Financial Daily from THE HINDU group of publications
Tuesday, Mar 28, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - New Projects


Whitefield Paper to set up Rs 1,200-cr plant in AP

Our Bureau

Project to seek special economic zone status


MR T. SRINIVASA RAO (right), Chairman of Whitefield Paper Mills Ltd, exchanging files after signing an MoU with the Andhra Pradesh Government in the presence of the Chief Minister, Dr Y.S. Rajasekhara Reddy, in Hyderabad on Monday. — Mohammed Yousuf

Hyderabad , March 27

Whitefield Papers Mills Ltd, on Monday announced its move to set up a two-lakh-tonne capacity speciality paper Greenfield mill near Kovvur in Andhra Pradesh with an investment of Rs 1,200 crore.

The company management and the State Government signed a memorandum of understanding (MoU) in the presence of the Chief Minister, Dr Y.S. Rajasekhara Reddy, who assured all help for the paper plant.

The Chairman of Whitefield Papers, Mr T. Srinivasa Rao, told Business Line that the project would seek a special economic zone status since about 60 per cent of the total capacity would be exported and the rest sold in the domestic market.

Raw material

"We have tied up with the Elof Hansson group for long-term supply of wood pulp, which forms the main raw material for paper plant. This arrangement with the Swedish company would also extend to marketing of the products, through a buyback arrangement," he explained.

On the finances, Mr Rao said, "While the equity component would be Rs 480 crore, the promoters would pump in about Rs 280 crore, while it will have about Rs 240 crore in debt, the company could possibly raise about Rs 200 crore from the market later."

Mr Rao said that all necessary clearances would be procured by December and the financial closure achieved by January 2007 and trail production is likely by November 2008, followed by commercial production by December 2008. The Chief Minister said that the Government had allotted about 250 acres of land at Bayyavaram village near Kovvur in West Godavari, and the site is ideally located since it can procure water from Godavari river, and take advantage of the gas pipeline and Kakinada port along with highway and road connectivity. Within three months, the land alienation would be completed.

More Stories on : New Projects | Paper | rd & Newsprint

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Maruti launches two driving schools in Kerala


APPM commissions boiler
Murugappa sells TIAM House
Gangotri Textiles interim dividend
`Large taxpayer units from July'
Anil narrows the gap on market cap with Mukesh
SAIF Partners buys 6.66% in Jindal Poly Films
TVSE to acquire Sravanaa Properties
ITC Foods plans own facility to make biscuits
Whitefield Paper to set up Rs 1,200-cr plant in AP
Liberty Shoes to double capacity
RBI eases overseas investment norms
Ranbaxy to acquire GSK unit in Italy
Shell-HPCL deal on Hazira LNG drags on
Gitanjali JV with Sanghavi Exports
Scottish Biomedical eyeing collaborations with Indian cos
Expect debt to go down Rs 1,000 cr: McDowell
Tupperware India plans to enter beauty, home care
Dunlop pact formalised
High Energy Batteries eyes export markets
`GM to roll out `mini-car' soon'
Opto Circuits bid to strengthen market share



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line