MUMBAI, January 30: Sinar Mas Pulp & Paper (India) is in talks with the Gujarat government for setting up a Rs 2,000 crore state-of-the-art paper project. The company had planned to expand its Pune facility but later on decided against this.Company officials are in the process of identifying prospective sites to set up Asia's largest pulp and paper products plant. According to state officials, the currency crisis in Indonesia had caused a degree of uncertainty but company officials were still gung-ho on the project.
The project, when commissioned, will become the state's second largest industrial project, next only to the 15 million tonne Reliance refinery project coming up in Jamnagar.
A 100 per cent subsidiary of the $1 billion Singapore-based Asia Pulp & Paper Co (APP), Sinar Mas makes coated and speciality paper of various grades based on 100 per cent imported pulp at Bhadalwadi village in Pune.
Presently, the annual turnover of the Pune plant is estimated to be over Rs 425 crore (includingexports of about Rs 150 crore) with an installed capacity of 115,000 tonnes. The company aims at broadening its horizons in India which will strengthen its competitive edge in the long run.
The pulp and paper operations of the group have been consolidated into one company, APP. The $5 billion multi-national conglomerate, comprising 50 companies, markets its products in more than 40 countries.
The company manufactures printing and writing paper, coated and uncoated paper, photocopier paper, carbonless paper, tissue paper, container board, corrugated shipping containers among others. The company's present capacity of pulp and paper is 12 lakh tonnes and 18.8 lakh tonnes each, which is expected to increase to 20 lakh tonnes and 32 lakh tonnes by the year-end.
The increase will be effected due to various expansion schemes, estimated to cost about $2,225 million (Rs 7,788 crore).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
