Financial Daily from THE HINDU group of publications
Sunday, Dec 25, 2005
Financial Daily from THE HINDU group of publications Sunday, Dec 25, 2005 |
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Paper, Board & Newsprint Corporate - Modernisation Ballarpur Ind kicks off modernisation plans — To double capacity of paper production at Bhigwan unit Dharini Nagarajan
Recently in Ashti , Maharashtra BALLARPUR Industries Ltd (BILT) has kicked off its expansion-cum-modernisation plans for which it had set aside around Rs 1,200 crore. A part of the investment would go towards doubling the capacity of paper production at its Bhigwan unit in Maharashtra that manufactures coated paper. The unit currently produces 1,15,000 TPA and is poised to produce 3,00,000 TPA, post expansion. According to the company, the coated paper segment would grow at a fast rate helped by an improving GDP and rising literacy levels. Shift to white copier paper: Furthermore, the company recently completed the Rs 65-crore modernisation of machines at APR Packaging Ltd, its Ashti unit. The unit, which was previously producing Extensible Sack Kraft Paper, has now moved to producing white copier paper. The expansion would enable the plant to manufacture bleached writing and printing paper up to 60,000 tonnes per annum. The rationale behind the shift seems to be the stiff competition from plastic bags in the packaging sector, which had resulted in reduction of margins and lower production volume of bags. Hence, the unit has moved to manufacturing bags made from outsourced sack kraft paper. The shift to white copier paper has resulted in lower power and water consumption by the unit. While power consumption has been reduced from 900 KWH/MT to 700 KWH/MT, water requirement has fallen from 7,916 cubic meters to 5,891 cubic meters per day. The company has charted out a target to produce 54,000 tonnes per annum at Ashti of copier paper and reach 100 per cent capacity utilisation by the end of March 2006. The required pulp for the production is being imported from Indonesia and Sweden. Additionally, upon satisfying itself on the sustainability of the project, the unit is also thinking of setting up a captive power plant. Mr Manjit Singh, Chief General Manager, Unit Ashti, said, "We might look to set up a 7.5 to 10 MW captive power plant for the unit." Currently, most of the company's efforts are focused on expanding the copier and coated paper business, which the company feels will be high-growth segments. Although the Ballarpur unit is reaching its saturation point in terms of production, no immediate changes are being planned. In-house training centre: However, the Yamuna Nagar plant would witness a reconfiguration of machines to produce stationery. An in-house training centre is also being set up at the unit. The Yamuna Nagar plant is slated to produce tissue paper (BILT's recent foray) in future, which is currently being sourced from overseas. BILT has recorded an annual turnover of around Rs 1,790 crore and hopes to raise this to Rs 4,000 crore in four years' time.
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