### **Overview** West Coast Paper Mills Ltd. (WCPML), established in 1955 and part of the **SK Bangur Group**, is one of India’s oldest and largest integrated manufacturers of **paper, paperboard, and optical fiber cables**. Headquartered in Kolkata, the company operates a single, large-scale integrated manufacturing facility in **Dandeli, Karnataka**, and has diversified significantly through vertical integration and strategic expansion into high-growth sectors. As of FY25, WCPML has successfully transformed from a traditional paper manufacturer into a **multi-segment industrial player**, with strong positions in both the **writing & printing paper** market and the **telecom & digital infrastructure** space. --- ### **Core Business Segments** #### **1. Paper & Paperboard Division (90% of FY25 Revenue)** - **Production Capacity**: - Dandeli Plant: 320,000 MTPA - Subsidiary **Andhra Paper Limited (APL)**: 250,000 MTPA (previously 240,000 MTPA — expansion underway) - Total Group Capacity: ~570,000 MTPA post-integration - The division operates at **near 100% capacity utilization**, benefiting from economies of scale. - Fully **integrated operations** with in-house: - Pulp production (725 TPD BD bleached pulp plant — the largest in the region) - 74.8 MW **captive power** - Chemical recovery system - Year-round water supply from the Kali River - **Product Portfolio**: - Writing & printing papers (e.g., Wesco Rangoli, Wesco Delite, Wesco Plus) - Packaging paperboards (e.g., Wesco Cup Stock, Wesco Prime Super Green – plastic-free, FSC-certified) - Value-added products (security paper for bank cheques, coated duplex board, MG paper) - **Market Position**: - Marketed under the premium **WESCO** brand - Strong presence in B2B and B2C segments, including education, publishing, packaging, and banking - **Sales & Distribution**: - Pan-India reach via **70+ dealers** and **6 zonal offices** - 75% of dealers have been with the company for **over 15 years**, indicating strong channel loyalty - Exports paper to **15+ countries** #### **2. Optical Fiber & Cables Division (West Coast Optilinks – WCO)** - Formerly Sudarshan Telecom; rebranded and expanded - Accounts for **~10% of FY25 revenues**, but growing rapidly - EBIT margins improved from **8% in FY23 to 12% in FY24** - Manufacturing units: - **Mysore, Karnataka** (since 1996) - **Hyderabad (Fab City), Telangana** – new greenfield unit commissioned in **Feb 2024** - **Cable Production**: - FY24 Output: **84,719 km** - Capacity: **Doubled** in recent years, with further scalability - Strategic **backward integration**: - Commissioned **Optical Fiber (OF) Draw Towers factory** in Hyderabad (Apr 2025) - Secures supply of optical fiber — a critical raw material — reducing import dependence - Products: - Optical Fiber Cables (OFC), FRP Rod Cables, Glass Roving, dry & ribbon cables, FTTH cables - Key Markets: - **India**: Supply partner for **BharatNet**, **TANFINET**, 5G rollout - **Exports**: To **25+ countries** across Europe, MEA, Southeast Asia - R&D focus on 5G, FTTH, and future-ready connectivity solutions --- ### **Strategic Initiatives & Growth Drivers** #### **1. Vertical Integration & Supply Chain Security** - Backward integration into **optical fiber manufacturing** strengthens the value chain and enhances competitiveness. - Reduces dependency on imports and aligns with **Make in India** and **Digital India** initiatives. - Ensures **reliable supply** for cable units in Mysore and Hyderabad. #### **2. Expansion & Capacity Building** - **Dandeli Plant**: Expanded to 320,000 TPA via PM6 (2010; INR 1,450 Cr capex) - **Andhra Paper Acquisition (2019)**: Added 250,000 TPA, created cost synergies, enhanced market share - Applied for **450,000 TPA expansion** at Dandeli (subject to regulatory approvals) - Invested ~**INR 283 Cr** between 2019–2023 on machinery upgrades and automation #### **3. Product Innovation & Diversification** - Launched multiple new paper products: - **Plastic-free coated cup stock** (Wesco Prime Super Green) – capitalizes on **ban on single-use plastics** - Specialty papers: Wesco Dura Natura, Wesco Azurelaid Super, Wesco UHB (BT) - Focus on **higher-margin, value-added products** to improve revenue quality - Cables division developing products for **5G, data centers, utility projects** #### **4. Digital & Operational Transformation** - Upgrading from Oracle EBS R-12 to **Oracle Fusion Cloud ERP** for better efficiency - Phased investments in paper division to: - Improve product quality - Reduce steam, power, chemical, and water consumption - Minimize machine breakdowns and downtime --- ### **Financial Strength & Credit Profile** - **Strong Balance Sheet**: - Gross Debt-to-Equity: **0.06x** - **Negative Net Debt-to-Equity** → **Net Cash Position** - Promoter holding: Increased from **52.4% (FY12) to 56.53% (FY24)** – reflects long-term confidence - **Credit Rating**: **AA/Stable** (ICRA) and **A1+** (short-term) - **Cash Flow**: Average **₹300+ crore annual operating cash flow** (past 5 years) → supports self-funded growth --- ### **Corporate Governance & Leadership** - **Leadership**: - **Cable Division Led by**: - *Pramod Srivastav* (CEO – 34+ years in telecom/OFC) - *Anuj Tayal* (President – Technical – 40+ years, chemical engineer) - Long-standing **R&D center** at Dandeli — one of the first linked to a paper mill in India - Commitment to **sustainability**, **innovation**, and **import substitution** --- ### **Sustainability & Social Responsibility** - **Environmental Initiatives**: - Elemental chlorine-free (ECF) production - FSC-certified papers - Use of up to 50% imported hardwood chips (from South Africa, Australia) - Wind power capacity: **1.75 MW** in Tamil Nadu - **Farmer Support Program**: - Supplies subsidized clonal seedlings (Eucalyptus, Casuarina) - Provides technical guidance to boost yield and farmer income --- ### **Risks & Challenges** - **Paper Segment**: - Cyclical demand, fluctuating raw material prices - Import dumping of cheap paper affecting domestic pricing - High capex for upgrades and expansions - **Cables Segment**: - Competition from wireless tech in last-mile connectivity - Geopolitical risks in raw material supply - Cybersecurity threats to digital operations (highlighted in 2021)