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  • TAFCORN plans diversification

    Jul 4th, 2016

    Consultant to be hired to tell ways to explore new areas of operations

    The State-owned Tamil Nadu Forest Plantation Corporation Limited (TAFCORN) intends to diversify its business and plans to hire a consultant to prepare a techno-economic feasibility report.A profit-making unit, TAFCORN is engaged in raising, maintaining and harvesting forest plantations such as eucalyptus and cashew on a commercial scale.The 42-year-old organisation, based in Tiruchi, has called for expression of interest for engaging consultancy services.The objective would be to enhance overall productivity and profitability with the available resources.Establishing a captive paper mill is definitely on the agenda, given its annual production of pulpwood ranging from 1.5 lakh to 1.75 lakh tonnes.TAFCORN is also looking at a bio-mass based energy generation unit; a unit for producing and marketing of certified forestry seeds and seedlings of select plant species and cultivation, processing and marketing of commercially viable medicinal plants as an intercrop in eucalyptus and cashew plantations.

    The shortlisted agency would give inputs to TAFCORN in its business diversification plan and suggest a road map and methodology for executing its plans linked to its existing operations.Carrying out a market study and advising the organisation accordingly in achieving the desired results by foraying into newer business activity would be one of the tasks for the consultancy agency.A top TAFCORN official told The Hindu that the organisation was keen on expanding its business activity using the available resources and enhance its turnover and profit.The corporation, with six plantation regions, manages over 73,000 hectares of forestland obtained on lease from the Forest Department, he said. It had raised eucalyptus on 51,000 hectares of land and cashew nut on 16,000 hectares of land, the official added.The report would be submitted to the organisation’s board, he said pointing out that any investment of Rs. 5 crore and above would have to be approved by a high-level committee of the government.TAFCORN’s turnover and net profit after tax during the 2014-15 financial year was Rs. 82.11 crore and Rs. 20.13 crore respectively.

    Bio-mass based energy generation unit

    A captive paper mill is on the agenda