The Hindu Business Line : BILT steps up focus on non-paper businesses

BALLARPUR Industries Ltd (BILT) is planning to step up focus on its non-paper businesses and has charted out expansion plans for its power, packaging, and food divisions.

The company, for instance, is mulling the possibility of hiving off its power division and making it an independent business.

"There is no reason as to why it should be a part and parcel of the mills," Mr L.M. Thapar, Chairman, said in an interview to Business Line.

The company is also considering splitting the power generation units from the paper mills into a separate entity and may raise money from the market for the same.

The power generated from the units will then be provided to the paper mills at the commercial rates.

Currently, all the power units put together create around 100 MW of power.

Mr Thapar said that he is also eyeing the possibility of modifying the captive units to supply to the grids, though this would not be the primary purpose.

The units would continue to supply power principally to BILT's own units.

This proposal may, however, take a couple of months to materialise, he added.

Apart from the power project, BILT is also planning to make APR Packaging Ltd (Ashti), into a 100 per cent subsidiary of the company. The company has contracted PricewaterhouseCoopers to valuate the financials of Ashti.

According to Mr B. Hariharan, Group Finance Director, BILT, the board will discuss the valuations in its next board meeting scheduled early next year.

The Ashti plant, located in Maharashtra, used to earlier manufacture sack kraft paper, which is now being imported into the country. Currently, the plant produces copier paper.

The company is also upbeat about its agro business, Global Green, which has started to generate significant revenues.

In fact, Global Green, which is focusing on exports of gherkins, achieved a turnover of Rs 100 crore recently.

Global Green also sells food items under the Tiffy brand in the domestic market.

Mr Thapar, however, said that the group's core business would remain paper and it would maintain its undisputed status as the country's largest paper manufacturer.

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BILT steps up focus on non-paper businesses