Nath Pulp & Paper Mills (NPPM), promoted by N Kagliwal and associates, is the flagship of the Nath group. The group has interests in paper, agro research, hybrid seeds, chemicals, plantations and pharmaceuticals. The other major group company is Nath Seeds. NPPM was incorporated in Apr.'75 for the manufacture of various types of craft paper. The plant is located at Paithan, near Aurangabad. N Kagliwal is the chairman of the company. NPPM came out with a rights issue in Mar.'91 of 18 lac equity shares aggregating Rs 1.8 cr, to part-finance an expansion-cum-diversification programme. This included installation of new paper machines to increase capacity to manufacture base paper, tissue paper, etc. The project cost was estimated at Rs 37 cr by ICICI. But a subsequent decision to increase the capacity further led to an increase in the project cost to Rs 61.77 cr. Hence, the company made a rights issue of 8.39 lac 14% FCDs of Rs 90 each aggregating Rs 7.55 cr in Sep.'92.