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Moneycontrol India :: News :: BILT to hike coated paper prices by Rs 2,500/tn :: Ballarpur Industries :: Business :: RR Vederah,Ballarpur Industries,paper,uncoated,prices,imports

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BILT to hike coated paper prices by Rs 2,500/tn

2008-05-06 11:48:09 Source : Markets Midday/CNBC-TV18
(Interview Transcript)

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RR Vederah, Managing Director at Ballarpur Industries said coated paper prices will be hiked by Rs 2,500/tonne from tomorrow. He told CNBC-TV18 that uncoated paper prices will increase by Rs 700/tonne.

EBITDA margins will increase by 75 bps on paper price hike, he stated. Vederah expects revenue to increase by Rs 28 crore on price hike.

Excerpts from CNBC-TV18�s exclusive interview with RR Vederah:

Q: Can you confirm - there is news that you might raise prices by Rs 2,000/ton, are you raising prices and is the quantum about Rs 2,000?

A: We are going to increase prices of coated papers by Rs 2,500 a ton from tomorrow and in certain unquoted varieties by Rs 750 a tonne, also from tomorrow.

Q: What is the trigger - is it rise in raw material cost or is it that you are able to push up prices because of the demand factor?

A: No, on the coated paper side, internationally the pulp prices have hardened considerably and that has reflected internationally on the hardening on the paper prices and in India today we compete with imports as far as the coated paper segment goes.

Q: So how much would this increase of Rs 2,500/tonne improve your margins by?

A: Including the uncoated paper, on a 12-month basis, the increase should be about Rs 28 crore.

Q: And that would be a margin improvement of how many basis points?

A: My view is that Rs 28 crore, our EBIDTA margins should go up by close to 0.75%.