Higher operational efficiencies 

The size of a paper machine is an important viability parameter. Smaller units with high operating costs are becoming unviable, while bigger and technologically evolved units are attractively placed to achieve lower costs.

Emami Paper's third machine at Balasore with an installed capacity of 85,000 tonnes per annum, by far the largest paper manufacturing machine in India; as an extension, the company has increased an aggregate installed capacity to 145,000 tonnes per annum, making it the largest newsprint maker in India. This scale will not only enable the company to spread its variable cost over a larger tonnage but increase its bargaining clout in the purchase of raw materials.

In the current market scenario, there have been increasing investments in brownfield expansions as opposed to the greenfield route. This is on account of a relatively quicker time in commissioning; comparatively lower capital cost, faster product-to-market, quicker cash flow and shorter payback. For instance, while the project cost for a greenfield project (based on 100 per cent recycled fibre and captive power plant) is estimated at around Rs. 65,000 per tonne, the brownfield expansion at Emami Paper has entailed a competitive capital cost of around Rs. 39,000 per tonne.

The Company has taken necessary steps to set up 400 TPD (132000 TPA) Newsprint project at a project cost of Rs.500 crores. The project is likely to be set up in South India or at existing location at Balasore. The Company is also in the process of setting up 600 TPD (200000 TPA) wood based integrated pulp and paper mill in Orissa alongwith necessary infrastructural facilities and ancillaries. Steps are being taken for evaluation of all parameters including land acquisition, utility feasibilities, cultivation of plantation, discharge of water etc. The project will be set up in 2 phases and 1st phase of 300 TPD (100000 TPA) at a project cost of Rs.1000 crores is likely to be completed in the year 2013-14.