Tamil Nadu Newsprint and Paper is the largest bagasse-based paper company in India. Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. It is used as a biofuel and as renewable resource in manufacture of pulp and paper products and building materials. The use of bagasse as a raw material makes Tamil Nadu Newsprint one of the most efficient and cost-effective in the local paper industry.
The company is promoted by the Tamil Nadu government. It manufactures newsprint, printing and writing paper. In fiscal 2010-11, the company undertook expansion of its paper production capacity to 4 lakh TPA from 2.45 lakh TPA, incurring a capex of Rs 1,000 crore. The company revamped its steam and power system, built de-inking pulp plant to produce pulp from waster paper and implemented a lime sludge management project at a capex of Rs 385 crore. The expansion will increase volume and improve operating profit margin.
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