Sree Sakthi sets sight on export front

Kerala-based Sree Sakthi Paper Mills Limited (SSPML), a manufacturer of industrial variety paper in the south, is planning to export 30 per cent of its products to neighbouring countries like Sri Lanka, Bangladesh and some of the west African countries.

Announcing this on the sidelines of the company's initial public offering, S Rajkumar, managing director of SSPML, said, "Currently, we are in an expansion mode. And after the completion of our expansion, we will export our products. We expect to garner a good revenue on that front."

The company plans to raise Rs 25 crore from the capital market with a public issue of 83,33,340 equity shares of Rs 10 each for cash at Rs 30 per share.

The company intends to deploy the net proceeds from the issue of shares in two areas. The first would be a capacity expansion of its two manufacturing units at Edyar and Chalakkudy.

The capacity would go up from the present 140 tonnes per day (TPD) to 240 TPD. The second would be on setting up of a 2-megawatt co-generation plant at a cost of Rs 26.55 crore, which the company expects would reduce the cost by six to seven per cent of its expenditure, Rajkumar added.

The co-generation plant will be set up using the biomass from the company's paper production process to produce power.

The company's total income rose from Rs 36.65 crore in 2000-01 to Rs 50.55 crore in FY 05. For the six-month period ended September 30, 2005, the company registered a total income of Rs 31.12 crore and a profit after tax of Rs 84.31 lakh.