As part of its expansion plans, Kochi based Sree Sakthi Paper Mills will be investing Rs 18 crore this year to purchase new equipment and increase production capacity to 85,000 tonnes per annum to touch Rs 240 crore turnover in the next three years.
The company, which produces Kraft paper used for packing and duplex boards, has two units at Edayar and one at Chalakudy and presently produces 70,000 tonners per annum.
"Production is expected to go up at both facilities at the rate of 7500 tonnes per annum each," Vice chairman and Managing Director S Rajkumar told reporters in Kochi.
About Rs six crore has already been invested in its Duplex Board unit at Chalakudy in Thrissur, he said.
With this investments, the company whose profit registered 397 per cent growth to Rs 1.10 crore during the third quarter of the current fiscal compared to Rs 22.33 lakh in the same period the previous year.
Sree Sakthi, is hoping to touch a Rs 240 crore turnover in the next three years from the present Rs 150 crore. The company hopes to complete the expansion exercise by August this year. The investment for expansion is being met partly through debt and partly through internal accruals.
Sree Sakthi has installed high speed pressure formers to improve the quality of duplex boards and their production.With this investment, it also plans to make coloured fine boards, coated duplex boards and white kraft liner to meet the needs of high end segment, Rajkumar said.