TNPL to expand capacity, product basket

Tamil Nadu Newsprint & Papers Ltd. | Paper & Paper Products | Paper & Stationary | BSE: 531426 | NSE: TNPL

20 Jul 2010 Evaluate

Tamil Nadu Newsprint and Papers Ltd is widening its product base and expanding copier paper capacity in the current year. Exports are also set to grow significantly. TNPL's third paper machine is expected to go on stream by October-end taking its output this year to over 3 lakh tonnes and to more than 4 lakh tonnes from next year against 2.45 lakh tonnes in 2009-10.

The company plans to introduce a new line of high-end pigment printing paper for multicolour printing applications. This is a good substitute for Light Weight Coated paper used in the premium segment of colour printing. This will be a new product in the domestic market.

Another focus area would be expansion of copier paper, the demand for which is growing by about 20 per cent year on year. TNPL is among the top three producers of copier paper in the country. It is increasing its cut size paper production capacity to about 6,000-7,000 tonnes a month from the present 4,500 tonnes.

In line with the growing demand for printing and writing paper, the company has charted out an export plan for over 90,000 tonnes of printing and writing paper this year against about 51,000 tonnes in 2009-10. According to industry representatives, TNPL is set to see its topline grow by 25 per cent this fiscal.

TNPL's expansion will be among the last of the major capacity additions to hit the market in the current year. Recently, APPM added about 75,000 tonnes and West Coast Paper Mills 1.50 lakh tonnes in annual production capacity. TNPL will add about 1.50 lakh tonnes in October.

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