West Coast Paper Mills Ltd

Dear Shareholders

"The future belongs to those who believe in the beauty of their dreams." – Eleanor Roosevelt With this spirit, I am delighted to present the Annual Report for 2024-25, themed "Poised for Growth." This year, our journey has been one of resilience, innovation and strategic expansion, as we continue to build on our legacy while embracing the opportunities of tomorrow. At West Coast Paper Mills, we believe that every challenge is an opportunity for transformation and every achievement is a testament to our collective resolve.

India's economic narrative remains one of optimism and potential. Despite global uncertainties and a moderation in growth, the domestic economy is projected to expand at a robust 6.5% in FY 2024-25, underpinned by strong consumption, easing inflation and resilient infrastructure investment. The government's commitment to fiscal prudence, coupled with proactive policy reforms and a focus on inclusive growth, continues to provide a stable foundation for industrial advancement and entrepreneurial ambition. The spirit of enterprise and adaptability that defines our nation is mirrored in the way we approach our business, always seeking new horizons and avenues for value creation.

The Indian paper industry stands at a pivotal juncture, buoyed by rising literacy rates, expanding educational needs and a growing preference for sustainable packaging solutions. India, now the world's 15th largest paper producer, is projected to reach a market value of USD 19.1 billion by 2033, with a CAGR of approximately 7.5% from 2024 to 2033. The sector's growth is propelled by increasing demand for writing, printing and specialty papers, as well as the shift towards eco-friendly alternatives in packaging and hygiene products. As the world moves towards sustainability, our industry's role in providing responsible solutions becomes ever more significant. In parallel, the optic fibre cable industry is experiencing unprecedented momentum, driven by surging data consumption, the rollout of 5G networks and the government's ambitious Bharatnet project. The Indian optic fibre market is poised for significant expansion, supported by ongoing investments in broadband infrastructure and the rising adoption of fibre-to-the-home connectivity. This sector is set to play a transformative role in India's digital future, enabling seamless connectivity and supporting the nation's vision of a digitally empowered society. The relentless march of technology reminds us that innovation is not a destination but a continuous journey.

The financial year 2024-25 was marked by both challenges and achievements. Our company's turnover stood at Rs. 2,50,160 lakh, reflecting the impact of subdued paper prices due to heightened imports at lower rates. Despite a significant rise in wood prices and decreased realization, profit after tax stood at Rs. 28,471 lakh. The company's prudent financial management ensured a robust networth of Rs. 2,70,482 lakh as of March 31, 2025 and we are pleased to recommend a dividend of Rs. 5 per equity share, reaffirming our commitment to shareholder value.

At the consolidated level our company demonstrated its strength and prowess on our operational efficiency. Consolidated turnover stood at Rs. 4,03,356 lakh, with a profit after tax of Rs. 33,564 lakh. Further, the company's consolidated net worth including minority interest, stood at Rs. 4,07,017 lakh as on March 31, 2025. These results showcase our strategic direction, diversification efforts, and firmness across all divisions.

A closer look at our segmental performance reveals the strength of our diversified business model. The Paper and Paperboard Division achieved a production of 3,18,590 MT, representing 99.6% capacity utilization, while Sales volumes reached 3,13,823 MT. Our operating EBITDA margin for the paper segment stood at 15%. The Cable Division demonstrated exceptional performance, producing 1,05,481 km of optical fibre cable, while optical fibre cable sales surged to 1,08,626 km, a remarkable 37% year-on-year growth with an operating EBITDA margin of 9%. Our focus on operational efficiency, product mix optimization and cost management has positioned us to capture greater market share and expand our customer base. Every milestone achieved is a reflection of our team's dedication and the robust systems we have built over the years. These results underscore our ability to adapt and perform, even in a dynamic market environment. We are reminded that financial strength is not just about numbers, but about the trust and confidence we inspire in all our stakeholders.

Our vision for the future is anchored in strategic integration. In the paper division, we are continuously making phase wise investment for improving paper quality, developing new speciality products and reducing usage of steam, power, chemical, water and minimize the breakdown of machines.

