BILT to hive off paper unit into venture with foreign partner
Rupali Mukherjee
NEW DELHI, January 22: Ballarpur Industries Limited (BILT) plans to hive off its Ashti paper unit into a 50:50 joint venture with a foreign partner.Company sources said the unit will be first spun off into a separate company which, in turn, will enter into a financial-cum-technical collaboration with a foreign partner. Ballarpur is at present in talks with two foreign majors for the proposed joint venture. Joint-managing director BILT Vikram Thapar confirmed that the talks were on, but refused to give any details. "The deal will be finalised in the next few weeks," he added. The unit is being hived off into a separate venture to focus on high-quality corrugated boards. Ballarpur is keen to manufacture corrugate boards of international quality, which were dereserved in the country last year. The tie-up with a foreign company for Ballarpur's Ashti unit would not only bring in more funds but also international technology, sources said. The proposed joint venture would continue to manufacture
extensible sack-kraft paper which is environment-friendly and ecologically superior. Consequent to the funds' infusion in the proposed company, the capacity of the paper machines would be increased to make test-liners. Test-liners are used to manufacture corrugate boxes. BILT has also signed an MoU with Ahlstrom Paper Group, OY, Finland, for transfer of technology for the manufacture of speciality products such as automotive filter papers, cores and core boards. Besides Ashti, BILT has four paper units: Shree Gopal, Sewa, Ballarpur and Choudwar. The operations of the Choudwar unit have been put on the backburner for some time. The Shree Gopal unit is being upgraded with better machines which will be in place in about a month. Further renovation of a paper machine, along with upgradation of paper-finishing facilities, is expected by the first quarter of this year. This will enable the company to produce value-added papers.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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