BILT, which is focused on paper after a recent restructuring which resulting in formation of independent companies for its pulp, chemicals and foods businesses, has drawn up plans to increase its paper capacities from 270,000 tpa to 600,000 tpa within the next four years.

"Serious discussions are on with a large paper manufacturer for a management takeover and the deal is expected to be announced shortly. Another acquisition is expected in the near future," Vederah observed.

He pointed out that the investments involved in the proposed capacity expansion amounted to Rs 600 crore. "Talks have begunwith the financial institutions for a debt-equity funding programme," he added.

Vederah's quick calculations suggest that the takeovers would cost about Rs 200 crore while nearly Rs 400 crore would be spent on modernisation/ upgradations of existing manufacturing facilities.

Out of the proposed capacity increase, acquisitions would account for 200,000 tpa while the balance would come from capacity expansions at its existing manufacturing sites in Maharashtra, Haryana and Orissa through balancing equipment, replacement of equipment etc.

Vederah said the company's product portfolio would also undergo a change in the coming years with the share of industrial papers in total installed capacities of the company going up from about 23 per cent at present to nearly 33 per cent with nearly 200,000 tpa of industrial papers out of the targeted capacities of 600,000 tpa.

He pointed out that the company was targeting growth in paper business to Rs 2000 crore over the next four years and expected the company'sprofits to double from the existing Rs 24 crore in the current year.

Head of sales and marketing in BILT, Yogesh Agarwal said the company's new Royal Executive Bond premium stationery paper would be available in retail packets of 100/500 sheets besides sales through 10,000 premium retail outlets in the country.