The Hindu Business Line : Shree Bhawani Paper Mills to expand

Shree Bhawani Paper Mills Ltd (SBPML), Rae Bareli in Uttar Pradesh, has drawn up an expansion plan for increasing production capacity of its pulp and paper mill by 23,000 tonnes per annum and installation of rice-husk based three-MW cogeneration plant to meet its power requirements.

The company has decided to increase the installed capacity by 23,000 tonnes from the current 21,000 tonnes and to produce higher value-added products such as paper used in computer stationery in an environment friendly way.

The total cost of the proposed capital expenditure scheme is Rs 69 crore. The expansion programme will be completed in a single phase.

"The amount of orders for plant and machinery that have already been placed is Rs 34.45 crore, out of the total estimated cost of Rs 52.90 crore. The orders placed accounts for 65.12 per cent of the total plant and machinery," Mr Girish Tandon, Joint Managing Director, SBPML, said. Bank of Baroda and Indian Bank have already sanctioned total term loans representing about 70 per cent of the project cost of Rs 69 crore.

To part finance its expansion programme, the company has come out with an issue of 1,23,18,000 equity shares of Rs 10 each for cash at a premium of Rs 2.50 each (issue price Rs 12.50 per share) on rights basis to the existing equity shareholders. The right issue opens on April 12, 2006 and closes on May 5, 2006.

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