NIKITA GREENTECH RECYCLING Unveils INR 107.54 Cr Expansion to Elevate Paper Production to 550 TPD
NIKITA GREENTECH RECYCLING LIMITED (formerly Nikita Papers Limited) has announced a major investment to expand its manufacturing capacity at its Shamli, Uttar Pradesh facility. The company will modernize and upgrade its existing Paper Machine-I (PM-I), a move aimed at increasing production, improving operational efficiency, and strengthening its position in India’s paper recycling and manufacturing industry.
The expansion project forms part of the company’s broader growth strategy following its Memorandum of Understanding (MoU) with the Government of Uttar Pradesh. Alongside the PM-I upgrade, the company is also progressing plans for a co-generation power plant and additional paper manufacturing infrastructure to support long-term expansion.
₹107.54 Crore Investment to Increase Production Capacity
Nikita Greentech Recycling will invest ₹107.54 crore in the project, with funding expected through a combination of internal accruals and external borrowings. The company also expects to benefit from various incentives offered under the Government of Uttar Pradesh’s industrial development policies, subject to receiving the required approvals.
Construction and modernization work is scheduled to begin on July 15, 2026, with commercial completion targeted by October 2026. During the implementation phase, the Paper Machine-I production line will remain temporarily shut down to facilitate the upgrade.
Key Highlights of the Expansion Project
- Project Location: Shamli, Uttar Pradesh
- Investment: ₹107.54 crore
- Current Production Capacity: 400 tonnes per day (TPD)
- Existing Capacity Utilisation: 87.5%
- Target Production Capacity: 550 tonnes per day (TPD)
- Project Commencement: July 15, 2026
- Expected Completion: October 2026
Once completed, the project will increase the plant’s production capacity by nearly 37.5%, enabling the company to meet growing demand from both domestic and international customers.
Focus on Operational Efficiency and Sustainable Growth
The capacity enhancement is expected to improve manufacturing efficiency, optimize production costs, and strengthen the company’s ability to serve a wider customer base. The upgraded facility will feature improved manufacturing capabilities, allowing Nikita Greentech Recycling to support increasing demand while maintaining its focus on sustainable paper production and recycling.
The company believes the investment aligns with its long-term objective of expanding operations through environmentally responsible manufacturing practices and value-added infrastructure development.
Strengthening Long-Term Market Position
The latest expansion reinforces Nikita Greentech Recycling’s commitment to scaling its business while supporting industrial development in Uttar Pradesh. With higher production capacity, improved operational performance, and government-backed industrial initiatives, the company is positioning itself for stronger growth in the coming years.
Although the temporary shutdown of the existing production line may impact short-term output, the upgraded facility is expected to deliver substantial long-term benefits through increased productivity, better resource utilization, and enhanced competitiveness in the paper manufacturing sector.
The successful execution of this project will mark an important milestone in Nikita Greentech Recycling’s expansion journey as it continues to strengthen its presence in India’s growing sustainable manufacturing industry.