MANGALORE: Dandeli-based West Coast Paper Mills Ltd. plans to increase its production capacity at a cost of Rs. 1,100 crore from 1,63,750 tonnes a year to 3,20,000 tonnes. The company hopes to complete the expansion programme by March 2009.

According to a press release from the company's executive director, K.L. Chandak, here on Monday, the company underwent a financial crunch between 1985 and 1990 because of an increase in overheads and production costs. It then embarked on an expansion and modernisation programme at a cost of Rs. 400 crore between 1991 and 2006, which resulted in a production increase from 18,000 tonnes a year to the present capacity, thus saving the company and its workforce of about 4,200 from an uncertain future.

The company then made use of the Union Government's programme of modernisation and expansion of paper industries and invested Rs. 660 crore in upgrading the Gujarat Sriram Paper Mills, which it owned.

Mr. Chandak said that once the expansion and modernisation of both companies was completed, they would together be the largest producers of paper in the country. He said the company had requested the services of SPB Projects and Consultancy Ltd., Chennai, and Vimta Labs of Hyderabad to carry out studies on environmental matters relating to the expansion programme. International Finance Corporation (IFC) of Washington and ICICI Bank, Mumbai, had promised to provide Rs. 725 crore for the project, he added.

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