Ballarpur Industries to invest in capacity expansion

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New Delhi, Oct 20: Ballarpur Industries Ltd (BILT), country's largest paper manufacturer, will infuse Rs 900 crore into expansion of its Bhigwan unit in Pune that will start commercial production from November 2008.

The expansion, expected to be completed by October next year, will increase the mill's capacity of the coated wood-free (CWF) paper by 1,90,000 tonnes per annum (tpa), taking the total capacity to 3,15,000 tpa from the current 1,25,000 tpa.

''The proposed expansion of Bhigwan unit is in line with our strategy of enhancing production capacity to 3,15, 000 tonnes per annum,'' company's Managing Director R R Vederah said.

He said the total project cost will be funded by fresh debt of Rs 700 crore and internal accruals to the tune of Rs 200 crore.

At present, BILT is having a 50 per cent market share of the coated wood-free paper segment and a 30 per cent market share of high-end uncoated wood-free paper segment.

Bhigwan unit exports 20 to 25 per cent of its production to various countries like the US, Australia, Canada, Europe, the West Asia.

The commencement of the expansion programme was inaugurated by Mr Sharad Pawar, Minister for Agriculture, Consumer Affairs, Food and Public Distribution.


UNI

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