Hindustan Paper embarks on huge expansion and diversification

Kolkata, Apr 18 (UNI) Hindustan Paper Corporation Limited, India's largest newsprint manufacturer, was taking all endeavour to meet the annual production target of 800,000 ton and sales turnover of Rs 3,000 crore by 2012-13 through huge technological upgradation.

Announcing the financial result of the country's largest public sector unit in the paper industry for 2006-07, HPC Chairman-cum- Managing Director Raji Philip told newsmen that the company-operated three large integrated paper mills - the Nagaon Paper Mills and Cachar Paper Mills in Asom and the Hindustan Newsprint Limited(HNL) in Kerala - had posted an all time high pre-tax profit of Rs 150 crore during the last fiscal on an annualised sales turnover of Rs 1089 crore.

" Keeping this in mind we have targetted to increase the sales turnover to at least Rs 1200 crore during the current fiscal (2007-08) when the production level would also be hiked to 3,33,000 ton from 3,20,000 ton during the last financial year, Mr Philip said.

Referring to his modernisation and technical upgradation programme, the HPL CMD informed that with an outlay of Rs 600 crore, to be equally raised through internal accrual and debt, they had planned to increase the annual production capacity by 30 per cent every year till 2008-09.

" Moreover, we have also received the Union Ministry's green signal to go for further expansion and diversification of HPL with an additional outlay of Rs 3200 crore, " Mr Philip said.

As part of the expansion programme they would set up a totally integrated greefield unit in Uttar Pradesh within the next three years at a cost of Rs 2600 crore besides diversifying into the production of higher value added paper, he stated.

He, however, refused to disclose further on the new project because of the ongoing elections in Uttar Pradesh and the Election Commission's restrictions about the announcement of any new project till the programmes were over.

Asked about his plan for export, which was very encouraging till last year, Mr Philip said during 2006-07 the HPL had earned more than Rs 100 crore through foreign exchange by exporting more than 20,000 ton of paper to Bangladesh and somer other Asian countries.

" But from this year we are planning to widen out export clientel base to a number of South Asian and Middle eastern countries with higher volume of products and hope to earn more, " the HPL CMD emphasised.

On whether the HPL Board was considering to dilute its present stake of 100 per cent government ownership by participating in the capital market, Mr Philip replied in the negative.

But regarding the possibility of the HPL'going for any merger or acquisition of new companies, he said though there was no definite plan he was not averse to the idea.

Incidentally, the HPL in the wake of its successful financial results had paid a maiden dividend of 15.20 crore to the government during last year.

The company was also the receipient of Mou Execellence award from the Union government to become one of the top ten PSUs in the country, Mr Philip informed.

UNI