ITC to invest 3B Indian rupees to increase capacity at 33,500 tonnes/year Tribeni, India, paper mill by 27,500 tonnes/year, modernize existing captive power plant, build new 12MW fluidised bed coal-fired plant

LOS ANGELES , March 5, 2012 () – ITC Ltd. aims to increase the capacity of its 33,500 tonnes-per-year Tribeni, India, paper mill by 27,500 tonnes/year in addition to modernizing the site’s existing captive power plant and building a new 12 megawatt fluidised bed coal-fired plant, Daily News & Analysis reported March 3.

Indian diversified conglomerate ITC plans to invest 3 billion Indian rupees (US$60.2 million) in the projects at the Tribeni, which produces décor papers, fine papers, tissues and other specialty papers, according to a report submitted to the Indian government.

The plant is also the only paper facility in the eastern region of India.

The company has already begun expanding by 100,000 tonnes/year the capacity of its largest paper mill in Bhadrachalam, India, located in the southern part of the country, where ITC’s paper sites are located.

At the Tribeni plant, the existing power plant at the facility is coal-based. In order to build the new power plant, the company will need to buy more land.

Recently, ITC chairman YC Deveshwar cited paperboard and paper as major opportunities for investment for the company.

Over the next five years, ITC expects that demand for value-added paperboards will increase by approximately 15%. During this same period, it expects the overall paperboard industry will experience an 8% growth rate.

In India, the domestic paper industry produces an estimated 10.3 million tonnes/year, out of which 2.3 million tonnes/year account for paperboard demand.

ITC said it has captured a 26% market share of the overall domestic paper industry, making it the market leader, in addition to a considerably higher market share of the paperboard industry.

In 2011, ITC’s paperboards, paper and packaging segment reported a 13% increase in revenue, in comparison with 8% industry-wide growth.

During the first, second and third quarters of 2011-2012, ITC’s paperboards, paper and packaging segment reported a topline growth of 13%, 21% and 12%, respectively.

The primary source of this article is Daily News & Analysis, Mumbai, India, March 3, 2012.

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