ITC Limited is setting up a 25,000-tonne per annum capacity facility at a cost of Rs 35 crore at its Bollaram unit in Hyderabad for production of elemental chlorine-free (ECF) paperboards to be used for manufacture of paper cups.
The paperboards produced at the new facility will be supplied to small and medium enterprises (SMEs) for manufacture of ECF Spectra cups.
The paper cups manufactured by the SMEs will be marketed by ITC, company's Paperboards and Specialty Papers Division chief executive, Pradeep Dhobale, said.
ITC has decided to partner SMEs to popularise the usage of paper cups, which has been growing rapidly in the country over the last few years.
"By partnering with SMEs, ITC aims to enhance the competitiveness of the sector through its complementary R&D-based product development, marketing strengths, and the extensive reach of its trade marketing and distribution network," he said.
Stating that ITC is the only company in the country using the ECF technology that conforms to US FDA standards, Dhobale said the company currently has two local SME partners for production of paper cups.
In future, the company would enter into a partnership with 20-25 SMEs when it would enlarge the market coverage and distribute the product nationwide. At present, the paper cups are being test marketed in Hyderabad and Secunderabad through 400 retail outlets
According to Dhobale, ECF Spectra cups are odour-free, allowing the consumer to enjoy the true taste of the beverage.
These cups will be available in pack sizes of 25 and come in vibrant colours to add to consumer's delight.
''We are trying to create a new category space with ECF Spectra. We have leveraged ITC's strengths in producing world-class paperboards, state-of-the-art printing and nationwide distribution to create ECF Spectra," he added.