JK Paper starts production at its new packaging board plant

JK Paper has commissioned production at its new packaging board plant in Gujarat. According to the company, the new packaging board plant should give a revenue close to Rs 1400-crore on full capacity utilisation. The plant will upscale the company’s annual capacity from 455,000 tonnes to 625,000 tonnes.

20 Jan 2022 | By Rahul Kumar

In November 2021, WhatPackaging? magazine has reported about the Gujarat plant which "its full capacity will give additional turnover of Rs 1200 crore per year." At that time, AS Mehta, president and director, JK Paper had mentioned "when such a big project is commissioned, the ramp-up takes time. Therefore this quarter and the December quarter volumes may be small but thereafter there would be a sizable volume coming from the Gujarat facility.

Mehta mentioned that JK Paper expects revenues above Rs 3000 crore for FY22 and margins would be in the range of 23-24 percent.

Earlier on 14 May 2018, the company had announced that its board had approved the packaging board plant. The plant will increase the company's annual capacity from 4.55-lakh tonnes per annum (TPA) to 6.25 lakh TPA and enhance its market share in the packaging board segment.

Built with an Rs 14.5-billion investment, the plant will provide 200,000 tonnes of additional production capacity a year. The expansion is also intended to increase JK Paper’s market share in the packaging board segment.

Addressing the electronic media, AS Mehta, said the company has invested in a state-of-the-art machine with the number of features which will be the first time in the country. The capacity of this machine is 1,70,000 tonne, but Mehta said, there is always a hidden capacity, and the machine is capable for producing more than 1,70,000 tonne. JK Paper has been known in the circle that it always uses the capacity over 100% most of the time.

He added that the demand for packaging board is fairly healthy in the country. Even the export market is doing well. The company has earmarked 15 to 20% capacity for the export market and rest for the domestic market.

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