Rama Pulp plans power plant in Gujarat
Rama Pulp and Papers plans to invest INR 65 crore to expand speciality paper production capacity, besides setting up 15 MW power production capacity at its 15 acre Vapi plant in Gujarat.
As per report the company will invest INR 10 crore to enhance carbon base paper production from 7,000 tonnes per annum to 30,000 tonnes per annum over two years. The company currently commands a market share of 50%.
Mr Mahesh Mehta director of Rama Pulp said that carbon base papers are in good demand both in India and abroad with Walmart Inc willing to pay INR 70 a kg for its requirement of 10,000 tonnes per annum. He added that “The opportunity for exports is immense as US has banned imports of paper less than 13 grams from China. Moreover, there only 15 mills in India that produce carbon papers.”
On the back of good demand, Rama Pulp has managed to pass on the incremental cost to end-users. Prices of waste paper, one of the key raw materials imported from the US, have been on a rise due to short supply.
The report said that Rama Pulp has already placed orders worth INR 15 crore for the boilers to set up thermal power plant with an initial capacity of 15 MW to be raised to 50 MW in phases with a cumulative investment of INR 160 crore.
It has appointed Mitcon to execute the power project. The promoters have invested INR 20 crore by subscribing to convertible warrants and have accumulated INR 7 crore from internal accruals.