JK Paper Ltd is all set to commission its ₹2,000-crore integrated expansion of paper packaging project in Gujarat during the current quarter. The plant will increase the capacity of packaging board by 1,70,000 tonnes per annum and 1.6 lakh pulp unit and take its total production capacity to close to 7.8 lakh tonnes per annum.

“The new manufacturing plant located at Songadh near Surat was initially programmed to be commissioned by March-April 2021. It has been delayed by few months due to disruption caused during the Covid pandemic wave, where workers and some experts were away. We will begin trials of the plant in July-September quarter (second of this financial year),” AS Mehta, President and Executive Director of JK Paper, told Business Line .

“This is a virgin paper packaging plant and will have the capability to add about ₹1,000 crore in revenues for the company in a full year of operation. The plant includes a 1.7 lakh tpa packaging material and 1.6 lakh tpa of pulp making capacity apart from boilers and related infrastructure,” he said.

“While JK Paper now has a capacity of about 4.5 lakh tonnes per annum, this will take the total installed capacity to about 7.8 lakh tpa. Through internal expansion, this capacity could go up to 8 lakh tpa, making us a leading paper company in the country,” he explained.

“This capacity augmentation is aimed at significantly expanding paper production and to take advantage of the growth momentum the country’s paper sector that is likely to come up over next few years. We will also significantly boost export business due to immense potential,” Mehta said.

Business recovery

On the paper sector, he said “North and Western regions have recovered fast and businesses have got into the grove and we expect to see South and East getting back to normalcy soon. And once schools, colleges and all offices get back to normalcy, we will have good times for the paper sector.”

“While the second quarter of this fiscal will see volumes coming back, the third quarter will see a bounce back to normalcy. We are confident of achieving double digit growth in years to come and the fresh capacity would enable us to tap new area and markets.”

“JK Paper plants are functioning at high capacity and the capacity addition augurs well for the company for both the domestic market and for further stepping up our exports,” he said.

The next fiscal should help consolidate it’s market position while also driving margin improvement due to higher pulp integration for its plant in Gujarat.

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