The Andhra Pradesh Paper Mills Limited (APPM), part of the Kolkata-based LN Bangur Group, has lined up about Rs 291 crore for setting up a 70,000-tonne capacity machine at its Rajahmundry plant for paper production.
Of the total amount, Rs 170 crore would be met through debt and the remaining through internal accrual. The new unit would increase the yield by about 5 per cent, Shreeyash Bangur, director (corporate), told the media. At present, it consumes about 700,000 tonne wood for its pulp requirements.
The company’s mother plant at Rajahmundry has a capacity of 250,000 tonne per annum while the one at a nearby village Kadiam has a 175,000-tonne capacity. APPM had recently invested about Rs 635 crore in its pulp and paper-making facilities.
The company intends to plant 95 million saplings for meeting its wood requirements. Besides, it is looking at developing wastelands for securing raw material.
Bangur said APPM was now focusing on growing in south and west India as they accounted for 70 per cent of the total sale. It is targeting to increase the exports to about 15 per cent this year from 10 per cent last year.
The company registered a turnover of Rs 628 crore in 2007-08 and is expecting Rs 700 crore during the current financial year.