The Hindu Business Line : Vesuvio Papers to set up Rs 70-cr facility in TN

According to Mr V. Rajagopalan, Director, Vesuvio Papers, the company promoted by Mr P. Chandrasekhar, an NRI businessman based in Germany, will produce specialised papers such as lamination papers for use in construction industry, yellow interleaving papers and copier papers.

The facility is coming up near Tirunelveli in Tamil Nadu and is expected to start production early in 2009. Machinery has been sourced and construction work is on. The product range that Vesuvio plans to manufacture is now primarily imported. This is a high value niche for which Vesuvio will be using imported pulp, he said.

This was one of the reasons for the company opting to set up the facility in south Tamil Nadu. The location is close to the Tuticorin Port and water is available from the Thamiraparani, a perennial river. Tirunelveli also offers the advantage of accessing markets such as Kerala, southern part of Tamil Nadu and overseas markets such as Sri Lanka and Malaysia. The company is likely to enter into a purchase agreement with overseas buyers, Mr Rajagopalan said.

After the initial phase, the company also has plans to expand into other grades of paper such as packaging paper and tissue paper.

Mr Chandrasekhar is also the promoter of C.P. Engineering GmbH based in Frankfurt, which has nearly two decades experience in sourcing paper manufacturing equipment. The Indian arm of this company, Arjun Technologies India Ltd is one the leading turnkey system suppliers for the domestic paper industry.

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