Public CompanyABC Paper shelves plan to set up new plant
Punjab-based ABC Paper has put on hold its plan to set up a new agro-based facility with an investment of Rs 1,000 crore in view of sluggish demand and said it would rather stabilise existing operations.
- Panasonic India to invest $300 mn in 3 years - Reaction from double top - GVK Power buys L&T"s 17 per cent BIAL stake - L&T, EADS may send revised JV proposal to FIPB - CIL to seek legal opinion on reserving stocks for employees - Concrete investments
"We have shelved our plan for setting up a new paper facility due to sluggish conditions (in the paper market) at the moment...We will first want to bring stability in our operations," ABC Paper Managing Director Pavan Khaitan told PTI here.
The company had planned to set up a new paper- manufacturing facility either in Maharashtra or in Madhya Pradesh with an estimated investment of Rs 800-1,000 crore. The new plant was expected to be commissioned by 2010.
Khaitan said the paper industry currently was facing pricing pressure on account of building up of large capacities in the past.
"A lot of capacities (in paper sector) have been added... That has led to supply exceeding demand for paper. As a result, the prices of paper has gone down by as much as 20-25 per cent," said Khaitan.