The company was promoted by Shree Digvijay Cement Company Limited, Sikka, Gujrat State in 1955 and located at Dandeli in Karnataka. The mill location was opted as the most suitable and advantageous, Dandeli being situated in the heart of thick forests on the bank of river Kali. The prospects of continued supply of forest-based raw materials on the assurance of the then State Government of Karnataka, perennial availability of water, assured power supply, vicinity of rail and road linkages were the major factors that weighed in favour of Dandeli.

Originally the plant was designed to manufacture 18,000 MT per year of writing, printing and packaging paper. The trial production started in November 1958 and commercial production from May 1959. The Company was granted license in December 1964 for 45,000 MT/P.A. capacity and the balancing equipments programme in 1972 to increase production capacity to 45,000 MT/P.A. The company also implemented the crash programme in 1974 to increase production capacity to 60000MT/P.A. Against license issued in July 1972 for 60,000MT. The license capacity was re-endorsed for 69,000 MT/P.A. in November 1991 on the basis of actual production. The Paper Industry has been de licensed from July 1997.

The production capacity increased to 1,19,750 TPA after successful completion of modernization/ expansion programme in 1998, 99. This programmed included rebuilding of paper machine no. III [by adding trinip press, dryers and calendar stack, size press and colour kitchen and process automation] and balancing of pulp mill, power house and other sections of the mill and also setting up of 75TPD Duplex Board Mill [PM V]. After commissioning of 100 TPD duplex machine [PM IV] & rebuilding of PM II production capacity has further increased to 1, 57, 750 TPA in 2001 02.

The performance of the company during the last 5 years period was as under:

Sl	Year Ended 31st March	Production (Paper & Board) [in M.T.]	Net Sales with Excise Duty	Gross Profit [Rs. in Crores]
1.	2002	1,20,293	414.10	49.34
2.	2003	1,51,477	454.57	62.24
3.	2004	1,63,714	491.84	60.57
4.	2005	1,73,070	533.35	56.48
5.	2006	1,76,221	606.84	69.22

The Company has a good track record of production and productivity for which 13 Awards have been conferred on it by the National Productivity Council [Government of India] and other organizations. The last being conferred in December, 1996 by chemical & Allied Products, Export Promotion Council, Calcutta.

The Company has an excellent track record of timely repayment of loans/ lease rentals to financial institutions and leasing companies and has maintained such record even in the recession period to which this industry has been subjected many a times. This has been highly appreciated by the financial institutions & lessors.

In 1964 the company promoted The Andhra Pradesh Paper Mill Ltd. to take over Andhra Paper Mills owned by Government of Andhra Pradesh. The company provided technical assistance to the APPM for increasing its capacity from 21,000MT per annum to 71,000MT per annum. Its installed capacity has since gone up to 1,53,500MT per annum after merger of coastal papers.

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