West Coast paper Mills, a S K Bangur group company, has embarked on a Rs 1,100 crore investment spread over the next two years to expand its capacity and modernise its manufacturing technology."We will expand our installed capacity of paper and install a new pulp plant with latest eco-friendly technology," S K Bangur, chairman and managing director, West Coast Paper told PTI.The company will raise Rs 725 crore in debt and Rs 175 crore through internal accruals to part finance the investment. The company will also make a private placement worth Rs 200 crore."We are discussing the private placement but the investors have not yet been finalised."The existing pulp plant would be scrapped and a new 2.5 lakh tonne pulp plant would be installed to help reduce costs substaintially.The paper production capacity will be enhanced to just over three lakh tonne from 1.85 lakh tonne at present.A 50MW captive power plant has also been proposed.According to sources, the International Finance Corporation has agreed to pay $40 million in loan while ICICI Bank had sanctioned a loan of $125 million to the company.Bangur said the expansion, which has already commenced, would be complete by March 2009.
