ITC, Ramky group may set up paperboard plant

Conglomerate ITC and waste management entity Ramky Group may jointly set up a paperboard manufacturing plant using waste paper as raw material.

Though the location is yet to be finalised, Ramky will set up the plant while ITC will support the project by strengthening channels for waste paper collection from households and offices though WOW (Wealth Out of Waste) programme, Sanjay Singh, Divisional Chief Executive, ITC's Paperboards Division, said here today.

"It may take about two years for the project to come up. First we will have to strengthen the source collection channels first. A plant with one lakh tone capacity would cost about Rs 200 crore," he said, adding ITC may take up the
marketing part of the product.

Ramky chairman Ayodhya Rami Reddy said they have already entered in to an MOU with ITC to take forward the project.

Explaining about the WOW project, Sanjay Singh said the project which was started as a corporate social responsibility now also turned as business model.

The company has already set up a one lakh tone capacity paperboard manufacturing plant at Coimbatore which uses waste paper and other related recyclable stuff as raw material.

ITC also has a half-a-million ton paper and paper board plant at Bhadrachalam in Andhra Pradesh.