Financial Daily from THE HINDU group of publications
Sunday, Apr 03, 2005
Financial Daily from THE HINDU group of publications Sunday, Apr 03, 2005 |
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Corporate
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Outlook Rama Newsprint charts Rs 400-cr capacity expansion Badal Sanyal
Kolkata , April 2 ENCOURAGED by the prospects of domestic newsprint market, Rama Newsprint & Paper Ltd has firmed up a Rs 400-crore plan aimed at expanding its annual production capacity from 1,38,000 tonnes to 2,70,000 tonnes of newsprint and writing & printing paper. Currently, the company can produce 1,00,000 tonnes of newsprint. Rama Newsprint, which belongs to the city-based S.K. Bangur Group, has also chalked out a plan to export at least 25 per cent of its production from 2005-06, against the export level of about seven per cent of total production in 2004-05. During the year under review, the company exported 3,000 tonnes of newsprint and about 5,000 tonnes of writing & printing paper to various countries, including Africa, West Asia and Sri Lanka. The quest to tap these markets in a big way has led to the decision to expand capacity to produce international quality newsprint which will cater to the needs of upper-end customers. Confirming the development, Mr Virendra Bangur, a company director, told Business Line here that the company proposed to expand the mill in Gujarat by setting up an additional 400 tonne-per-day paper machine, a delinking plant and a boiler. The new paper machine will have a "swinging facility" which means that production can be switched to writing & printing paper in conformity with market demand. Mr Bangur said the project would be financed by term loans and promoters' fundings. The details are being worked out. He said Rama Newsprint produced about 1,00,000 tonnes of newsprint and 18,000 tonnes of writing & printing paper in the year ended March 31, 2005. The company expects to post sales turnover of Rs 300 crore, which would be 20 per cent more than that of last year. Since the company was taken over by the S.K. Bangur Group in 2003, utilisation of installed capacity had improved from 65 per cent to 85 per cent. Efforts were being made to run the plant at 100 per cent utilisation on a sustained basis. The company sourced about 33 per cent of its total raw material requirement from indigenous sources, with the remaining 67 per cent coming from the US, Canada, European countries and West Asia.
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