UPDATE 1-Ballarpur revs up as capacity kicks in, margins flat

MUMBAI Jan 29 (Reuters) - India's largest paper maker, Ballarpur Industries Ltd (BILT.BO), posted a 36 percent rise in consolidated revenues to 8.8 billion rupees on volume growth from increased capacity, a top official said on Friday.

"The growth in revenue is mainly because of volume growth because of expanded capacity which is onstream now and because of better operating performance," said Managing Director R.R. Vederah said at an earnings conference call.

The company, however, posted a flat growth in profits because of fall in paper prices. Consolidated net profit for the Oct-Dec stood at 455.7 million rupees from 459.1 million rupees in the same quarter a year ago.

"Coated paper price has come down by about 3,000 rupees compared to the previous year and uncoated paper has come down by 2,000 rupees as compared to the previous year," said Vederah.

The paper maker said it has targeted sales of 3 billion rupees for its retail business in FY10.

The company also said it plans to list its Netherlands unit by the end of the calendar year 2010.

"We are loooking at listing the Netherlands unit by the end of the calendar year in an overseas markets. The markets we are looking at for listing are Hong Kong, Singapore and London."

Shares of the company ended 2 percent up at 25.55 rupees in a flat Mumbai market. (Reporting by Nandita Bose; Editing by Harish Nambiar)