Mumbai, Feb 9 (PTI) Wood and Agro-based paper manufacturers Satia Industries on Wednesday said it has commissioned Paper Machine 4 having an installed capacity of one lakh tonne per annum, with an investment of Rs 500 crore.

Out of the total investment of Rs 500 crore, Rs 300 crore was raised through debt and the rest through internal accrual, Satia Industries said in a statement.

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"We are pleased to announce the start of commercial production from our new PM 4 from February 7, 2022, and thank the entire team of all the suppliers. PM4 will help us widen our product range, strengthen our position further in the industry, and elevate our total production to over 700 tonnes per day," Satia Industries Joint Managing Director R K Bhandari said.

PM 4 will enable the company to have an additional capacity of 300 tonnes per day, and yield higher price realisation and margin, as SIL is planning to make a foray into newer product segments and markets, emerging with a single-use plastic ban coming from July 2022, as announced by the government.

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The total aggregate installed capacity of SIL will be 2.05 lakh TPA, which is twice the existing capacity.

With PM 4, SIL will manufacture superior quality paper and add new products to its current product mix and serve a wider spectrum of the paper market with quality at par with wood-based mills.

Bhandari said the company expects to achieve a 100 per cent capacity utilisation in the next financial year and to produce and add 10,000 tonnes additional paper from the new machine in the current quarter of this financial year, contributing incremental revenue of Rs 65 crore in FY22.

"With 100 per cent capacity utilisation, we estimate our revenues to grow by more than 1.6 times and substantial increase in profits for FY23, driven by increased capacity, product mix and higher efficiency," he added. hrs hrs

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