Jani invests Rs 100 crore in tissue paper manufacturing unit

Mumbai-based paper and board trader Jani Sales, which is celebrating its 40th anniversary, has invested Rs 100 crore in a new tissue paper manufacturing facility in Sarigam, Gujarat.

14 Jan 2020 | By Aultrin Vijay

The company said the project will commence by the end of March 2020. Once operational, the facility would be able to produce 100 tonnes of paper per day. Currently, the company trades close to 5,00,000 tonnes of waste paper per year, and more than 2,00,000 tonnes in finished paper business.

The facility will manufacture three grades of paper such as MG kraft, MG poster and MG tissue, ranging from 17gsm to 85gsm. The raw materials include waste paper sourced from domestic and international markets.

Saifee Jani, chairman, Jani Sales, said. “We started this business in 1979. We are dealers for major companies such as ITC and Gayatrishakti Paper and Boards. We cater to entire GCC countries and other neighbouring countries. We are into waste paper business, too. We source waste paper from the US, the UK and supply them to paper mills in India, Indonesia, Thailand, Vietnam, Korea, China, and Turkey.”

However, Jani said that the only thing the company lacked was a manufacturing facility. “So we’ve built a new unit for producing 100 tonnes day of tissue paper per day. The new facility will be taken care of by my son Abiali, who also takes care of the production, sales, marketing and exports of the company.”

Speaking about the company’s transformation from paper trading to manufacturing, Jani said, “Recycled paper is in demand all over the world and many people are investing in it. With the recent ban on plastic in Maharashtra, there’s a huge demand for paper products in the western region. I think we took the right decision at the right time, which will eventually boost our sales volumes.”

He further said, “For a long time, we were planning to get into the paper industry, but were waiting for the right time. Based on our export knowhow and the market trends, we decided to come with a niche product, which is not majorly produced in the western region. Also, our facility is close to the port, which is an added advantage. We’re looking for 50% sales in local market and another 50% for export.”

Jani said the rising trade tensions between the US and China and forced many paper mills to shut down. However, countries have shifted their focus to India to pursue trade, as it is a bigger market for export.

Abiali Jani, director at Jani Sales, said, “According the statistics that we have, tissue paper market has a growth of around 27%. It has a huge demand locally and globally. Due to the awareness being created about food and hygiene, tissue consumption is increasing.”

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