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Company to expand its manufacturing capacity to 4 lakh TPA Highlights:To invest Rs 700 crore for its expansion programmeTo set up a Folding duplex board plant – (tetrapack)To launch consumer products such as notebooks, copier paper and official stationery, under the Rainbow brand Mumbai, 4th July 2011: Rainbow Papers Ltd (BSE CODE: 523523) engaged in the manufacturing of paper and paper products including colour paper, board, cast coated paper and Manila/Bristol paper and board, is planning to pump in about Rs 700 crore for its expansion programme at its existing unit in Gujarat. The company is going through a very strong phase by setting up a Folding Duplex board plant. The Folding duplex board (tetrapack), is all set to replace plastic. Through these expansion plans the company will increase its capacity to four lakh tonnes over the next two years. Going forward Rainbow Papers is also planning to launch consumer products such as notebooks, copier paper and official stationery, under the Rainbow brand. Its branding exercise will commence next month, with initial target markets being Gujarat, Maharashtra and Rajasthan. With the completion of the proposed plant the company’s current capacity will increase to 3.05 lakh tonnes by September from 1.83 lakh tones at present. Speaking about the company’s plans Mr. Ajay Goenka, CMD of Rainbow Papers Ltd said, “We are very excited about our investment and ventures into new and advanced segments. The company’s expansion plans are some of the factors which are leading towards strong growth as well as earnings and profits of the company in the coming periods”. To emerge as the largest manufacturer of recycled paper in India with near zero waste, the company has already set up 2 waste projects. These projects include Brick and Fly ash project and Plastic sheet project that have begun to earn revenue for the company. For instance, it earned Rs 6 crore from plastic sheets and Rs 3 crore from bricks. The current expansion is one of the most – cost effective capacity expansions in the paper industry, following which our company will experience double the turnover in the next two years.Rainbow Papers imports its raw material nearly 10,000 tonnes of waste paper every month from Dubai and Singapore. It also collects 80,000 tonnes of waste paper within India on a monthly basis. It also has plans to import high-pulp contents from Indonesia and the US. The company’s sales were Rs 395 crore in FY11 (Rs 278 crore in FY10) whereas its profit after tax was Rs 37.10 crore (Rs 23.62 crore). Currently, the domestic paper industry ranks 15th in the world with its 600-odd mills having operational capacity of 9.5 million tonnes, out of installed 11 million tonnes, and a turnover of Rs 25,000 crore a year. With the world’s 15 per cent population living in India consuming only 1.6 per cent of the global paper production, the country’s per capita paper consumption is only 9 kg against East Asia’s 12 kg and the world average of 55 kg. About Rainbow Papers Ltd:Rainbow Papers today is one of the fastest growing corporations in the Indian Paper Industry using the eco-friendly process of recycling of waste paper. Rainbow manufactures over 186 varieties of paper with current capacity of 183,000 TPA. It has marked its presence in the global market and is currently exporting its products to various countries in the US, Middle East, South Africa, South East Asia and U.K. We offer a plethora of world class products ranging from Duplex to File Board, from writing paper to Art Card and from packaging and Electric grade crepe to Decorative tissues crepe, which has given us a good recognition amongst our users who thirst for better and new products. The Company, with its recent and forthcoming capacity expansions, will consolidate its standings as one of the leading Paper mfg. companies in the country.For more information please visit www.rainbowpapers.com
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