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Satia Industries interested to acquire Shree Gopal Unit & Rayon Grade Pulp businesses of BILT

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Satia Industries interested to acquire Shree Gopal Unit & Rayon Grade Pulp businesses of BILT

Sri Muktsar Sahib | 22nd December 2020 | The Pulp and Paper Times:

Integrated wood and agro-based printing and writing paper manufacturer, Satia Industries has shown its interest in bidding of standalone entity of Ballarpur Industries Limited (BILT). Satia Industries which is in expansion mode is eyeing to bid BILT’s Shree Gopal Unit & Rayon Grade Pulp businesses.

“We are interested in the acquisition of Bilt’s Shree Gopal unit which is situated in Haryana and Rayon Grade pulp business at Telangana. We are in the process of appointing PricewaterhouseCooper private limited (PWC) as advisor to assist the Company for acquisition,” Mr. R.K. Bhandari, Joint Managing Director at Satia Industries Ltd. exclusively said to The Pulp and Paper Times.

Shree Gopal unit at Haryana focuses on specialized product categories such as water marked bond paper, ledger paper, cartridge paper, envelope paper, super printing paper, matrix multipurpose paper, and food packaging products (such as cup stock and paper straw).

Rayon Grade Pulp business operates out of the facility at Kamalapuram, in the district of Warangal in Telangana. Historically, this primarily produced rayon grade pulp for the manufacture of viscose staple fibre (VSF) and viscose staple yarn (VSY).  

Satia industries has notified BSE and NSE that it is seeking to apprise and seek permission to bid for the acquisition of Ballarpur Industries Ltd. (BILT) and to seek permission for the appointment of Price waterhouse Coopers Pvt. Ltd. (PWC) as advisors to assist it for acquiring Ballarpur Industries Ltd.

“It is very early to ascertain the value of both the business, we will be in the situation to bid the assets only after getting the due diligence report from PWC,” Mr. Chirag Satia, ED, Satia Industries said.

The due diligence report should provide the desired level of comfort about the potential investment and also the inherent risks involved. Mr. Chirag further said that “PWC will check all the aspects related to investment like legal, merger and acquisition aspects on behalf of Satia Industries”

Mr. Bhandari says that we received the clubbed offer to bid for both the business and now we have got data access. PWC will go through desired assets and furnish its report to us, we need to place our bid by 11 January 2021. 


Unit: Kamalapuram

The India-based pulp business operates out of the facility at Kamalapuram, in the district of Warangal in Telangana. Historically, this primarily produced rayon grade pulp for manufacture of viscose staple fibre (VSF) and viscose staple yarn (VSY).  Over the last five years, this market has been under severe pressure — which made the operation of this unit unviable. Consequently, the mill has been temporarily shut down since 2014. A representation was made to the Government of Telangana for granting subsidies on inputs and power to enable manufacturing activities to be restarted.

This has been considered favourably by the Government of Telangana. The Company is currently working on a proposal to convert this mill to manufacture paper grade pulp and with active support from the local government; a plan is in the process of being finalised to revive this business with some investments from BILT.

The Kamalapuram pulp mill has been shut since FY2014. There have been several efforts to revive this entity, including the introduction of an outside investor. The Government of Telangana has been supportive in revival efforts and agreed to provide INR 45 crore subsidy every year for a period of seven years.

About Unit: Shree Gopal

Paper production increased by 45.5% from 46,990 MT in FY2018 to 68,372 MT in FY2019. The Unit undertook new product development and quality improvement initiatives that resulted in an increased customer base, and enhanced servicing and satisfaction of existing customers. Some of these initiatives include:

a) Initiatives to improve paper quality along with cost reduction:

• Upgraded REB 100 sheets packing.

• Introducing Zip Lock packing in place of mono carton.

• Upgraded reel packing from HDPE to stretch LDPE packing.

• Installed LDPE shrink wrap bundling machine at PM-1, 2 and 4, and stopped

HDPE bundle packing.

• Replacement of Soap Stone with GCC filler, which improved paper quality in terms of brightness and opacity aspects.

b) To enrich the product mix, Shree Gopal has developed the following grades of paper:

• Cup stock paper 140-180 gsm at PM-5.

• Straw paper 60-120 gsm at PM-5.

• TA Maplitho NSD HB at PM-

Shree Gopal: Environment Management and Resource Conservation

At Shree Gopal, 'treated effluent' and 'boiler stacks emissions' complied with the norms laid down by Haryana State Pollution Control Board (HSPCB) as well as the Ganga River Basin Water Recycling and Pollution Prevention norms. Some of the major energy-saving initiatives undertaken were:

• Specialty chemicals of M/s Solenis introduced in the secondary clarifier, which resulted in improved effluent clarity.

• Reduced coal consumption: The Boiler 1 coal feeder and mechanical spreader replaced with new design for improving

in boiler efficiency.

• PV blower installation and auto temperature control loop for post dryer at PM-4 to reduce steam consumption.

Shree Gopal: Certification

• Received Certification of PEFC Chain of Custody.

• Re-Certified for Quality Management System QMS

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