Integrated pulp, paper and paperboard mill Seshasayee Paper and Boards Limited has acquired Servalakshmi Paper Limited, via an e-auction held in 2022. Seshasayee is aiming to expand its production capacity by refurbishing Servalakshmi Paper’s plant and machinery. Once fully refurbished, Servalakshmi Paper’s paper production capacity is expected to be 75,000 TPA.
May 18, 2023
Seshasayee Paper and Boards Limited recently acquired Servalakshmi Paper Limited, through an e-auction held in September 2022. As per SEBI’s statement, the Honorable NCLT, Chennai Bench approved the application filed by the liquidator for confirmation of sale of assets of Servalakshmi Paper Limited (Corporate Debtor) (In Liquidation) as a Going Concern, in favor of Seshasayee Paper and Boards Limited. The liquidator’s Letter of Intent (LoI) said that the successful bidder Seshasayee Paper and Board Limited has also deposited the entire amount of INR 105 crore with the liquidator.
Watch: JMC Paper Tech Launches New Subsidiary JMC Papers
Seshasayee is aiming to expand its production capacity by up-gradation or refurbishing the plant and machinery of Servalakshmi Paper, which has not been operational for the last 6 years. Once fully refurbished, Servalakshmi Paper’s paper production capacity is expected to be 75,000 TPA. Seshasayee Paper and Boards expects to get the sale certificate and possession handover from the Official Liquidator shortly. Once possession is obtained, the company expects a period of 12-18 months for upgradation/refurbishment of the plant and machinery and commissioning of the operations.
Also Read: GTRI Report: Discriminatory EU-DR to Adversely Affect India’s USD 1.3 Billion Exports, Including Paper & Paperboard
Recently, SPB has approved Mill Development Plan – IV (MDP – IV) for its Erode and Tirunelveli units, which will results in production capacity expansion of paper to 2,31,000 TPA (from 1,65,000 TPA) and pulp to 2,52,000 TPA (from 1,80,000 TPA).