New Delhi, Dec 07: Close on the heels of acquiring a paper production unit from Bilt, the paper division of ITC would invest Rs 260 crore at its Bhadrachalam (Andhra Pradesh) plant to augment production capacity, a top company official said today. The company also aims over 14 per cent growth in sales turnover by the end of this fiscal over Rs 875 crore during the last year, ITC paperboards and speciality papers division chief executive Pradeep Dhobale said.


"We have decided to pump in Rs 260 crore at the AP plant to increase production from 3,50,000 tonnes. The fund will be mopped up through internal accruals," he said.


Out of Rs 875 crore topline, exports contribute Rs 100 crore while the rest comes from the domestic market.

At present, the company has four manufacturing units - Kolkata, Hyderabad, Bhadhrachalam and Coimbatore. ITC acquired the fourth facility from Bilt at a cost of Rs 230 crore.

In the Rs 14,000 crore overall paper and packaging Indian market, the company aims substantial marketshare, he said, adding "we are looking at states like Punjab, Tamil Nadu and Andhra Pradesh to set up centres to support our needs for raw materials".

The company has recently introduced an environment- friendly technology - elemental chlorine free (ECF) - which entailed an investment of Rs 230 crore.

According to government regulations, the ECF would be mandatory for all paper manufacturers in the next five years.
Paperboard business contributes 80 per cent to topline of the paper division.

Bureau Report