Rama Pulp and Papers Plans 40,000 tpy Expansion
Dec. 15, 2006 - India's Rama Pulp and Papers Ltd. plans to invest Rs 60 crores (approx. US$12 million) to increase production capacity by 40,000 tons per year. The additional capacity will be reached through expansion and modernization of its existing facility and the acquisition of another mill.
About Rs 5 crores (approx. US$1 million) of the investment is earmarked for the installion of a deinking and pulping line and other supporting equipment, the company said.
Recently, Rama upgraded its mill's dryer system in anticipation of the proposed expansion project.
The remaining Rs 55 crores (approx. US$11 million) will be used for the acquisition of a 40,000 tpy facility in the Maharashtra and Gujarat areas.
"We are in the final stages of talks for foreign funds as well as the acquisition and expect the deal to come through in the next 1-2 months," said Mahesh Mehta, Director, Rama Pulp and Papers Ltd.
Currently, Rama Pulp and Papers produces about 21,500 tpy of uncoated woodfree/freesheet, tissue and nonwood pulp at its mill in Gujarat, India.
SOURCE: The Hindu Business Line, and The Business Standard Online