The company, which was taken over by JK Paper through a Corporate Insolvency Resolution Process of National Company Law Tribunal Hyderabad, in a structured deal of INR 371 crore, is expected to turn the corner by the fiscal end.
July 14, 2021
The Sirpur Paper Mills Limited, which has seen an investment of about INR 700 crore since it was taken over by JK Paper Limited in August 2018, is on course to recovery as it steps up production by the year-end.
Located in Komaram Bheem Asifabad (erstwhile Adilabad) district at Kagaznagar, The Sirpur Paper Mills is now on revival mode with trial production stabilizing, further refurbishment and upgradation under the new management.
As reported in a leading daily — Mr. AK Mehta, President and Executive Director of JK Paper states, “After we took over the paper company we had many surprises and we had to take up a lot of refurbishment and upgradation by making new investments in boilers and related infrastructure.”
“However, even as the trial production was underway, we encountered more problems forcing us to shut down for further upgradation. Then as we resumed production, during the Covid first wave, we had to shut the plant from March to November. After forced shut down, we started production and it is now functioning at 70% capacity, which is good given the tough scenario”.
“We are investing in a New Chipping Unit and further improvement and upgradation, all of them will be over by the end of the third quarter of this fiscal, enabling us to go for full production. The Paper Mill has the capacity to produce 1.36 lakh tonnes of paper per annum,” Mr. Mehta added.
The takeover of the company was facilitated by the active intervention of the Telangana government. The paper production from the mill was suspended in September 2014. The paper mill was set up on a 110-acre site by Nizam Mir Osman Khan in 1936. The JK Paper management sees this as a strategic acquisition to expand its existing line of paper business.