Ballarpur Industries to invest Rs 900 cr on expansion
The largest domestic producer of paper, is planning to increase the capacity of its coated wood free paper unit at Bhigwan in Pune by adding 1.9 lakh tonnes.
By INDIATIMES NEWS NETWORK |
NEW DELHI: Ballarpur Industries(Bilt) on Friday announced a capacity expansion programme which would entail investments of Rs 900 crore. The largest domestic producer of paper, is planning to increase the capacity of its coated wood free paper unit at Bhigwan in Pune by adding 1.9 lakh tonnes to take the total unit capacity to 3.15 lakh tonnes per annum. Coated paper occupies the premium end of the paper market in terms of pricing.
The investments would be financed through fresh debt of Rs 700 crore and internal accruals of Rs 200 crore. "Today, Bilt commands respect as a market leader, with 50% market share of the coated wood-free paper segment and the proposed expansion will help the company consolidate its leadership position in the coated wood-free paper market," according to Bilt managing director, RR Vederah.
With this expansion, the total paper making capacity of the company would increase from 4.8 lakh tonnes to 6.7 lakh tonnes per annum. The expansion is slated for completion by October 2008 with commercial production expected to commence from November 2008. This expansion is part of the long term domestic capacity increase announced by the company earlier.
The investments would be financed through fresh debt of Rs 700 crore and internal accruals of Rs 200 crore. "Today, Bilt commands respect as a market leader, with 50% market share of the coated wood-free paper segment and the proposed expansion will help the company consolidate its leadership position in the coated wood-free paper market," according to Bilt managing director, RR Vederah.
With this expansion, the total paper making capacity of the company would increase from 4.8 lakh tonnes to 6.7 lakh tonnes per annum. The expansion is slated for completion by October 2008 with commercial production expected to commence from November 2008. This expansion is part of the long term domestic capacity increase announced by the company earlier.
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