Operational Capacity Expansion
Nikita Greentech Recycling Limited Announces Major Capacity Expansion at Paper Unit with ₹107.54 Crore Investment
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Nikita Greentech Recycling Limited has announced a capacity expansion of its existing Paper Machine-I (PM-I) production line at its Shamli, Uttar Pradesh manufacturing facility. The project will add 550 Tons Per Day (TPD) of production capacity through machinery upgradation with an estimated investment of ₹107.54 crore. The expansion is expected to commence on July 15, 2026 and be completed by October 2026.
PRICE-SENSITIVE TRIGGER
Event: Capacity Addition of Existing Paper Production Line
Type: Operational Capacity Expansion
Impact: Positive
Immediate Effect: The company has initiated a major capacity enhancement project aimed at increasing production capability, improving operational efficiency, and meeting growing domestic and international demand.
key metrics:
- Existing Capacity: 400 Tons Per Day
- Existing Capacity Utilization: 87.50%
- Proposed Capacity Addition: 550 Tons Per Day
- Investment Required: ₹107.54 Crore
- Implementation Period: July 15, 2026 to October 2026
Highlight:
- Capacity Expansion Investment: ₹107.54 Crore for addition of 550 TPD production capacity.
What Happened ?
Nikita Greentech Recycling Limited has informed the stock exchange that it will undertake a capacity expansion project by upgrading its existing PM-I paper production line at its manufacturing facility located in Shamli, Uttar Pradesh.
The expansion follows the Memorandum of Understanding (MoU) signed with the Government of Uttar Pradesh for the establishment of a co-generation power plant and paper machinery project. The initiative also aligns with the Board-approved expansion plan announced earlier.
Implementation is scheduled to begin on July 15, 2026, involving procurement, installation, integration, and commissioning of upgraded machinery and related equipment.
Key Details
- Existing PM-I production line will be upgraded.
- Manufacturing facility is located at C-10, Industrial Estate, Panipat Road, Shamli, Uttar Pradesh.
- Existing production capacity stands at 400 TPD.
- Current capacity utilization is 87.50%.
- Proposed capacity addition is 550 TPD.
- Project implementation is expected between July 15, 2026 and October 2026.
- Estimated project investment is ₹107.54 crore.
- Funding will be through a combination of:
- Internal accruals
- External borrowings from banks and financial institutions
- Other permissible financing methods, as finalized by the company.
- The expansion aims to:
- Meet rising domestic and international demand.
- Improve operational efficiency.
- Enhance production capability.
Note:
- The project is eligible for incentives under applicable Government of Uttar Pradesh policies, subject to receipt of necessary approvals and fulfillment of prescribed conditions.
Risk Analysis
Summary:
- While the expansion strengthens the company’s long-term manufacturing capability, execution remains dependent on timely implementation, regulatory approvals, financing availability, and successful commissioning.
Risk Points:
- Temporary shutdown of the existing PM-I production line during machinery installation and commissioning.
- Project execution delays could affect implementation timelines.
- Government incentives remain subject to approval and compliance.
- Financing structure may change based on future funding decisions.
Worst Case:
- Delays in approvals, financing, or commissioning could postpone capacity addition and temporarily impact production during the installation period.
Risk Level: Medium
Company Commentary
- The project forms part of the Board-approved capacity expansion plan.
- The expansion supports the company’s long-term growth strategy.
- The company intends to improve production capability and operational efficiency.
- Material developments, approvals, and project milestones will be disclosed to the stock exchange as required under SEBI Listing Regulations.
- Details regarding the temporary production shutdown will be disclosed separately in accordance with applicable regulations.
Official Exchange Filing: Nikita Greentech Recycling Limited
