Kraft Paper Manufacturing Unit 75 TPD for out rate sale

Opportunity Snapshot

  • Country: India India
  • Industry: Manufacturing
  • Stage: Expansion/Growth
  • Investment size: $4,000,000 / min. $2,000,000

Investment Opportunity

It is a Kraft paper manufacturing unit started commercial production in 2009.
The unit is capable of producing 12 to 32BF starting from 80 gsm to 240 gsm Kraft paper. The promoter is looking for a out rate sale. Installation of the Mill: 2009, Commercial Production: 2010. Land cost in the area: Rs. 75 to 90 lakhs per acre.

Paper Industry in India is doing extremely well in the last decade and today it is one of the industries where returns on investment are consistent. Mergers and acquisitions give faster returns than green field projects. One such opportunity is available now with this mill.

This mill is situated on the outskirts of Chennai, the location suitable for raw material imports and market proximity. Built on 6 acres of land with brand new machinery selected for their quality and energy efficiency, commercial production started in 2010 but the mill could not be run continuously due to working capital related issues.

This is a technically sound mill with focus on producing high quality MG Kraft paper. With bore wells supplying required quality and quantity of water, a zero discharge effluent plant, multi-fuel boiler and excellent pulp treatment equipment, the mill is designed for plus 75 tonnes per day and with minor modifications and product mix, can produce 90 tonnes every day without operational problems.

The raw material is either local waste paper or imported American waste paper or a blend of both. TNEB connected power with required capacity of transformer with an option to add private purchased power takes care of the energy demand. Pollution Control Board clearances, Boiler safety certificates etc., as per statutory requirement are available.

The output is mainly MG Kraft Paper with 14 and 16 BF currently. Once the working capital crunch is managed, imported waste from US can be utilized further improving the quality to 22 BF and more. All these varieties of paper can be marketed in and around Chennai. The main consumers are corrugated box manufacturers, numbering around 700 in Chennai region alone. All the production capacity can be absorbed in the market without even a dealer’s network.

The Indian Paper Industry’s profitability is very good in the last few years. Continued growth is projected and demand is almost guaranteed. The products can also be fine tuned to suit whatever market exists at various periods. There is no constraint currently in the mill operation other than of power, but there is another sanctioned 1000 kw EB power available but not drawn. Additionally, private purchased power can also be taken to fill any gap in energy supplies.

Interested business buyers and investors can establish contact with us on Merar. Mill plants are available for download on Merar.

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