Kolkata, July 24 (Inditop.com) Tobacco-to-hotels major ITC Ltd is planning to set up a $1-billion greenfield paper plant and expand its hotel business, a top company official said here Friday.
“We are looking at an investment of Rs.4,000-5,000 crore for paper plant. The paper plant is likely to require 1,500-2,000 acres,” ITC chairman Y.C. Deveshwar said.
The company is scouting for land in three states – Gujarat, Madhya Pradesh and Andhra Pradesh – but has not been successful in bagging any plot yet.
Asked about the size of the paper plant, he said: “It will be a half-a-million-tonne paper plant.”
According to Deveshwar, the paper industry, which currently grows by 5-6 percent every year, has a huge potential.
ITC’s Paperboards and Specialty Papers Division (PSPD) is the largest in the country.
It caters to packaging, graphic, communication, writing, printing and specialty paper requirements. A little more than 10 percent of its sales is supplied to the international markets in Asia, Europe and the US.
Talking about its hotel division, Deveshwar said the company was in possession of land in cities like Hyderabad, Ahmedabad, Amritsar, Bhubaneshwar, Coimbatore and Gurgaon where hotels would be set up.
It is expanding its hotel in Kolkata and setting up a new one with 470 rooms in the city.
He, however, did not give any time frame for completion of these projects.
“We are looking at acquiring properties at reasonable prices to expand hotel business,” Deveshwar said.
The company is planning to expand its hotel business through minority partnership or by common branding of operations and marketing. It is eyeing properties that are not doing very well for the global economic meltdown.
