• Paper Industry is regarded by Govt. of India as one of the 35 high-priority industries
• Number of Paper Mills in India - 515
• India's installed capacity in 2006 - 6.7 million tonnes
• Average annual per-capita consumption in Indai in 2006 is only 6 kg, compared with 42 kg in China, 55kg in the world as a whole. This low per-capita consumption infers that enormous scope exists for the consumption to rise in India in future.
• Indian Paper industry is the 15th largest in the world and provides employment to 1.3 mn people in the country contributing Rs.25 billion to the Government.
• Being a priority sector industry, foreign collaboration and foreign equity up to 100% receive automatic approval by the Reserve Bank of India.
• With no major paper mills in neighboring countries like Sri Lanka, Nepal & Bangladesh, India can become the prime regional player.

• During 2005-06, Paper prices increased by 17-20% and demand grew by 6.3%

• As per CRIS-INFAC reports, overall demand for Paper & Paperboards in India is expected to rise by 6-7% pa due to increased literacy, newspaper readership and business & commercial activities and is expected to cross 8 mn tpa by 2010

• Annual demand in India is projected to grow from 6.8 million tonnes in 2006 to 8.2-8.5 mn tpa in 2010 and to 11 mn tpa in 2015, thus keeping pace with overall Industrial segment growth of 7-8%

• Global demand for Writing & Printing segment is expected to grow at 1-2%

• As per FAO & Jaakko Poyry forecast Global demand in 2010 is around 420-425 million tonnes

• Current estimate is 385 million tones

Demand is expected to grow at :

• Writing & Printing Papers at 5-5% pa.

• A4 Copier Paper at 14-15% pa

• Coated Papers & boards at 20% pa and

• Newsprint at 10% pa

Capacity: Manufacturing facility for 2.0 lac TPA

Product: Copier and Writing & Printing grades

Location: Bayyaram, Tallapudi Mandalam, near Kovvur, West Godavari District, Andhra Pradesh, India.

Estimated Project Cost: Rs.1200 crores (US $ 265 millions)

Source of Fiber: Primary & Secondary Fiber through import tie-up with M/s.Elof-Hansson, Sweden.

Future Strategy: Add pulping capacity by tying up indigenous Raw Material sourced through allotment of forest wood by the GoAP, Private suppliers and by implementing Social Farm Forestry Scheme.

Project Highlights & Social Benefits

• First SEZ in Indian Paper Industry

• First Mega Paper Mill by AP based Promoters

• Provides direct and indirect, equal-opportunity employment up to 10,000 persons

• Substantial contribution to the Government exchequer by way of taxes and duties

• Increased utilization of Kakinada Port facility through bulk imports and exports.

Location Advantages:

• Project ideally located at Bayyaram hamlet of Tadipudu Village, Tallapudi Mandal, near Kovvur, West Godavari District, Andhra Pradesh State, India.

Availability of:

• Water, within 5 kms from the perennial Godavari River

• Power

• Coal

• Manpower

• Proximity to National highway, Railway Station and 100kms from Kakinad Port

• Proximity to natural gas pipeline 10 kms away for future linkage.

Govt. Support and Assurance

Memorandum of Understanding (MoU) : Memorandum of Understanding (MoU) signed between GoAP and Whitefield Paper Mills Ltd. on 27th March, 2006 with GoAP assuring full support on the below mentioned aspects.

• On GoAP recommendation, Govt of India declared this project as a Special Economic Zone (SEZ) on 21st August, 2006

• GoAP, Industries & Commerce (IP) Department issued Order vide G.O.Rt.No.323 dated.30th May, 2006 confirming the MoU and the concessions & benefits.

• GoAP, Revenue (Assignment VII) department issued Order vide G.O.R.T.No.1227 dated 30th May, 2006 alienating land to the extent of 203.00 acres & 68.35 acres (Total 271.35 acres) at Tallapudi Mandal, West Godavari District for setting up the Paper Mill Project

• GoAP handed over possession of the land to the Company on 12th July, 2006. GoAP has assured alienation of another 229 Acres of land in next phase for housing and other purposes.

• GoAP has assured grant for all subsidies, incentives, benefits and other support/assistance as required by the proposed Paper Mill, under the Industrial Investment Promotion Policy 2005-10.

• GoAP has appointed one Escort Officer specifically for expeditions implementation of the Project.

• GoAP has permitted water drawal from Godavari River

• GoAP has assured support for obtaining all other clearances under 'Single Window System'

• Company has received IEM Clearance from Government of India.

• Tie-up with Elof Hansson, Swedon for total fiber requirement from Europe, North & South America, New Zealand and Far East Asia

• Buy-back of finished production

• Assistance in Engineering & Technology, Procurement, and Supply of Plant & Machinery with performance guarantees and Suppliers credit

About Elof Hansson Group:

• An International Trading House in Forest, Industrial and Consumer products for more than a Century

• Elof Hansson, India is actively engaged in selling machinery & consumables and pulp & waste paper to the Pulp and Paper Industry.

Water:

• Water draw up to 26 MGD from Godavari River

• Project location at 5 kms. from Godavari River

 Power :

• Power requirement will be around 27 MW. Power plant of 40 MW is planned for the Project

• AP Transco grid power during project construction stage

• Sell surplus power to AP Tranco

Fuel :

• If coal is used, requirement about 700 TPD

• If Natural Gas is used, requirement about 0.10 MMSCMD

• Gas Authority India Limited (GAIL) agreed to supply required Natural Gas by 2009 - 10

Alternative Strategy: Natural Gas pipeline of ONGC passes through at a distance of 10 KMs from the proposed site location and we requested for allocation of 100 Million SCM of Gas p.a. from the Gujarat State Petroleum Corporation Ltd. Gandhinagar, which is under consideration.

• Many leading Financial Institutions and Industrial groups assured equity support for the project

• Core Promoters equity of 120 crores within own circle

• Balance Equity from Capital Market

• Promoters confident to syndicate the necessary debt for project from the Indian & Foreign Financial Institutions