JK Paper eyes new high growth segments

JK Paper has targeted three high growth segments in paper in which it will consolidate its position.

Mr Harsh Pati Singhania, Managing Director, JK Paper, said that copier, coated paper and packaging boards are “showing more than average growth.” The company will expand in these segments that hold long term potential in the domestic and export markets.

Copier paper and paper boards are growing at about 14-15 per cent and coated paper at 18 per cent against the average industry growth of about 9 per cent.

Production

With a total annual production capacity of about 2.40 lakh tonnes a year in two mills located in Orissa and Gujarat, JK Paper has announced plans to add 1.50 lakh tonnes of copier paper production capacity in Orissa and strengthen its raw material output with 200,000 tonnes pulp mill at a cost of Rs 1,600 crore.

“Notice that the pulp capacity expansion is more than that of paper,” said Mr Singhania. This is to give it raw material security, a major concern for most mills in the coming years.

JK Paper will soon achieve financial closure, he said, while declining to give details.

But international and foreign lenders have evinced keen interest.

JK Paper entered paper board production three years back with a capacity of 60,000 tonnes a year.

By March its capacity will be up 30 per cent to 80,000 tonnes, Mr Singhania said. Last year, it had added about 10,000 tonnes.

With the total domestic market estimated at about 4 lakh tonnes for copier paper, the company has devoted nearly 90 per cent of its printing and writing paper production capacity of about 1.75 lakh tonnes to branded copier papers. The balance is in specialty papers and it has completely exited the maplitho paper to focus on value-added end, he said.

Domestic market

JK Paper is consolidating its hold in this competitive segment through brand-building and offering quality through technology.

As a brand, it has the widest range with products at various price points.

On technology, it is at the leading edge through a tie-up with the printer manufacturer HP for its ColorLok technology, which assures print quality and optimal performance for printers.

This technology is exclusive to JK Paper in India, available to only about a dozen companies globally.