The construction work for the Rs 1500-crore expansive project of JK Paper’s Orissa plant is likely to start in October next and be completed around middle of 2012.
The board of director of the company has approved the expansion project of the unit located at Jaykaypur in Orissa’s Rayagada district.
As per the plan, the capacity of the paper mill would be increased from 1.25 lakh tonnes to 1.50 lakh tonnes per annum, while the capacity of the pulp mill will be doubled to 2 lakh tonnes. Similarly the 35 Mw captive power plant of unit will be completely replaced with a brand new CPP of 55 Mw.
“The ground work for the expansion project has already begun and the actual physical work is likely to start around October-November” the executive vice president (work) of the company, MC Goel told Business Standard. The JK Paper Mills, a unit of JK Group, has its Central Pulp Mill at Sangadh in Gujarat. The paper company produces papers in various categories including copier, excel bond, board, copier plus sparkle, photo vista and excel under the brand name of JK.
The company proposes to fund the expansion project through a mix of debt and equity. JK Paper’s net profit in the quarter ending December, 2009 jumped six-folds to Rs 20.35 crore on the back of strong performance and cost control measures.
The company has won several national and international awards for its strict adherence to ethical practices and implementation of Corporate Social Responsibility (CSR).