Ballarpur Industries Ltd (BILT), a leading manufacturer of writing and printing (W&P) paper and subsidiary of Finquest Financial group, is charting a revival strategy under its newly constituted board following the successful completion of its insolvency resolution process.
BILT is undertaking a comprehensive review of its policies, processes and practices to align with its long-term vision of growth, sustainability and operational excellence, while institutionalising transparency and accountability across the organisation.
Chairman’s message
BILT Chairman and Managing Director, Hardik Bharat Patel in a note to shareholders said, “The past few years have been challenging for your company, and I want to assure you that the new board, under my leadership, is fully committed to steering BILT back to its former glory.”
“The primary focus is on ensuring swift and efficient resolution of the existing issues, while revitalising operations and strengthening internal frameworks,” he said.
Technology and sustainability push
“Our strategy includes leveraging core strengths while exploring new opportunities in the evolving paper industry landscape. Investments in technology and human resources are being prioritised to build a robust foundation for long-term growth, with innovation and sustainability expected to play a key role in enhancing competitiveness and operational efficiency,” he said.
BILT, 90-year-old institution
BILT, which operates in a capital-intensive industry catering to industrial and FMCG segments, had undertaken substantial capacity expansion and modernisation in earlier years in anticipation of robust demand growth
However, actual demand growth remained below expectations, while the domestic market faced pressure from dumping by global players impacted by a slowdown in advanced markets.
Financial distress
This adversely affected profitability and constrained BILT’s ability to service debt raised for expansion.
As a result, BILT slipped into financial distress, leading to the initiation of the Corporate Insolvency Resolution Process in FY20 following an application by FFSPL. The powers of the erstwhile board were suspended upon admission.
Insolvency proceedings
Divyesh Desai was appointed as Interim Resolution Professional to manage BILT’s affairs and assets. Subsequently, the National Company Law Tribunal appointed Anuj Jain as Resolution Professional on May 27, 2020.
Pursuant to the approved resolution plan, FFSPL acquired a majority stake in BILT on an “as-is where-is” basis, marking a change in ownership and control.
A new board was constituted through resolutions passed on June 12, 2023 and September 8, 2023, signalling the beginning of a fresh phase for the company.
Company background
Founded in 1945, BILT is among India’s oldest and largest paper manufacturers, with a strong presence in writing and printing paper. Its flagship Shree Gopal facility in Haryana has been central to its operations, catering to both domestic and institutional demand.
Over the decades, the company built a diversified portfolio serving industrial and FMCG segments, before facing financial stress due to adverse market conditions and high leverage arising from expansion.
New promoters background
FFSPL is a non-deposit taking NBFC. It is engaged in a wide spectrum of financial activities, including direct lending, investments, acquisition of stressed financial assets, trading in listed securities, and acquiring assets under the Insolvency and Bankruptcy Code (IBC).
FFSPL has successfully financed both individuals and corporates across diverse sectors such as real estate, textiles, paper, financial services, IT solutions,
Outlook
Reiterating its commitment to stakeholders, Patel expressed confidence in overcoming current challenges and restoring its stature as a leading player in the paper industry.