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Our Bureau

New Delhi , March 9

The New Delhi-based JK Paper is considering investment of around Rs 700 crore in the next 3-5 years to increase its production capacity to five lakh tonnes per annum (tpa).

"Our turnover would be Rs 1,000 crore or more in the next 3-5 years as we are looking at a total capacity of five lakh tpa in the same time for which there could be an investment of around Rs 700 crore," said Mr Harsh Pati Singhania, the company's Managing Director.

The company signed an agreement on Wednesday with International Finance Corporation (IFC), under which it would cede 10 per cent of the equity shares to IFC worth $11 million at the rate of Rs 65 per share. IFC would also provide a 10-year term loan of $15 million to the company.

The promoters of JK Paper would also subscribe to equity shares worth Rs 50 crore at the rate of Rs 65 per share, while an equal amount would be arranged through internal accruals. Another Rs 105 crore would be arranged through a combination of debt and convertible bonds, said Mr Singhania.

The current expansion plans include setting up of a 60,000 tpa multiplayer packaging board project at the company's central paper mill unit in Gujarat. The production would start by the beginning of the next year, said Mr Singhania. The company also plans to set up a boiler and turbine for boosting power generation.

The company has one paper mill each in Orissa and Gujarat manufacturing printing and writing paper, copier and art paper. The turnover of the company stood at Rs 730 crore for the last fiscal ending June 2005.

More Stories on : New Projects | Paper | rd & Newsprint

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