Following the acquisition of Telangana-based Sirpur Paper Mills (SPML) in India, JK Paper Mills (Jaykaypur, India) announced it will be investing another Rs 400 crore in SPML which was shut down in 2014 due to rising input costs and operational inefficiencies. Explaining the company’s future plans, AS Mehta, president, JK Paper, said that the operations are expected to resume in about six months’ time. Also, the company will soon be undertaking an expansion project at its unit in Gujarat for putting up packaging board capacity of 150,000 metric tpy and pulp mill of 140,000 metric tpy with an estimated investment of about Rs 1,450 crore. 

The recent acquisition will provide synergistic advantage both in terms of a strategically located manufacturing facility as well as access to raw material. It will more than double JK Paper’s uncoated P&W paper capacity and also supplement its product portfolio, including some specialty products. The acquisition will add about 140,000 metric tons, taking the combined capacity to about 600,000 metric tons. SPML shut down in 2014 due to rising input costs, mainly raw materials and operational inefficiencies. An additional investment of Rs 350-400 crore would be made towards restructuring of the closed unit and working capital. This will be made over the next two to three years and will improve productivity and efficiency of the plant.

 

The company exported paper products to over 54 countries during the past year, including the U.S., the UK, Sri Lanka, Australia, Singapore, Malaysia, West Asian countries, and Africa. Though strategically the company says it would continue to export to various geographies, its prime area of focus will continue to remain the domestic Indian market for now.