Seshasayee Paper to invest INR 315 Cr. for Capacity Enhancement Under Mill Development Plan –III

Seshasayee Paper to invest INR 315 Cr. for Capacity Enhancement Under Mill Development Plan –III 

Chennai | 12 July 2019 | The Pulp and Paper Times:

“Despite predictions that the on-going digital revolution would make paper obsolete, paper remains central to our lives. Paper is interwoven with human life in innumerable ways. Think of the hundreds of times, we touch paper, every day. Paper is a bio-degradable product with a benign footprint, at the end of its life cycle, and this adds further strength to this product, promoting its growing usage,” Said by N Gopalaratnam (In above picture), Chairman of Seshasayee Paper and Boards Limited, in Annual reports of FY 2018-19.

Mr. Gopalaratnam further seems hopeful about the growth of the Indian Paper Industry, as Indian Paper Manufacturers Association had estimated the annual growth rate to be 6.82% and has projected per capita paper consumption to reach 17 kgs in the year 2025. By keeping this in mind, Seshasayee Paper has planned to spend CAPEX of  INR 315 Crore to expand the production capacity and other modifications in its Erode unit.

The Company has completed Phase - I of the Mill Development Plan II (MDP - II) in the year 2017-18, at a cost of INR 75 crores in Erode unit. Phase - II of MDP - II, with an estimated project cost of Rs. 50 crores, is nearing completion. The successful implementation of MDP - II has helped the Company to increase the Production of Paper to 1,32,000 tpa and the production of Unbleached Wood Pulp to 1 45 000 tonnes per annum, in Erode. 

“In order to further increase the production of Paper and Pulp in Erode unit, the Company has drawn up Mill Development Plan - III (MDP - III) at an estimated cost of Rs. 315 crores. The implementation period of this project is estimated at 9 months to 21 months and is expected to be completed in phases. 

The Techno Feasibility Study of the project has been completed and the Board of Directors of the Company, after detailed appraisal and review of the Project report, have approved the Project. The work on the Project has since commenced in the Financial Year 2019-20,” Report says.

The MDP-III at Erode unit will consist of Upgradation and Modernisation of the Paper Machines to increase the capacity from 1,32,000 tonnes per annum to 1,65,000 tonnes per annum. Upgradation and Modernisation of the RDH Pulp Mill to increase the capacity to 1,54,000 tonnes per annum,  Upgradation of the Recovery Island and augmentation of Waste Water Treatment Plant. 

Unit : Tirunelveli

Mill Expansion Plan in Tirunelveli unit, undertaken at a cost of  INR 75 Crores, is nearing completion. 

Film Press and Top Wire Former were installed in the Paper Machine to help in improving the quality of paper as well as stepping up production. Re-commissioned De-Inking Plant helps us to step up pulp production and reduce the use of expensive imported pulp. The re-build of Power Boiler has also been completed to generate additional power. Waste Water Treatment Plant has been augmented to handle higher Wetlap Pulp Product. 

“Considering that the Paper Industry is expected to grow at a CAGR of 5 - 6 % over the next few years and considering the demand-supply gap, that is currently prevailing in India for high-quality paper, to continue, Company is actively pursuing both Organic and Inorganic Growth opportunities. CURRENT YEAR (2019-20),” Report says.

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