AP Paper Mills plans Rs291 crore expansion program

AP Paper Mills plans Rs291 crore expansion program

Hyderabad: Hyderabad-based Andhra Pradesh Paper Mills Ltd (APPM), part of the Kolkata-based LN Bangur group, has chalked out an expansion program involving an investment of Rs291 crore to add 70,000 tonnes a year capacity, said its director-corporate, Shreeyash Bangur.

Currently having a capacity of 1,81,000 tonnes a year, the company plans to complete the latest expansion by second quarter of fiscal 2009-10. Of the Rs291 crore capital outlay, around Rs50 crore would go in for cold-fired boiler that would produce nearly 15MW of power, enabling the company to utilize about 10MW and supply the balance to the grid.

The company, which reported Rs628 crore revenue for year to March 2008, has obtained a loan of $40mn for the expansion from the International Finance Corporation or IFC, which also holds around 9% equity in the company. The balance would come from internal accruals, said Bangur.

As at the end of March 2008, the company has 90 crore of reserves. The APPM stock gained 8.07% on 13 October at 64.30 on BSE, the day that saw its benchmark indices gain 7.42% at 11,309 points. The stock reported a year’s highest price of 23.70 and a lowest of 5 on BSE.