Emami to sign MoA with WBIDC for Rs 2,200 crore paper plant

Kolkata-based FMCG major, Emami, will sign a memorandum of agreement (MoA) with the West Bengal Industrial Development Corporation (WBIDC) for a Rs 2,200 crore wood-based paper plant at West Medinipur in West Bengal.

The plant will have a capacity of 600 ton per day (tpd), generating employment for 5,000 people.

According to sources in Emami, the project was likely to be completed within 3 - 4 years. Around 6.5 lakh ton of pulp wood would be required per annum, of which about a third would be provided by the government of West Bengal from forest resources, for manufacturing of newsprint and writing paper. Currently, Emami Paper Mills Limited is a listed company with close to Rs 450 crore operating profit.

The company has two plants in Balasore in Orissa (capacity 450 tpd) and Dakshineswar in West Bengal (capacity of 50 tpd).

Emami recently invested Rs 350 crore in its Balasore plants to take its total capacity to 450 tpd, from approximately 60 tpd earlier. Emami Paper Mills is the only manufacturer of newsprint in eastern India and the second biggest in the country consequent to the recent expansion.

The group supplies to all major newspapers of eastern and northern India such as Hindustan Times, Ananda Bazar Patrika, The Telegraph, The Statesman, Dainik Bhaskar, Dainik Jagran, Rajasthan Patrika, Bartaman, Samaj, Sanmarg, Prabhat Khabar, etc. It also produces writing and printing paper.

Among other investments in West Bengal, Emami has also invested close to Rs 250 crore in its bio-diesel plant at Haldia in West Bengal. Emami Biotech’s bio-diesel production facility at Haldia was set up at a cost of Rs 150 crore.

Bulk of the production equipment has been supplied by Desmat Belstra, an Italian Belgian joint venture company. An additional amount of Rs 100 crore has been invested at the same facility for producing edible oil. The production residue of edible oil will be used for preparing bio-diesel.