JK Paper aims at Rs 2300-2400cr revenue in FY14

Company's net sales from operations in H1 period April-Sept increased to Rs 890 crore

Riding on the back of price hike and benefits from capacity expansion, JK Paper Ltd, part of JK Organisation, is aiming at a sharp jump in revenue in the remaining two quarters to Rs 2300-2400 crore in 2013-14.

"We are aiming for Rs 2300-2400 crore revenue for the FY 2014," JK Paper VP marketing Santosh Wakhloo told PTI here.

JK Paper net sales from operations in H1 period (April-September) increased to Rs 889.63 crore as against Rs 831.92 crore in the same period last year.

Wakhloo said the benefit of the Rs 1,750 crore expansion at Rayagada, Orissa would be realised from this (December) quarter.

The company would also hike paper price by three% from December one.

The company had two price increases since April, 2013 and with this, total price hike would be in the range of nine%, Wakhloo said.

"We hope for a better Q3 and Q4," he said reacting to losses in the H1 of the year. JK Paper registered a loss of Rs 23.46 crore during the period.

The expansion of JK Paper had helped the company to foray into all segments of office paper which is largest in the company's product portfolio including coated and packaging board.

"We are expecting a revenue for the full year of Rs 1,250 crore from close to Rs 1,000 crore now from office paper," Wakhloo said.

Speaking about sharp input cost increase, he said "I do not see any major respite in cost in the next two years as there will be major flow of the raw material from social forestry during that period."