Tamil Nadu Newsprint & Papers Ltd

- The company is implementing a Mill Expansion Plan (MEP) at a capital cost of Rs 2,520 Cr, located at Mondipatty village, Tiruchirappalli district, executed in two phases. - Phase one of MEP involves commissioning a 400 tons per day chemical hardwood pulp plant with chemical recovery system and a 20MW turbo generator at a capital outlay of Rs 1,250 Cr. - Phase one major benefits include substituting costly imported or purchased chemical hardwood pulp, reducing production costs of packing boards. - All major plants and machinery of phase one have been erected, with pulp mill commissioning targeted for October 2021 and pulp production in November 2021. - The mill expansion will improve quality and efficiency, producing environmentally friendly pulp with reduced water and power consumption. - The company aims to align operations to achieve a production target of 1 million tons of paper and paperboard by 2030. This outlines the company's current and planned significant capital investments focused on capacity enhancement and cost optimization.

Future growth expectations of the company outlined in the document include: - Packaging boards demand expected to grow by 12%-15% annually in virgin fibre-based products; recycled boards growth at 8%-9% per annum. - Focus on increasing market share in higher value-added virgin fibre boards, including cup stocks. - Capacity utilization targets: 86% in board and 81% in paper for 2021; aiming to reach beyond 95% in the board category. - Mill expansion plan underway with chemical hardwood pulp plant to reduce dependence on imports and lower production costs, targeted commissioning in late 2021. - Shift product mix towards virgin fibre grades like folding box boards and SBS boards to utilize in-house pulp. - Indian paper industry's growing capacity utilization (80%-90%) aligned with economic upturn. - Estimated rise in per capita paper consumption in India from 16 kg to 20 kg by 2025, supporting demand growth. - Anticipated market stability with minimal imports and moderate pricing pressures in the packaging board segment for 2021-22.