The Hindu Business Line : Sree Sakthi Paper sets up 3rd plant near Kochi

Kochi March 29 The Kochi-based Sree Sakthi Paper Mills Ltd has commissioned its third paper plant at Edayar Development Area near here for the production of all grades of industrial grade kraft paper.

The new plant is equipped with the latest multi-wire technology and the machine has an installed capacity of 140 tonnes per day. By adding the new plant, the total capacity is estimated to be over one lakh tonnes per annum with a turnover of Rs 150 crore, said Mr S. Rajkumar, Managing Director of the company.

With the new expansion, Sree Sakthi Paper has emerged as the largest player in South India, manufacturing industrial variety papers vis-a-vis kraft paper and duplex board, he added.

The new trend in the industry, he said, is to make boxes with high burst factor, RCT (ring crush test), grammage to ensure high compression test values for the boxes. All the MNCs are switching over to these specifications and the new plant is expected to cater to this emerging trend in the market.

Eco-friendly

The plant is totally environment friendly as it is expected to use 100 per cent recycled waste paper as raw material. The bulk of the raw material is to be imported from various countries such as the US, Europe and Dubai.

According to Mr Rajkumar, the company was started at Edayar in 1993 with a capacity of 15 tonnes per day and the plant is currently producing 75 tpd. The second unit was started in 1995 at Chalakkudy for producing duplex board and is currently manufacturing 75 tpd.

With the commissioning of the new plant, Sree Sakthi Paper will have a combined capacity of 290 tpd and with a strong market presence all over south India.

The bulk of the expansion has been funded by the equity raised through the IPO and term loans. The company expects to increase its bottom line drastically in the next fiscal through increased turnover, cost reduction and better market realisation. It is also tapping the export market to sell its products in the future, he said.

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