West Coast Paper Mulls Over a New Line For Specialty Products

West Coast Paper Mulls Over a New Line For Specialty Products

Dandeli | 28 July 2019 | The Pulp and Paper Times: 

“Increasing population and literacy rate, improvement in the manufacturing sector and changing the lifestyle of individuals are expected to further boost the demand for paper in India. Additionally, increasing environmental concerns and awareness resulting in a ban on one-time plastic use material by many states in India has opened up new markets for the paper industry,” Mr. S. K. Bangur (in the above picture), CMD of West Coast Papers Mills Ltd, mention in the annual report of the company.

Future Plan: 

The company has made an ambitious plan for growth cum modernization for phase-wise investment in the next 3 years' time period at the Company's Paper Division. 

The Paper Division at Dandeli, focuses on increase marginal paper production from existing machines, improve paper quality, produce new specialty products and reduction of usage of steam, power, chemical, water and also minimize the breakdown of machines. In this regard, the Company has invested Rs. 127 Crores and has plans to invest around Rs. 75 Crores further in the financial year 2019-20. 

Additionally, West Coast is also planning for putting up a new line for producing Specialty Products at Dandeli. EIA study is currently going on and post the approval, the Company will take appropriate decisions on investment in the new line. 

West Coast is also working on growth by way of inorganic acquisition in the same line of business and has entered into a Share Purchase Agreement (SPA) on 29th May 2019 for acquiring a controlling stake in International Paper APPM Limited (IPAPPM). The acquisition is expected to be completed by the 3rd quarter of the financial year 2019-20. In this regard, the necessary application has been filed for approval from various statutory authorities as per applicable laws.              

Paper And Paperboard Division, Dandeli 

The production of Paper, Paperboard and Hardwood Pulp was 304957 MT (95% capacity utilization) during the year against 290844 MT in the last year (91% capacity utilization) i.e., higher by 14113 MT. The sale of Paper and Paperboard was 301931 MT during the year against 291512 MT in the last year i.e., higher by 10419 MT. Turnover during the year was Rs. 1851 crores as against Rs. 1624 Crores (exclusive of excise duty) in the last year, i.e., higher by Rs. 227 Crores. The growth was driven by higher sales quantity and better realization. The EBITDA margin was 26.43% during the year.

“Import pressures are likely to be continued and could result in pricing pressures on paper products particularly copier and maplitho segments,” Mr. Bangur expects in the report.

Web Title: West Coast Paper Mulls Over a New Line For Specialty Products