KPPL invests in Next-Generation Paper Machine to produce Writing & Printing, Specialty Kraft, and Functional Paper grades, Meeting changing customer needs

KPPL invests in Next-Generation Paper Machine to produce Writing & Printing, Specialty Kraft, and Functional Paper grades, Meeting changing customer needs

- KPPL is expected to transform into a company with an annual turnover of around Rs. 1,500 crore
- The machine will be capable of manufacturing both writing & printing grades as well as specialty and functional papers, allowing the mill to respond quickly to changing customer requirements
- Kerala Paper Products plans Rs. 741-Crore Expansion for Capacity Enhancement and Product Diversification

The Pulp and Paper Times

Erstwhile Hindustan Newsprint Limited a fully owned Govt of India  company  which had ceased operations completely in 2019,  underwent  CIRP has been successfully revived by the Government of Kerala as Kerala Paper Products Ltd (KPPL). Through rehabilitation measures, the company has resumed operations and grown into a reliable supplier of internationally quality-standard newsprint to leading newspaper establishments in India.

As part of its continued growth strategy, KPPL has now formulated a major expansion project with an investment of Rs. 741 crore aimed at enhancing production capacity and diversifying its product portfolio. The project is designed to ensure the company’s long-term sustainability and profitable growth.

Talking to The Pulp and Paper Times, KPPL’s top sources said, “KPPL is planning to install a new Specialty Paper Machine designed to cater to the growing demand for high-quality specialty and packaging grades in both domestic and international markets. The proposed machine will have the flexibility to operate in a basis weight range of 40–120 GSM, enabling the production of a wide spectrum of value-added papers used in printing, packaging, labeling, and industrial applications. 

“The project is conceived with a strong focus on product diversification and market adaptability. The machine will be capable of manufacturing both writing & printing grades as well as specialty and functional papers, allowing the mill to respond quickly to changing customer requirements. In the writing and printing segment, the proposed machine will produce grades such as SS Maplitho, Copier Paper etc. suitable for office stationery, books, and printing applications.”

Rapidly changing consumer preferences, evolving market demands, environmental regulations including plastic restrictions, and increasing awareness of sustainable development are opening up significant opportunities for specialty paper and high-quality packaging paper.

With the expansion of e-commerce, food delivery, and retail sectors, the demand for paper-based packaging products is increasing substantially. At the same time, there continues to be steady nationwide demand for writing and printing paper used for notebooks, textbooks, office requirements, and copier paper.

For the project, the Government of Kerala has sanctioned Rs. 175 crore as equity participation, while Kerala State Development Project funding of Rs. 25 crore has also been approved. The remaining Rs. 541 crore will be raised through a consortium of banks.

According to the financial analysis, once the project is completed and the plant becomes fully operational, KPPL is expected to transform into a company with an annual turnover of around Rs. 1,500 crore. The construction period for the project is estimated at 24 months, and the project indicators demonstrate strong financial viability and repayment capacity.

“A key focus of the project is the production of specialty kraft and functional papers for packaging and industrial uses. These include HBF kraft, release paper, greaseproof paper, barrier paper, medical paper, pharma print grade paper and interleaving paper. These grades serve diverse applications such as shopping bags, food packaging, medical and pharma application, e-commerce packaging, labels and tapes, hygiene products, metal sheet interleaving, and protective packaging.” The sources said.

Once implemented, this specialty machine will significantly strengthen KPPL’s product portfolio, enabling the company to serve printing, packaging, labelling, food, pharma, hygiene, and industrial sectors while positioning the mill as a competitive supplier of value-added specialty papers and writing and printing segment.

Although the demand for specialty grades, high-quality packaging grades, and writing and printing paper is very high within the state, these products are currently being sourced largely from other states at higher transportation costs.

KPPL’s diversification project aims to capitalize on the company’s well-developed infrastructure and strong connectivity through rail, road, seaports, and airports. The initiative also seeks to encourage the establishment of ancillary industries, thereby creating a “paper cluster” around the company.

Hindustan Newsprint Limited, once the largest newsprint manufacturing company in India, remained closed for more than three years. Its revival and transformation through rehabilitation measures and strategic diversification into a modern and competitive paper manufacturing enterprise is regarded as a remarkable achievement in India’s industrial history. 
 

Published at : Jun 25, 2026 07:13 AM (IST)

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