Emami Paper Mills, a part of the Kolkata-based Emami Group, has earmarked over Rs 2,000 crore for capacity expansion and a foray into the pulp and writing paper segment, a top company official said.
While the capacity expansion from 450 tpd (tonnes per day)to 750 tpd will be done this fiscal at an investment of Rs 550 crore, the foray into the pulp and writing paper segment will involve an investment of around Rs 1,500 crore over three years, the official said.
Emami, which at present manufactures newsprint, has two units in Kolkata and Balasore (Orissa) with a total capacity of around 450 tonnes per day (tpd).
"We are currently manufacturing only newsprint but we are plan to enter into pulp and writing paper-making by 2013," said Emami Paper's Executive Director P S Patwari.
"We have already acquired 350 acres of land at Balasore, where we have our newsprint unit. We will start construction once we get the requisite approvals," he added. The company at present is awaiting clearance from the Ministry of Environment and Forest (MoEF) and expects to get it by March end, he said.
When asked about how the company proposed to fund the Rs 1,500 crore foray, Patwari said a decision on the matter would be taken soon. "We will take a decision on that soon. We might go for a public issue," he said. The writing paper unit will have a production capacity of 1,50,000 tonnes per annum and the company plans to get raw materials such as wood and pulp from its own plantations.
"We have started contract plantation over 25 hectares of forest land for eucalyptus and bamboo. These plants will take another three-years to mature after which we can start production. We are also planning to increase our acreage," Patwari said.
