Sangal Papers Ltd.

Sangal Papers Limited(SPL) was incorporated as a public limited
 company on 25th November, 1980 with the main object for the setting
 up a project for the manufacture of paper. The initial project of the
 company to manufacture kraft paper with an installed capacity if 4500
 MT per anum was financed by Uttar Pradeshiya Financial Corporation
 (UPFC), The Pradeshiya Industrial and Investment of U P
 Limited(PICUP) and Syndicate Bank jointrly with PICUP in lead. Term
 loans to the extent of Rs. 83.00 lakhs were sanctioned for setting up
 the project. In addition to the term loans, PICUP and UPSIDC also
 paticipated in the capital of the company to the tune of Rs. 4.00
 lakhs and Rs. 6.00 lakhs respectuively in the year 1982. The original
 project was manufacturing kraft paper.
 Due to the prevailing market conditions and to imprve the
 profitability, The product mix was changed to include writing,
 printing and newsprint paper.
 
 Other measures implemented to increase cost effectiveness and
 efficiency 
 were:
 
 1. Dependence on waste pper to produce pulp was reduced from 100% to
 an effective mix of waste paper and agricultural residues.
 
 2. Inorder to reduce fuel cost per tonne one additional fluidised bed
 boiler was installed.
 
 apart from the above cost reduction measures, capacity was also
 increased from 4500 MT per annum to 7500 MT per annum. These changes
 were implemented at a cost of Rs. 212 lakhs out of which Rs. 149.80
 lakhs were financed by way of term loan by PICUP under its Equipment
 Refinance Schemes.