Ballarpur Ind to infuse Rs 1,200cr for paper expansion by March '09

New Delhi, Apr 12 (UNI) Country's top paper maker Ballarpur Industries Ltd (BILT) will increase its total capacity up to one million tonnes paper per annum by infusing Rs 1,200 crore by March '09 into Bhigwan and Ballarpur mills.

''We will pump Rs 800 crore into Bhigwan mill for 200,000 tonnes paper per annum capacity addition, while the rest will be for the Ballarpur mill expansion of 1,00,000 tonnes paper,'' BILT Group Finance Director B Hariharan told reporters while announcing the company's financial results here.

He said that the Bhigwan expansion will be completed by October, 2008 and the Ballarpur by March, 2009.

At present, BILT has six mills -- Orissa (Unit Sewa), Haryana (Unit Shreegopal) and Maharashtra (Unit Ballarpur, Bhigwan and Ashti) and Andhra Pradesh (Unit Kamlapuram) -- with a production capacity of 7,00,000 tonnes paper per annum.

On being asked where the fund would come from, Mr Hariharan said, ''Funds will be raised through internal accruals and long-term debt.'' In its financial year (July-June), BILT has posted 22 per cent growth in its net profit at Rs 64.10 crore compared with Rs 52.50 crore during the same period last fiscal.

While the company's total revenue (paper and paper products revenue) registered 15.45 per cent hike at Rs 603 crore for Q3FY07, as against Rs 522.30 crore over the same period last year.

For the last nine months, BILT has shown 28 per cent growth in net profit at Rs 184.50 crore compared with Rs 144.10 crore during the same period last year. While its total revenue rose up to Rs 1,782.90 crore in the first nine months, as against Rs 1,504.30 crore over the same period last year.

BILT is the country's largest manufacturer of writing and printing (W&P) paper with 21 per cent of the W&P market and about 53 per cent of the coated paper market.

Last month, the company has acquired Malaysia's largest integrated Pulp and Paper mill, Sabah Forest Industries, for Rs 26.10 crore.

UNI