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ITC Paperboards targets Rs 100 cr sweetmeat packaging mkt
The Economictimes.com - 29 Jan 2006

KOLKATA: The country's largest paperboard maker, ITC Ltd's paper and paperboard division is focusing on the Rs 100 crore value-added sweetmeat packaging market in the country. "We are targeting the national sweetmeat market and West Bengal is our key focus region for our ECE foodgrade packaging paperboards," ITC GM (Market Development) Niraj Shrivastava said. Out of the total Rs 100 crore sweetmeat packaging market, West Bengal accounted for almost half of the national market. In volume terms this sector consumed about 40,000 tonne per annum.

"Bengal accounts for 50 per cent of the total sweetmeat consumption of the country," Shrivastava said. "We are targeting a 10 per cent share of the market over the next two to three years." The company has launched cholorine free packaging boards in Delhi, Mumbai and Kolkata.

Speaking about the performance of the paperboard business of the company, Srivastava said ITC was looking at 30 per cent market share in the domestic market by 2006-07.

ITC beside food was also trying to push its environment friendly packaging product to pharma, textile and FMCG sectors.

Paperboard generated almost 90 per cent of the total revenue of the paper and paperboard divison. The divison generates over Rs 1100 crore, Srivastava said.

ITC during the current financial year hoped to achieve over 30 per cent growth in export of packaging paperboards, Srivastava said, adding that the company was looking ahead to export Rs 200 crore worth as against Rs 150 crore achieved last year.

ITC had invested about Rs 750 crore over the past two years in the paperboards business to acquire international competitiveness in cost and quality.

ITC's is the only company in the country to use Element Chlorine Free (ECE) pulp to produce packaging and paperboard. The current installed capacity of ITC was 3.5 lakh tonne per annum.