Hindustan Newsprint's Turn Around Strategy, Ready To Invest 350 Cr. In Folding Box Board Production

Hindustan Newsprint Turns Around Strategy, Ready To Invest 350 Cr. In Folding Box Board Production

Chandigarh, Oct 22, 2017: In spite of global economic turbulence, demand growth for box board has advanced steadily, averaging roughly 2.5% annually, over the last decade. Growth has been especially strong in developing markets with expanding consumer classes and rapid population growth. Development in these areas drives demand for packaged merchandise, processed foods, and other consumer and industrial goods which use box board. Hindustan Newsprint Ltd (HNL) has decided to divert its product portfolio in more commercial segment by setting up a 300 TPD Folding Box Board (FBB) production facilities. Exclusively talking to The Pulp and Paper Times, Mr. R.S. Dahiya, Managing Director of Sharad Projects India told that “We have prepared the Detailed Project Report (DPR) and it has been approved by the internal Board of HNL. The civil work is expected to start by December this year after getting clearance from Department of Heavy Industry (DHI). HNL has proposed to put up a new Four Wire Paper Machine for the manufacture of Folding Box Board with total outlay of Rs 350 Cr., to be arranged from Financial institution.” The new production is aimed to manufacture 180 to 450 GSM range duplex Board, to be sold at a price of between Rs.55 to 60 per KG. HNL produces exceptional quality newsprint for the Indian and International market, which is comparable with the best in the global market. The company has an installed capacity of 1,00,000 MT per annum for producing 49 & 45 GSM newsprint. HNL, with its state-of-theart technology, has emerged as a company that is truly contemporary, within a short span of operation, and today, caters to the requirement of all major News Dailies in the country. 

“The plant would comprise mainly of Deinking plant 200 TPD with two loops (for producing recycled pulp for existing newsprint machine) and Deinking plant 200 TPD with three loops (for producing recycled pulp for new FBB machine). The existing DIP loop will meet pulp requirement for proposed FBB machine.” said Mr. R.S. Dahiya who has been assigned by HNL as Consultant. HNL will go for tendering process after completion of civil work. Global consumption of folding carton packaging is expected to increase by nearly 5% in 2015 and is forecast to reach a total volume of some 47 million tonnes by 2020, worth $106 billion at constant 2014 prices. Healthcare products are the single largest users of folding cartons, followed by tobacco, and it is these two industries that face the most significant challenges in folding carton usage. Defence against counterfeit products, particularly in the pharmaceutical industry, will see the global introduction of serialisation for track and trace systems incorporating 2-D barcodes. Europe will adopt these systems from 2018 and this will drive significant investment in both hardware and software across the supply chain.

The major exception to market trends has been the rise of China as a global player on the box board stage. A tremendous volume of capacity from the region has entered the market over the past five years, despite its virgin fiber limitations. China has gone from being a net importer of box board to net exporter of over one million tonnes of box board annually and will continue to grow. The global economic activity is expected to accelerate in the coming the years. In response to this, world box board demand is forecast to accelerate in line with global economic growth. Despite the strong demand prospects, aggressive capacity expansion in China has dramatically impacted European and North American boxboard exporters. China has limited their access to the most lucrative exports markets in the past several years and could continue to do so. There is also great speculation regarding the potential market impact of several large boxboard projects scheduled to startup in Europe over the next two years. How this plays out will largely be determined by how fast demand will grow to absorb the tremendous volume of boxboard that will continue to hit the global marketplace.

Web Title: Hindustan Newsprint s Turn Around Strategy Ready To Invest 350 Cr In Folding Box Board Production