Paper majors to hike prices

Ballarpur Industries (Bilt), the country's largest paper manufacturer is planning to hike paper prices by 2 per cent across all categories with effect from January 1, 2007.

In the current fiscal year, the company has already increased its paper prices three times. In July, the coated paper price was increased by Rs 1000 per tonne, while the uncoated price was increased by Rs 600 per tonne in September. In November, the price was increased by Rs 500 per tonne across all categories.

At present, the price of Bilt coated paper is around Rs 42,500 per tonne, that of uncoated is Rs 37,500 per tonne while copier paper is selling at Rs 38,500 per tonne.

"The price of raw materials has gone up by about 6 per cent this year and about 60 per cent of the hike is in line with the rising input cost. The rest can be attributed to the growth in demand", said B Hariharan, group finance director of the company.

JK Paper is also considering a price increase to the tune of Rs 1000 per tonne in January next year. "We have decided to increase the coated paper price but the increase in copier segment is still being debated", said V Kumaraswamy, vice president (finance) of JK Paper. The company has already increased paper prices across all categories by 8-10 per cent this fiscal year.

Currently, it is selling coated paper at Rs 39,000 per tonne, copier at Rs 38,000 per tonne and maplitho at Rs 35,000 per tonne.

Bilt is also looking to double its retail turnover in the diary and notebook segment to Rs 100 crore in 2006-07 financial year from Rs 50 crore last year.

This segment has a great potential and is growing at a rate of 25 per cent annually. The domestic diary and notebook market is estimated at Rs 1500 crore, said Hariharan.