ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Onward into the Core Sector

Onward into the Core Sector Hansavivek ITC, leader of India's tobacco industry, which has already diversified into hoteliering, foods, printing and packaging, and general exports, is now entering the core sector of the economy. It will undertake a Rs 44-crore project for manufacture of 50,000 tonnes annually of paper and paperboard. The project is being set up in a 'backward' area of Andhra Pradesh by a new com- pany known as Bhadrachalam Paper- boards\ APIDC and Vazir Sultan Tobacco are participating in its equity capital. The company is expected to go into production in 1979. In the first phase, it will produce 28,000 tonnes of paperboard and 12,000 tonnes of writing and printing paper. The company enjoys generous support of the state government, which has not only guaranteed supply of bamboo and hardwood and halved the royalty on the purchase of these raw materials for 10 years, but has also granted relief in the power tariff for the first three years. The company has recently offered 53 lakh equity shares, of Rs 10 each, and 50,000 (11 per cent) cumulative redeemable preference shares, of Rs 100 each, both at par, to raise a part of the finance required for the project. With an offer for sale of 38 lakh shares, made in December last by three major nonresident shareholders to the Indian public, ITC is now an Indian company in every respect and can look forward to further broadening of its horizons in the future.

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