Emami Paper Mills is on the buzz today. The stock price rose from Rs.121.35 to an intra day high of Rs.126 and volumes are up almost 4 times.

The stock has risen after the company stated that it has received in principle approval from Odisha government for a proposed expansion plan.

In a Press Release issued by the company, it stated, “Company has received in principle approval from Odisha Government for proposed expansion plan for increasing capacity of multi layer coated board manufacturing at Balgopalpur in Odisha at an estimated cost of Rs 650 crore, subject to necessary approvals from the board of directors and other concerned.”

The company said that it is buoyed by the performance of its first packaging unit at Balasore, touching almost 180,000 tonnes per annum (TPA) mark, Emami Paper Mills is now planning to put in place a similar plant of multi-layer coated board. This will result in doubling its present capacity and the significant market share. Encouraged by good market response and growth in packaging sector, the company is now conceptualising another big ticket expansion in the form of similar plant at Balasore with somewhat similar capacity, details of which are being worked out.

The company will furnish further information in this context as soon as the decision is firmed up at the board level and after getting further necessary approvals.