Amaravathi Sri Venkatesa Paper Mills (ASVPM), one of the largest paper mills based on recycled paper, is diversifying into packaging paper.

According to Mr Ravindran Harshavardhan, Executive Director, Sri Venkatesa Group, based in Udumalpet, the new line will go on-stream at one of its existing units by April-end. It will have a capacity to produce about 150 tonnes a day of liner and fluting kraft paper. The Rs 20-crore unit will produce about 80-180 GSM (grammes per square metre) quality kraft paper with a burst factor ranging between 16 and 28, which gives it capability to cater to a comprehensive range of packaging paper requirements.

Duplex board line

Also in the pipeline is a further expansion in the packaging paper, with the group set to add a duplex board line by October. This will be a coated packaging board line, he said.

The expansion is aimed at taking advantage of the growing demand for packaging paper, in tandem with the growth in demand for FMCG goods and other consumer products, Mr Harshavardhan said.

The packaging kraft line will add about Rs 130 crore to the top-line of the present Rs 330 crore business.

The group, which has other expansion plans in the pipeline in printing and writing paper in the coming year, is among the largest manufacturers of paper in the domestic market.

It has a total capacity of about 550 tonnes a day (about 1.80 lakh tonnes a year) including the proposed kraft paper capacity, and its existing line of tissue paper, newsprint and printing and writing paper.

The production is entirely based on waste paper as a raw material which is sourced from the domestic and international markets.

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