Indian paper market is the fastest growing paper market in the world: AS Mehta, President, JK Paper

In an exclusive interview to ET NOW, AS Mehta, President, JK Paper talks about the current scenario of the Indian paper market.

Edited Excerpts:

In the backdrop of the recent plant shutdowns in South India, what are your views on the demand scenario for the first half of the year? do you see yourselves servicing additional demand on the back of this shutdown?

Demand has no connection with the shutdown of the plant in south India. It is a question of supplies. So as far as the demand is concerned, market is growing alright. As I had said previously, that the Indian paper market is the fastest growing paper market in the world and we are seeing a growth o around 6-7%. That is the demand side. As far as plants in South India are concerned, it is a supply problem which had come up due to the water scenario.The difficulties faced resulted in supply side being partially impacted.

What is the outlook on raw material costs going forward, where do you see raw material prices headed?

The availability of raw material is slightly better compared to last year. Availability from the catchment area is much better and that is why the raw material cost has gone down by 5-10%. In fact in north India the cost has come down more because the availability is much better. Availability in Andhra Pradesh and Orissa area is also much better. Most of the paper companies have put renewed focus on plantation activities over the past few years.Going forward , we would focus more on plantation activities.

Reports suggests that you have lined up 650 crore for capex and investment, how will this money be used, what kind of capex have you set in place?

In fact this raising is basically for the substitution of the high cost debt.Normal capex and some debottlenecking and balancing activities we are going to do at both the plant location and the rest is the general corporate purposes. So these are the purposes of these raising.

Reports suggest that you are in talks to buy Century Textile’s paper operations,your comments?

I don't want to comment on all these speculations

Give us some update on you BILT acquisition?.Do you have any other inorganic plans in the pipeline?

We always look for opportunities whether inorganic or organic.We evaluate the proposals regualarly.