Expansion Drive: Seshasayee Paper acquires Servalakshmi Paper, 75000 TPA capacity is anticipated to be operational in 2024

Expansion Drive: Seshasayee Paper acquires Servalakshmi Paper, 75000 TPA capacity is anticipated to be operational in 2024

- SPB expects a period of 12-18 months for upgradation/refurbishment of the Plant and Machinery and commissioning of the operations.

Erode | 18th May 2023 | The Pulp and Paper Times: 

Seshasayee Paper and Boards Limited (SPB), an Integrated Pulp, Paper and Paper board Mill, and the flagship company belonging to Writing and Printing paper manufacturing in India, has acquired Servalakshmi Paper Limited via e-auction held on 19.09.2022 for the acquisition of the assets of M/s. Servalakshmi Paper Limited (Corporate Debtor - In Liquidation), on liquidation on a Going Concern basis.

SPB intends to expand its production capacity by up-gradation / refurbishment of the Plant and Machinery of Servalakshmi Paper.

According to statement submitted to SEBI, that the Hon’ble NCLT, Chennai Bench vide its Order dated May 12, 2023, has approved the application filed by the Liquidator for confirmation of sale of assets of Servalakshmi Paper Limited (Corporate Debtor) (In Liquidation) as a Going Concern, in favour of  Seshasayee Paper and Boards Limited. 
The liquidator has issued the letter of Intent (LoI) to the successful bidder M/s Seshasayee Paper and Board Limited on 20.09.2022 and the said successful bidder has also deposited the entire amount of Rs. 105 crore with the liquidator on 5.10.2022.

Servalakshmi Paper has not been in operation for last 6 years. The paper production capacity of Servalakshmi Paper, once fully refurbished, is expected to be 75000 tonnes per annum Seshasayee Paper and Boards expects to get the sale certificate and possession handover from the Official Liquidator shortly. Once possession is obtained, the company expects a period of 12-18 months for upgradation/refurbishment of the Plant and Machinery and commissioning of the operations.

Recently, SPB has approved Mill Development Plan – IV to augment Paper Capacity from 1,65,000 tonnes p.a. to 2,31,000 tonnes p.a. and Pulp Capacity (Wood and Bagasse) from 1,80,000 tonnes p.a. to 2,52,000 tonnes p.a.

Phase-I of MDP-IV will consist of activities for enhancing the pulp capacity to 2.52 lakh tonnes p.a. in Unit: Erode with a marginal increase in paper capacity. The enhanced pulping capacity will help the company in replacing costlier purchased pulp (imported pulp / deinked pulp) and reduce the overall cost of manufacturing per tonne of Paper in Unit: Tirunelveli.
 

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