West Coast Paper Targets Rs 350-Crore Turnover

A senior company source said the increase in the turnover would be made possible largely because of the duplex board plant that started commercial production in the end of September.

The duplex board plant is expected to contribute about Rs 20 crore to the company's turnover for the current fiscal.

From 1997-98 onwards, the duplex board plant is expected to contribute Rs 55 crore to 60 crore to the company's turnover.

However, West Coast is expecting a slump in its exports for the 1996-97 fiscal. The company had exported 1,398 tons of paper valued at Rs 4.43 crore in 1995-96.

"With the market scenario having changed, the rates of pulp and paper in the international market have declined considerably and this has made it increasingly difficult to tap the foreign markets", the source said.

West Coast exported paper to Egypt, Malaysia, Mauritius, Iran, Singapore and Hong Kong last year. The company which took over Speciality Coatings & Laminations (SCL) through group investment companies, has approached the Company Law Board to convert the company into a subsidiary.

West Coast has more than 100 dealers throughout the country and this has made it easier for the company to market the value added products manufactured by SCL.During the year 1995-96, the company recorded a 275.51 per cent growth in gross profits. Seshasayee Paper recorded a growth of 130.26 per cent, while Mysore Paper registered a gross profit growth of 117.13 per cent rise over the previous year.

Though West Coast recorded a rise of 433 per cent in its net profit at Rs 29.94 crore, the company may declare a lower net profit for the current fiscal due to the current situation in the domestic market. "With the import duty on finished paper now being only 20 per cent a lot of imports are being made, said a source.