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India likely to be one of the few bright spots in world overall economy: Bharat Hari Singhania

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NEW DELHI: Amidst coronavirus-related disruptions, advanced countries will be set to experience long term pains, while India can be expected to be one of the few bright spots in the world economy, according to JK Paper Chairman Bharat Hari Singhania.

The pandemic is here at a time when the American indian economy was already experiencing an improvement slowdown, as reflected in lower discretionary spending around the last 12 weeks, Singhania said in the address to shareholders in the company’s annual review for 2019-20.

He stated in almost 170 locations, people are likely to encounter a decline in common income over the earlier year as well.

“The finish lockdown in India can be one of the nearly all stringent, for (around) 70 days, where almost two-thirds of all economic exercise came to a milling halt. While the superior countries are set to experience prolonged pains, India is expected to be one of the few bright spots in the world economy, sustaining good growth at 4.only two per cent for 2019-20,” Singhania said.

For the country, he said, “unfortunately, the COVID-19 pandemic found a time when the American indian economy was already experiencing an improvement slowdown, as reflected in lower discretionary spending around the last 12 weeks, particularly in automobiles, purchaser durables and high-end FMCG products.”

At a period of time when uncertainty prevails around the containment of COVID-19 and thereby the international economic recovery. “To make certain that the economic engine begins moving, governments across the world are providing fiscal obama’s stimulus of varying magnitude,” he said.

This, Singhania said, “is important as the end consumers should be provided an adequate safety net to revive demand. That would evaluate if the projected V-shaped healing, where India’s GDP expansion is expected to recuperate, will happen or not.”

Referring to the company’s overall performance in FY20, he stated at a time when the making sector in India can be faced with significant spare potential, with overall capacity use falling to around 68 per cent in the Dec quarter, both JKPM (JK Paper Mills) and CPM (Central Pulp Mills) are already running at full potential.

“This augur well for the planned expansion, where were targeting to reach 6 lakh tonnes per annum (TPA) by March 2021,” Singhania added.

He additional said, “the impetus may mainly be in the packaging board segment, while keeping the focus on other sections too, particularly where we love a leadership position in the market.”

JK Paper Vice-Chairman and Handling Director Harsh Pati Singhania said despite the drawback from the COVID-19 activated lockdown, the company’s prepared capacity expansions are growing as per schedule, “although help from banks and banking institutions would be critical for people to adhere to timelines”.

“To take advantage of the growth momentum witnessed in the country’s paper market, JK Paper is doing work towards increasing its development capacity from 4.5 various lakh TPA to 6 lakh TPA (including potential of The Sirpur Document Mills Limited) by next year,” he added.

This potential augmentation is aimed at considerably expanding the company’s product packaging board capacity to use up growth opportunities on offer, having the proliferation of ecommerce, digital initiatives and expansion upsurge in the drugs sector, Harsh Pati Singhania said.

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