Targets 90,000 tonnes in 2007-08

Badal Sanyal

Looking ahead


As the

company continues to use recycled waste paper as raw material, a new de-inking plant is being imported from Andritz of Finland, while a second-hand paper machine is being imported from another European country.

Kolkata, Sept. 15

The Nagpur-based Malu Paper Mills Ltd (MPML) is all set to establish itself as one of the major quality newsprint manufacturers from the middle of 2007, when additional production is expected from the new paper machine being installed under the ongoing expansion plan.

The company expects to produce 90,000 tonnes of newsprint in 2007-08 against current capacity of a maximum of 19,800 tonnes.

Capacity addition will coincide with the completion of its Rs 70-crore ongoing expansion plan.

A senior executive said over telephone that the new capacity was being created with "swinging" facility. It would help shift production from newsprint to different varieties of writing and printing paper. This means that the company will have manoeuvrability over production vis-à-vis market trends.

As the company continues to use recycled waste paper as raw material, a new de-inking plant is being imported from Andritz of Finland, while a second-hand paper machine is being imported from another European country.

The expansion plan also includes a 6-MW capacity captive thermal power plant at a cost of Rs 7.5 crore.

The executive said that the total cost of the project had already appraised by lending bankers and a term loan of about Rs 50 crore has already been sanctioned. The remaining Rs 20 crore was raised a few months ago through public issue.

The executive said that the imported paper machine would have a capacity for 150 tonnes of premium quality newsprint per day. The company currently produces from two operating mills located in Nagpur.

One of the mills is dedicated to manufacturing craft paper. The production of such paper amounted to 8,200 tonnes in 2005-06.

The executive said that MPML also has plans to expand capacity further. A new expansion plan would be taken up after consolidation of the gains from the ongoing expansion.

The company recorded net profit of Rs 4.4 crore on total sales turnover of Rs 52 crore in 2005-06, while in the first quarter of the current fiscal it earned profit of about Rs 92 lakh.

(This article was published in the Business Line print edition dated September 16, 2006)
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