Hindustan Paper Corporation plans to invest in greenfield and brownfield paper plants in
Uttar Pradesh (UP). The 4,670 crore investment would boost the companys paper and
print capacity to 800,000 tonne a year by 2012. "The investment would be carried out in
four mills including two subsidiary mills of HPC for modernization and capacity
augmentation. We would promote one Greenfield paper mill in UP, which will be the
largest single location in the country," said Raji Philip, chairman & managing director,
HPC announcing the annual results of the company.
The UP plant to be taken over by HPC has government approval and to
fund its take over a special purpose vehicle Jagdispur Paper Mills Ltd. has been floated in
which HPC would hold 51 percent stake. HPC is waiting for the market to stabilize to tap
the capital market to fund its 2,742 crore UP project. "The 300,000 tonne capacity
project would be financed through a debt equity ratio of 1:2," Philip said. "We are
planning to tap capital market to finance the 2,742 crore paper project in UP that has
already been cleared by the government," Philips said. Once the market will stabilize
they would be heading for the market.