* Inauguration by Shri. Sharad Pawar, Honourable Union Minister for Agriculture, Consumer Affairs, Food and Public Distribution
* Expansion cost estimated at Rs. 900 crore; expansion to be completed by October 2008
* To install state-of-the-art paper machine with on-line coating and associated finishing equipment

Bhigwan, 19th October 2007: Ballarpur Industries Limited, India’s largest paper manufacturer, today announced the expansion of its manufacturing unit at Bhigwan near Pune, Maharashtra, as part of the company’s overall development strategy. The commencement of the expansion programme was inaugurated by Shri. Sharad Pawar, Honourable Union Minister for Agriculture, Consumer Affairs, Food and Public Distribution. Also present at the inauguration ceremony were senior officials of BILT, including Mr. Gautam Thapar, Chairman and Mr. R.R. Vederah, Managing Director.

The proposed expansion will increase the mill’s capacity of the coated wood-free (CWF) paper by 190,000 tonnes per annum (TPA), taking the total capacity to 315,000 TPA from the current 125,000 TPA. Estimated at a cost of Rs. 900 crore, the expansion is slated for completion by October 2008, and commercial production is expected to commence from November 2008. The total project cost will be funded by fresh debt of Rs. 700 crore and internal accruals to the tune of Rs. 200 crore. The main plant and machinery and its installation will be supplied by Voith, Germany, while some equipment will be sourced locally from suppliers like Larson and Toubro, etc.

Mr. R.R. Vederah, Managing Director, said, “It gives me immense pride to share this dais with the Honourable Union Minister for Agriculture, Consumer Affairs, Food and Public Distribution, Shri. Sharad Pawar. The growth prospects of the Indian paper market look very promising, and BILT is planning to actively expand its paper production capacity through introduction of new capacity as well as rationalization and rebuilding of existing capacity. The proposed expansion of Unit Bhigwan is, therefore, in line with our strategy of enhancing production capacity to 315, 000 tonnes per annum.”

“Today, BILT commands respect as a market leader, with 50 per cent market share of the coated wood-free paper segment and 30 per cent market share of high-end uncoated wood-free paper segment. The proposed expansion of 1,90,000 TPA is a significant landmark for BILT, and will help the company consolidate its leadership position in the coated wood-free paper market,” added Mr. R.R. Vederah.

The proposed installation of the new state-of-the-art machinery with on-line coating and associated finishing equipment will lead to quality upgradation and faster, more efficient processes for production of high grade paper. Installation of the new paper machinery will also allow the company to optimize the infrastructure of the Bhigwan plant. More importantly, the company will be in a position to rationalize the product mix between the existing and new machine, resulting in higher productivity.

BILT’s Bhigwan unit is located at Paundhwadi, near Bhigwan, district Pune, Maharashtra. The unit is situated in the MIDC industrial area of Bhigwan, and has been granted clearance from the Maharashtra State Pollution Control Board as well as the Union Ministry of Environment and Forests, for manufacture of superior varieties of paper and paperboard. The unit has set benchmarks both in terms of quality and environment standards in the Indian paper industry.

Unit Bhigwan exports 20 to 25 per cent of its production to various countries like U.S.A., Australia, Canada, Europe, Middle East, etc.

About BILT:

Ballarpur Industries Limited (BILT) is India’s largest manufacturer of Writing and Printing Paper with 21% of the W&P market and approximately 53% of the coated paper market. BILT has six paper mills in the states of Orissa (Unit Sewa), Haryana (Unit Shreegopal), Maharashtra (Units: Ballarpur, Bhigwan and Ashti) together with a capacity of 480,000 tpa and a pulp mill of capacity 100,000 tpa manufacturing rayon grade pulp, in the state of Andhra Pradesh (Unit Kamlapuram). All of the Units (except Ashti) posses captive power generation capacities and, with the exception of Bhigwan & Ashti, also possess captive pulp making capacity. Together, these units give the company geographic coverage over most of the Indian market.

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