Established in 1993 and engaged in the business of manufacturing quality finished paper products, N R Agarwal Industries Limited pioneered the use of 100 percent deinked wood-free recycled furnish for the same. Strengthened by its superior quality products, the company has made its presence felt in India and in more than 20 countries across the globe. Recently, N R Agarwal Industries Limited has embarked on a journey for the installation and commissioning of the single largest packaging board machine in India. It will be a world-class facility having the latest technology and will be producing international quality duplex boards as well as very premium quality virgin boards. In a recent interaction with Paper Mart, Mr. R N Agarwal, Chairman & Managing Director, N R Agarwal Industries Limited, talked about the new board machine and the future plans of the company.
Paper Mart: Please tell us about your journey, major milestones, and crucial achievements.
R N Agarwal: By qualification, I hold a degree in electrical engineering and an MBA in Finance. My father ventured into the paper industry, starting the business with a 10-ton/day plant back in 1973. His passion deeply influenced me, leading me to establish N R Agarwal Industries Limited in 1993, with a primary focus on packaging. Over the last three decades, we have grown into a packaging board unit with an annual capacity of 2,00,000 metric tons and expanded our presence into writing and printing paper in 2011-12, boasting a capacity of 1,20,000 metric tons per annum. I strongly adhere to the principles of focus and continuous growth, resulting in the company’s cumulative capacity now reaching 3,00,000 metric tons per annum.
PM: What prompted N R Agarwal Industries Limited to undertake the installation of the single largest packaging board machine in India?
RNA: Historically, Indian paper mills have maintained a conservative approach to scale of operation compared to the international market. Anticipating a year-on-year growth of at least 8 percent in the packaging board sector, we recognized the need for a bold and ambitious step. As a result, we conceived a plan to establish the largest state-of-the-art packaging board facility in Sarigam, Gujarat, with a unique location advantage, capable of producing 3,00,000 MT of value-added board annually.
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PM: Could you provide specific details about the machine’s capacity, technology, and significance in the industry?
RNA: The board machine is based on state-of-the-art modern multi-fourdrinier technology with four forming fabrics and top former enabling the production of 4-layered boards. The key equipment is being supplied by the leading global vendors. It incorporates the latest features such as a drum pulper, four hydraulic head boxes, a dilution control system, automatic CD profile control, and a shoe press to enhance bulk and stiffness. Notably, the film press is a unique feature contributing to increased bulk and stiffness. Additionally, the machine will be equipped with four online brand new combi coaters, ensuring an excellent printing surface, complemented by an advanced coating color kitchen.
N R Group is committed to maintaining world-class processes and quality control with an auto QCS and DCS control system and a well-equipped testing laboratory. This dedication guarantees precise board quality and consistency.
The plant relies on 100 percent imported pulp and high-quality imported and domestic fiber for raw materials.
Combined with cutting-edge process technology, this ensures excellence in product quality, meeting consumer demands for bulk, stiffness, and high-quality printability in the packaging industry.
The company has made significant investments in converting infrastructure, including state-of-the-art synchrofly sheeters of European origin and a modern packing line to meet customer needs for perfect reel and sheet quality, optimizing printing and converting benefits. The new captive power plant ensures self-sufficiency in the power supply. The company aims to focus its production capacity on value-added coated folding box boards (FBB), solid bleached sulphate boards (SBS), cup stock, and top-end grey backboards. The brand new board machine, with a deckle of 3.7 meters, will produce boards in the grammage range of 180 to 450.
My aspiration is to be ranked among the top 5 paper manufacturing companies in India. Upon the successful completion of this project, we are contemplating an integrated pulp and paper plant.
PM: Where is the facility planned to be situated? What is the estimated investment and expected timeline for the installation and commissioning of this world-class facility?
RNA: We have made a significant investment of around INR 900- 1000 crore. The largest state-of-the-art packaging board facility in Sarigam, Gujarat, with unique location advantage, capable of producing 3,00,000 MT of value-added board annually will be commissioned by March 2024.
PM: How will this expansion affect the company’s overall production capacity and its ability to meet market demands?
RNA: The board capacity will be accelerated to 500,000 tons per annum within one year. Anticipating organic growth in the range of 8 to 10 percent and maintaining a product mix that includes both recycled and virgin materials, along with a long-term commitment to export markets, we are confident in our ability to meet market demands and utilize our full capacity.
PM: What are the potential challenges or risks that the company anticipates during both the development and operational phases, and how will these challenges be addressed?
RNA: We are confident that our robust manufacturing and marketing team is ready to face any challenges during the operation of the new project. We have already earmarked the risk element if it happens and have a robust plan to face those exigencies.
PM: Could you please highlight the key strategies involved in sourcing of fibrous raw materials for the packaging board paper?
RNA: We already have a very efficient procurement team who are handling our present operation with the new expansion where we will be making virgin grade boards. We are also in dialogue with the best pulp suppliers across the globe for all kinds of pulps to make the best virgin-grade board. We will be sourcing imported recycled fiber to meet our specific needs for special-quality recycled boards.
PM: Can you tell us more about your vision for this project and the company’s future?
RNA: As a promoter and chairman, my aspiration is to be ranked among the top 5 paper manufacturing companies in India. Upon the successful completion of this project, we are contemplating an integrated pulp and paper plant.
My two sons, Raunak and Rohan, have completed their MBAs in Europe and are actively associated with the business. Their fresh insights and visions contribute to our strategic planning for future business endeavors. They are poised to lead the N R group in the future.
