### **Overview** Nath Industries Ltd is a leading Indian manufacturer with diversified operations across two core business segments: **Paper** and **Industrial Chemicals**. The company has established itself as a dominant player in the domestic market while significantly expanding its global footprint, particularly in specialty paper products and sulfur-based industrial chemicals. With a strong focus on innovation, sustainability, and value-added products, Nath Industries is well-positioned to capture growth amid rising demand in both emerging and developed markets. --- ### **Key Business Segments & Product Portfolio** #### **1. Paper Division** The Paper Division produces a wide range of specialty paper products used in packaging, decorative laminates, industrial applications, and consumer goods. Key products include: - **Absorbent Kraft Paper**: A flagship product used in high-pressure decorative laminates for furniture, flooring, and interior design. Strong domestic and international demand is being driven by urbanization, home renovation trends, and the rise of ready-to-assemble (RTA) furniture. - **MG White Tissue & Coloured Tissues**: Used in gift wrapping and decorative packaging; widely accepted by global retailers. - **Gift Wrap Tissues & Brown Wrapping Paper**: Established in international markets, especially in Europe, Southeast Asia, and Latin America. - **Core Boards (TTP 500 & TTP 600)**: High GSM paper used in paper tubes for the textile (POY/FDY) and plastic films industries. Export demand is robust, particularly to China, Thailand, Sri Lanka, and the Middle East. - **Thermal Paper**: Widely used in ATM rolls, POS receipts, tickets, and toll systems. Known for fast, high-definition printing performance. Global demand is growing at ~15% CAGR, with strong tailwinds from digitalization in India. ##### **Recent Product Launches & Innovations** - **Mac D Kraft**: Launched in 2020–21, this eco-friendly kraft paper for square-bottom paper bags supports India’s single-use plastic ban. It has gained widespread market acceptance and is positioned as a key alternative to non-woven and plastic bags. - **Barrier Paper, Print Base Paper, Masking Paper, and Protection Paper**: New niche-grade products developed to serve high-growth segments like laminates, automotive painting, and digital textile printing. These are part of a strategic push into specialized, high-margin applications. - **Sublimation Base Paper & Masking Paper (under MG Range)**: Set for launch, targeting digital printing and automotive sectors. - **Diamond Grade Absorbent Kraft**: A new premium niche product launched to capture market share from competitors who have exited the segment. - **Padding Paper & Platinum-grade Absorbent Kraft**: Under development; designed to replace 100% virgin kraft, aligning with sustainability goals. ##### **Export Expansion** The company actively exports: - Absorbent Kraft - White & Coloured Tissues - MG Kraft - Core Boards - Thermal Paper - One Time Carbon Base Paper - Print Transferring Base Paper **Key Export Markets (as of 2025):** Southeast Asia, Middle East, Africa, Europe, South America (including Brazil, Argentina, Mexico, Chile, Guatemala), Egypt, Sri Lanka, Bangladesh, Germany, Sweden, Israel, Malaysia, Italy, and Fiji. Exports now span over **30 countries**, supported by a well-established global sales network focused on consistent quality and competitive value. --- #### **2. Industrial Chemicals Division** Located in Vapi, Gujarat—a major industrial hub—the Chemical Division specializes in **sulfur-based and specialty chemicals** serving diverse sectors including textiles, dyes, pharmaceuticals, agrochemicals, water treatment, and detergents. ##### **Core Products** - Sulphuric Acid - Oleums - Sulphur Trioxide - Chloro Sulphonic Acid - Thionyl Chloride - Linear Alkyl Benzene Sulphonic Acid (LABSA) ##### **Production Capacity & Infrastructure** - **Sulphuric Acid Plant**: Expanded from 100 TPD (old unit) to a modern **320 TPD unit**, increasing total capacity to **500 TPD** (commissioned in 2024). This supports growing demand and enables backward integration. - **Dedicated Plants**: - Thionyl Chloride: 16,500 tons/year - LABSA: 16,500 tons/year - **Waste Heat Recovery & Cogeneration**: - Installed **3.3 MW turbine** (replacing 2 MW), fully meeting the chemical unit’s power needs via process steam. - Surplus steam can be utilized in the paper division or sold externally as **green energy**, creating a new revenue stream. - A **16.5 TPH high-pressure boiler and 2 MW back-pressure turbine** were installed under a cogeneration project, significantly reducing grid dependency and electricity costs. ##### **Strategic Shift to Specialty Chemicals** The company is transitioning from commodity to **specialty and forward-integrated chemical products**, including: - Sodium Sulphite - Sodium Metabisulphite - Sulfuryl Chloride - Dimethyl Aniline - Dimethyl Sulphate These cater to high-growth end markets such as: - **Pharma**: Demand for Thionyl Chloride and sulfur derivatives - **Agrochemicals**: Rising need for intermediates like Thionyl Chloride and Liquid SO₂ - **Dyes & Textiles**: Demand for Chloro Sulphonic Acid and sulfur-based compounds - **Water Treatment**: Expansion into effluent treatment, aquaculture, and hospitality via new product development and selective imports This shift aims to enhance both **top-line growth and profitability**, reducing reliance on cyclical commodity chemicals. --- ### **R&D and Innovation** - Ongoing R&D focused on developing differentiated products such as **Gold Rust Paper**, **Masking Paper**, and high-strength **carry bag papers**. - Development of **heat-resistant electro-thermal paper** for garment design applications. - Investment in new technologies to improve product quality, reduce environmental impact, and support the circular economy (e.g., virgin fiber replacement with Platinum-grade Absorbent Kraft). --- ### **Awards & Recognition** - Recipient of the **Export Excellence Award (Gold)** in the Multi-Products Category from FIEO Western Region for **two consecutive years (FY 2018–19 and FY 2019–20)**. - Recognized for excellence in global export performance across specialty paper and chemical products. --- ### **Strategic Initiatives (2022–2025)** - **Capacity Expansion**: Increased sulfur derivatives capacity from 280 TPD to **500 TPD** to meet rising demand and support export ambitions. - **Product Diversification**: Entered niche markets with specialized papers and high-value chemicals. - **Export Growth Strategy**: Targeting key regions including Southeast Asia, Africa, Middle East, Europe, and South America with tailored product offerings. - **Sustainability & Energy Efficiency**: Implementation of cogeneration and waste heat recovery systems to reduce carbon footprint and operating costs. --- ### **Financial Policies** - In FY 2021–22, the company **withheld dividends** to reinvest in capacity expansion and growth initiatives, reflecting its long-term strategic orientation. - Focus on improving **bottom-line performance** through higher-margin specialty products and cost optimization.