Kraft’s buoyancy: Ellora Paper mill turned its production again into Kraft paper

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Kraft’s buoyancy: Ellora Paper mill turned its production again into Kraft paper

Bhandara | 30th July 2020 | The Pulp and Paper Times:

The demand for paper and board (writing and printing, paperboard and newsprint) is expected to be subdued on account of the Covid-19 pandemic-led disruptions across the globe. In 2020, CRISIL expects paper and board to de-grow due to the moderation of global growth leading to lower demand from end-user industries.

In contrast, specialty paper-like high strength Kraft Paper is expected to grow driven by industrial activity as well as exports. “The corona pandemic will continue to subdue the demand of writing & printing paper at least for next 6 to 8 months, margins are on risk, expenditures are to be met through another grade of paper which is kraft paper. We have undergone some modifications in plant & machinery to achieve the high strength kraft paper production. We are likely to start the initial production of kraft by 15th August 2020,” said Mr. Sudhir Goenka, Managing Director of Ellora Paper Mills Ltd.

Situated in Maharashtra, Ellora Paper Mills produces writing and printing paper of various grades. It also manufactures News Print. “We see a promising future in lower GSM kraft paper, MNCs and corporate sector are shifting their packaging style on lighter paper with high BF, and also in the industrial segment like cement industry paper bags are in high demand. We assume our decision to convert the whole capacity into kraft paper will turn profitable for us,” Mr. Goenka said.

Ellora has a current capacity of 35 TPD of writing and printing and newsprint paper, “we have invested around INR 1 Cr. in changing wire felt, pumps, screens, and other components in order to produce 50 to 100 GSM kraft paper with 28+ BF on 2.4-meter deckle. Gradually our production will accelerate; we are expected to achieve 70 TPD productions level by the Diwali festival this year. Initially from 15th August, we will be able to manufacture 35 TPD,” Mr. Goenka stated.

“There is a weak demand in writing & printing and newsprint segment. Corona has squeezed the consumption of newsprint, the consumption of newsprint has come down at 10 percent, schools are closed, big media houses like India Today are not publishing magazine due to pandemic. White paper will remain in low demand for the coming time,” Mr. Goenka said. 

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