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JK Paper to outsource products

By Our Staff Reporter

CHENNAI JULY 6. JK Paper, belonging to JK Corporation, has started outsourcing some of the paper products from both Indian and overseas markets and these will be marketed in the domestic market under the JK brand name. At present, the company has tied up with a manufacturer in North India for outsourcing low quality paper, cream woven. By the middle of this month, it will outsource coated paper from Europe.

Addressing a press conference here, Harsh Pati Singhania, Director, JK Paper, said diverting the existing capacity to produce low quality paper would not be cost effective. The company was planning to have more tie-ups for outsourcing cream woven paper. He said JK Paper was a leader in surface size maplitho, bond and copiers. At present, it caters to over 50 per cent of the domestic market in the branded copier segment.

Mr. Singhania said the company had two pulp and paper mills located in Orissa and Gujarat. Last year the company recorded a turnover of Rs. 600 crores and sold 1.73 lakh tonnes, a growth of 15 per cent in volume terms. Out of the total sales, nearly 60-65 per cent was through retail market and the balance through institutions. He said the South accounted for nearly 28 per cent of the total market.

Exports accounted for 8 per cent of total sales. About 47 per cent of JK copier paper was shipped to Sri Lanka and West Asia.

Mr. Singhania said JK Paper had been following a strategy to shift focus to fast growing higher value products and to create strong brands.

To achieve this, marketing had been directed towards creating brands in maplitho, copier and bonded paper segments. The company had tied up with international paper producers to bring in world-class products into India.

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