Punjab-based Khanna Paper Mills is
planning expansion at its existing paper unit in Amritsar with an investment of
Rs.270 crore.
As a part of expansion plan, the
company is setting up a waste paper-based writing and printing paper unit with a
capacity of 250 tpd. Currently, the company has capacity of 400 tpd of writing
and printing paper and 300 tpd of duplex board.
Out of the total project cost,
the company plans around Rs.80 crore from internal accruals and raise the rest
of the money from financial institutions. The company might also consider an IPO
if additional financial aid is required to finance its expansion plans.
Work on the paper unit is underway and
is scheduled for completion by end-2007. The company also plans to invest in
setting up a captive power plant.