TNPL on expansion mode, to add Rs 1,400-crore pulp manufacturing facility
Tamil Nadu Newsprint and Paper Ltd (TNPL) is on an expansion mode to manufacture all types of pulp needed to manufacture paper and cardboard. According to additional chief secretary and company’s chairman M Saikumar, the pulp production facility at Mundipatti in Karur district is awaiting chief minister M K Stalin to open the facility.
Announced in 2019, the pulp manufacturing facility has been set up at a cost of Rs 1,400 crore and is ready. “It will add 3 lakh tonnes to the existing facility and a total of 5 lakh tonnes of pulp will be produced to make paper and cardboard,” said Saikumar.
The total investment for the new pulp facility has been made with company sources as well as from loans from various banks and financial companies.
Cost to come down
With the new pulp facility, our cost will come down, Saikumar said. “Trial runs have been done in the new facility and once the chief minister provides time, we will be able to start the new facility. This is the first phase of expansion of the TNPL,” said the chairman.
TNPL, a prominent bagasse-based paper manufacturing company, is one of the few state government companies that are earning profit. “Due to Covid lockdowns, our company had to face loss for the first time. But in the current first quarter, we have earned a profit of Rs 90 crore. We are also going to increase the capacity to produce more cardboards which are in great demand,” said Saikumar.
Demand from neighbouring states
“There is demand for paper from Tamil Nadu, Kerala, Andhra Pradesh and Telangana to print school textbooks. This year we have got orders for paper from these states as well as from other private companies. Demand for cardboards is mainly from packing companies as well as liquor manufacturers, pharma companies and as companies which make office files, etc,” he said.
TNPL also exports its products, both paper and cardboard, to various countries. “We export paper and cardboard to countries in Africa, Europe and the Gulf. Nearly 15 per cent of our manufactured products are being exported,” he said.
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“Our cardboards are of premium variety. The market for our products is increasing and to meet the demand we are expanding,” said the chairman adding, “TNPL has won the first position in the 17th National Award for Excellence in Cost Management, 2019.”