US paper and packaging company International Paper is set to buy a majority stake in Andhra Pradesh Paper Mills for about USD 257 million in cash. In an interview on CNBC-TV18, RR Vederah, managing director BILT Paper, a unit of India's largest paper maker Ballarpur Industries, said that it's an very interesting deal and Andhra Pradesh Paper represents true intrinsic value of the paper industry. He further said that existing management team and employees of AP paper are expected to continue even after the deal.
"The paper market is the fastest growing market, however, paper sector is undervalued by the stock market," he added. Talking about the Indian paper industry, he said that the paper industry is an organised sector that represents about 40% of the total output in the country.Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
