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Seshasayee Paper plans Rs 200 crore capex

Tuesday, 08 Nov 2016
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Seshasayee Paper and Boards is in the process of adding Rs 200 crore capital to enhance its pulp output to achieve better scale and synergy between its two plants.

The company operates two paper plants in Tamil Nadu — at Erode and Tirunelveli — with a total production capacity of about two lakh tpa.

The company is expanding its pulp production capacity at Erode which will give it better economy of scale and enable it to supply surplus raw material to its Tirunelveli unit to save on costs and increase output.

The pulp output will go up to 400 tonne per day from 330 tonne per day and about 100 tonne will be supplied to Tirunelveli where the annual production will go up to about 90,000 tonne from 70,000-75,000 tonne.

The company had earlier upgraded and retrofitted its power plant boiler and expects to complete the capital additions by March-April 2017.


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