The Hindu Business Line : AP Paper Mills plans expansion

ANDHRA Pradesh Paper Mills Ltd (APPML), the Rs 500-crore paper products major belonging to the LN Bangur group, plans to add 50,000 tonnes per annum (tpa) with at an investment of around Rs 220 crore.

This is in addition to the ongoing Rs 635-crore expansion and modernisation programme for taking the paper making capacity to 1.94-lakh tpa from the existing 1.53-lakh tpa. The current expansion is scheduled to take off in phases by March 2007.

Addressing newspersons here on Thursday, the APPML Vice-President (Corporate Planning and Business Development), Mr Shreeyash Bangur, said the fresh expansion for paper-making is being planned to use the additional pulping capacities.

Stating that the Brownfield programme of adding 50,000 tpa would be frozen in the next 3-4 months, Mr Bangur said the expansion could be completed between 16-18 months from then. The company is yet to finalise details on the funding pattern. Following this, the company's paper making capacity would reach 2.5-lakh tpa.

The company is evaluating a proposal to set up a Greenfield project with a capacity of 2.5 lakh tpa involving an investment of around Rs 1,800-crore. According to Mr Bangur, the Greenfield project would be set up mostly outside AP where raw materials were abundantly available.

However, he said the company has not yet chosen any State for the purpose and said the concrete initiatives on the Greenfield project would begin only after the completion of current expansion in March 2007.

The APPML Executive Director, Mr R.C. Mall, said the company expects to reach a turnover level of Rs 550 crore by March 2006 and Rs 650 crore by March 2007. The proposed Greenfield project, which would take 3-4 years for execution, would help the company double its capacity to around 5-lakh tpa and also double its revenues, he said.

Further, the company is also actively considering other expansion routes that include joint ventures with overseas partners.

According to Mr Bangur, few prospective foreign partners have shown interest in joining hands with the company for a joint venture project. However, he said the discussions with foreign players were at a preliminary level.

Aimed at maintaining the ecological balance and simultaneously meet its raw material requirements, the company plans to go aggressive on farm forestry initiatives to cover another 15,000 hectares in the next three years. The company has till date covered around 39,000 hectares in the catchment areas, Mr Mall said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
TI Cycles eyes fitness equipment market

Merck Sharp to launch patented drug for diabetes

Clarification

Cabinet okays changes for governing accounting bodies

`Introduction of uniform accounting standards, need of the hour'

SCI employees to seek shares at a discount

AP Paper Mills plans expansion

Mahindra inks deal with US co to make trucks, buses in India

Iron ore terminal — Sical to form jt venture with L&T, MMTC

Eureka Forbes, Swiss co Lux form jt venture

International Truck to use Mahindra joint venture for exports

`Second half will be better for vehicle biz'

Branson bullish on prospects in India

Falling crude prices hit MRPL refining margin

Rane group takes CMIE help to forecast market trends

126 cos saved Rs 450 cr a year through energy saving measures: CII