Date:10/11/2005 URL: http://www.thehindubusinessline.com/2005/11/10/stories/2005111002830200.htm

Back BILT forays into tissue paper segment; to invest Rs 25 crore

Our Bureau

New Delhi , Nov. 9

BALLARPUR Industries Ltd (BILT) today announced the launch of its tissue paper business and would be investing Rs 25 crore in the next five years.

Branded `Etiquette', the range of products will comprise facial tissues, toilet tissues, serviettes, handkerchiefs, towels and napkins that are to be introduced in phases over the next few months.

Etiquette will be initially distributed in the Delhi NCR and within a year will be made available throughout the country. The company hopes to gain 20 per cent control of the estimated market potential of Rs 3,500 crore of the tissue business in the country. The company's investment will include finance for brand building initiatives.

Etiquette will be produced for both the premium and economy segment and be priced at competitive rates.

While addressing the press conference, Mr Gautam Thapar, Vice-Chairman and Managing Director, BILT, said, "BILT's endeavour is to continuously explore opportunities in the paper sector, so as to widen its portfolio to include more and more consumer facing products. Tissue, we reckon, is an emerging business project and we see great potential in growing this business in the nation."

Mr A.D. Singh, CEO, BILT Tissue Business, said that his previous experience in this segment has provided him with the know-how of manufacturing tissues and that BILT will conform to the quality and standards set by international brands, even as he demonstrated their superiority vis-à-vis the existing domestic ones.

He termed the current tissue paper scenario in India as "unorganised" and emphasised the need for branding of tissue that will speak for its quality and worth. BILT will be marketing its tissue products with the catchline, `modern way of living'. It also plans to embark on educating the public on issues of personal hygiene through an advertising campaign that will soon kick-start.

Currently, the domestic tissue market size is estimated at Rs 600 crore with an average consumption of 30,000 MT per year.