JK Paper set to invest Rs 14.5 billion to expand capacity at Gujarat plant

JK Paper will make an investment of Rs 14.5 billion to expand capacities at its Gujarat plant. The investment will go into expansion of packaging board capacity by up to 200,000 tonnes and pulping facilities by up to Rs 160,000 tonnes.

The project will be funded via a mix of internal accruals and long-term debt, said Harsh Pati Singhania, vice-chairman and managing director. The demand for packaging board is robust and the expansion will help the company take advantage of market conditions, he added.

The company said the unit would enjoy significant cost advantages due to proximity to the market, raw material availability and integration with pulp and captive power.  

JK Paper reported a profit of Rs 736 million in the fourth quarter, a 31 per cent rise from the year-ago period. Revenue from sales rose to Rs 7.52 billion. For the full year, the company’s profit rose 60 per cent to Rs 2.6 billion. Annual revenue grew four per cent to Rs 28.77 billion.