Rs 1,650-cr plant to boost JK paper capacity

JK Paper is setting up a new paper manufacturing facility at Rayagada in Orissa in an effort to jack up its production capacity to match a growing demand for writing paper. Vivek Sinha reports.

JK Paper is setting up a new paper manufacturing facility at Rayagada in Orissa in an effort to jack up its production capacity to match a growing demand for writing paper.

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This facility, which would also produce paper pulp, is expected to be complete by the end of calendar year 2012 and would replace the company's existing plant at Rayagada.

"The new plant at Rayagada will entail an investment of around Rs 1,650 crore that will be funded through a mix of debt and equity," said Harsh Pati Singhania, MD of JK Paper. He said Rs 1,000 crore of the investment would come through debt and the remaining via equity funding that includes Rs 250 crore rights issue and foreign currency convertible bonds.

The new facility will produce close to 1.6 lakh tonnes office paper or the writing paper a year, expanding capacity by 67%.