Seshasayee buys out Tamil Nadu paper firm

Mid-sized paper company Seshasayee Paper and Boards Limited is acquiring small paper producer Subburaj Papers Private Limited signaling a rare consolidation in the paper industry in the country. The acquisition will give Seshasayee a recently established paper mill near Tirunelveli in Tamil Nadu with a capacity of 60,000 tonnes per annum.

Seshasayee already has capacity to produce 1.15 lakh tonnes that is fully utilised and the firm needed to expand it or buy new capacities to grow further. Seshasayee has not disclosed the value of acquisition but said it plans to enhance the capacity of the acquired unit by 50% to 90,000 and the total investment including the money for acquiring 100% stake in Subburaj Papers will be Rs 250 crore.

Alongwith the added capacity, Seshasayee will have total capacity to produce 2 lakh tonnes of paper in the country. Subburaj