Chennai, Oct. 27
The Chennai-based KGS Group, which has a diversified business presence, has acquired a 60 per cent stake in Cochin Kagaz, a manufacturer of packaging and white paper.
Mr Gigi George, Managing Director, KGS, who confirmed the development, while declining to divulge the cost of acquisition, said it has acquired the stake through KGS Nelsun Paper Mill Ltd, a group company which operates a paper mill in Tiruchi.
The overall production capacity available with KGS following this acquisition is 300 tonnes a day, about one lakh tonne a year, of white paper and packaging paper.
The company had been examining options to expand, and had decided to go in for the acquisition to expedite the expansion plan, he said.
The Cochin Kagaz unit is in Karukutty, Kochi, on a 22-acre plot with two machines for packaging paper and one line for white paper. The Tiruchi unit is has over 200 acres available for further expansion, he said.
The presence in these two locations gives it reach to the consuming markets in Kerala and western parts of Tamil Nadu including Coimbatore and Tirupur.
The group, which is promoted by Mr George, and Mr K. Kumaran, the Chairman, KGS Group, and Mr P.V. Sanmugam, is present in diverse fields including real estate development and construction, infrastructure development, healthcare and engineering.
The group's flagship company KGS Developers Ltd is a premium developer in which Reliance Anil Dhirubhai Ambani Group has a 15 per cent stake. Reliance ADAG is also an equal partner in three of the township projects that KGS is planning in Chennai.
A group company, KGS Aranmula Airport Ltd is executing a greenfield, private-promoted, international airport in Pathanamthitta, Kerala.