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Badal Sanyal

KOLKATA, June 4

MANUFACTURING newsprint in the country is no longer an economically viable business, according to Mr. P.S. Patwari, Executive Director of the city-based Emami Paper Mills Ltd (EPML), the only major newsprint manufacture in the eastern region.

He said, "We cannot compete with imported newsprint under the prevailing custom duty structure." Unless protective fiscal measures are taken, all the domestic newsprint manufacturing units may have to close down their shops or will incur huge losses, he feared.

He said the sales turnover of his company was down by about Rs 7 crore during the fiscal under review compared with last year, even though the company produced at least 5,000 tonnes more as against last year's production of 43,000 tonnes (including about 10,000 tonnes of writing and printing paper).

The company earned a net profit of about Rs 75 lakh on a sales turnover of about Rs 116 crore and a total production of about 48,000 tonnes of newsprint and writing & printing paper. Of the total production, newsprint contributed about 35,000 tonnes.

Mr Patwari said the market situation had forced the EMPL management to abandon the expansion programnme. The company was now actively considering foray into packaging business. The company has two mills, one in the city and the other in Orissa. He, however, indicated EMPL might consider importing of newsprint and writing & printing paper for trading purposes.

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