The South India Paper Mill to Invest Rs.163 Cr. in Three Phase Expansion

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Find the expansion news, Paper Mill: The South India Paper Mill Ltd., Paper Quality to be produced :Corrugation Paper, TPD: 350

The South India Paper Mill to Invest Rs.163 Cr. in Three Phase Expansion

Bangalore | 03 May 2018 | The Pulp and Paper Times

In line with rising demand, domestic paper production is expected to increase to 39.7 million tonne (MT) in 2026-27 from 16.7 MT in 2016-17, as per Indian Paper Manufacturer Association (IPMA). In the last five years, the Indian paper sector has invested about Rs 20,000 crore on capacity enhancement, technology upgrade and acquisitions. “Corrugated paper market is very competitive but quality of paper will always be on top of wish list, the growth of Market is a separate phenomenon, in my opinion, the plenty of market is dumped by the bad quality paper and when Good quality paper comes into the market, we should assume the growth of the market in real manner. There are lot of paper manufacturers but corrugators are not fully happy with the quality they are producing. Demand is not growing more than 8 to 9 per cent per year. Adding capacity's production should match the standard of packaging. The market for corrugated packaging is characterized by an extreme fragmentation of capacities. The level of investment, processing technology, product quality and productivity are also very low by international standards.” explained by Mr. Manish Patel, Managing Director of The South India Paper Mill Ltd. (SIPM) to The Pulp and Paper Times.

“Yes we are expanding in three phases investing Rs. 163 Cr. In first phase, we have invested Rs. 48 Cr. in the installation of 11 MW captive power plant supplying power to existing mill and we are also selling excess power of 4.5 MW to the grid. Second one is putting up a new 'Effluent Treatment Plant' (ETP) which has almost commissioned. The ETP has been installed by Paques Environmental with the expenses of Rs. 10.5 Cr. We are using this ETP for existing plant and it has sufficient capacity to absorb the effluent from new plant also.” Mr. Patel said.

“In third and prominent phase, we are coming up with a highly automatic 350 tonnes-per-day (TPD) plant aiming to produce Fluting Media paper, Test Liner and White Test Liner. We are expected to start the commercial operation of plant by Sept-Oct. 2019. The total investment for the third phase will be Rs.105 crore to be arranged from bank and our own resources. Now we are just getting all the clearance and finalization of vendors. Our Machine deckle will be 4 meter and speed of machine is designed around 300 to 600 m/min. SIPM will produce 80 to 280 GSM range paper.” Mr Patel further said.

Plant Expansion Cost: 163 Cr. | Capacity Enhancement: 350 TPD | New Power Generation 11 MW | ET Plant Setup cost : 10.5 Cr.| Employment Generation: +100

SIPM is expanding its capacity in the existing paper mill premises which is situated at 150 km from Bangalore near Nanjangud in Karnataka state. The current capacity is about 200 MT/day. The manufacturing process is based on the recycling of scrap paper both imported and domestic. Some purchased pulp is also used. Paper is manufactured on three paper machines of capacity 45TPD (1.83m wide), 50 TPD (2.55m wide) and 115 TPD (2.88m wide). The additional new capacity will be generating 100 new employments in the region.

“We have not yet finalised the vendor of plant and machinery but we are committed to produce good quality paper for corrugators using modern techniques right from DCS control system to pulper. Since, we have also in-house conversion facilities consuming 50 percent our own production understanding the need of good quality paper. Our new plant will be efficient on energy and water consumption.” Mr. Manish said.

“Converting industry is modernising very rapidly, we cannot be supplying them bad quality paper material containing high wastage and lot of rejection. In the Kraft market we are making this type of investment to reach those quality standards and sustain for long time. If explain the quality of paper required by a corrugators is suitable to run on high speed machine so that boxes can be designed with less paper. Boxes should be lighter and much stronger. The idea is light weight and high strength paper.” said by Mr. Patel.

The term test liner appears to be used in the Pacific Rim and refers to papers of different bursting strengths. Because some grades of test liner have lower burst factors containing high amounts of recycled fibers, the lower grades of test liner have come to be associated with recycled fibers.

On question of Asia Pulp and Paper's investment in India...

Replying the question of APP's investment in India and its impact on paper market, Mr. Patel said “when they start making paper in India two things have to happen, if you study the market there lots of existing players, there are two things geography and economy, and when start producing thousands of tonnes paper, are you bringing in cost advantages of some type? Or you can afford to give away some margin to reach bigger market. See if you are a converter situated at Delhi, you will source the material from Delhi or Muzaffarnagar (U.P.) not from Andhra Pradesh, because the internal fright of transportation will eat out your margin unless you have some magic route. We have to see how they (APP) will address Indian market. You know if supplier and buyer geographically too far to each other, there will be much difference in price due to the fright, say about up to Rs. 2000 per ton.

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