Silverton Pulp & Papers to invest INR 125 Cr. for Coated Paper production

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Read the expansion plan, Company: Silverton Pulp & Papers, Paper Quality to be Produced: Coated Paper, Grammage: 50 to 100, Paper Production: 250 Tonnes per day.

Silverton Pulp & Papers to invest INR 125 Cr. for Coated Paper production

Muzaffarnagar, July, 10, 2016: the Coated paper market is expected to witness considerable growth owing to rapidly increasing demand from advertising and packaging industries. Tapping the market’s demand Silverton Pulp and Paper has decided to come up with 250 TPD coated paper plant at Muzaffarnagar. Talking to The Pulp and Paper Times, Mr. Akshay Jain, Managing Director of Silverton Pulp and Papers said we would be the first paper mill in Northern India in Coated paper production. We are targeting to start commercial production by June or July 2017. The initial capacity of the plant will be 250 TPD manufacturing writing printing paper evaluated to coated paper. We have already brought a second hand one paper machine from Voith to be imported from Italy with finished deckle of 3750 mm and machine is designed at a speed of 1000 meters per minute. We have arranged the fund of Rs. 125 Cr. to invest in the project. Total outlay of fund will be sourced from Bank and our own in 70:30 ratios. The project has already been financed by bank.              

The coated paper offers gloss and matte texture finishes leading to rising applications in advertising materials, security papers, newspaper inserts, converted paper products, catalog, soap and magazines among others. Coating provides enhanced physical properties such as dirt, tear, and wear resistance upon paper substrates, along with extended life span. 

Mr. Jain informed that coated paper will be based on purchase pulp and waste paper both as raw material. The plant would have an entire section of the pulping street of Kadant-Lamort with DNT washer. There would be a separate process of purchase pulp also. We are planning to manufacture two types of separate paper based on purchase pulp and waste paper respectively of GSM range 50 to 100. We could make writing printing paper, copier, and newsprint. Our paper would have 94 to 95 % brightness range based on purchase pulp while waste paper base would have brightness ranging between 80 to 85%.  

Furthermore, rising pulp prices due to the diminishing number of pulp plantations are anticipated to hamper the growth of the coated paper market from 2014 to 2020. Advancements in paper recycling and coating techniques are likely to provide immense growth opportunities to the coated paper market in the next few years.    

India is importing 50% coated paper of total consumption from China and other countries. India has the free trade agreement (FTA) and preferential tariff agreement with Korea, Japan and Association of Southeast Asian Nations (ASEAN) countries one window is the import from these countries and with China, in any case, they have a huge surplus capacity available of coated paper. Ballarpur and JK Paper are the largest manufactures of the coated paper segment in India.

However, to remain competitive in the coated segment, Silverton is committed to reducing the cost of production. We are really looking forward to a reduction in electricity bill marginally by setting up 16 MW power cogeneration plant having turbine supplied by Siemens. We have installed 100 Kg pressure boiler; one of its kind after Century Paper. On combating china’s coated paper, Mr. Jain strategically points out his plan about a reduction in freight charges. To create production viability, we are planning to procure Pulp in Rs.2 to 2.5 per KG freight cost. Normally, In northern India, any material comes at Rs. 4 per kg freight cost but pulp could be loaded more due to its accommodative property thus it’s our advantage. Silverton is expected to sell all its coated paper in northern India at a price of Rs. 70 to 100 per Kg.           

According to the report, the global coated paper market was valued at US$ 36.94 Bn in 2013 and is anticipated to reach US$ 48.21 Bn by 2020, expanding at a CAGR of 3.9% between 2014 and 2020.

In picture: Mr. Sanjeev Jain (L) and Mr.Akshay Jain (R)

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