| J K Paper Ltd, the paper outfit of the Singhania family, is planning to invest Rs 80 crore in green technology over a period of 2-3 years.
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| The company, which is one of the market leader in high end writing and printing paper, is also entering into paper board segment.
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| The chairman of J K Paper, Harsh Pati Singhania informed that it will go all out to become a green company in next 2-3 years.
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| However, he did not specify whether it will implement elemental chlorine free (ECF) technology, regarded as environment friendly technology.
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| "We want to be a green company by 2007-08. ECF or no ECF, the main idea is to be green," he said. According to him, it will invest in green technology in both of its plant at Raygada in Orissa and Songadh in Gujarat.
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| According to him, J K Paper is now investing Rs 235 crore in a green field project for entering into paper board segment. The company will set up 60,000 ton per year capacity paper board unit near its existing plant in Gujarat.
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| "We shall produce coated packaging paper that widely used in FMCG and pharma industries. The company is in the process of starting the project," he said.
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| Singhania informed that the the paper board plant is expected to start production from December 2006. "The project will cost around Rs 235 crore. It will be funded through a combination of debt and equity with a ratio of 1.5:1.
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| We do not have any immediate plan to raise equity for the project. We hope that internal accruals will be enough to take care of equity part," he added.
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| According to J K Paper chairman, the company currently have a yearly cash profit of Rs 100 crore, which is good enough for the required investment. He claimed that the entry of J K Paper into paper board segment will boost the bottomline of the company in future.
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| "The coated paper board is a high value product with better margins. Besides, we have also introduced gloss coated paper in the market, which too is a value added product. So the bottomline is bound to be improved," he said.
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| Incidentally, J K Paper posted a turnover of Rs 635 crore in 2004-05. |
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