Kerala buys most of its paper from outside; Kottayam-based KPPL's ₹741-cr project plans to change that

Kottayam: Kerala has considerable potential in the paper manufacturing sector, but only one company in the state is currently engaged in the business- Velloor-based Kerala Paper Products Limited (KPPL). Now, the state-owned company is planning a major expansion that could make it Kerala's only manufacturer of a wider range of paper products, with projects worth ₹741 crore receiving government approval.

The projects aim to expand KPPL's production capacity and diversify its product portfolio, enabling it to manufacture products beyond newsprint.

An independent agency appointed by a consortium of banks has also conducted a feasibility study and submitted a favourable report on the project. The state government will contribute ₹200 crore as equity, while the banking consortium will provide the remaining ₹541 crore. KPPL aims to complete the project within two years.

The expansion will enable the company to manufacture high-quality writing paper and packaging paper in addition to newsprint. The proposed upgrades include expanding the capacity of its wastepaper recycling plant, reviving its 22 MW power plant, and modernising its chemical pulp plant, power boilers and waste treatment facility.

The project could also help Kerala reduce its dependence on paper manufactured in other states. The state government alone requires around 25,000 metric tonnes of writing paper and other varieties annually, while demand in the private sector is estimated to be nearly 10 times higher. Currently, these requirements are largely met by supplies from outside Kerala.

With the proposed expansion, KPPL aims to emerge as the state's only manufacturer catering to this segment of the paper industry.

The project also envisages transforming the KPPL campus into a paper cluster by developing infrastructure for small-scale manufacturing units. These units will produce premium-quality A4 paper, carry bags, packaging paper and notebooks.

The feasibility study for the banking consortium was conducted by the Industrial and Technical Consultancy Organisation of Tamil Nadu (ITCOT).