ML Pachisia, managing director of Orient Paper, spoke to CNBC-TV18 about the company's business plans and growth prospects.
“The paper prices are reasonably firm because the pulp prices have gone up substantially, internationally and international paper prices have also gone up. The depreciation in rupee is also helping. Domestic prices are also inching up. There have been some increases by different companies in the month of June, July and then probably September, I am not aware of what increases have taken place but the chances are that the demand is firm,” Pachisia said.
“Margins are reasonably satisfactory, they are likely to be on similar lines as Q1 results maybe slightly better. So the pulp prices have gone up in the last fifteen months by more than 70 percent. So internationally there has been a huge increase in the cost of pulp and paper prices also therefore have moved up although not in that same proportion,” he added.
“Our margin for Q1 is not representative because we had 21 days of plant shutdown in Q1 for maintenance purposes. Therefore that is not a representative number,” said Pachisia.
“Currently the market is fairly bullish and we are soon going to approach the main season for notebooks and exercise books etc and then the festival season. We are going to increase our capacity for pulp so that we can reduce our dependence on imported pulp,” he further mentioned.
“We are looking at more than 20 percent margins. Let us see what we are able to achieve,” Pachisia said.