Financial Daily from THE HINDU group of publications
Tuesday, Aug 30, 2005
Financial Daily from THE HINDU group of publications Tuesday, Aug 30, 2005 |
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Corporate
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New Projects Sree Sakthi to increase capacity Our Bureau
Kochi , Aug 29 SREE Sakthi Paper Mills Ltd, one of the leading paper mill manufacturing industrial variety paper in the South, has chalked out capacity expansion initiatives at an estimated investment of Rs 25 crore. The company had proposed to increase the capacity by another 20,000 tonnes per annum to achieve economy of scale in its business. With the completion of the programme, the total capacity would touch 60,000 tonnes from the existing 40,000 tonnes, Mr S. Rajkumar, Managing Director of the company told mediapersons. "We started with a capacity of 5,000 tonnes in 1993 and have increased our capacity to 40,000 tonnes in the past 12 years. This is a clear indication of the growth potential of the sector," he said. The company, engaged in the manufacture of various grades of Kraft paper, duplex board and special coloured boards and file boards, is having a steady growth in its business for the past 12 years. With all these expansion projects, Mr Rajkumar said that the company aimed at achieving a turnover of Rs 100 crore in the year 2006-07 from the current turnover of Rs 50 crore. Most of the company's products are used in packaging, matches, stationery, publishing etc. All these sectors are having rapid growth in the recent years. This has given the company the confidence to go in for enhancing capacity, he said. Though the total Kraft paper market in the country is 2,500 tonnes per day, the per capita consumption in India is below 4 kg as against 55 kg in US. With the Indian economy poised to grow at the rate of 7 to 8 per cent per annum, the company hopes that the demand of its products will go up on a rapid scale. The proposed capacity expansion would also included a 2 MW co-generation power project that would take care a part of the power requirement of the company's manufacturing unit. The co-generation plant would be set up using the biomass from the company's paper production process to produce power. The company is looking at several options including tapping the capital market on the expansion plans. The details in this regard will be finalised shortly, Mr Rajkumar said.
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