India-based JK Paper aims to boost its printing paper production capacity by 56% to 459,000 tonnes/year in one year with 17B-Indian rupee paper machine at JK Pur in Orissa, India, will increase market share in Kerala state to 40% after October

Sandy Yang

Sandy Yang

Mar 8, 2012 – Industry Intelligence

LOS ANGELES , March 7, 2012 () –

JK Paper Ltd. will increase the output at its JK Pur paper mill in Orissa, India, with the installation of a new printing paper machine costing 17 billion rupees (US$339.4 million), reported The Hindu Business Line on March 7.

The India-based papermaker’s total annual production capacity -- which also includes its mill in Songadh, Gujarat, India -- will be raised to 459,000 tonnes from 294,000 tonnes within one year, with the new paper machine’s startup slated for 2013, said A. K. Ghosh, VP of marketing and sales.

Paper from the new machine will be more eco-friendly and more suited to high-speed digital printing, with less incidents of the paper jamming. The paper’s ColorLok technology from Hewlett-Packard Co. cuts costs significantly, Ghosh said, reported The Hindu Business Line.

With the expansion, JK Paper intends to focus its sales in India’s southern market, in Kerala state, where the company now has a nearly 36% market share and is targeting a 40% stake after October.

The company expects to boost its sales in the area to 500 tonnes per year by 2013, up from about 300 tonnes/year now. It plans to open up more distribution centers, in addition to those it already has in Kochi, Thiruvananthapuram and Kozhikoe, said Ghosh, The Hindu Business Line reported.

The market for premium paper in Kerala now is valued at 120 million rupees a month. The growth in the market is 8% to 10%, with the economy segment growing at a higher 14% to 15%.

JK Paper makes high-end digital printing paper and sells about 10,500 tonnes a month throughout India. Both of its production units have been certified by HP and Spencer Laboratory, the world’s foremost lab for printing and paper in the U.S., said Ghosh.

The primary source of this article is The Hindu Business Line, Chennai, India, on March 7, 2012.


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