The FSC is an international certification and labelling system, that guarantees that paper and wood products carrying its label, come from environmentally and socially responsible sources. This prestigious certification gives Seshasayee Paper access to highly environmentally sensitive markets. The certification is applicable to the company's Erode mill site and its 10 depots. Seshasayee Paper is the only Indian company to be certified under three standards of FSC.

The company also announced that it will invest Rs 250 crore to expand its paper production capacity.

The company had last year initiated the expansion plan but subsequently put it on hold because of uncertain market conditions that hit paper prices and demand.

The proposed expansion would add about 80,000-90,000 tonnes of paper production capacity taking its annual production capacity to about 2 lakh tonnes. The company will fund the expansion with over Rs 100 crore of internal accruals and the balance through debt.

Seshasayee Paper has an adequate captive raw material pulping capacity and power, about 37 MW, to meet the expanded paper production capacity.

In 2008-09, it expanded its pulp mill capacity to 440 tonnes a day from 240 tonnes previously at a cost of Rs 300 crore.