JK Paper has set its sight to capture the premium packaging board, also known as virgin fibre based board, market that is set to grow at 12.9% in 2021. This comes on the heels of JK Paper approving in May 2018 the setting up of an additional capacity up to two lakh tpa of packaging board, pulping facilities up to 1.60 lakh tpa and utilities at Central Pulp Mills (CPM) in Songadh, Gujarat. The entire cost of the project is approximately considered to be Rs 1,450-cr.
Indian consumer packaging market in 2017 was valued at 12.0 billion USD and is expected to grow at 11-12% in the next five years. Currently, the total premium packaging board domestic annual consumption is at 7.5 lakh tonnes.
The company’s manufacturing capacity of packaging board stands at 90,000 tpa from its overall capacity of 4,55,000 tpa that also consists of manufacturing of uncoated paper, coated paper and saleable pulp. It has a market share of 12% in packaging board.