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Emami Paper Mills (EPML), the paper and packaging board arm of the Emami Group, will set up a ₹2,000-crore manufacturing plant at Bharuch in Gujarat.
The foundation stone for the 4.5-lakh tonnes per annum (tpa) greenfield plant, which will produce multi-layer coated packaging boards, was laid by Gujarat Chief Minister Vijay Rupani.
Packaging boards find use in the FMCG sector, in food packing, medicines and pharma, playing cards, visiting cards, and a variety of other industries.
Emami Group Director Aditya V Agarwal said the plant would come up in two phases: each will installa capacity on 2.25 lakh (tpa). The first phase is expected to be operational in 2020 estimated to cost ₹1,000 crore. Funds will be raised via a mix of equity and debt.
“The plant will help leverage our activities in West India and is expected to boost revenues by ₹1,000 crore. Right now we are catering to West Indian markets from our existing facility at Balasore and the costs are obviously higher. The Bharuch plant will also give us cost advantage,” he said.
In 2017-18, the company clocked a turnover of ₹1,366 crore and a profit after tax of ₹16 crore.
EMPL’s current packaging board manufacturing facility is located at Balasore, Odisha. The plant has a capacity of 1.8 lakh tpa. Emami also exports packaging boards to countries such as Bangladesh, Vietnam, Myanmar and the UAE.
The company also manufactures newsprint and writing paper at its Balasore and Kolkata facilities. The combined capacity in this segment is 1.55 lakh tpa.
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