Financial Daily from THE HINDU group of publications
Thursday, Aug 21, 2003
Financial Daily from THE HINDU group of publications Thursday, Aug 21, 2003 |
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Corporate
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New Projects Rs 700-cr expansion plan — TNPL appoints Canadian consultant for feasibility study R. Balaji
Chennai , Aug. 20 AMEC E&C Services Ltd, Canada, has been identified as international consultants for carrying out the detailed market study and feasibility report for the Rs 700-crore expansion programme planned by Tamil Nadu Newsprint and Papers Ltd (TNPL). Mr P. Rama Mohana Rao, Chairman and Managing Director, TNPL, told Business Line that the company has entered into an agreement with AMEC E&C Services, which is expected to submit its findings by December. The studies in the first phase will focus on pre-feasibility for the expansion programme that will add an additional capacity of one-lakh tonne per year taking its total production to 3.3-lakh tonnes. The demand situation for the expanded production in India and abroad will also be assessed. Subsequently, a techno-economic feasibility report and a detailed project report would also be compiled providing options and alternatives. The reports would be finalised by mid-December, he said. This will help TNPL decide on the product mix and relevant technology for the new capacity. The company will stick to its core strengths in paper making. The expansion will also see the establishment of a modern pulp line that will adopt the environment friendly elemental chlorine free process. Of the Rs 700 crore for the expansion, over Rs 400 crore will be spent for the modern pulp mill. AMEC E&C is a market leader in construction with expertise in pulp and paper and has a strategic alliance with SPB Project Consultants of the Chennai-based ESVIN group and AF-IPK, Stockholm. Apart from achieving capacity, TNPL is looking to consolidate its market position, and has commissioned a study to strengthen its brand equity and marketing practices. The study is to be conducted by the Academy for Management Excellence of the Institute of Financial Management and Research (IFMR). The short-term study is expected to throw up recommendations on marketing practices and identifying new products, enhancing customer relations and distribution channel. Mr Rama Mohana Rao said the expansion would make the company's production standards global and enhance its competitiveness. It will continue with its focus on exports, which are expected to touch 36,000 tonnes in the current year. Following the expansion it will target exports of about one-lakh tonne by 2006. Addressing shareholders recently, he said that the company planned to fund the expansion partly through internal generation of about Rs 300 crore and the balance through market borrowings. During the current year the company is targeting a turnover of about Rs 650 crore (against Rs 539.87 crore in 2002-03) with exports contributing about Rs 100 crore.
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