JK Paper is in an expansion mode. Not only is the company planning capacity expansion and modernization of its existing JK Paper is in an expansion mode. Not only is the company planning capacity expansion and modernization of its existing mill, but it has also received assent from shareholders for increasing its capital base to Rs 170 crore. Satish Mandana, chief financial officer of the company, said the money would be raised through a combination of debt and equity. The first tranche of the capital expansion will be completed with this financial year, through a rights issue or private placement or both. J K Paper's financial year is from July to June.

The company has earmarked investment plans of Rs 290 crore (US$ 64 million) over the next two years for upgradation of its production facilities. JK Paper has already invested Rs 25 crore in its Surat plant for installing a process through which oxygen (instead of chlorine) would be used to bleach paper, thus improving product quality.

The company has also commissioned an offline blade coating paper plant at the Jaykaypur plant in Raigarh (Orissa) with an investment of Rs 85 crore. It is planning to invest Rs 235 crore for the Songarh facility, which will manufacture multi-layered duplex boards. Mandana said the company's sales volume grew by 10 per cent during the September quarter and it was eyeing an output of two lakh (200,000) tons in 2005-06.

Mandana said 40 per cent of the company's turnover is from copier paper sale, Maplitho contributes 35 per cent and coated 15 per cent to the company's turnover.One can assume that the balance 10 per cent is from pulp board.