20798 - BALLARPUR INDUSTRIES LIMITED

Who We Are
Who We Are

IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people.
More About Us
About IFC

Our Leadership

Development Partners
Accountability

Learn more about accountability
Annual Report

Download the Report
What We Do
What We Do

IFC advances economic development and improves the lives of people by encouraging the growth of the private sector in developing countries. We achieve this by investing in impactful projects, mobilizing other investors, and sharing expertise.
What We Do Overview
SOLUTIONS

Our products and services
OUR PRIORITIES

Climate Business

Fragile & Conflict Afflicted Situations

Gender

Mobilizing Private Capital

Sustainability
SECTORS & EXPERTISE

Agribusiness & Forestry

Creative Industries

Education

Financial Institutions

Funds

Health

Infrastructure

Manufacturing

Public-Private Partnerships

Tourism, Retail & Property

Trade & Supply Chain Finance

Venture Capital

Working Upstream
Where We Work
Where We Work

As the largest global development institution focused on the private sector, IFC operates in more than 100 countries around the globe. We apply lessons learned in one region to solve problems in another.
Overview
By Region

Africa

East Asia and Pacific

Europe

Latin America and the Caribbean

Middle East and Central Asia

South Asia
Our Impact
Our Impact

Our impact improves lives. IFC brings a clear set of advantages to the world’s most challenging markets. Including a history of innovation, a global mandate, and a determination to achieve measurable development impact.
Our Impact Overview
PRINCIPLES & MEASUREMENT

Impact Investing at IFC

Measuring and Monitoring (AIMM)

Evaluation

Sustainable Development Goals (SDGs)

Owned by 186 member countries and consistently rated AAA/Aaa. IFC aims to achieve our mission of promoting development by providing debt and equity to the private sector, through a range of benchmark and bespoke products.

For Partners

For Investors

Get in Touch

Summary of Proposed Investment

Project Number

20798

Company Name

BALLARPUR INDUSTRIES LIMITED

Date SPI Disclosed

Aug 29, 2003

Country

India

Industry

Agribusiness and Forestry

Projected Board Date

Sep 29, 2003

Status

Completed

Sector

Paper for Printing and Writing

Department

Gbl Ind, Manufact, Agribus & Services

Environmental Category

B - Limited

Previous Events

Approved : Nov 5, 2003
Signed : Nov 18, 2003
Invested : Nov 18, 2003

Project Description

Ballarpur Industries Limited (BILT or the company) is the single largest manufacturer of writing and printing (W&P) paper in India. BILT has a total production capacity of 375,000 tons per annum (TPA) of W&P paper and a total pulp capacity of 335,000 TPA, spread across five pulp and paper manufacturing facilities. The company was established in 1945 and is listed on all the major Indian stock exchanges.

The proposed $159.7 million project consists of
- environmental improvements ($14.4 million);
- product quality improvements ($15 million);
- production capacity increase ($15.7 million);
- expansion of the farm forestry ($6.2 million);
- working capital for paper trading ($8.0 million) and for regular operations ($5.7 million); and
- Debt Refinancing ($94.7 million).

Sponsor / Cost / Location

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.0
Equity	0.0

Development Impact

This is a category B project according to IFC''s environmental and social review procedure. Environmental and social issues, which will be reviewed, as part of the appraisal of this investment will include: implementation of an Environmental Management System to cover all operations; compliance with air emissions. Wastewater effluents and solid waste handling requirements; worker health and safety; implementation of social programs; and compliance of forest harvesting operations with IFC policy and guidelines.
Location of environmental documents In locally affected community
Environmental documents will be made available at the following locations:

Unit Ballarpur
P.O. Ballarpur Paper Mills 442 901
Distt. Chandrapur, Maharashtra

Unit Shreegopal
P.O Yamunagar
Distt. Yamunagar

Unit Sewa
P.O. Jeypore Railway Station
Distt Koratpur 764002
Orissa

Unit Bhigwan
Pune Solapur Highway
Bhadalwadi-Paundhwadi
Distt. Pune 413105

Unit APR
Kamalapuram, Township 506172
Warangal Distt
Andhra Pradesh

Development Impact:

- Social Forestry
The company is providing free saplings and other inputs to small farmers close to its plant, providing a stable income to augment otherwise seasonally variable revenue, to nurture the current supply base, to develop farm forestry in the vicinity of each manufacturing unit, raise and distribute seedlings to farmers at subsidized costs, develop site-specific high yield tree varieties and operate purchase depots to ensure fair prices for the produce. This will result in a significant improvement to the income stream of small farmers located mostly in lesser-developed areas of India. In addition, the company''s R&D efforts provide increased know how from a local source.

- Poverty Reduction:
BILT''s forest operation has a direct and indirect employment effect on a very large number of low income rural people in outlying and depressed areas and social support.

- Environmental Improvements:
The company maintains high environmental standards, and the project would continue to set a benchmark for majority of the paper companies in India. The company''s investment in the proposed environment project will result in improved emissions control, energy efficiency, and increased bio-mass and farm forestry enterprise. The Fiber Resource Development Program will promote sustainable forest management practices.

IFC Role:

- Farm Forestry:
With this project, IFC will help BILT further develop its linkage program of support for smallholder forestry to raise farmer incomes, and will advise on sustainable forest management practices. IFC''s investment will directly contribute to sustainable forestry operations. It is worth noting here that the social forest program was recommended by IFC while investing in BILT in 2000.

- Catalyst for Mobilizing Resources:
IFC has been involved with BILT since 2001 when it issued a partial guarantee for BILT’s domestic bond issue. This support enabled BILT to subsequently access local capital markets on its own. IFC''s participation in this project is crucial to build investor confidence and will mobilize the participation of other financial intermediaries. Through this project, BILT will make a mark in the international financial markets and could subsequently access private capital in international capital markets on its own. It will also attract private international investors and thereby diversify BILT’s shareholders.

- Corporate Finance:
The company''s operations are strong, it has/is in the process of obtaining commitments to refinance approximately $95 million of Foreign and Local currency loans. IFC has made the debt refinancing a condition to the participation in the project. The debt refinancing will strengthen BILT’s financial position.

Contacts

For Inquiries About the Project, Contact

Mr. Sudhir Mathur
Chief Financial Officer
First India Place,
Tower C, Block-A,
Sushant Lok Phase-1,
Mehrauli – Gurgaon Road, Gurgaon

Phone: 91-95124-2804242
Fax: 91-95124-2804251

This Summary of Project Information (SPI) is prepared and distributed to the public in advance of the IFC Board of Directors' consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC's activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. The following SPI is disclosed in accordance with IFC's Disclosure of Information Policy that went into effect September 1998.

The map is for illustrative purposes and does not imply the expression of any opinion on the part of the World Bank, concerning the legal status of any country or territory or concerning the delimitation of frontiers or boundaries. Country borders or names do not necessarily reflect the World Bank Group's official position. In some cases, available project location information is limited to the country of the project's activities. Locations are approximate.

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Development Impact

Similar Projects

Contacts

Projects

Summary of Proposed Investment

Project Description

Sponsor / Cost / Location

Project Sponsor and Major Shareholders of Project Company

Total Project Cost and Amount and Nature of IFC's Investment

Board Approved IFC Investment

Location of Project and Description of Site

Development Impact

Environmental and Social Issues - Category

IFC's Role and Additionality

Press-Release

Related ESRS/ERS

Similar Projects

Contacts

Disclaimer