Rs 500-crore recast plan for Star Paper

KOLKATA: The Goenkas of the Duncan Goenka group are looking to building capacities at Star Paper Mills (SPML). The company plans to double its printing and paper manufacturing capacity to 1,50,000 tonnes per annum. The total outlay on the project is estimated at Rs 500 crore.

Speaking to newspersons after the company’s 68th annual general meeting held in Kolkata on Wednesday, SPML chairman & wholetime director GP Goenka said: “The company’s board has already given its in-principle nod for the proposed expansion. We hope to finalise the detailed project report and the finances in the next couple of months.”

He, however, refused to disclose the various options being weighed by the company to finance its proposed plan.“Besides, efforts are on to enhance the captive power generating capacity in a phased manner to reduce its power bill as well as expand the product mix,” Mr Goenka added.

Elaborating, Mr Goenka said, “To cut power costs, we are in the process of setting up a 5 MW captive power plant, in addition to our existing 5 MW cogen plant. We may further enhance the captive power capacity by another 5 MW.” The aim is to meet the total power requirement of 14 MW at the Saharanpur unit in Uttar Pradesh in the near future.

From being a manufacturer of industrial, printing and writing paper, the company intends to foray into production of value-added varieties of industrial paper and cultural paper to enhance its realisations.

Currently, Star Paper Mills is in the process of expanding the pulping unit by setting up a 100 tonne-per-day bagasse-based unit for assured supply of raw material. “All these key fire fighting steps are being taken to take care of all the negatives which, in the past, had impacted the company’s bottomline,” Mr Goenka said.

Incidentally, the Rs 85-crore asset rejuvenation programme initiated in 2005-06 will help the company produce better quality of pulp and manufacture high value-added varieties. An increase in co-generation capacity will reduce energy cost, company officials said.