We have taken noteworthy steps in our business that has set the stage
for our sustained growth, for the years ahead.
Dear Shareholders,
West coast strides into the future with confidence. As we enter the
current year with momentum, our cogent strategic combination of
leveraging technologies and scale to realign the way we deliver will
show remarkable result. We are very clear about the way forward and our
action manifest our commitment.
In the limelight
Feeling the pulse of the market, we have always tried to stay ahead in
the race, with successive capacity expansion. Today, our focused
strategy over the past five years is on its way to position us better
then most, in the Indian paper industry. It took marked discipline.
Focus and spirit, to put in to action our ambitious capex plan to kindly
long- term viability and market development. Our low historical capacity
coasts are expected to even out the current outlay, to give us a
competitive coast of capacity creation. These expansions will further
strengthen west coast’s cost competitiveness, helping us achieve
enhanced productivity on a par with international standards.
An Electrifying Era
We live in existing times, in a country that is taking off, to become
one of the largest economies in the world. With several growth triggers
now in place, the Indian paper market, directly linked with the growth
in GDP, is today growing twice the rate of the global average at about
3%. India’s low per capita consumption at 7 kgs presents a tremendous
growth opportunity, with long term opportunities to increase capacity
and restructure the industry. We saw the opportunities and grabbed it.
Falling into Place
From a board financial perspective of our expansion plans our funding
plans that included debit of Rs. 725 crore, equity of Rs. 200 crore and
internal accruals of Rs. 175 crore have fallen place. The financial
closure of the project has been achieved with international finance
corporation (IFC), Washington for US $40Million and ICICI Bank Ltd and
state Bank of India led syndicate for external commercial Borrowing of
$125 Million.
Partnering with IFC will also let us significantly upgrade the
environmental performance of our operations in Dandeli.
Apart from production increase, we expect to have a marked reduction in
pulp coast due to our new fiber line, reduction in power and fuel coast,
along with lower fixed coast, due to technology and volume, is also
slated to enhance margins, impressive performance manifests our market
focus, relentless reduction of coast and the optimization of the use of
our capital employed.
Rock Solid
Along with the new growth projects, our financial performance also
gained momentum in fiscal 2006 – 07. This has been a year based on
measurable successes. Another eventful year, as we more then doubled our
earnings to Rs.66.46 crore, up from Rs.32.03 crore last year. Our
commitment to the future reflected in the success achieved in our
proximate past, with higher volume of 1.79 lacs TPA, against 1.76 lac
TPA but we are not resting on our past achievements. The investments we
are making today in west coast paper will uniquely prepare us to
continue to prevail in this challenging, yet vibrant industry. Having
secured an enviable position, we are acting on strengthening our
existing market share through the development of new product and
enhanced technology, to ultimately deliver value – added products to our
customers.
With all our efforts falling into place we are riveted on strict
adherence to the implementation schedule. True to the adage that ‘time
is money’, any delay could cost us dearly in terms of money and missed
opportunities. Slated to commission within two years, the project will
secure future of the company.
Passionate Workforce
Since its inception, west coast paper has fostered a corporate culture
unsurpassed customer service while catering to the writing, printing and
packaging needs of millions of its consumers. Our pre–eminent position
in the industry is the result of the proficiency, commitment and hard
work of our workforce, who remain loyal to these premises.
Our Ultimate Commitment
We have had a consistence track record of dividend payments to
shareholders. Our strategy to scale up has brought fresh ideas and added
strength to the business with the potential to pay future dividends
though increased revenues and profitability in the years shared.
As always, we are looking ahead to stay ahead! Now that we have got the
ball rolling on our existing expansion plans, intend to be vigilant in
exploring new ways to grow, to bring greater value to the company and in
turn, to its shareholders.
Sincerely,
S.K.Bangur
Chairman and Managing Director
For more information Contact Us.
