International Paper, the $25- billion paper major, which recently announced acquisition of controlling stake in the L.N. Bangur-promoted Andhra Pradesh Paper Mills Ltd, (APPM) plans to replicate in India the success it has achieved in China.

IP Asia headed by Mr Paul Brown, President of IP Asia, has taken its China business up from $300 million in 2005 to a $1.5 billion business last year. China has already overtaken the US as the largest paper consumer logging 85 million tonnes (mt) an annum against 70 mt in the US and about 10 mt in India.

“The company is awaiting nod from SEBI to launch the open offer for acquisition of additional stake in the market. We expect to secure the approval shortly and complete the process within few weeks thereafter. The entire process is likely to conclude by the third quarter. We don't see this needing to go through the competition commission,” he said.

Speaking to Business Line , Mr Paul Brown, the man behind the Rs 2000-crore deal, said “We started in a similar manner in China and have managed to grow the business significantly in the past five years. We hope to see similar momentum in India as the economy and consumption grows. Education, offices, packaging will drive this growth.”

Board rejig

“IP will restructure the board. We will have Mr Shreyas Bangur continuing on the Board. This will be announced after all the mandatory processes are completed,” he said.

APPM, which employs about 2,500 people, would continue to operate as a public company, he said.

Related Topics
comment COMMENT NOW