The Hindu Business Line : Andhra Pradesh Paper on expansion mode

Rollout plans
With the expansion project, the company will have total paper capacity of 2,50,000 tonnes a year, up from 1,80,000 tonnes from two plants located in Rajahmundry and Kadiam.

V. Rishi Kumar

Hyderabad, Oct.13 The Andhra Pradesh Paper Mills Ltd, part of the Kolkata-based LN Bangur Group, is in the process of implementing its Rs 291-crore expansion plan at the Rajahmundry unit in the State.

The company will also commission a 5 MW power plant along with the expansion project, which will add about 70,000 tonnes per annum capacity, slated to be commissioned next fiscal, according to Mr Shreeyash Bangur, Director, Corporate, APPML.

Speaking to Business Line, Mr Bangur said the earlier expansion-cum-modernisation project, which was completed in 2006 with an outlay of Rs 635 crore, will also help the company meet the rapidly changing paper requirements in the country and abroad.

In fact, the expansion project, which was hit by the boiler mishap last year, has now been fully re-done and the benefits would be felt during the current financial year. Last fiscal, the company closed with revenues of Rs 628 crore and sees financial year ending with revenues of Rs 700 crore.

Tie-up with Reliance Power

The company has tied up with Reliance Power to sell the power generated through the 5 mw plant now under way at Rajahmundry. The coal for the project is being arranged from Singareni Collieries Company Ltd, he said.

With the expansion project, the company will have total paper capacity of 2,50,000 tonnes per annum, up from 1,80,000 TPA from two plants located in Rajahmundry and Kadiam, about 15 km away along the river Godavari path. The company also has 2,50,000 TPA pulping capacity, which is the largest in the country.

“We have tied up all the finances of the expansion project but there has been delay in implementation due to the mishap in the company boiler. Most of the machinery is already in place, and work is now being expedited,” he said.

Referring to exports, Mr Bangur said the company plans to increase it to 15-20 per cent, up from 10 per cent now. Most of the exports are to South-East-Asia, West Asia and East Africa.

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