Global Paper Industry overview – The market size of pulp and paper was valued at USD 266 billion in FY-2024 with a CAGR of 3.79% between 2024-2028. The market size of paper is projected to touch USD 383 billion by 2026 at a CAGR of 1.6% during 2021 to 2026. The prices of pulp at world level reached at high level in 2022-23 as demand increased after COVID period. This was led by huge cost of energy targeted by Russia-Ukraine war. The inventory of pulp was very less which created demand of buying resulting in increasing prices. Due to these prices of paper increased significantly. Moreover, Q4 of 2022-23 observed decline of demand resulting in stock of pulp manufacturers increasing from 30 to 60 days. This targeted correction of prices in pulp in first half of the year.
Indian Paper Industry overview – The Indian paper sector is projected to be worth Rs 80,000 crores, play’s an important role in development of country. The annual paper production is more than 25 million tonnes in FY-24, the sector plays key role in generating employment, giving direct employment to about half a million and indirectly supporting another 1.5 million. Moreover, a good start in first half off FY-24, the sector observed many issues in later half, basically observed by declining in demand. The Indian paper industry is divided into small, medium, and large paper mills producing different varieties of paper. During first half year of FY-24, the sector observed strong growth. The sector observed many challenges due to increase in paper imports which grown by 43% in terms of volume during 2023-24.
Global specialty paper and packaging industry overview – The market size of global specialty paper is projected to rise by USD 13.59 billion at a CAGR of 5.09% between 2023 and 2028. Specialty paper is used in specific applications such as packing in pharma, food, hygiene segments, printing and crafts, labels, etc. The market of specialty paper is impacted by various challenges such as environmental concerns, technological improvements, environmental issues, and evolving consumer trends. The market size of global paper and paperboard packaging is projected to be worth USD 398.65 billion by 2024. It is projected to hit USD 501.08 billion by 2029 at a CAGR of 4.68% during FY 2024-29. The durable packing market is rising sector within larger packing industry, led by rising consumer demand within large packing sector by rising consumer need for environment-friendly and durable packing solutions.
The specialty papers have low weight, environment friendly, and less costly nature of paper makes contribution for development of market. Additionally, awareness among consumers is rising regarding adverse environmental impact of plastics that has led to increasing need of paper based flexible packaging at world level. Moreover, domestic industries such as food delivery services, e-commerce will consistently increase and adoption of specialty papers products with barrier properties against oil, grease, etc. The rising urban population, rising e-commerce packaging segment and developing awareness among population about eco-friendly packaging are projected to increase growth in specialty sector.
Indian specialty paper and packaging industry overview – The market size of Indian paper and paperboard packaging was projected to reach USD 12.87 billion in 2024 and is forecasted to hit USD 17.74 billion by 2029 at a CAGR of 6.63%. The paper packaging sector contributes at 55% of sales in India, writing and printing paper made contribution of 30%. The remaining contribution is with newsprint and specialty paper. India’s rising FMCG segment and high spending on education along with health concern people are increasing factors of development in Indian paper sector, specially the packaging sector in India is projected to rise at CAGR of 12 to 15%.
The market size of Indian writing and printing and specialty paper was valued at USD 2,660 million in 2021 and is forecasted to reach USD 4,502 million by 2029 forecasting a CAGR of 6.8% during 2022 to 2029. The market of specialty paper is divided by using in printing and publication, packaging and labelling food service, building and construction. The main divisions where specialty paper is used are Pharma, Food and Beverages, Tissue and Hygiene. The Indian Tissue and paper hygiene division is projected to generate income of USD 40.6 billion in 2024 with household paper contributing largest share of USD 11.59 billion. The market of tissue paper is divided into facial tissues, napkins, toilet paper, towells, and other tissue related products.
Pudumjee Paper Products Ltd – Key Points
Name of the promoter
Mr. Arun Kumar Jatia
Industry
Specialty paper
Established
1968
Headquarters
Mumbai, Maharashtra
Employees
633
Annual production capacity
72,000 TPA
Exports
More than 10 countries
Pudumjee Paper Products Ltd – Statistics
Market cap
Rs 972 crores
ROCE
26.8%
ROE
20.9%
Stock PE
8.5
Book value
Rs 57.5
Face value
Rs 1
About Pudumjee Paper Products Ltd
Pudumjee Paper Products Ltd was established on 14th January, 2015 as a public limited company as per Companies Act 2013. The production of paper and hygiene products business were transferred to Pudumjee Paper Products Limited with effect from 1st April, 2014 by order of Honourable Bombay High court on 8th January, 2016. The specialty business includes over 60 years of deep experience with deep knowledge and modern manufacturing units.
Manufacturing sites – The manufacturing unit of company located in Pune is equipped with production capacity of 72,000 TPA, the highest specialty paper production unit with single location in India, situated at Thergaon, Pune. The manufacturing unit of company produces different varieties of specialty papers covering broad variety of grammages. The manufacturing is backed by talented team with huge dedication of professional experts and distribution channels across country.
