JK Paper Ltd.

completed

JK Paper Limited (JK Paper or the company), with sales of about 183,000 tonnes per annum (tpa) of paper, is one of the largest integrated pulp and paper manufacturers in India. The company proposes to invest about $71.5 million in the following new facilities at its Central Pulp Mill (CPM) plant in Gujarat in western India: - 60,000 tpa capacity coated duplex board plant based on re-cycled waste paper, mechanical pulp and surplus mill pulp; - a coal and pet coke fired boiler of 70 tonnes per hour (tph) capacity and a 12 MW turbo generator set; - oxygen delignification plant comprising oxygen generation plant of 170 m3/hr and oxidation plant of 2.1 m3/hr; and - chlorine dioxide plant of 1.5 tpd capacity. The project will be financed with equity/quasi equity, internal cash generation and loan investments. - Rationale for the Coated Duplex Board Project: With increasing levels of organized retail and marketing of consumer goods in India, the packaging industry is shifting towards higher end packaging materials. As a consequence, demand of high end coated paper boards is experiencing significant growth despite constraint of having single supplier in the country. JK Paper will set up the Project plant in its CPM facility in western India, from where it will derive logistical cost advantage to cater to the key markets in western and northern India. JK’s presence as second supplier will further accelerate the demand growth. The plant will not require additional chemically bleached pulping capacity as it will utilize excess wood-free mill pulp that JK Paper currently produces and sells to other domestic paper producers. In addition, the Project plant will rely on existing infrastructure (power generating capacity, water and waste disposal) in CPM, which has competitive operating costs and existing marketing infrastructure of JK.