Emami Paper Mills limited, a closely held company of the Rs 1500 crore Emami group, expects turnover to rise from an expected Rs 250 crore this fiscal to nearly Rs 800-900 crore in the next two years thanks to continuous capacity addition. | |
| Its Balasore facility has started production at its expanded capacity only a month back. |
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| Its capacity was raised by 275 tonnes per day of newsprint with an investment of Rs 350 crore. |
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| The company will invest Rs 500-600 crore on another 500tpd capacity at the Balasore facility, said R S Agarwal, joint chairman of the Emami Group of companies. |
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| It will start ordering for equipment by March end, said P S Patwari, executive director of EMPL. |
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| Total production capacity would be 900-1000tpd at the unit. |
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| EMPL's total capacity would be 3 lakh ton per annum at the end of the expansion process. |
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| The funds for expansion projects will be raised through a mix of debt and equity, Patwari added. |
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| The turnover from paper was estimated to be around Rs 400 crore for the next 2008-09 fiscal and around Rs 800-900 crore after the capacity expansion was completed in two years. |
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| EMPL was banking on the rising demand for newsprint in the country, which was now largely imported owing to inadequate domestic capacity. |
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| The demand for newsprint was growing at 10 per cent year-on-year and all major paper units are expanding capacity. |
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| India currently imports 1.5tpa of newsprint. |
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| This apart, EMPL is planning to set up a paper and pulp mill with a capacity of 600tpd. |
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| Currently, its Balasore facility uses recycled paper as raw material. |
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| The integrated facility would use both agro-based and wood pulp raw material. |
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| The estimated investment on the project is Rs 2000 crore and work expected to start within two years, with construction to take 20-24 months. Consultants are working on the detailed project report, said Patwari. |
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| Expected sales from the integrated mill will be Rs 800-900 crore. The company expects to work with debt:equity ratio of 2:1 for the project. |
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| The equity component of around Rs 700 crore could be raised through rights as well as public offering. EMPL could go for a public offer in the next one year. |
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