Orient Paper and Industries Share Price

Orient Paper and Industries Limited is a leading manufacturer of writing, printing, industrial and specialty papers, as well as paper products and boards. It is also the biggest tissue paper manufacturer in India. Orient's paper and paper products are exported to countries worldwide in regions such as Africa, the Middle East, Bangladesh, Sri Lanka and Nepal. A part of CK Birla Group, it was founded in 1939.

The market capitalisation of Orient Paper and Industries Limited is over ₹1,000 crore as of January 16, 2024. The share price of Orient Paper and Industries Limited has gained over 120% in the last three years.

Business operations

Orient Paper and Industries Limited was founded with a single paper machine and is now a multi-product, multi-location company. It is engaged in the business of paper and also electrical consumer durables.

The manufacturing facilities on the west bank of River Sone at the Orient Paper Mills plants in Amlai, Madhya Pradesh, are equipped to produce various grades and types of papers. The company has recently established cutting-edge facilities for the production of high-quality soft tissue paper.

The Orient Paper Mills in Amlai oversees the operation of two distinct businesses, paper and caustic soda. In the paper unit, the primary focus is on the manufacturing of notebooks, writing and printing, and tissue papers. The company has a facility covering a total of 1,469 acres, with 633 acres dedicated to greenbelt development and plantation. The caustic soda unit is involved in the production of caustic (flakes & lye), liquid chlorine, hydrochloric acid, calcium hypochlorite and sodium hypochlorite.

The company's main focus is on writing, printing and publishing. This includes the manufacturing and sales of pulp and writing, printing and publishing reels and sheets. This division contributed 40.73% to Orient Paper and Industries Limited's turnover. On the other hand, 40.98% of the turnover is attributed to the tissue segment. In this segment, the company specialises in producing pulp and tissue jumbo rolls and engages in both domestic sales and exports of these products.

Orient Paper is also involved in the manufacturing of various chemicals constituting 18.29% of the turnover. These chemicals include caustic soda flakes, lye, hydrochloric acid, liquified chlorine and bleaching powder which are domestically sold to customers within the country.

In terms of existing production facilities, the company produces 100,000 TPA (tonnes per annum) of paper and 90,000 TPA of pulp. The pulp mill is primarily engaged in the conversion of wood into wood pulp, a substance composed of almost pure cellulose fibres – the essential component of paper.

Orient Paper has established partnerships with countries such as the UAE, Philippines, Sri Lanka, Nepal, Ethiopia, Kenya, South Africa, Qatar, Australia, Mauritius, Portugal and US. It maintains a leading presence in the notebook, writing and printing paper segments.

Financial highlights

– Orient Paper’s revenue from operations for FY23 stood at ₹943 crore, up 61% compared to ₹586 crore in FY22. – The earnings before interest, tax, depreciation and amortisation (EBITDA) increased to ₹191.10 crore in FY23, compared to the previous year's negative ₹7.74 crore. – The net profit after tax for FY23 was ₹99 crore compared to a loss of ₹29 crore during the previous year. – The company's earnings per share (EPS) stood at ₹4.68 in FY23 compared to a negative ₹1.36 in the previous financial year.