India-based paper company JK Paper has started commercially manufacturing packaging board at its new facility at Unit CPM, Gujarat.
In a stock exchange filing, the company said that the packaging board plant began production on 14 January.
JK Paper began building the plant at its Gujarat unit after securing approval from its directors’ board in May 2018.
Built with a Rs14.5bn ($195.3m) investment, the plant will provide 200,000t of additional production capacity a year, upscaling the company’s total annual capacity from 455,000t to 625,000t.
The expansion is also intended to increase JK Paper’s market share in the packaging board segment.
The company reportedly saw its market share rise by 2.73% to Rs218 after it announced the start of production at the plant.
In its filing, JK Paper said: “Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, and in continuation of our previous communication dated 14 May 2018, wherein it was informed that the Board of Directors of the company had accorded its approval for the setting up of a Packaging Board plant at its Unit CPM, Gujarat, we hereby inform that commercial production from our new Packaging Board plant has commenced on this day, 14 January 2022.
“This will increase the company’s annual capacity from 455,000t to 625,000t and enhance its market share in the packaging board segment.”
JK Paper provides office papers, coated papers and packaging boards for companies in India.
The company recently reported that its consolidated net profit rose by 241% to Rs1.18bn in the second quarter of the fiscal year 2022 (FY22) from a year earlier.
Last September, JK Paper announced that it had installed a multi-layer board machine line at its manufacturing facility at Fort Songadh in Gujarat.
Powered by Valmet’s distributed control system, the board line increased the company’s total annual capacity, including its Sirpur paper mills, to up to 761,000t.