Date:07/07/2007 URL: http://www.thehindubusinessline.com/2007/07/07/stories/2007070751390300.htm

Back Subburaj Ind diversifying into paper manufacturing

R. Balaji

Chennai July 6

Subburaj Industries Ltd, a Tirunelveli-based exporter of yarns, is diversifying into paper manufacture with a Rs 200-crore greenfield project.

According to company officials, Subburaj Industries has promoted Subburaj Papers Pvt Ltd for setting up a 325-tonne-a-day recycled paper plant. The company will also set up a 6-MW coal-based captive power plant, which would be expanded to 30 MW. The plant is expected to start production in May 2008.

Civil work at the manufacturing facility coming up at Ambasamudram, about 25 km from Tirunelveli, is at an advanced stage with the paper machine to be a Voith-modified unit and the electrical system by Siemens. The de-inking plant would be from Metso Paper, Finland, officials said.

On the sources of funding, they said, the company has tied up with a consortium of banks for Rs 105 crore term loan, Rs 50 crore would be from promoters and the balance from venture capitalists.

The company plans to make printing and writing paper – creamwove and offset copier – and once the production is stabilised it would establish its own brand for the export markets. Exports are expected to start within a year or two of production. The raw material, waste paper, for the project would be imported from Europe and the USA.

Subburaj Industries is a Rs 120-crore group and a leading exporter in the textile sector.