Shree Bhawani Paper Mills Ltd Company Summary

Shree Bhawani Paper Mills Ltd Summary

Shree Bhawani Paper Mills Limited was incorporated on 6th July, 1979 as a Public Limited Company and obtained the Certificate of Commencement of Business on 9th August, 1979. The Company promoted by Sudhir Tandon and Girish Tandon in association with UPSIDC and PICUP, manufactures writing and printing papers and wrapping paper. The Company set up a paper mill at Rae Bareily, in the State of Uttar Pradesh with an installed capacity of 9400 MTPA of printing, writing and wrapping papers. It commenced commercial production in April, 1983 and gradually increased its installed capacity at 21000 MTPA. The Company has two Paper machines namely MG (Machine Glaze) Yankee machine & MF (Machine Finish) Fourdriner machine.In 1981-82, the Company established the project with the total project outlay of Rs. 600 Lacs with Rs. 400 Lacs funded in the form of term loan. For the balance Rs. 200 Lacs, the Company came out with their first public issue with the issue size of Rs. 116 Lacs and balance was brought in by promoters and associates amounting to Rs. 84 Lacs.During the period 1983-86, the operations of the Company were not profitable due to labour unrest, recession in paper industry, unsatisfactory power supply in Uttar Pradesh (U.P.) and other initial teething troubles. Consequently, the Company became potentially sick in the year, 1986. However there have been no cash losses since 1987. In the financial years, 1989-90 and 1990- 91, modification in MF paper machine was undertaken through internal accruals enabling substantial increase in production & installation of new Fluidized Bed Combustion (FBC) husk fired boiler. In 1992-1993, the Company came out with Rights Issue of Rs. 126 Lacs to meet working capital and capital expenditure requirement.In 1995-96, Company commissioned Diesel Generating sets (4 Nos. x 1000 KVA) for its entire requirement of power & UPSEB power supply was surrendered w.e.f. 1st April 1996. In 1996-97, it undertook a capital expenditure scheme of Rs. 4.23 Crores for up-gradation of Pulp Mill, installation of new FBC husk fired boiler and improvement in quality of paper. In November, 2001, a 3 MW Cogeneration project was commissioned, resulting in significant reduction in power cost. Over the years, Company has been making efforts to reduce its power consumption. From 1474 units/MT of paper in 1991-92, it has gone down to 1137 units/MT of paper in 2004-05, a decrease of 23%. Similarly production capacity has increased from 9400 MTPA in 1983 to 21000 MTPA currently. In 2004-05 production of 19973 MT was achieved, i.e., a capacity utilization of 95.1%. During 1999-2000, the company has embarked on a co-generation project of 3 MW of electricity and it commenced its operations in August,2001. This project was financed by IFCI,Indian Bank and Bank of Baroda.Company was the first Paper Mill in the world to receive the Carbon Credits for Cogeneration Project based on biomass fuel in 2006. The Power Plant having capacity of 3MW was commissioned in March, 2007. Almost all plant and machinery was installed in the Pulp Mill and Paper Machine Section. Paper was reeled on 7th July, 2007 during the trial runs of the paper machine. During the year 2007, Company issued 1,23,18,000 Equity Shares of Rs. 10/- each for cash at a premium of Rs. 2/50p on Rights basis to the existing shareholders of the Company in the ratio of three equity shares for every one equity share held, in May, 2006 and the said Equity Shares got listed on Bombay Stock Exchange Ltd. in June, 2006.3 MW Turbine was set up, making a total availability of 6 MW in 2008. The new Paper Machine and Waste Paper De-inking Plant was commissioned during 2007-08. The new paper machine III started commercial production on March 1, 2008. The Agro Pulping Plant became operative after installation of Lignin Removal Process (LRP) in 2009.The Company came up with a Public Issue of 1,23,18,000 Equity Shares of Rs.10/- each for cash at a Premium of Rs. 2.50/- each in the Ratio of Three Equity Shares for every One Equity Share held [i.e. 3:1] aggregating to Rs. 15.40 Crores.