The company had originally planned to increase the paper and pulp capacity by 40% at Pallipalayam manufacturing unit in Tamil Nadu and applied for EC for the expansion. After reviewing the feedback from the Environment Ministry, the company’s board has now approved the execution of the expansion in multiple phases.

The first phase will involve a 20% expansion, and a fresh application for environmental clearances is to be submitted. The expansion of up to 40% will be undertaken upon successful completion of Phase-I, as the company had sought exemption from fresh public consultations, as per its FY24 annual report. 

The board is expected to grant final approval for the revised scope, timelines and costs for various phases of the project post a detailed review of the techno-economic feasibility report. This is subject to obtaining requisite approvals from the concerned authorities for the revised Phase-I expansion by 20%.

The Rs 1,802-crore company currently operates an integrated pulp, paper and paper board mill at Pallipalayam and a paper manufacturing mill at Tirunelveli. 

Its total installed capacity stands at 2,55,000-tpa, with the Erode facility at 1,65,000-tpa and the Tirunelveli unit at 90,000-tpa. 

The Erode facility is already running at full capacity, with a capacity utilisation of 100% in FY24, while the Tirunelveli facility’s utilisation was about 84%.