JK Paper, India’s third-largest paper manufacturer, is exploring options to build a pulp mill in South Asia, that would give the company complete ownership of the raw material vital for making paper. However the Delhi-based company will look at such an option only after completion of an ongoing expansion at its paper and pulp facilities in India.
The company might consider setting up a pulp mill in Taiwan or Indonesia or the Philippines, and bring the pulp back to India as it’s difficult to make pulp in India. It would currently cost between Rs 1,000 crore and Rs 1,200 crore to build a 2,00,000-3,00,000-tonne pulp mill overseas. While JK Paper has some pulp capacity of its own it has a total paper and pulp capacity of 240,000 tonnes - it is spending Rs 1,653 crore to build a new pulp mill with capacity 215,000 tonnes and expanding paper capacity by 165,000 tonnes.
Pulp, the crucial input for making paper and viscose staple fibre, is mostly imported by Indian companies as local laws relating to growing trees for pulp are stringent. Companies are not allowed to directly own forests and can only support farmers who will grow the trees under the so-called farm forestry scheme. This has prompted Indian companies such as Ballarpur Industries, India’s largest paper manufacturing company and the Aditya Birla group, to go overseas to acquire pulp capacity.
| Company Name | CMP |
|---|---|
| JK Paper | 354.55 |
| TN Newsprints | 270.75 |
| West Coast Paper | 626.70 |
| Emami Paper Mills | 110.20 |
| Andhra Paper | 520.90 |
| View more.. | |
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