Titagarh to spin off paper unit

Titagarh Industries is demerging its paper units into separate outfits.

The company currently has steel, paper and valve units. The company has informed the stock exchanges that two paper units located at Titagarh and Kankinara will be demerged into two separate companies.

This has assumed great significance following the good showing of the paper industries in last couple of quarters.

According to sources in the market, Chowdhury might induct a strategic partner for the paper business. "It is demerging the paper units possibly for inducting partner. Lot of big paper mills are now looking for capacity," sources in the market said. Titagarh Industries is presently making losses with neither of its units are doing well.

It has booked a loss of Rs 50 lakh in the third quarter of the current financial year over a turnover of Rs 15.8 crore. It has booked a loss of Rs 6.7 crore in 2003-04 over a turnover of around Rs 32 crore.

The chairman of Titagarh Industries J P Chowdhury as well as one of the directors Umesh Chowdhury were not available for comment and refused to take phone calls. A company official said, "They are discussing issue regarding the demerger and not available for comment."

Incidentally, J P Chowdhury acquired the paper mills in November 1994, which was under a company called Titagarh Paper Mills Ltd. Titagarh Paper used to sale writing, printing and art paper under the Elephant brand.