Products portfolio – The company produces variety of paper products including decor grades, super calendared paper, food packaging, pharmaceutical-grade papers, crepe tissue, towels, other specialty products, low grammage printing papers of huge opacity. The company delivers hygienic hand washers and cleaning equipment to fulfill customers requirement extensively. These products are used in basic purpose in establishments such as restaurants, food courts, restaurants, assuring cleaning and efficiency in several commercial settings.
The company occupies top position in manufacturing modern eco-friendly specialty papers. The company delivers wide variety of quality specialty papers customised as per various applications in daily life. The company is expanding to produce hygiene tissue products and products adopted for FMCG.
Vision – To encourage huge organization paying attention to individuals, supporting them to lead themselves and the company against sustainability and development.
Mission – To deliver customers with valuable specialty paper products and consistently improve by creating challenging products for evolving applications. The purpose of company is to reduce environmental impact by by preserving energy, uasage of green energy, and acceptance of modern technology.
The company has huge passion to fulfill customers needs by contsantly providing best quality products and services. The wide portfolio of specialty paper products fulfills customers needs, assuring that each customer, whether super stockists, wholesaler, distributors, dealers, consumers and retailers is provided what they requirement. By giving preference to quality, transparency, and service, the company has developed long lasting relationships developed by trust. The strong commitment to creativity and durability rebuilds the company’s position as preferred partner. The company produces specialty papers for usage such as industrial applications such as oil and grease resistance, packaging food products, food, pharma, hygiene segments and industrial applications. The products of company are sold on B2B basis in country straight to dealers, distributors, or customers. The company exports its products to nearest countries and Europe. Followinga re the products manufactured by the company:
Papers used for baking and similar applications
Glassine papers for various applications
Cooling pad papers for usage in house and industrial coolers.
MG papers with less GSM for different uses.
Fine printing papers for dictionary, pharma leaflets, books, Gita printing.
Decor papers for usage in decorative laminates for furniture
Base paper for Melamine tableware
Functional lamination for packaging food products, pharma products.
Bleached kraft paper applied in lamination of flexible packing
High-end Kraft paper is applied for release liners for labels
Kraft interleaving for steel and glass segment
The nature of specialty papers, the production machines operate at very less speed to produce low grammage paper which is thin paper which leads to huge length but low weight. The company relies on import of pulp for buying fibre and very less quanity of pre-consumer based waste paper. The market price of pulp varies from Rs 44,050 per MT to Rs 73,250 per MT based on quality as against Rs 60,550 per MT to Rs 95,350 per MT observed in previous year. The prices of waste paper of different quality is higher and with range from Rs 18,950 per MT to Rs 48,200 per MT.
The company manages best quality product with proper guidelines and has accepted cost minimizing steps through product mix, fibre mix and overall management of business. The company also integrated more raw materials to printing papers, food grade papers, flexible packaging papers. The hygiene products vertical fulfills the requirements of institutional consumers such as hotels, airports, business, corporates, etc. for hygiene tissue and other products and has unique division “Chefsmartr” to fulfill requirements of hotels, testaurants, caterings. The company is giving best efforts to install wind power plants and solar power plants due to strict guidelines of Maharashtra State Electricty Distribution Company Limited.
Revenue and net profit
Particulars
FY-24 (Rs. in crores)
Sales
785
Expenses
649
EBITDA
136
Other income
13
Interest
5
Depreciation
13
Profit before tax
132
-Tax (%)
(25%)
Net profit
98
EPS in Rs.
10.34
Balance Sheet
Liabilities
Rs
Assets
Rs
Equity Capital
10
Fixed assets
272
Reserves
483
CWIP
20
Borrowings
22
Investments
150
Other Liabilities
200
Other assets
274
Total liabilities
715
Total assets
715
Shareholding Pattern
Promoters
71.31%
FIIs
2.41%
DIIs
0.00%
Public
26.29%
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Pudumjee Paper Products Ltd Share Price Target – 2025 to 2040
Year
Minimum price (Rs)
Average price (Rs)
Maximum price (Rs)
2025
96
101
105
2026
109
116
122
2027
126
130
135
2028
138
148
158
2029
163
176
188
2030
191
203
215
2035
382
404
425
2040
764
789
814
Pudumjee Paper Products Ltd Share Price Target – 2025
If market observes bearish sentiments, the minimum projected price is anticipated to hit Rs 96. The average trading price is projected to hit Rs 101 at the mid of the year. If market observes bullish sentiments, the maximum projected price is anticipated to hit Rs 105. The company has proud on itself that is has talented employees which has achieved expertise in production of specialty papers. The quality of its talented employees in the field of R&D is amazing within the industry by customizing products and unique requirements of customers.
