P.S. Patwari in Calcutta on Tuesday. A Telegraph picture

Calcutta, Sept. 16: Emami Paper Mills expects a turnover of Rs 1,200 crore within two years, following a diversification into the manufacturing of packaging material.

“The packaging business is expected to add Rs 650 crore in the next two years,” said P.S. Patwari, executive director of Emami Paper Mills. The company, with operations primarily in the newsprint segment, had a turnover of Rs 546.47 crore in 2013-14.

Patwari said the company would commission a 1.32-lakh- -tonne-per-annum multi-layered packaging board plant at Balasore in Odisha by the first quarter of 2015.

“We are setting up a new paper packaging plant at our existing facility at Balasore in Odisha on 100 acres. Around 25-30 per cent of the production from the plant would be exported,” he said.

The plant will manufacture high-end packaging material for use in cosmetics and other consumer items. It will also cater to the indigenous demand from the consumer goods segment of Emami.

The company will have to invest around Rs 1,000 crore and import raw material pulp from Indonesia, Brazil and Scandinavian countries.

On the rationale behind diversifying into packaging business, Patwari said, “The high quality packaging segment is estimated at around 5 lakh tonnes and growing at 20 per cent per annum because of its small base. At the same time, there is not much expansion opportunity in the newsprint segment,” he said.

The company caters to newsprint demand from its plants in Bengal and Odisha.

The paper industry is estimated at around 15 million tonnes per annum. The packaging industry, including cartons and craft paper, is estimated at around 6 million tonnes per annum.