The proposed project entails capacity expansion and efficiency improvement, capital expenditures at the two existing plants, and debt refinancing.
July 28, 2015
According to a media report, JK Paper Ltd (JKPL) has lined up an investment of around USD 100 million (Rs 650 crore), part of which will be accounted for by the International Finance Corporation (IFC) putting in around USD 50 million. The proposed project entails capacity expansion and efficiency improvement, capital expenditures at the two existing plants, and debt refinancing. The IFC’s investment aims at improving the company’s productivity and restructuring its balance sheet. However, the news remains unconfirmed by the company sources and the company is yet to reveal its position on the said investment.
The proposed IFC investment is in the form of secured non-convertible debentures (NCDs) of up to Rs 325 crore (USD 50 million equivalent). The project locations are the company’s two plants in Odisha and Gujarat. The project will support the company’s efforts to make its plants more energy-efficient by reducing the usage of water and coal.
In addition, the project supports the company, which now plants more trees than it fells. JK Paper has two integrated pulp and paper facilities: The Central Pulp Mill (CPM), located at Fort Songadh near Surat in Gujarat, and the JK Paper Mill (JKPM), near Rayagada in Odisha. The current production capacity at the CPM is 160,000 tonnes per annum (tpa) of paper and paper board. The JKPM has a capacity of 295,000 tpa of paper.