Uttar Pradesh-based Yash Papers is investing around Rs 150 crore to double production capacity for the growth of its business, a senior company official has said.
The company has a manufacturing plant in Ayodhya where it makes speciality paper and various paper products from sugarcane pulp. It also makes paper bags and tableware/containers.
"We are expanding our capacity with a capex of around 150 crore. We will be doubling the production across our products range," said Ved Krishna, strategy head of Yash Papers.
The capacity of pulp mill is 130 tonnes per day, while it makes 10 lakh pieces of tableware a day.
The company is funding investment through internal accrual and banks for expansion, and is expected to be completed by March 2020.
With people becoming aware of environment, Krishna said the demand of its products are rising as they are durable as well as eco-friendly.
The company already has tie-ups with McDonald, KFC and many other food chains for supply of biodegradable paper bags.
On the expected turnover of this fiscal, Krishna said the company's revenue will grow by 25-30 per cent this fiscal.
The company had posted a turnover of Rs 205 crore during the previous fiscal.
In the first nine months of this fiscal, it has already touched a revenue of Rs 195 crore as against Rs 152 crore in the corresponding period previous year.
"After the completion of current expansion programme, we expect our revenue to reach about Rs 400 crore in 2020-21 fiscal," Krishna said.
Yash Papers launched a separate brand CHUK in 2017. Sugarcane pulp is the key ingredient for both Chuk and Yash papers.
The company buys 2 lakh tonnes of sugarcane pulp from eastern UP.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)