Emami Paper earmarks over Rs 2,000-cr for expansion

MUMBAI: Emami Paper Mills, a part of the Kolkata-based Emami Group, has earmarked an over Rs 2,000 crore investment for capacity expansion and a foray into the pulp and writing paper segment, a top company official said.

While the capacity expansion from 450 tonnes per day (tpd) to 750 tpd will be done this fiscal itself at an investment of Rs 550 crore, the foray into the pulp and writing paper segment will involve an investment of around Rs 1,500 crore over three years, the official said.

Emami, which currently manufactures newsprint, has two units in Kolkata and Balasore (Orissa) with a total capacity of around 450 tonnes per day (tpd).

"We are currently manufacturing only newsprint but we are plan to enter into pulp and writing paper-making by 2013. We have already acquired 350 acres of land at Balasore, where we have our newsprint unit. We will start construction once we get the requisite approvals," Emami Paper's Executive Director, P S Patwari, told PTI here.

The company is presently awaiting a clearance from the Ministry of Environment and Forest (MoEF) and expects to get it by March end, he said.

Asked how the company proposed to fund the Rs 1,500 crore foray, Patwari said a decision on the matter would be taken soon.