Emami Paper to set up another ‘Multi-layer Coated Board’ Plant in Gujarat; pumping Rs. 1,500 Cr.

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Emami Paper Mills, part of the FMCG conglomerate is planning to set up 2 Lac Tonnes per anum multi-layer coated packaging board. See the detailed news.

Emami Paper to set up another ‘Multi-layer Coated Board’ Plant in Gujarat; pumping Rs. 1,500 Cr.

29 Aug 2018 | Hyderabad | The Pulp and Paper Times

Emami Paper Mills, part of the FMCG conglomerate has decided to expand further in multi-layered packaging board manufacturing in the country. After being expanded its capacity at Balasore plant in Odshia, Emami will foray heavy investment in Gujarat for manufacturing of packaging board. “The base of production of duplex and virgin board in the country is very small. The total production capacities in the Packaging board segment is close to 8 to 9,00,00 tonnes and are being manufactured only by four to five producers. The packaging board market is growing by 10 to 12 percent per annum and we need 1,00,000 tonnes extra production every year.” Mr. P.S. Patwari, Executive Director of Emami Paper Mills said exclusively to The Pulp and Paper Times.

Emami is aiming to meet the growing demand of consumer packaging board by putting a new manufacturing facility in Gujarat. “With total estimated outlay of Rs 1500 Crore, we are expected to start the 2,00,000 tonnes per annum commercial production of high end packaging board within two years time duration. We are going to perform ‘Bhoomi Pujan’ by Gujarat’s Chief Minister on 21st September and after that civil work will start in full swing. We are in the process of ordering the plant and machines.” Mr. Patwari told.

The new production facility will produce same grade of board what they are manufacturing in Balasore plant. This plant will produce coated folding box boards, solid bleached boards, cup stock board and recycled grey and black back board, which cater mostly to FMCG, pharma and hosiery sectors. Emami has 2,00,000 tpa capacity consumer packaging board of recycle grade as well as that of virgin grade.

Company’s diversification into paperboard segment is now most discussed success story in the paper industry because of the tremendous performance of its board machine, appreciated market acceptance of the company’s paperboard. Its paperboard has also a good reputation in export market and about 10%-15% of its recycle grade paperboard is exported to overseas market.

The Board machine is based on the modern Multi-Fourdrinier Technology with four forming fabrics (to produce 4-layered boards), while the main equipment is being supplied by the leading global venders. The Machine has all the latest features with four hydraulic head boxes, dilution control system for auto CD profile control and shoe press for high bulk and stiff board.

Recently, Emami has increased the price of packaging board by 200 dollars per tonnes in last couples of months. The price increase is impacted due to the sharp rise in the price of imported pulp, which has gone up 300 dollars.

The consumer packaging segment (accounting for approx. 40-45% of volumes) is also expected to grow at approx. 7% CAGR till 2020-21, driven by a rise in demand for FMCG goods, pharmaceuticals, cosmetics and apparels. The demand from the FMCG segment will remain strong due to the rising population, higher disposable income, 'and higher demand for ready-to-eat foods, while demand from pharmaceuticals will be helped by increased exports and new drug launches. Segments such as cosmetics and apparels are expected to grow at a healthy 7-8.5% CAGR, driven by rising penetration of organized retailing.

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