Pudumjee Paper Products Ltd Share Price Target – 2026
If market faces bearish signals, the minimum forecasted price is anticipated to hit Rs 109. The average trading price is projected to hit Rs 116 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is anticipated to reach Rs 122. In the competitive world, the company knows that importance of best brand cannot be overstated. The company understand the importance of branding to increase visibility and grab the attention of clients. The company executes variety of initiatives to improve efficiency and minimize energy consumption.
Pudumjee Paper Products Ltd Share Price Target – 2027
If market observes downward signals, the minimum projected price is expected to reach Rs 126. The average trading price is forecasted to hit Rs 130 at the mid of the year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 135. The company has developed strong measures for quality controls in paper manufacture to ensure that end product is customized as per requirements. The company acquires raw materials including wood pulp, different chemicals, additives. The company enhances steam generation to increase best operations from steam generating boiler and enhance condensate recovery.
Pudumjee Paper Products Ltd Share Price Target – 2028
If market faces bearish sentiments, the minimum projected price is expected to reach Rs 138. The average trading price is projected to hit Rs 148 at the mid of the year. If market observes bullish sentiments, the maximum projected price is estimated to reach Rs 158. The company conducts offline checking of quality for main parameters alongwith automated inspected systems to identify production faults. The company conducts final paper audit before shipping to customers. The company understands the importance of genuine raw material purchasing strategies by generating competition.
Pudumjee Paper Products Ltd Share Price Target – 2029
If market observes downward sentiments, the minimum forecasted price is estimated to reach Rs 163. The average trading price is projected to reach Rs 176 at the mid of the year. If market observes bullish sentiments, the maximum projected price is estimated to hit Rs 188. The company has made strong committment to build good relations with vendor is supported by daily interactions. The company presents risks connected with purchasing, executing contingency plans to compensate risks and controlling price volatility.
Pudumjee Paper Products Ltd Share Price Target – 2030
If market observes downward sentiments, the minimum projected price is estimated to reach Rs 191. The average trading price is projected to hit Rs 203 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to reach Rs 215. The company gives preference strong relations with pulp suppliers by supporting to manage proper inventory resulting in smooth production process. Each member of purchasing team are allocated task with certain responsibilities to fulfill evolving customer requirements.
Pudumjee Paper Products Ltd Share Price Target – 2035
If market faces downward sentiments, the minimum forecasted price is estimated to reach Rs 384. The average trading price is projected to hit Rs 404 at the mid of the year. If market observes bullish sentiments, the maximum forecasted price is estimated to hit Rs 425. The company has deep experience and knowledge in material understanding, making changes in products as per customer requirements, encouraging to provide solution for several needs. The company has wide distribution channel with dealer which helps to supply primary and secondary packaging solutions across multiple divisions.
Pudumjee Paper Products Ltd Share Price Target – 2040
If market observes downward sentiments, the minimum projected price is anticipated to reach Rs 764. The average trading price is projected to hit Rs 789 at the mid of the year. If market observes bullish sentiments, the maximum projected price is expected to reach Rs 814. The company has increased the recycled fibre content in some products of tissue paper. This supports to control deforestation and control thermal power energy which is needed to generate virgin pulp from base. It also supports to minimize carbon footprint. The company makes investment in modern technologies to minimize water usage. The company is the first to install anaerobic paper mills to neutralise effluents.
FAQs
Q1) Who is the owner of Pudumjee Paper Products Ltd?
Ans – The owner of Pudumjee Paper Products Ltd is Mr. Arun kumar Jatia.
Q2) Is Pudumjee Paper Products Ltd a debt-free company?
Ans – Yes,Pudumjee Paper Products Ltd is a debt-free company. The Long-term borrowings is Rs 5 crores and short term borrowings is Rs 5 crores. The cash and bank balance is Rs 13 crores. The net-debt is negative.
Q3) What does business Pudumjee Paper Products Ltd do?
Ans – The company is involved in manufacture of specialty papers to fulfill customers demand and requirements of packaging of food and oily products. The company manufactures variety of paper products including decor grades, super calendared paper, food packaging, pharmaceutical-grade papers, crepe tissue, towels, other specialty products.
Q4) When was Pudumjee Paper Products Ltd incorporated?
Ans – The Pudumjee Paper Products Ltd was incorporated on 14th January, 2015 as a public limited company under provisions of Companies Act, 2013.
Q5) What is revenue of Pudumjee Paper Products Ltd?
Ans – The revenue of Pudumjee Paper Products Ltd in FY-16 was Rs 469 crores which has increased to Rs 785 crores in FY-24.
Q6) Is Pudumjee Paper Products Ltd a good share to buy?
Ans –Yes,Pudumjee Paper Products Ltd is a good share to buy for long-term purpose. The net-profit of company in FY-16 was Rs 10 crores which has increased to Rs 98 crores in FY-24. The share price of company in FY-16 was Rs 14.4 which has increased to Rs 97.11 generating returns of 574.38% in past 8 years. The company is almost debt-free.
