Paper-maker Ballarpur Industries (BILT) today said it will fully acquire Bangalore-based Premier Tissues India for a consideration of Rs 76.52 crore, a deal that will make it the largest player in the domestic tissue paper market.

The acquisition is likely to be completed by the end of this year, following which BILT will take over the operations and management of Premier Tissues, the company said in a statement.

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Premier Tissues registered a revenue of Rs 41.7 crore for 2009-10, which is estimated to touch to Rs 50 crore in 2010-11, the statement said.

"With this acquisition, BILT will become the largest player in the Indian tissue paper market," BILT COO Yogesh Agarwal said.

According to industry estimates, the branded tissue paper market is currently estimated at Rs 1,200 crore.

At present, Premier is the largest player in the domestic tissue paper market, with over 150 distributors supplying to over 8,800 retail outlets. The company also exports its products to Europe, the statement said.

BILT currently retails its tissue products under the brand, 'Etiquette', primarily in North India.

"Premier is very strong in South and West India. The integration of Premier's operations will help us capture a significant share of this rapidly growing category,"  he said.

BILT today posted a net profit of Rs 65.31 crore for the quarter ended June 30, an increase of 75.80 per cent compared to Rs 37.15 crore in the same quarter last year.

Net sales during the period grew by 48.65 per cent to Rs 1,076.71 crore from Rs 724.28 crore in the same quarter of the previous fiscal.

For the year ended June, the company's net profit grew by 17.07 per cent to Rs 197.03 crore from Rs 168.29 crore in the previous fiscal. Net sales for the year stood at Rs 3,794.61 crore, up 34.33 per cent.

BILT, a part of the $4 billion Avantha Group, manufactures and exports writing and printing (W&P) paper, industrial paper and specialty paper.

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