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Emami Paper Mills to pump Rs 20 bn packaging board unit in Gujarat

Monday, 24 Sep 2018
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Emami Paper Mills, part of the Emami Group, is investing Rs 20 billion in Gujarat for setting up a 0.23 million tonne multi-layer coated packaging board manufacturing plant.

The company so far has been catering to the western region from its two plants in Balasore in Odisha and Dakshineshwar in West Bengal.

The plant is expected to be commissioned by early 2020 and will spread across 103 acre in the Saykha Industrial Area at Bharuch district in Gujarat. The company intends to begin the commercial production in 2020 itself.

Additionally, an 18 MW captive power plant is also being constructed at an investment of around Rs 10 billion which will cater to the Phase-I of the project.

In the Phase-II of the expansion, Emami Paper Mills is expected to double the plant capacity in Gujarat to 0.45 million tonne in the second tranche of expansion.

The company is expected to fund this new project by a mix of borrowing from banks and the market. The company’s board and the shareholders have approved a qualified institutions placement (QIP) whereby it has targeted to raise Rs. 3.5 billion to fund construction of the Gujarat plant.

The proposed project is expected to generate direct employment for around 750 people and an additional employment of around 2,000 people in the ancillary industries and service organisations.

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