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  • Category: Other Business
    • Last updated January 11, 2016
    • 0 comments, 2 views, 1 like, 0 followers, 1 Fans/Followers/Members
  • Tower - C, Mehrauli - Gurgaon Road Gurgaon - 122002, (Haryana) India. - Get Directions

Group Overview

Ballarpur Industries Limited (BILT), part of the US$ 3 bn Avantha Group, is India’s largest manufacturer of writing and printing (W&P) paper. More than 50% of India,s coated wood-free grades roll out of BILT‘s state-of-the-art plants. The company holds an impressive 85% share of the bond paper market and nearly 45% share of the hi-bright Maplitho market in India. BILT is the only Indian paper company to feature in the global top 100 list, with the recent acquisition of Malaysia’s Sabah Forest Industries (SFI) having elevated BILT‘s global ranking to 87. In recent years, BILT has evolved as a knowledge driven and customer centric organization. Ballarpur International will see an 8-10 percent growth rate in FY14 on the back of better volumes and pricing, said Yogesh Agarwal, MD and CEO of the company. He saw EBITDA being 21 percent for FY14. Yogesh Agarwal, MD and CEO of Ballarpur Industries expected the company’s growth rate for FY14 to improve to 8-10 percent on the back of increased pricing and better volumes. Also, since the company had completed most of its investment cycles, there was no additional capital expenditure in the near-term, he added. Speaking to CNBC-TV18, Agarwal said the weak rupee was a positive for the company's exports but their annual payout of USD 100 million (from the company’s total debt USD 500 million) maybe impacted by the falling currency. He said that their exports stood at USD 50 million. In terms of earnings, he expected the earnings before interest, taxes, depreciation and amortisation (EBITDA) for FY14 to be around 21 percent. "The company's interest costs would be financed by the increased EBITDA margins," he said. Below is the edited transcript of his interview to CNBC-TV18. Q: What does the rupee depreciation do to you? What do you have by way of forex loans and imports and exports? How do they square up? Does it leave you a bit poorer or richer after that fairly steep depreciation? A: The rupee depreciation; overall it helps us in business. But we do have some dollar loans. If we cut to the business, we compete with Chinese paper in India on coated paper side. So any depreciation on rupee to that extent helps us in domestic pricing because the rupee pricing goes up. So to that extent, it helps us. We do import some raw material which is much less than as compared to the import parity which we keep on a coated paper. Also, we have export of around USD 50 million from India. That helps us. We have our Sabah Forest Industries (SFI) operations in Malaysia where any dollar appreciation or ringgit depreciation helps us because we compete with Indonesians there. So overall, the rupee depreciation helps us. We do have dollar loans and annual payout principle and interest is around 100 million. To that extent, it would dent our bottomline in rupee depreciation. If you put together the loan and business part; the business part is much more than the loan side and we would gain on rupee depreciation.

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