Emami Paper Mills is planning to set up the greenfield unit with a total investment of around Rs 2,000 crore in two phases.
Emami Paper Mills (EPML), a part of the diversified Emami Group, is planning to set up a greenfield multi-layer packaging board plant in Gujarat with a total investment of around Rs 2,000 crore in two phases.
The foundation stone of the Kolkata-based company’s new manufacturing plant at Bharuch was formally laid by Gujarat chief minister Vijaybhai Rupani on Friday. The project is the maiden venture of EPML in the state. Currently, the company has plants in Kolkata and Odisha’s Balasore.
The company, which is the largest newsprint manufacturer of India, had diversified into manufacturing packaging board by setting up a state-of-the-art plant at Balasore three years ago.
Emami Group director Aditya V Agarwal said the new project would play a key role in establishing EPML as one of the largest packaging board manufacturers in the country.
In the first phase of the greenfield project, spread over a land area of around 103 acres in Saykha Industrial Area in Bharuch district, EPML will set up the manufacturing facility with a total capacity of 2.25 lakh tonne per annum (TPA) and 18 MW captive power plant with an investment of around Rs 1,000 crore, according to a release. In the second phase of the project, the company is planning to double the manufacturing facility’s capacity with an equal additional investment towards installation of a new machine.
Agarwal, in the release, said the company was hopeful of completing the first phase of the project by early 2020 and commencing commercial production in the first half of the same year. With the setting up of the first phase of this project, the company would generate an additional business turnover of around `1,000 crore, he added.
In FY18, the company had clocked a turnover of `1,366 crore and its Ebitda stood at `104 crore. Currently, the company’s total production capacity stands at 3.35 lakh TPA, which comprise 1.55 lakh TPA of newsprint and writing-printing paper, and 1.80 lakh TPA of paperboard.
Emami Paper Mills CEO PS Patwari said, “With the growth of the consumer market in India, there has been a spurt of demand for high quality multi-layer coated paper board in the country. With the completion of the first phase of the Bharuch plant, we expect to cater to this increasing demand as our total production capacity will go up to 5.60 lakh TPA.”
Talking to FE, Patwari said the company was in the high-end segment of packaging board manufacturing and in that segment its current market share stood at 15% in the country, and after operationalisation of the new plant the market share would ‘definitely’ increase.
Asked about the reasons behind setting u the new plant in Gujarat, he said, “The larger markets for packaging board are in west and north India. And raw material availability is also better in this part of the country. So, the main reasons are providing better services to our customers and better logistics.”