The plant, located in Hooghly district of West Bengal, specialises in fine papers, tissues, decor papers and other specialty papers.
Diversified conglomerate ITC has decided to raise the production capacity at its Tribeni paper plant alongside setting up a new environment-friendly captive power plant.
The plant, located in Hooghly district of West Bengal, specialises in fine papers, tissues, decor papers and other specialty papers.
ITC has proposed to raise its capacity by 27,500 tonne per annum (tpa) from the current 33,500 tpa.
The company will also add a 12 mw fluidised bed coal-fired plant, besides modernising its existing coal-based captive power plant, according to the project report submitted by the company to the government, available with DNA.
Incidentally, Tribeni is ITC’s only paper plant in the eastern region. The rest, including Bhadrachalam, are all in the southern part of the country.
ITC is already expanding the capacity of its largest paper plant at Bhadrachalam by one lakh tpa.
The investment envisaged at Tribeni has been pegged at Rs300 crore, according to the project document.
While the paper capacity expansion would happen within the plant’s existing premises, the group needs to acquire some more land for the captive power project.
ITC chairman YC Deveshwar said recently that paper and paperboard provide significant investment opportunities to the conglomerate, which is looking to deploy its pile of cash.
The group expects demand for value-added paperboards to grow around 15% in the next five years compared with an 8% growth for the overall paperboard industry.
The domestic paper industry is estimated at 10.3 million tonne (mtpa), of which paperboard demand is estimated to be 2.3 mtpa. ITC claims to be the market leader with a value market share of 26% and a significantly higher share of the fast-growing value-added paperboard segment.
Last year, ITC’s paperboards, paper and packaging segment recorded a revenue growth of 13% on the back of the industry growth of 8%. During 2011-12, the division had reported topline growth of 13%, 21% and 12% in first, second and third quarters, respectively.
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