Nov 18, 2005. /Lesprom Network/. ANDHRA Pradesh Paper Mills Ltd (APPML), the INR 5 billion ($109 million) paper products major belonging to the LN Bangur group, plans to add 50 000 tonnes per annum with at an investment of around INR 22 billion ($481 million). This is in addition to the ongoing INR 6.35 billion expansion and modernisation programme for taking the paper making capacity to 1.94-lakh tonnes per annum from the existing 1.53-lakh tonnes per annum. The current expansion is scheduled to take off in phases by March 2007. APPML vice-president Mr. Shreeyash Bangur said the fresh expansion for paper-making is being planned to use the additional pulping capacities. Stating that the Brownfield programme of adding 50 000 tonnes per annum would be frozen in the next 3-4 months, Mr. Bangur said the expansion could be completed between 16-18 months from then. The company is yet to finalise details on the funding pattern. Following this, the company's paper making capacity would reach 2.5-lakh tonnes per annum. The company is evaluating a proposal to set up a greenfield project with a capacity of 2.5 lakh tonnes per annum involving an investment of around INR 18 billion. According to Mr. Bangur, the greenfield project would be set up mostly outside AP where raw materials were abundantly available. However, he said the company has not yet chosen any state for the purpose and said the concrete initiatives on the greenfield project would begin only after the completion of current expansion in March 2007. The APPML executive director, Mr. R.C. Mall, said the company expects to reach a turnover level of INR 5.5 billion by March 2006 and INR 6.5 billion by March 2007. The proposed greenfield project, which would take 3-4 years for execution, would help the company double its capacity to around 5-lakh tonnes per annum and also double its revenues, he said. Further, the company is also actively considering other expansion routes that include joint ventures with overseas partners. According to Mr. Bangur, few prospective foreign partners have shown interest in joining hands with the company for a joint venture project. However he said the discussions with foreign players were at a preliminary level. Aimed at maintaining the ecological balance and simultaneously meet its raw material requirements, the company plans to go aggressive on farm forestry initiatives to cover another 15 000 hectares in the next three years. The company has till date covered around 39 000 hectares in the catchment areas, Mr. Mall said.