Dhunseri Group, which has business interests in petrochemical downstream and tea, has earmarked an investment of ₹2,240 crore to scale up manufacturing of plastic packaging materials in Bengal and Jammu & Kashmir by 2029.

Led by Chandra Kumar Dhanuka, it has kicked off a greenfield project at Kathua in Jammu, where it would put up a BOPP (biaxially oriented polypropylene) plant with a capacity of 128,000 tonnes. The unit will be fully operational by 2027.

BOPP is a versatile packaging material used by the FMCG industry for its gloss, tensile strength and moisture resistance. The J&K plant will call for an investment of ₹1,240 crore. However, the project has also been selected for one of the most generous incentive schemes ever given by any government in India.

Under the Central scheme specifically aimed at promoting industry at J&K, which has been subjected to nearly four decades of insurgency, the Dhunseri project is expected to earn incentives worth ₹1,800 crore over a period of 10 years, thereby more than covering the initial investment in the plant.

Bengal expansion

Dhunseri Poly Films, a wholly owned subsidiary of Dhuseri Ventures Ltd, will also expand the capacity of its existing Panagarh plant in Burdwan. It operates a BOPET (biaxially oriented polyethylene terephthalate) plant in Bengal with 51,000 tonnes capacity. BOPET is also a packaging material, more expensive than BOPP as it has higher strength and heat resistant capacity.

In Panagarh, Dhunseri will add a new line of BOPET with 61,000-tonnes-a-year capacity and a 95,000-tonne BOPP plant. The proposal for the project, which entails a ₹1,000 crore investment, will be taken up by the company’s board in its meeting in August, executive chairman C.K. Dhanuka said.

“The Panagarh expansion will be complete by 2029. By then, I am expecting a business of ₹2,000 crore from Bengal and J&K plants,” Dhanuka added.

The projects will be financed at a debt-to-equity ratio of 70:30. The Bengal expansion, which is awaiting the board’s approval, will call for a ₹300-crore equity investment from Dhunseri Poly Film.

The money will be brought in by parent Dhunseri Ventures, the flagship holding company of the group engaged in treasury operations and holding investment in 50:50 joint ventures with Indorama Group engaged in PET manufacturing business in India (Haldia and Karnal) as well as in Egypt. Combined capacity of these plants is 1.3 million tonnes and a turnover of $1.20 billion.