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The ailing The Sirpur Paper Mills Limited is on a revival mode with trial production commencing from one of its machines after it was taken over by JK Paper through a Corporate Insolvency Resolution Process in 2018.
The mill, located in erstwhile Adilabad district (Komaram Bheem Asifabad) at Kagaznagar, has started the trial production of paper from its seventh machine on Thursday in the presence of PK Suri, Director, JK Paper.
The focus now is on stabilisation of the trial run wherein it is likely to see production of about 70 tonnes of paper per day. The paper production form the mill was suspended in September 2014.
Local political leaders, and Sirpur MLA Koneru Konappa had played an active role in ensuring its revival as hundreds of jobs and families were dependant on the paper mill for their livelihood.
Output to be scaled up
According to local sources, the pulp needed for production of the paper is now being procured from the JK Paper project located at Rayagada in Odisha.
In a phased manner, the production will be ramped up and the full production is likely within 3-4 months.
The sick mill has eight machines and they will be progressively commissioned after upgradation and overhaul.
The background
The National Company Law Tribunal, Hyderabad, approved the revival plan put forth by JK Paper Limited, paving way for its revival.
The paper mill was set up on a 110-acre site by Nizam Mir Osman Khan in 1936. The paper and pulp manufacturing unit had last reported revenues of ₹430.59 crore.
JK Paper had closed the deal for ₹371 crore, according to the resolution plan. This includes cash payment of ₹166 crore, issue of securities consisting of equity shares of ₹43 crore and preference shares of ₹162 crore.
The JK Paper management saw this as a strategic opportunity to expand its existing line of business.
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