In the optic fibre division, we have taken decisive steps towards self-reliance by establishing our own Optical Fiber Draw Towers factory in Hyderabad. This backward integration will secure a reliable raw material source for both our Mysore and Hyderabad cable manufacturing units, strengthening our competitive edge and enabling us to respond swiftly to market opportunities in telecom, utilities and data center segments. We see integration not just as a business strategy, but as a philosophy that shapes our approach to every challenge.

Innovation remains at the heart of our growth strategy. We have successfully launched new products such as Wesco Rangoli (Yellow, Green, Blue, Pink, White), Wesco Dura Natura, Wesco Delite, Wesco Colour Maplitho, Wesco Azurelaid Super, Wesco Plus and Wesco UHB (BT) catering to evolving customer needs and market trends. We are continuously focusing on adopting state-of-the-art technology to improve the process and product quality. The pursuit of innovation is a journey without end and we remain committed to staying ahead of the curve.

Our marketing efforts have been focused on strengthening our brand presence and deepening customer engagement. Through a comprehensive dealer network, six zonal offices and targeted outreach programs, we have expanded our footprint across India and into international markets. Customized solutions, timely delivery and a commitment to quality have reinforced our reputation as a trusted partner in both the paper and optic fibre industries. We recognize that marketing is not just about products, but about building enduring relationships.

Besides the focus on the domestic markets, exports remain a key pillar of our growth strategy. During the year, we exported paper and paperboard to over 15 countries and optical fibre cables to more than 25 countries, including markets in Europe and the Middle East. While export volumes faced some headwinds due to global market conditions, our ability to adapt and explore new geographies has enabled us to sustain and grow our international business. These initiatives not only diversify our revenue streams but also enhance our brand's global standing. Our commitment to excellence knows no boundaries and we continue to seek new opportunities beyond our shores.

The company continuously focus on adopting clean and green technology in Pulp & Paper making. We care about environment footprint and continuously work for improving the environment management system. The company's commitment to safeguard environment is manifested in adopting its minimum impact best process technologies that covers green production, resource conservation, responsible waste management and reduced pollution load. The company actively follows and practices 3R principles (Reduce, Reuse, Recycle) resulting in reduction of water consumption. During the year company distributed 1.50 crores of pulpwood seedlings/saplings to farmers to enhance wood resource availability.

Our people are our greatest asset. We prioritize employee well-being through comprehensive health and safety programs, skill development initiatives and a culture of inclusion. As of March 31, 2025, our workforce stood at 2,463 individuals, with robust mechanisms in place for grievance redressal, equal opportunity and continuous engagement with local communities through impactful CSR initiatives. We strive to create a workplace where every individual feels valued, empowered and inspired to contribute their best.

We uphold the highest standards of corporate governance, transparency and ethical conduct. Our Board is comprised of experienced professionals and independent directors, ensuring balanced decision-making and strategic oversight. Rigorous internal controls, regular audits and a strong compliance framework underpin our operations, fostering trust among all stakeholders. Good governance is the bedrock of our enduring success and we remain unwavering in our commitment to integrity and accountability.

As we look to the future, I am filled with optimism and confidence in our collective ability to navigate challenges and seize new opportunities. Our unwavering focus on integration, innovation and sustainability, coupled with the dedication of our talented team, positions West Coast Paper Mills Limited to continue its journey of value creation and responsible growth. Together, we are truly "Poised for Growth," ready to write the next chapter of our enduring legacy.

On behalf of the Board, I extend my heartfelt gratitude to our shareholders, employees, customers, partners and all stakeholders for your continued trust and support. At West Coast Paper Mills, we believe that our journey is defined not just by the milestones we achieve, but by the values we uphold and the positive difference we make in the world around us. Our commitment to excellence, sustainability and inclusive growth remains unwavering as we stride confidently into the future. Let us move forward with renewed purpose and shared ambition, confident that the best is yet to come.