JK Papers, part of the HS Singhania
Group, has planned to invest Rs.700 crore over the next 3-5 years in an overall
capacity expansion programme.
The company has planned to attain
paper manufacturing capacity of 5 lakh tpa, and an annual sales turnover of
Rs.1,000 crore. The four thrust areas identified for the future are writing and
printing, photocopier, coated paper and packaging paper.
As project-financing measures, the
company, on 8 March 2006, signed an agreement with International Finance
Corporation for a loan worth Rs.70 crore with a ten-year tenure. IFC is also
subscribing equity shares worth Rs.50 crore, representing 10 per cent of the
company's capital. Promoters are bringing in Rs.50 crore, while an equal amount
would be garnered through internal accruals.
In July 2005, JK Papers embarked on
setting up a specialized paper unit in Gujarat at its existing Central Paper
Mills. The unit with capacity of 60,000 tpa and costing Rs.235 crore would be
commissioned by June 2006. Following this, the company's overall capacity would
stand enhanced to 2.4 lakh tpa.
Also See:
JK
Papers to produce value-added paper in Gujarat (12-Jul-05)
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