TNPL to spend Rs 1k cr to boost capacity

NPL also considering diversifying into cement manufacturing business, using waste wet lime sludge generated from its paper making operations and fly ash generated from its power boilers. The company is awaiting the state government's approval for both proposals.

Funding mechanism for both cement diversification and capacity addition is yet to be finalised said a top executive form TNPL. The firm plans to complete the capacity addition by mid-2010.

When the state approval is received, TNPL will be the first paper maker in the country to branch into cement production. Spiralling fuel prices, power cost and constraints in raw material availability prompt domestic mills to think for a price revision on PWP. Price of PWP is expected to increase by six per cent in July to Rs 46,000 to Rs 47,000 a tonne from the current price of Rs 44,000, added the source.

At present, the firm's Kagithapuram plant has boosted production of printing and writing paper (PWP) due to a rise in demand for PWP. The company supplies PWP to both domestic and international markets. Export accounts for around 22 per cent of the total production.

TNPL has completed a Rs 600-crore pulp mill expansion with the establishment of a modern pulp mill, which follows the elemental chlorine free production process.

The company has an installed power generation capacity of 96.6 megawatt (61.1MW thermal and 35.5 MW windmill) and transfers surplus power to the state grid. It will also commission a 20 MW turbine generator later this year, taking its total in-house generation capacity to 116.6 MW.

TNPL' net profit increased six per cent to Rs 27.38 crore in the fourth quarter ended March 2008 from Rs 25.72 crore. The company's total income rose 12 per cent to Rs 261.74 crore as against Rs 233.40 crore.

Total expenditure grew 13 per cent to Rs 217.39 crore.