Niox Group invests 40 Cr. for Specialty paper Manufacturing

Niox Group invests 40 Cr. for  Specialty paper Manufacturing

Ahmedabad, April, 04, 2016: Despite facing slowdown in Paper industry Indian entrepreneur are not willing to go on back foot. Setting up a new paper mills near Ahmedabad Gujarat the NIOX Group Partner Mr.Faheem Quraishi exclusively and excitedly talked to The Pulp and Paper Times about his new Paper mill. He said “a 100 TPD (Tonnes per day) plant by NIOX Specialty Paper Mill will produce the specialty paper for catering the growing demand of Indian Market. The commercial production of the paper will start from April 2016. Initially we will manufacture absorbent base paper, color ribbed kraft paper in all colors and electrical insulation paper. We are planning to manufacture all color pattern paper (Specialty Paper and Absorbent Kraft paper) ranging 32 GSM to 232 GSM in coming months”. He also added the 30 TPD plant of Tissue production will start commercial production from 2017. 

Taking the stock of market situation he said “we are not targeting the commodities markets. We are playing in all colors to compensate.” Mr.Faheem Quraishi added.       

The specialty paper industry is witnessing growth due to increasing consumer demand for high-quality products in sectors providing food & beverages, cosmetics, and lifestyle products. Developing economies primarily drive the majority of consumption as the market growth has relatively stagnated in developed economies.

According to market reports the global specialty paper market, in terms of volume, is projected to reach 34,879.08 KT by 2020, growing at a CAGR of around 6.59% from 2015. 

Mr.Faheem told TPPT that “Improving economic condition in India and increasing end-use applications are the major drivers of the specialty paper market. Specialty papers are one of the special grades of paper, which have specific characteristics and properties and are designed for some particular end use”. Specialty paper like electrical insulation Paper is much in demand in Indian market but it is being imported from Europe and Japan 100 %. He added. Only ITC and Pudumjee Pulp & Paper are the premier paper mills producing specialty paper in India.

NIOX will use mixer of waste paper and virgin pulp as base raw material. “We will use ‘Laja’ grade pulp (softwood) and hardwood in manufacturing. All virgin fibre will be imported to India” he explained. He insists that “Government should reduce the duty on virgin fibre to make us more competitive in international market in term of selling our paper. We have to import 90 % raw material like virgin fibre but high import duty increasing of production cost.”  NIOX will concentrate on domestic market to sale its specialty paper at least 2-3 month. “After 2-3 month we will also gradually start sampling the paper to international market for Export.” On tissue line production he said “we have already brought the machine but it is in dismantling stage. We will invest more 12 to 15 cr. in 2017 for tissue production.   

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