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JK Paper to invest Rs 1,650 cr for expansion of Odhisa unit

BS Reporter  |  Mumbai/ Pune 

JK Paper Ltd, a flagship company of the JK Singhania group is setting up a new 1.65 lakh tonnes per annum (TPA) paper plant at its existing unit in Rayagada in Odhisa.

For this, the company plans to invested Rs 1650 crore to meet growing demand, customers’ needs and aspirations especially from digital printing industry. JK Paper holds 28 per cent of market share of Indian paper industry.

The project will go on steam in early 2013 and with this, the total company capacity will be enhanced to 4.55 lakh per annum. JK Paper currently operates two paper plants located in Odhisa and Gujarat. 

Commenting on this, AK Ghosh, VP (Marketing & Sales), JK Paper said, "Considering the future growth in the paper industry, we have plans for expansion.  We are expanding production capacities with setting up a new plant in in Rayagada in Odhisa with the investment of Rs 1650 crore. This expansion project will help to deliver high quality paper and also conserve precious resources like water and energy leading to lower cost of production. JK Paper has plans for expansion in other product lines as well. All these will ensure JK Paper’s leadership in the Indian Paper Industry in an environmentally responsible and sustainable manner." 

According to Ghosh, India consumes paper of 9.5 Kgs per capita  and is expected to touch 10 Kgs by 2012. 

Talking about Indian paper industry and market outlook he said,  "The paper market is growing rapidly because there is rise in usage of paper and by 2015 India will have net deficit of 2 million metric tonne of paper demand. Due to growth in digital printing environment the market is growing by 10 per cent annum."

The company is targeting revenue of  Rs 2600 crore in the financial year 2013-14 from current of Rs 1560 crore.

JK Papers is currently exporting 1500 tonnes to international markets. Post expansion the its export is expected to touch - 3000 tonnes with target  markets being Asia Pacific region, New Zealand, Australia, Middle East, some cities in Europe, African countries.

Recently, J K Paper has tied up with Hewlett Packard (HP) to avail of its ‘ColorLok’ technology in producing copier paper . The entire range of copier papers namely JK Copier Plus, JK Copier, JK Easy Copier, Sparkle and Cedar now is available with Colorlok technology.

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First Published: Tue, November 06 2012. 00:09 IST