JK Paper to have a new plant next fiscal

The Rs 1,650-crore expansion plan of JK Paper Limited, a flagship company of the JK Singhania group, will be completed by the first quarter of 2013-14, according to vice president (marketing & sales) AK Gosh.

Gosh told Business Standard JK Paper was setting up a new 165,000 tonnes per annum (tpa) paper plant at its existing unit in Rayagada in Odhisa.

Following this, the combined installed paper-making capacity of the company's manufacturing units would go up from 294,000 tpa to 465,000 tpa. JK currently operates two paper plants located in Odhisa and Gujarat.

The company recently formed a joint venture (JV), Oji India Packaging Private Limited, in partnership with two Japanese firms — Oji Holdings Corporation and Marubeni Corporation — to make and sell corrugated packaging projects.

The JV is planning to set up a 34,000-tpa manufacturing unit at the Neemrana Industrial Park in Rajasthan at cost of Rs 150 crore. JK will have a 20 per cent share in the JV for an equity investment of up to Rs 15 crore.

This apart, the company is set to pick up an equity stake in a state-owned pulp mill of Myanmar. The deal was expected to give a foothold for the company in that country, which was now opening up to foreign investment. The details of the deal were reportedly being worked out.