Prudential Lines Up Rs 125cr Paper Unit

The paper plant is estimated to cost Rs 125 crore. Company spokesman, Neeraj Daftuar, said this would be largest paddy-straw-based integrated paper mill in eastern India.

About 150 acres of land for the project was acquired by the group in August. However, construction work has not yet begun as the group is waiting for the Industrial Development Bank of India (IDBI) to refinance the West Bengal Industrial Development Corporation (WBIDC). Prudential also plans to set up a captive power plant.

While 50 per cent of the financing for the group's second sugar plant in Andhra Pradesh will be through term loans from financial institutions, 25 per cent will be the promoters contribution, with the rest being raised from the public. The capacity of the mill will be 2,500tcd. The group's existing mill at Chittoor, during the 15-month period ended June 30, recorded a turnover of Rs 47.84 crore, and a net profit of Rs 10.77 crore.

 

Turnover for 1996-97 is projected at over Rs 65 crore while net profit is expected to be around Rs 20 crore.