Synopsis: Nikita Greentech Recycling Limited will invest Rs. 107.54 crore to upgrade its Paper Machine-I, increasing production capacity from 400 TPD to 550 TPD. The expansion is aimed at meeting rising domestic and export demand, with the stock gaining 5 percent following the announcement.
Shares of Nikita Greentech Recycling Limited surged 5 percent after the company announced a Rs. 107.54 crore capacity expansion project at its paper manufacturing facility in Shamli, Uttar Pradesh. The investment will significantly increase production capacity while improving operational efficiency and supporting long-term growth.
Nikita Greentech Recycling Limited has a total market capitalization of approximately Rs. 201.78 crore. The company’s shares were trading at Rs. 81.80 apiece on the stock exchange, hitting the 5 percent upper circuit following the announcement. The stock has declined 3.20 percent over the last five trading sessions and gained 3.54 percent over the last month. The stock touched a 52-week high of Rs. 156 and a 52-week low of Rs. 67.
According to the company’s exchange filing, it will upgrade its existing Paper Machine-I (PM-I) at its manufacturing unit in Shamli, Uttar Pradesh. The project will commence from July 15, 2026, and is expected to be completed by October 2026. The expansion forms part of the project approved by the board in July 2025 and follows the Memorandum of Understanding signed with the Government of Uttar Pradesh for establishing a co-generation power plant and paper machinery project.
The project involves an investment of Rs. 107.54 crore, which will be financed through a mix of internal accruals and external borrowings. The company stated that the project may also qualify for incentives under the Government of Uttar Pradesh’s industrial policies, subject to regulatory approvals and fulfillment of prescribed conditions.
Upon completion, the company’s paper manufacturing capacity will increase from 400 tonnes per day (TPD) to 550 TPD, representing a capacity addition of 150 TPD, or nearly 37.5 percent over the existing level. The existing production line is currently operating at around 87.5 percent capacity utilization, indicating strong demand for the company’s products and supporting the need for additional manufacturing capacity.
The expansion is expected to help the company cater to rising demand in both domestic and international markets while improving production efficiency and economies of scale. Higher production volumes could enable the company to optimize fixed costs, strengthen operating margins, and improve its ability to serve larger customers and export markets.
The company also informed investors that implementation of the project will require a temporary shutdown of the existing PM-I production line for installation and commissioning of the upgraded machinery. However, management expects the modernization to enhance long-term manufacturing capabilities and strengthen its competitive position in the paper industry.
India’s paper industry continues to benefit from rising demand across packaging, e-commerce, FMCG, education, tissue products, and sustainable paper-based alternatives to plastic. Growing environmental awareness, increasing export opportunities, and government support for domestic manufacturing are expected to drive further capacity additions across the sector.
For investors, the announcement represents a significant growth initiative. The substantial capacity increase, coupled with high existing utilization levels, reflects management’s confidence in future demand. If executed successfully, the expansion could support higher revenues, improved operating leverage, and stronger earnings over the medium to long term.
Incorporated in 1989, Nikita Greentech Recycling Limited (formerly Nikita Papers Limited) is engaged in the manufacturing of paper and paper products, catering to domestic and international markets through a diversified range of writing, printing, and packaging paper products
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