BILT forays into tissue business

BILT Ltd today announced its foray into the tissue business with an investment of Rs 25 crore over five years. It expects a turnover of Rs 100 crore in the same period.

"Currently the Indian market for tissue is Rs 600 crore with an average consumption of 30,000 tonne a year and per capita consumption at 0.03 kg per annum. We have a good growth potential as there are hardly any organised players," said Gautam Thapar, the company's vice-chairman and managing director.

BILT plans to expand this market and increase the consumption of disposable paper products. Thapar said with the entry into the tissue segment, the company was looking at its specialised paper business (comprising stationary, copiers and tissue) to contribute about 25 per cent of the company's total revenue in three years' period.

The company will be outsourcing production of the tissue business "" just like the stationary business "" and focus largely on brand building and distribution.

BILT today launched its premier tissue brand 'Etiquette' in the national capital region which would then be launched across the country in a year. The company will be launching its economy segment products in a few months.

"In terms of volume we expect the premium segment to be about 20-35 per cent, while the majority is expected from the economy segment," Thapar said.