Summary of Proposed Investment
Project Number
24171
Company Name
JK PAPER LIMITED
Date SPI Disclosed
Jan 31, 2006
Country
India
Industry
Agribusiness and Forestry
Projected Board Date
Mar 2, 2006
Status
Completed
Sector
Paper for Printing and Writing
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Mar 6, 2006
Signed : Mar 8, 2006
Invested : Mar 13, 2006
Project Description
JK Paper Limited (JK Paper or the company), with sales of about 183,000 tonnes per annum (tpa) of paper, is one of the largest integrated pulp and paper manufacturers in India. The company proposes to invest about $71.5 million in the following new facilities at its Central Pulp Mill (CPM) plant in Gujarat in western India:
- 60,000 tpa capacity coated duplex board plant based on re-cycled waste paper, mechanical pulp and surplus mill pulp;
- a coal and pet coke fired boiler of 70 tonnes per hour (tph) capacity and a 12 MW turbo generator set;
- oxygen delignification plant comprising oxygen generation plant of 170 m3/hr and oxidation plant of 2.1 m3/hr; and
- chlorine dioxide plant of 1.5 tpd capacity.
The project will be financed with equity/quasi equity, internal cash generation and loan investments.
- Rationale for the Coated Duplex Board Project:
With increasing levels of organized retail and marketing of consumer goods in India, the packaging industry is shifting towards higher end packaging materials. As a consequence, demand of high end coated paper boards is experiencing significant growth despite constraint of having single supplier in the country. JK Paper will set up the Project plant in its CPM facility in western India, from where it will derive logistical cost advantage to cater to the key markets in western and northern India. JK’s presence as second supplier will further accelerate the demand growth. The plant will not require additional chemically bleached pulping capacity as it will utilize excess wood-free mill pulp that JK Paper currently produces and sells to other domestic paper producers. In addition, the Project plant will rely on existing infrastructure (power generating capacity, water and waste disposal) in CPM, which has competitive operating costs and existing marketing infrastructure of JK.
- 60,000 tpa capacity coated duplex board plant based on re-cycled waste paper, mechanical pulp and surplus mill pulp;
- a coal and pet coke fired boiler of 70 tonnes per hour (tph) capacity and a 12 MW turbo generator set;
- oxygen delignification plant comprising oxygen generation plant of 170 m3/hr and oxidation plant of 2.1 m3/hr; and
- chlorine dioxide plant of 1.5 tpd capacity.
The project will be financed with equity/quasi equity, internal cash generation and loan investments.
- Rationale for the Coated Duplex Board Project:
With increasing levels of organized retail and marketing of consumer goods in India, the packaging industry is shifting towards higher end packaging materials. As a consequence, demand of high end coated paper boards is experiencing significant growth despite constraint of having single supplier in the country. JK Paper will set up the Project plant in its CPM facility in western India, from where it will derive logistical cost advantage to cater to the key markets in western and northern India. JK’s presence as second supplier will further accelerate the demand growth. The plant will not require additional chemically bleached pulping capacity as it will utilize excess wood-free mill pulp that JK Paper currently produces and sells to other domestic paper producers. In addition, the Project plant will rely on existing infrastructure (power generating capacity, water and waste disposal) in CPM, which has competitive operating costs and existing marketing infrastructure of JK.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. Satish Mandhana,
CFO & Head-Business Strategy,
JK Paper Limited, Nehru House,
4 Bahadurshah Zafar Marg,
New Delhi-110002.
Phone: 011-51509281
CFO & Head-Business Strategy,
JK Paper Limited, Nehru House,
4 Bahadurshah Zafar Marg,
New Delhi-110002.
Phone: 011-51509281