Kerala Paper Products Limited set for exapansion

The Kerala Paper Products Limited (KPPL) at Velloor, a State-owned public sector undertaking (PSU), is set for a major expansion and diversification with the State government approving a ₹741-crore project.

According to an official statement, the initiative aims to capitalise on the growing demand for specialty paper grades, high quality packaging paper, and writing, printing and copier papers. The surge in demand is being driven by the rapid expansion of e-commerce, retail, food delivery services and the education sector, along with the continued ban on single use plastics. The project also seeks to reduce the State’s current dependence on costly paper imports from other States.

The KPPL plans to finance the project through a mix of ₹200 crore in equity and ₹541 crore in debt raised through bank loans. Scheduled for completion within 24 months, the expansion plan is expected to transform the KPPL into a company with an annual turnover of ₹1,500 crore. Leveraging its connectivity through rail, road, sea and air, and supported by fully developed industrial infrastructure, the project also envisages the creation of a ‘Paper Cluster’ within the existing campus. This cluster is expected to promote ancillary small and medium scale paper industries and support the production, distribution and export of paper related products, the statement said.

The State government has already approved ₹175 crore as part of its equity contribution to the project. In the Budget presented on Thursday, the government also earmarked an additional fund of ₹15 crore for the company.