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Sindhu J. Bhattacharya

New Delhi , March 3

PAPER major Ballarpur Industries Ltd (BILT) is expected to cross the Rs 3,000-crore turnover mark over the next two years. The company has charted out a Rs 1,200-crore expansion and modernisation plan, which will enable it to double the total paper production capacity to 8 lakh tonnes by 2007-08. Its board of directors has already approved the investment.

BILT's Vice-Chairman and Managing Director, Mr Gautam Thapar, told Business Line, "We will cross Rs 3,000 crore in sales within the next two years. This growth is expected from the comprehensive expansion and modernisation programme we have chalked out and this will double our total paper production capacity to 8 lakh tonnes."

He said that over the last four years the company has been restructuring operations in a bid to maximise capacity utilisation and create additional capacity in specific product segments. As per this plan, the four manufacturing plants at Yamunanagar, Ballarpur, Ashti and Bhigwan will be manufacturing one product each. While the Yamunanagar plant will now be specifically dedicated to making speciality paper products, Ballarpur will make only uncoated paper. The Ashti unit will no longer make extensible sack craft paper (used by the packaging industry) but concentrate on writing and printing copier paper, whereas the plant at Bhigwan will continue with coated paper.

Sewa will also manufacture copier paper, albeit addressing another segment. Mr Thapar said at the Bhigwan and Ballarpur units, an additional three-lakh tonnes capacity will be created by installation of high-speed machines. He said the Rs 1,200 crore envisaged investment will come from internal accruals as well as through suppliers' credits.

Besides making speciality paper, the plant at Yamunanagar will also become a training, research and development hub for BILT.

Asked whether the company was also keen on acquisitions to fuel growth, Mr Thapar said that there was no need for BILT to acquire capacities in paper but the company was looking at acquiring some pulp capacities. "We have been scouting for acquisitions to take up pulp manufacturing. Since forestry is closed to private players in India, we are looking overseas."

On BILT's recent retail initiative, he said that only the "BILT Matrix" brand is being sold through this route. "We currently do sales of about Rs 36 crore through the retail business and expect it to become a Rs 100 crore business within two years, with virtually no investment."

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