Apart of Andhra, Asia Pulp and Paper (APP) mulls over to Invest Rs. 11,000 Crore in Maharashtra for Paper Making

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Read the new 2nd Paper Mill Project news, Paper Mill name: Asia Pulp and Paper, Location: Maharashtra (India)

Apart of Andhra, Asia Pulp and Paper (APP) mulls over to Invest Rs. 11,000 Crore in Maharashtra for Paper Making

Mumbai | 30 April 2019 | The Pulp and Paper Times

It might be a strategic move to possibly cover the paper requirement of western, central and Northern part of India, Indonesian paper giant, Asia Pulp and Paper (APP) is seemed to have sent an investment proposal to Maharashtra Government for paper production in the State. According to Mumbai daily Newspaper DNA, Sinar Mas group led APP is contemplating to invest Rs. 11,000 crore in the State.

After having signed the MoU with Chief Minister N Chandrababu Naidu, APP will invest Rs 24,000 crore ($3.5 billion) in its pulp and paper manufacturing unit at Ravuru in Gudluru mandal of Prakasam district, Andhra Pradesh. “It is surprising to see that how a new fresh and huge investment in Maharashtra will impact Indian Pulp and Paper industry?” told by a paper manufacturer.

APP is exploring to develop a greenfield project with the acquisition of 1500 acre land around Panvel and Mangaon areas in Raigad district considering its vicinity near Jawaharlal Nehru Port and the upcoming Navi Mumbai international airport.

Maharashtra Government, in March, had also received an investment proposal in the paper and pulp segments. Chinese major Nine Dragon Paper (Holdings) will invest Rs. 12,000 crore in phases to produce and recycle paper with the first phase to be commissioned by March 2022.

However, the DNA's story doesn't mention what is the purpose of the Investment? – will it for papermaking or for other activity. The Pulp and Paper Times tried to connect Mr. Suresh Kilam, ED at APP over this investment but remained unanswered. 

“The nature of investment is still unclear, if they make paper in western India, it may bring the competition to other Indian big giants paper companies like Emami, JK Paper and N R Agarwal those are investing in Gujarat heavily. China's decision to ban the waste paper import in its country by next year may pamper APP to invest in Maharashtra also. Obviously, the transportation cost of finished paper's consignment to Trader and Dealers, situated in an integral part of India will be less as compared to Prakasam's unit (AP),” quoted by a paper business expert. 

“Asia Pulp and Paper's another Investment in India is meant a lot to Paper Industry. It gives a signal to small and medium paper manufactures to look at more business opportunities domestically and to upgrade their paper plant and quality of paper at utmost, otherwise, they will be smashed in between good quality and price difference,” Explained by the Paper Mill owners.  

Brief about Andhra Pradesh's Project

The project with a capacity of 5 million metric tonnes per annum will be the largest unit of APP at a single location. The business operations of APP are spread over 120 countries across the world. Its total production capacity is 18 million tonnes per annum. The APP unit in Prakasam district will come up in 2,471 acres of land and generate 4,000 direct and 12,000 indirect jobs. It will be completed in two phases.

News Update on 19 Aug 2019:Asia Pulp and Paper may withdraw its Investment on account of Jagan Reddy’s decisions  upsetting the business applecart

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