Gujarat Chief Minister Vijaybhai Rupani on Friday laid the foundation stone of its greenfield multilayer packaging board project. The company hopes to commence production in the first half of 2020.
Spread over an area of around 103 acres, in Saykha Industrial Area in Bharuch district, the upcoming facility with a total capacity of 2.25 lakh tonnes per annum (TPA) and 18 megawatt captive power plant will be set up at an investment of around Rs 1,000 crore in the first phase, it said in a statement.
In the second phase of the project, the company will double its capacity with an equal additional investment towards installation of a new machine, it said.
The project, a maiden venture of the company in the state, has already received the necessary environment clearance from the state government.
It will generate around 3,000 direct and indirect employment.
"With the setting up of the first phase of this greenfield project, the total production capacity of the company will increase by another 2.25 lakh tonnes per annum and generate an additional business turnover of around Rs 1,000 crore," Emami Group's Director Aditya V. Agarwal said.
Keeping in view the infrastructure and ease of doing business in Gujarat, the company is targeting to complete the first phase of the project by early 2020 and commence its commercial production in the first half of the same year, he said.
Company's CEO P.S. Patwari said its total production capacity is currently at 3.35 lakh TPA which comprise 1.55 lakh TPA of newsprint and writing-printing paper and 1.80 lakh TPA of paperboard.
In 2015, it diversified into packaging board by setting up a state of the art plant in Balasore, Odisha.
"With the growth of the consumer market in India, there has been a spurt in demand for high quality multilayer coated paper board in the country. With the completion of the this plant in the first phase, we expect to cater to this increasing demand as our total production capacity will go up to 5.60 lakh TPA," he said.
During the last financial year, the company had clocked a turnover of Rs 1,366 crore and earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 104 crore.
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