• SPB commenced commercial production in December 1962, on commissioning a 20000 tpa integrated facility in its Erode unit, comprising a Pulp Mill and two Paper Machines (PM-1 and PM-2), capable of producing, writing, printing, kraft and poster varieties of paper.
• The capacity of Unit : Erode was expanded to 35000 tpa in 1967-68, by upgradation of PM-2 and addition of a third Paper Machine (PM-3).

• In the second stage of expansion in Unit : Erode, undertaken in 1976, capacity was enhanced to 55000 tpa, through addition of a 60 tpd new Paper Machine (PM-4). A new Chemical Recovery Boiler and other facilities were added for enhanced requirement of utilities.
• The Company’s paper plant at Erode was originally designed for using bagasse, as the primary raw material mixed with 20% bamboo fibre. Bagasse was being obtained from nearby sugar mill on substitution basis using oil fired boilers. With sharp increase in oil prices in 1970-71, the Company shifted over to the use of hardwood, at the time of its expansion undertaken in 1978. Raw material mix underwent a substantial change, with bamboo and hardwood forming 60% and 40%, respectively, of its raw material consumption. Soon Company started apprehending difficulties in procurement of bamboo. In 1981, it added one more digester, to increase the share of the hardwood in the furnish mix to 80% and restricting bamboo use to only 20%. With the commissioning of more wood based industries in Tamilnadu, there was again an apprehension about availability of hardwood.
• As a long term strategy, the Company at this time decided on restructuring use of bagasse which was seen to be the most reliable source of fibre for the entire Industry.
• In 1984, the Company promoted Ponni Sugars and Chemicals Limited, a sugar manufacturing unit as the captive source for bagasse supply. It added bagasse handling systems and modernised PM-1 and PM-2, to shift over to the use of bagasse.

• SPB undertook various equipment balancing and modernisation programmes, for improving its operating efficiency, captive power generation capacity, etc., upto 1992-93.
• The Company embarked on an Expansion / Modernisation Project in the year 2000 to enhance its production capacity from 55000 tonnes per annum, to 1,15,000 tonnes per annum by addition of a pre-owned Paper Machine – PM-5 and upgradation of some of the existing facilities, in its Unit : Erode.
• The current installed capacity of Unit : Erode stands at 1,15,000 tonnes per annum while the annual production is in excess of 1,30,000 tonnes.

• The Company in the year 2004 had set up a 21 MW Coal Based Captive Power Plant in its Erode unit, which made the unit self sufficient in power.
• The Company embarked on a Major Mill Development Plan during 2006-07 in its Erode Unit, to improve and sustain the Environmental Compliance performance of the Company in line with the Charter on Corporate Responsibility for Environmental Protection (CREP). The project envisaged total replacement of the existing Wood Pulping Equipment of the Mill which is more than 30 years old with a 400 tonnes per day Pulp Mill from USA, equipped with advanced technological feature like RDH Pulping and installation of a new modern Chemical Recovery Boiler, a Black Liquor Evaporation Plant, a Lime Re-burning Kiln and a 16 MW Turbo Alternator Set.
• This Mill Development Plan – I helped the Erode unit of the Company to be self-sufficient on pulp, with in-house pulp completely replacing the costlier imported pulp.

• The Company in the year 2011, on a detailed techno commercial evaluation, decided to acquire a sick unit in Tirunelveli (Subburaj Papers Limited (SPMPL) – which had a capacity of 90,000 tonnes per annum), under a Scheme approved by the Hon’ble High Court of Madras.
• SPL was originally set-up as a de-inked waste paper pulp based Paper Mill. This unit commenced operations in August 2009. The project encountered huge cost and time overruns. Despite all financial support from Banks to complete erection and commissioning, the unit could not be operated continuously. The promoters of SPL expressed inability to invest further funds and requested SPB to takeover the unit as Management Buyout.
• With 100% Equity buyout from the promoters, SPB had acquired SPMPL and the name of SPMPL was then changed to SPB Papers Limited (SPBPL). SPB, while finalising the acquisition of SPBPL had clear plans to amalgamate the same with itself at the appropriate time. In the business interests of SPB and SPBPL and having regard to the synergistic linkages that exist between them, in the year 2012, the entire undertaking and the business of SPBPL was amalgamated with SPB.
• SPB, with its technical, financial and managerial inputs, has successfully de-bottlenecked the plant operations of this unit and has stabilized production during 2011-12. The Company has successfully turned around this unit into a profitable operation.

• During this period, the Company completed Phase – I & II of the Mill Development Plan – II (MDP – II), at a cost of Rs 125 crores, in Unit : Erode. The successful implementation of MDP – II has helped the company to increase the production of Paper to 132 000 tonnes per annum and the production of Unbleached Wood Pulp to 145 000 tonnes per annum, in Unit : Erode.
• The Company had also successfully completed in the year 2017, a Mill Expansion Plan in its Tirunelveli Unit, at a cost of Rs 75 crores to upgrade the quality of the products.

Project MDP-III:

The 7th decade has begun well for the company with successful completion of the Project MDP-III Plan in its Erode unit, during the challenging years of Covid-19 pandemic, at a project cost of Rs.288.0 crores.

Major upgradation works in Chemical Recovery Plant, Wood Pulp Mill, Paper Machine – 5, Paper Machine – 2 and Paper Machine – 4 have been successfully completed under project MDP-III and the machines are running at designed capacities and efficiencies. The project cost, in entirety, has been met out of internal accruals, with prepayment of the Term Loans availed.

The Company has achieved the following objectives successfully from the project MDP-III and has started realising the benefits from the project, in its Erode unit:

• Paper Capacity has been increased to 1,65,000 tonnes p.a.
• Pulp Capacity has been increased to 1,54,000 tonnes p.a.
• Recovery Island has been upgraded
• Successful foray into multi-layer boards segment, by altering 2 machines to manufacture Boards.

Unit-III:

The Company has acquired the assets of Servalakshmi Paper Limited as a going concern, situate close to our existing Tirunelveli unit, in an e-auction sale approved by Hon’ble NCLT.

The Company has taken over possession of the assets and is currently contesting the appeals in Hon’ble NCLAT challenging the Honourable NCLT’s order. This 3rd unit of the company can manufacture about 75,000 tonnes per annum of Fine Papers.

MDP-IV:

Vide its project MDP-IV in Unit: Erode, the Company is also currently taking steps to augment the pulp, chemical recovery and paper production in Unit : Erode by 40% in 2 phases.

The Board of Directors, in their meeting held on 13.09.2024, have approved undertaking the Project MDP-IV-P1 at Unit : Erode at a Total Project Cost of Rs.405 crores, subject to the approval of MoEF&CC.

In the latest EAC (Expert Advisory Committee) of MoEF & CC, the company has been advised to resubmit the application with a few additional pieces of information and the company has done the same. EAC, in its meeting held on 9-May-2025, had considered the application favourably and forwarded our company’s application to the MoEF & CC for its favourable consideration and approval.

Solar Power & Wind Power Facilities:

The Company has also recently partnered with a Spanish company, Zelestra Corporacion, for setting up and commissioning of 61.8 MW of Hybrid Solar & Wind Power generation facilities, consisting of 52.8 MWp (DC)/35.2MW (AC) of Solar PV and 9 MW Wind Power facilities, for exclusive use by SPB.