India''s second largest paper manufacturer, Tamil Nadu
Newsprint and Papers (TNPL), has bagged a Rs.7 crore map-litho
paper order from Iraq. The company will ship the order
by the end of this fiscal. According to officials this
could be the first of several such consignments.
hopes to export 30,000 tons this fiscal which would contribute
Rs.80 crore export revenue.
the increasing coal and ocean freight costs have put TNPL''s
bottomline under pressure. TNPL is India''s lowest cost
manufacturer of paper. The higher demand for coal by the
Chinese is said to be behind the price increase.
imports around 40,000 ton of coal per month to fire the
boilers installed at the sugar mills. The company entered
into unique bagasse-steam exchange contracts with various
sugar mills in Tamil Nadu. TNPL, in exchange for bagasse,
would meet the cost of boilers and coal at those sugar
a matter of fact, the company''s plant at Pugallur is the
world''s largest bagasse based paper plant.
the world''s largest bagasse based paper manufacturer,
TNPL recently expanded its capacity by 50,000 tonne to
2.3 lakh tonne per annum (tpa) requiring more bagasse
which in turn necessitates increased usage of coal to
generate steam at sugar mills.
to officials, the company is taking suitable measures
to optimise the available coal usage and reduce the adverse
TNPL like any other paper exporter has also been affected
by the 4 per cent reduction in the duty entitled passbook
(DEPB) scheme and the strengthening of the rupee.
production at TNPL''s overhauled paper machine I and II
has stabilised. The company will close this year with
production of 1.9 lakh tonnes, which by next fiscal is
expected to touch 2.2 lakh tonnes.
long ago a major newsprint manufacturer in India, TNPL''s
production today mainly consists of printing and writing
paper (PWP). Only 8 per cent of the total production is
newsprint, due to the lack of demand for domestic newsprint.
realisation in the case of PWP is around Rs.28,500/tonne
as against Rs.22,500/tonne from selling newsprint.
company has trained its focus on value added PWP mix like
branded copier, map litho and lower grammage papers where
competition is lower. TNPL has reintroduced 50 grams-per
square- metre paper as this low-weight variety has good
demand without India and in the export markets.
is yet to finalise on adding one lakh tonne capacity at
the same location at an estimated cost of Rs.750 crore.
According to officials,
the company is studying the report submitted by the Canadian
consultancy firm AMEC. TNPL does not find any problem
in sourcing bagasse.