ABOUT SAPPL >>Chairman's Message


"To be successful, you have to have your heart in your business, and your business in your heart."

— Thomas Watson


Dear Shareholders

It is my pleasure to address you through the Annual Report of the company for the financial year ended on 31st March 2017. During the year your Company had undergone several challenges, while at the same time taking advantage of many opportunities that came their way.  Your Company has on hand ongoing initiatives to emerge as a market leader. Our biggest strength has been the untiring efforts put in by colleagues and team members.

As reported in the last FY 2015-16, the Company had undertaken various projects for capital expenditure which would upgrade modernize and improve efficiencies in the existing manufacturing facilities. Some of these projects have been successfully implemented and the Company deriving the benefit from same in a current year and rest of the projects are in an advanced stage of completion, and these are expected to be completed by 31st March, 2018.

Our Company’s vision is to continue the expansion plan in line of producing MORE PAPER WITH GOOD QUALITY. For this the Company had decided to further invest a sum of Rs. 10.50 Crore in existing plant and machinery for improvement in a quality and reduction in a cost of production. I am confident that the impact of these changes will be reflected in the performance of the Company in the coming years.

Your Company believes that human resources are most valuable means for achieving and accomplishing the expectations of the stakeholders. SAPPL is fortunate to have a dedicated team who are passionate about their work and the company ensures that it continues to nurture them by providing a good working environment.

In FY 2016-17, the net Revenue of the Company was Rs. 208.76 crores as against Rs. 222.31 crores in the previous year. EBITDA was Rs. 18.60 crores as against Rs. 27.18 crores in the previous year, while PAT for the year was Rs. 6.40 crores as against of Rs. 12.10 crores in the previous year.

A major fire accident broke on 31st August, 2016, in one of our imported waste paper godowns. Fortunately there was no human injury or loss to human life.  Most of the material was ruined to ashes in the fire. However, the fire accident did not affect the production activity of the company. The Company immediately lodged the claim with insurance Company. Please note that your company always takes care of all it’s assets through insurance coverage.


India is on a roll. There is a buzz about India, as it blazes forth as the fastest growing economy in the world at 7.1%. Investors are bullish. Stock index is at a historic peak. India’s global ranking has jumped up in competitiveness and innovation index.

The various initiatives and reforms of the present union government is envisaged as providing strong foundation for  growth  the coming years,  There is a revival of investment activity and creation of quality jobs in large measure. The Government has taken many steps, including a sharp focus on improving ease of doing business, speeding of green clearance and stepping up public sector outlays for infrastructure. I believe, it is a matter of time before the private sector investment pick up – as NPAs are resolved and corporate balance sheet are deleveraged.


The paper industry in India has become more promising as the domestic demand is on the rise. Increasing population and literacy rate, growth in GDP, improvement in manufacturing sector and lifestyle of individuals are expected to account for the growth in the paper industry of India. The focus of paper industry is now shifting towards more eco-friendly products and technology.

 India holds 15th rank among paper producing countries in the world. The total installed capacity is approximately 12.7 million tonnes. The per capita consumption of paper is around 11 kgs against the global average of 56 kgs and the Asian average of 40 kgs. India’s share in world paper production is about 2.6%. The industry is fragmented with over 750 paper mills, of which only 50 millls have a capacity of 50,000 TPA or more. The industry is working at 89 per cent capacity utilization. Despite the continued focus on digitalisation, India’s demand for paper is expected to rise in the coming years, primarily due to growth in literacy, changes in lifestyle and increasing consciousness for personal hygiene.

Indian paper industry could witness a round of consolidation and co-operation among various players in the next few years due to collective leverage, fast changing manufacturing technologies and smooth backward integration for raw materials. The industry, which is highly dependent on wood pulp and paper scrap for manufacturing of paper and paper-based products, is also trying to widen its raw material base to lower cost of production. This also means that there is huge potential for the sector, which can be met through use of modern technologies.

It is therefore expected that the paper industry in India will contribute more to the GDP, export and also to increased employment in the near future.


As Industry outlook is very attractive, your company has always welcomed new technological changes and has engaged in automation of plant to optimize use of resources, manufacture quality paper and provide better support to stakeholders and deliver best results.

In conclusion, on behalf of the entire Board of Directors of SAPPL, I would like to thank you-our valued stakeholders-for the continuing confidence you have placed in the organisation.

With best regards,

Gautam D Shah

Chairman & Managing Director