ITC plans Rs 500 cr paperboard plant

In variance with the general trend of Indian companies making forays abroad, private sector giant ITC has made it clear that its focus would be India and unveiled ambitious plans, including setting up of a Rs 500 crore (Rs 5 billion) paperboard plant in the country.

"ITC's philosophy is to invest as much of its funds in generating economic activity in India rather than look for opportunities for ITC's capital in creating economic activity somewhere else," Y Deveshwar, ITC Chairman said in Bejing.

"Charity begins at home and we want to do that first," Deveshwar, who is also the president of the Confederation of Indian Industry, said after receiving the prestigious Development Gateway Award 2005 as well as the prize money of $100,000 for ITC's e-Choupal initiative.

On ITC's future priorities and growth plans, Deveshwar said the food processing sector in India looks highly promising.

"ITC's food processing business is growing very rapidly. I have already announced that this year we will have a turnover of about Rs 800 crore (Rs 8 billion) with branded and packaged food," he said.

On the location of the paperboard plant, the chairman said it was thinking of Gujarat, Maharashtra, Madhya Pradesh, West Bengal or Tamil Nadu.

Currently, the techno-economic, socio-economic feasibility studies are going on," he said.