Ballarpur Ind to infuse 1,200cr for paper expansion

New Delhi, Apr 15: 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 said 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.'' BILT is the country's largest manufacturer of writing and printing (W&P) paper with 21 per cent of &xD;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