Paper - News and Analysis

Seshasayee Paper plans expansion with an investment of Rs. 2500 million

Seshasayee Paper and Board is planning to invest Rs. 2500 million to increase its production capacity to 80,000 -90,000 tonnes per day to take its total production capacity to 2 lakh tonnes per day. It has adequate raw material requirement and a captive power plant of 37 MW which will meet its requirement. It may be noted, the company had proposed this expansion programme last year and was put on hold is revived now

Sree Sakthi Paper Mills plans expansion

Sree Sakthi Paper Mills, the Kochi based paper mill company is investing Rs. 180 million to expand its production capacity to 85,000 tpa. The company which produces Kraft paper for packaging and duplex board has two production units one at Chalakkudy and another in Edyar in Kerala. It has invested high speed pressure formers to improve the quality of duplex board. The expansion programme is likely to be completed by end of April 2010.

Larger players may shift to use waste paper for raw material

Indian paper industry is struggling to get raw materials at effective price as there is no government policy to favour paper industry for forestation and also at importing pulp. Though quality of final product remained a concern till few years had been sorted out with advanced technology. Among the larger mills, TN Newsprint and Century Pulp and Paper already have recycled fibre. Internationally, recycled paper forms 30% of the component as raw materials.

Paper Industry to face some tough year

Indian Paper industry is to face a mismatch in demand-supply as large and small players are adding capacities. Around 4 lakh tonnes of capacity is being added this year where the demand may not be there, though the industry is growing at 5-6%. Importers are also wary in such a situation as larger players are lobbying for safeguard duty. Looking at export opportunities as prices have corrected largely in Europe and US. Locally, the prices have dropped considerably from Rs.50,000 /tonne to Rs.38000 /tonne where large mills could barely break even.