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HPCL targets to become Rs 3,000 crore PSU by 2011

By Staff
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Kolkata, Apr 19 (UNI) Hindustan Paper Corporation Limited (HPCL), which has recorded sales turnover of Rs 1020 crores and profit before tax of Rs 105 crores in 2005-06, is aiming to become a Rs 3,000 crore company by 2011 with an annual production capacity of 8,00,000 tonnes.

Briefing newsmen here today about the financial results and future plans of the HPCL group, its Chairman and Managing Director Raji Philip said in order to reach the desired target on time the public sector paper manufacturer had decided to set up a 300,000 tonne capacity greenfield project in Central Uttar Pradesh within the next six years with an estimated investment of Rs 2500 crores.

Incidentally, the HPCL group having three units-the Cachar Paper Mill(CPM) and Naogaon Paper Mill(NPM) in Assam and the Hindustan Newsprint Limited(HNL) in Kerala-has a present total production capacity of 3.20 lakh tonnes per annum and enjoys about 25 per cent of all India market share in terms of both newsprint and the general paper consumption.

Further elaborating his expansion programme with a view to becoming the largest player among the Indian paper manufacturers by next decade, Mr Philip said the exact site and other details for setting up the greenfield project for the manufacture of pulp based paper was yet to be finalised.

"A number of places had already been shortlisted though no final decision was taken by the Centre as yet," Mr Philip said and informed that the majority of the funds would come from internal acruals, while the rest would be arranged through bank loans and other institutional credits.

Asked whether HPCL was also looking for an IPO to raise a portion of funds required for the total expansion programme at a cost of over Rs 3600 crores in next four to five years, Mr Philip replied in the negative. "At present we are not considering the IPO option because we are confident of raising the necessary funds from our own resources and through bank credits," he said.

The HPCL CMD said in order to meet the scarcity of raw materials and reduce the import burden the company had also decided to set up a state-of-the-art tissue culture laboratory based on micro propagation technology in Assam at a cost of about Rs 200 crores.

"We are also planning to revive the closed Nagaland Pulp and Paper Mills with fresh capital infusion of Rs 500 crores by this year end," Mr Philip informed and hinted that they might join hands with some government agencies so that the supply of raw materials in the form of bamboo could be ensured. A Special Purpose Vehicle (SPV) was also planned to be established for smooth running of the closed unit after reopening, he said but refused to elaborate further.

Asked about his immediate plan to increase the production capcity as well as sales turnover of all the three existing plants, he said following incresed demand for HPCL finished products all the three plants had improved their capacity utilisation by 110 per cent.

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