Emami Paper bets big on paperboard segment with eye on export markets

By: | Updated: December 3, 2015 11:30 AM

Emami Paper Mills, a part of the diversified Emami Group, is planning to tap export markets such as West Asia, South Africa and South America for its high-end products in paperboard segment.

emami paper millEmami Paper Mills, a part of the diversified Emami Group, is planning to tap export markets such as West Asia, South Africa and South America for its high-end products in paperboard segment.

Emami Paper Mills, a part of the diversified Emami Group, is planning to tap export markets such as West Asia, South Africa and South America for its high-end products in paperboard segment.

Further, the company, which is planning to invest around R1,000 crore to double its paperboard manufacturing capacity in the next three years, is aiming to capture a sizable pie in the fast-growing domestic paperboard market.

“We will be eyeing to tap export markets for our paperboard products. The main target markets are Middle East, Southeast Asia, South Africa and South America,” Emami Paper executive director PS Patwari told FE.

Buoyed by good growth potential of the paperboard industry, the company, which is the largest manufacturer of newsprint in India, has recently diversified into paperboard manufacturing by setting up a multi-layered coated paperboard plants with an annual capacity of 1.32 lakh tonnes at its Balasore unit in Odisha, pumping in R1,000 crore.

The plant, commissioned in April this year, will start commercial production of high-end paperboard from the month of December to cater to the industries such as FMCG, pharma, garment and hosiery for packaging needs.

Domestic high-end paperboard industry is currently estimated at 7 lakh tonnes per annum which is growing at around 15% per annum.

“We will augment the capacity of paperboard plant to 2.5 lakh tonnes with an investment of R1,000 crore in the next three years,” Patwari said.

The firm was aiming to garner around 20% share in India’s high-end paperboard market, he added. In this segment, the company will compete with ITC, JK Paper and Century Pulp and Paper (CPP), among others.

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