complete free hand to the team to perform in a nice, open and professional environment. Further, Mr. Agarwal installed the right system and processes to ensure greater efficiency in a competitive market. All this resulted in strong and sustainable growth of Genus Paper & Boards, realizing the grand vision of Mr. Agarwal, supported by his able team.
Watch: In Pursuit of Lesser Water Footprint
PM: Please tell us more about the recent investments made by your company in the direction of capacity enhancement and technological advancement.
KCA: Genus Paper & Boards has made a good amount of investment on technology enhancement, quality improvement, sustainable processes, as well as on reduction of steam and power consumption. We have upgraded the technology, especially for the drying processes at our Moradabad plant, aimed at optimizing the usage of steam and enhancing the efficiency of machines. We have modified our machines to produce a lower GSM, especially on PM 4. We have also invested in the pulp manufacturing section, especially on upgrading of equipment, refiner, screening systems and dryers, along with wire tables.
In terms of machines, we have made investments in the headbox by getting it replaced with a very good technology player. We also worked on our vacuum systems. Almost every section where we feel there are bottlenecks in terms of quality or which is affecting our cost of conversion, we are gradually investing in those areas. For example, there was a higher cost in terms of steam and power consumption. We have completely re-audited our entire steam consumption and steam generation process and took corrective actions . Besides, we are putting in good cutters, creating a warehousing and racking system, apart from an digital tracking system. We are going very aggressively on our systems and processes implementation.
We have a capacity of 9,000 tons per month of duplex board and around 26000 tons per month of kraft paper.
PM: Please tell us about your production capacities. Are you manufacturing value-added papers also?
JPN: Earlier, we were producing around 10,000-11,000 tons per month from the Moradabad plant. After acquiring the Muzaffarnagar plant, we are targeting production of 35,000 tons per month in the next one year. Now we have a capacity of 9,000 tons per month of duplex board and around 26000 tons per month of kraft paper. We manufacture a white kraft liner in a variety of GSM and BF ranges. We are also producing virgin top liners and catering to the premium segment along with lower GSM with high BF for carry bags and E Commerce packing. Many FMCG & FMEG, Food, Pharma and E commerce players are using our products to fulfill their premium packaging needs.
PM: Kindly share information about your market footprint.
JPN: We are expanding very fast and currently selling somewhere around 22,000-23,000 tons per month. The market is quite competitive, but Genus Paper & Boards has got very good goodwill for kraft in the market based on the quality we provide. So, we can get that premium for the better quality as compared to our competitors. We are also further improving our processes to meet all expectations of our customer in terms of product quality , timely delivery and cost which they are looking for our products.
Also, as part of our go-to market approach, we have set up a cutting center at Sonipat and we are planning to have another one in the upper north part of the country, we are also planning one more cutter in eastern NCR region. We are also looking to establish a center in the eastern region of the country. The thought process is to reduce the serving time to the customer and give them confidence that their material is lying very near to them and whenever they need it, it will be made available at their doorstep. The main contribution of Genus Paper & Boards to reduce their inventory holding capacity pressure so they can use the money for their own business and remain assured that they can be served as per their expected timelines.
We are planning to establish a de-inking plant, along with new warehousing facility , new cutters , racking system with digital traceability and few other technological upgradation in Muzaffarnagar, entailing an investment of around INR 150 crore, to cater to the customer’s needs in a better way. Genus Paper & Boards is looking forward to market expansion, while keeping the customer centricity in mind. We have the vision to attain 35,000 tons per month of volume by 2026. Once we attain that, we will be at 6th or 7th position in the country, in terms of volume. In terms of revenue, we will soon be in the first 10 companies of the country. Genus Paper & Boards is going to have remarkable growth in the next two years.
As part of our go-to market approach, we have set up a cutting center at Sonipat and we are planning to have another one in the upper north part of the country.
PM: How important is sustainability for Genus Paper & Boards? What kind of initiatives are you taking in this regard?
JPN: The Genus group is quite sustainable and promotes an environmentally conscious manufacturing process. Our Moradabad unit is absolutely on zero liquid discharge. In Muzaffarnagar, we have got discharge permissions. We are spending a good amount on the treatment cost and to recover the fiber back in Muzaffarnagar. In Muzaffarnagar, we are maintaining around 10 ponds in nearby areas for natural recharging of water. The ponds are acting as a carbon sequestering agent also. In terms of environmental emissions and other processes, Genus Paper & Boards is very much intact with the norms and follows them well. We are a circular economy, following all biodegradable as well as environmental social governance norms. We are playing a very positive role in the protection of the environment and planet both.
Also Read: Silverton Pulp and Papers to Commence New 100,000 TPA Specialty Packaging Grade Paper Line
PM: Please share your views on the industry.
JPN: I think the paper industry is passing through quite a challenging phase right now. There are three or four factors which are affecting the Indian paper market. One is China’s deflation or reduction in consumption. Second, an increase in the freight rate due to the Panama Canal, which has resulted in a hike of freight rate for Europe and the US. Earlier, Chinese products were quite competitive in these markets, but with increase in freight charges, their manufacturing facility is now at par with the product landing cost. As a result, China started exporting to the Indian export destinations.
At present, India is exporting almost nil because our manufacturing capacities are low, cost of conversions are high as compared to the global standards. That is creating a kind of a suffocating condition for the industries right now. The situation will remain challenging for the next 6-7 months, till the time consumptions are not opening and the global scenario is not stabilized a little bit. However, despite the challenging times and competitive environment, I see the pulp and paper industry, especially in India, as a fast-growing industry, which will certainly remain propitious in the coming years.
Genus Paper & Boards is going to have remarkable growth in the next two years. In terms of revenue, we will soon be in the first 10 companies of the country.
