Incorporated on 28 Mar.'74 as a private limited company, Saurashtra Paper and Board Mills (SPBML) was converted into a public limited company on 2 Jan.'91. In 1978, it took over Saurashtra Paper & Board Mills, a partnership firm of the Saurashtra group. It was founded by Chairman Shashikant K Mehta. It is in the paper and packaging business, based in Rajkot. Other companies of the Saurashtra group include Supack Industries Pvt Ltd, Saurashtra Packaging, Saurashtra International and Saurashtra Marketing Corporation. SPBML manufactures various grades of paper, including writing and printing paper. It has two paper mills near Rajkot -- one at Navagam (inst. cap. : 4800 tpa) and the other at Shapar (12,000 tpa). The kraft paper manufactured by the company is used for making bags and corrugated boxes, for wrapping, industrial packaging, printing, writing, stationery, computer stationery, etc. SPBML sells paper under the Saurashtra and Premier brands. It exports to Kenya and Srilanka. In 1994-95, it signed an MoU with an Italian company, Comer, one of the leading manufacturers of paper machinery, and floated a joint venture, SPB Comer to manufacture all the critical parts of the paper plant and also take up turnkey projects. SPBML uses waste paper as raw material. It has installed de-inking and dispersion units will enable it to make superior quality paper. It has also developed absorbent kraft paper which is used to make laminates. It is installing a 1-mw co-generation plant which will use groundnut shells as an input. As the company's accumulated losses exceeded its net worth and therefore the company was declared a sick underataking in 2001 August and IDBI has been appointed as an operating agency.