Shares of Emami Paper Mills today zoomed almost 20 per cent after the company announced its plan to increase investment in paperboards to Rs 2,000 crore in the next three years to strengthen its diversification to the high-margin segment.
The stock soared 19.91 per cent to settle at Rs 54.20 -- its highest trading permissible limit for the day -- on BSE.
Emami Paper Mills Ltd, the country's largest newsprint manufacturer, has decided to increase investment in paperboards to Rs 2,000 crore in the next three years to strengthen its diversification to the high-margin segment.
"We want to double the capacity of paperboard from 1.3 lakh tonne per annum over the next three years," Emami Paper ED P S Patwari said.
Buoyant growth of consumerism has recently led to diversification into multi-layered coated paperboard production in Balasore and the company would continue to focus on value added paperboard segment worth Rs 4,000 crore, Emami group director Aditya Agarwal said.
Emami is running trial production of the 1.3 lakh tonne annual capacity paperboard unit and said will start commercial production from December with 20 per cent market share in the country.
