Indian paper manufacturer Emami Paper Mills intends to strengthen its position in the paperboard manufacturing sector with an additional Rs10bn ($149.3m) investment at its production facility in Balasore, Orrisa.
The facility in the Indian state was set up only earlier in the year and expected to start commercial production from the following month.
It is presently under trial production for four-layered paperboard and is intended to attain 75% capacity utilisation by the end of this year.
The firm had invested around Rs10bn ($149.3m) for the initial development of the plant.
Potential investment of the additional amount is expected to be done over the next three years, and is likely to increase the production centre's capacity to 2.6 lakh tonnes from the now anticipated 1.32 lakh tonnes, reports The Hindu BusinessLine.
Emami Paper executive director PS Patwari was quoted by The Economic Times as saying: "The present requirement of superior packaging board in India is close to 17 lakh tonnes annually, out of which India's capacity is only seven lakh tonnes."
Patwari indicated the extensive scope for high-end coated multi-layered paperboard in the country, which is expected to grow at a rate of more than 15% annually.
Emami looks to generate at least 60% of the company's revenue from high-end packaging paper business from 2016.
Presently focused on newsprint production, the firm is intends to foray into packaging paperboard market.
Image: The firm had invested around Rs10bn ($149.3m) for setting up the paper board manufacturing plant. Photo: courtesy of Rawich via FreeDigitalPhotos.net.