The Hindu Business Line : JK Paper sees new plant adding Rs 300 cr to topline

Bullish
Packaging board is among the strongest growing segments in the paper industry.
JK Paper chalks out Rs 700-crore capacity expansion in the printing and writing paper segments.

R. Balaji

Chennai, Aug. 27 JK Paper, which has started trial production at its 60,000-tonne packaging board plant, expects it to stabilise production this year .

According to Mr Harsh Pati Singhania, Managing Director, JK Paper, in next two years the high-end packaging board plant would add over Rs 300 crore to the topline and JK Paper has the option to expand the plant . Packaging board is among the strongest growing segments in the paper industry.

With buoyancy in the manufacturing sector, the demand for packaging boards is on the increase. High-end packaging is custom made and cannot be imported. Also, the growth of organised retail is pushing up the demand for packaged goods. The market for these products is growing at about 10-15 percent, he said. JK Paper has also announced Rs 700-crore capacity expansion in the printing and writing paper segments. This would take its production capacity to about 5 lakh tonnes over the next three years, he said.

On the outlook for the coming year (the company follows June-July financial year), he said the company was well positioned with a strong presence in the fast growing segments. The photocopier segment is growing at about 20 per cent annually and JK’s branded photocopiers have a 40 per cent market share. Coated papers — driven by the growing demand of corporatesfor brochures, pamphlets and annual reports — is growing at about 15 per cent.

JK Paper has positioned itself in all these areas as a market leader, he said. According to Mr Singhania, the growth in paper industry is closely linked to the GDP growth.

The domestic paper market is growing at about 8 per cent.

The company has two manufacturing facilities located in Orissa and Gujarat with a total capacity of about 1.80 lakh tonnes a year. Its paperboard manufacturing facility is coming up at Gujarat.

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