According to the company, the capex will be used to part finance setting up of a folding duplex board plant, a joint venture in Nigeria and acquisition of a pulp mill.

Established in 1986, Rainbow Papers is engaged in manufacturing products like writing and printing paper, newsprint paper, duplex boards, coated paper and board, colour paper and board, crepe paper and poster paper.

Rainbow Papers has been listed at the national stock exchange with effect from June 2010.