The major impact of the Russia-Ukraine war is on paper pulp, said AS Mehta, president and director of JK Paper, on Monday, adding that prices of paper pulp have moved up dramatically.

In an interview to CNBC-TV18, he said, “The major impact is of pulp because Russian pulp is supplied to the number of European countries and also we get some quantity from Russia, which is longer fibre softwood pulp we get from those places and now because of disruption the pulp prices have moved up drastically as far as softwood pulp is concerned.”

He further said that board unit utilisation is at 80-85 percent and will see Rs 1,300-1,400 crore revenue in FY23 with a 22-23 percent margin.

Also Read: Russia-Ukraine tensions may have some impact on paper industry in short term: JK Paper

Exports contribute 15-16 percent of total revenues to the company. He said, “In time to come, we would like to do more but it will remain in a band of 15-18 percent or 20 percent.”

For the entire interview, watch the accompanying video