Emami Paper Mills rises 10 per cent on capacity expansion plan

Emami Paper Mills of the Emami Group surged over 10 per cent in intra-day trade as the Odisha government approved the company’s expansion plans on Tuesday, July 4.
 
Odisha’s state level single window clearance authority (SLSWCA) sanctioned the projects of three companies, including the Rs 650 crore project of Emami Paper Mills, Rs 430 crore project of Ambuja Cements and Rs 108 crore project of Surya Foods and Agro.   
 
The company will be increasing the capacity of its multi-layer coated board manufacturing unit at its Balgopalpur plant in Odisha, at a cost of Rs 650 crore. The expansion plans are subject to the approval from the board of directors and other stakeholders.        
 
The company’s packaging unit at Balasore had posted sustained performance in the previous quarters, growing upto 180,000 TPA, which led the company to plan expansion of its operations. The new plant to be established in Balasore is also expected to have similar capacity.  
 
The company had posted a 110.26 per cent increase in its net sales to Rs 300.84 crore in the fourth quarter of FY17, as against the net profit reported by the company in FY16.
 
Moreover, the stock of the company majorly outperformed the markets in the past one month up to July 3, 2017, rising 19.67 per cent, as against a 0.17 per cent decline in the Sensex. On a yearly basis, the stock outperformed the market in the past one year, soaring 114.02 per cent as compared to a 14.45 per cent rise in the Sensex.        
 
Emami Paper Mills had hit an intraday high of Rs 132, and an intraday low of Rs 125.60 in the trading session on July 4.