JK Paper, market leader in copier segment, is scouting to acquire a manufacturing plant in South India as it looks to offset increased transportation costs.
JK Paper Managing Director Harshpati Singhania said most of the plants, which are available for acquisition, have capacities of 20,000-30,000 tonnes, which does not suit the companys plan. He said the idea behind looking out for a facility in South India was to reduce transportation costs in the wake of increased diesel prices as JK Paper still does not have a manufacturing unit to cater to the region.
JK Paper, which has a 40 per cent market share in the photocopier segment, wants to focus on value-added products such as copier, coated paper and packaging board segments. The copier segment is growing at about 20 per cent compared to eight per cent in the entire paper industry.