FMCG conglomerate firm Emami Group’s packaging board and newsprint manufacturing division Emami Paper Mills has unveiled plans to invest $276.83m to establish a greenfield multi-layer packaging board plant at Bharuch in the Indian state of Gujarat.
The project, for which the foundation stone was laid last week, will be spread over an area of around 103 acres at the Saykha Industrial Area.
The development of the plant would take place in two phases, with each phase featuring a capacity of 2,25,000 tonne per annum (TPA) and an 18MW captive power plant.
According to the company, the first phase involves an investment of $138.41m and is expected to come online in 2020.
During the second phase, Emami Paper Mills will expand the capacity of the plant to 4,50,000 TPA at a cost of $138.41m.
The proposed plant is expected to result in cost benefits to the company as it will be able to cater to West Indian markets rather than through its existing packaging board manufacturing facility at Balasore in Odisha state.
Emami Group director Aditya Agarwal was quoted by Business Standard as saying: “This project will play a key role in establishing Emami Paper Mills as one of the largest packaging board manufacturers in India.
“We intend to expand further into Gujarat as we see good potential in the state as well as western India. Having a plant there makes more business sense rather than rout products from the eastern facilities.”
Emami Paper Mills had a turnover of $184.92m and earnings before interest, taxes, depreciation and amortisation (EBIDTA) of $14.4m in 2017-2018.