Seshasayee set to venture into speciality papers

Erode-based Seshasayee Paper and Boards Ltd (SPBL) is planning to foray into manufacturing speciality papers in a three months time.

"We have been approached by a few overseas organisations for a joint venture to manufacture speciality papers. The proposals are under consideration," K S Kasi Viswanathan, Director, SPBL, told Business Standard.

As a prelude to its capacity expansion, the company has chalked out a Rs 350 crore plan to set up a modernised pulp mill and a chemical recovery plant under its Mill Development Project (MDP). Of the total cost, Rs 80 crore will be generated through internal accruals and the remaining amount through borrowing from various commercial banks, he added.

SPBL has identified a pulp mill in the US, which it plans to relocate to its existing facility at Pallipalayam in Erode. This mill will have a capacity to produce 350 tonnes of bleached pulp a day against its present requirement of 230 tonnes. The project is likely to be completed in a 18 months time.

The modernised facility will utilise steam from Chemical Recovery Boiler (CRB) and generate additional power. " The CRB will use bio-mass viz black liquor as fuel along with a turbo generator set. We expect an additional power of 10 mega watt from this system," Kasi Viswanathan said.

This will be in addition to its existing captive power unit which generates a power of 21 mw. The company is also considering the possibility of exporting the surplus power to the State grid, he said.

The company has opted for a used pulp mill to conserve costs. The new pulp mill is expected to lower the pollution level by using the Elemental Chlorine Free (ECF) process and provide cost-effective, in-house pulp.

In a bid to conform to pollution norms, the new facility will have a new oxygen de-lignification system, a system to eliminate chlorine for bleaching wood pulp, a bio-methanation plant for methanol mitigation and a new lime kiln to minimise solid waste.

SPBL uses nearly 30,000 tonnes of imported fiber and produces about 1,20,000 tonnes of paper, of which more than 22,000 tonnes are exported.

MOVING ON

The company is considering the possibilities of a joint venture with overseas organisations to manufacture speciality papers

It has chalked out a Rs 350-crore plan to set up a modernised pulp mill and a chemical recovery plant under its Mill Development Project