About Nikita Papers Limited

Business Overview

Nikita Papers Ltd. is a leading manufacturer of recycled kraft paper, known for delivering superior quality through cutting-edge technology and a commitment to sustainability. Established in 1991 in Shamli, Uttar Pradesh, the company began with a 30 TPD (Tons Per Day) production capacity and has since expanded to an installed capacity of 1,33,000 MTPA (Metric Tons Per Annum).

The company produces kraft paper ranging from 70 to 200 GSM, catering to diverse requirements with multiple Burst Factor (B.F.) grades. Its wide GSM and B.F. range enables service across industries, both domestic and international.

Vision & Objectives

• To be the first choice for kraft paper based on quality, ethics, and sustainability

• To scale operations and service quality, offering top-tier packaging solutions

• To ensure 100% customer satisfaction through continuous innovation and value-added services

Raw Material – 100% Recycled Waste Paper

• Utilizes reusable waste paper sourced from post-consumer and industrial channels

• Collected within a 150 km radius of the plant and through imported sources

• Waste is cleaned, pulped, and blended with additives and maize starch to meet kraft paper standards

Product Utility – Kraft Paper

• Offers high porosity, elasticity, and tear resistance

• Used in secure packaging, eco-friendly bags, cushioning, and DIY crafts

• Available in:

  • Lightweight (70–100 GSM) – ideal for envelopes, interleaving sheets

  • Medium-weight (120–150 GSM) – suited for shopping bags, book covers

  • Heavy-duty (up to 200 GSM) – perfect for robust packaging and backing boards

Nikita Papers Ltd. continues to lead with a focus on environmentally responsible manufacturing and diverse kraft paper solutions for a sustainable future. As on May 09, 2025, the Company had 208 employees. The Bankers to the Company are Punjab National Bank and HDFC Bank.

Industry Analysis

Indian Packaging Industry Overview

India, ranked as the third-largest economy in PPP terms and fifth in GDP (Economic Survey 2022-23), has become a vibrant hub for the global packaging industry. With rapid growth across key industrial sectors and a surge in organized retail and e-commerce, demand for advanced packaging solutions is accelerating. Packaging has evolved beyond basic functionality, becoming a cornerstone of product safety, brand identity, and regulatory compliance.

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Types of Packaging in India

The Indian packaging industry is broadly categorized into:

Rigid Packaging

• Wood-based packaging

• Metal containers

• Glass containers

• Paper (corrugated) boxes

• Rigid plastic packaging

Flexible Packaging

• Plastic film-based materials (polymer films)

• Cellophane wraps

While rigid packaging currently dominates, flexible packaging is gaining ground due to its:

• Lightweight nature

• Cost-efficiency

• Enhanced barrier properties

• Easy storage and transportation

This shift is particularly noticeable in the food & beverage and personal care sectors, where flexible packaging is becoming the preferred format.

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Market Segmentation by End-User Industries

Packaging serves critical roles across industries—from protection and safety to aesthetics and logistics efficiency.

Key User Sectors and Share in Packaging Demand:

• Processed Food & Beverages – 45% share

• Pharmaceuticals

• Personal & Home Care

• Hot Beverages

• Industrial Products

• Tobacco

Among these, food processing leads the demand for packaging materials, followed by pharma and personal care products.

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Institutional Support: Indian Institute of Packaging (IIP)

Established in 1966 under the Ministry of Commerce, the Indian Institute of Packaging (IIP) serves as India’s apex packaging body. Its mandate is to enhance packaging standards and align them with international benchmarks.

Key Activities:

• Training & Education

• Research & Development

• Testing & Certification (NABL accredited)

• Packaging Consultancy & Projects

• UN Certification for hazardous goods

Global Collaborations:

• World Packaging Organization (WPO)

• Asian Packaging Federation (APF)

• Institute of Packaging Professionals (USA)

• Technical Association of Pulp and Paper Industry (TAPPI)

IIP also organizes INDIAPACK (bi-annual exhibition) and INDIASTAR (national packaging awards), and undertakes global initiatives including training African professionals through Indo-Africa Forum initiatives.

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Growth Outlook

India’s dynamic consumer landscape, driven by higher income and lifestyle changes, underpins the rapid expansion of the packaging sector.

Sectoral Growth Drivers:

• E-commerce GMV: Projected to grow from $55 Bn (2022) to $350 Bn by 2030

• Food & Beverage Industry: Expected to grow from $322 Bn (2022) to $505 Bn by 2027

• FMCG & Pharma: Strong growth trajectory in line with rising consumption and healthcare needs

Industry Size Forecast:

The Indian packaging market is expected to reach USD 209 Bn by 2025

This growth trajectory is expected to significantly boost demand for sustainable and efficient paper-based packaging solutions.

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Indian Paper & Paperboard Packaging Industry

Overview

India ranks among the top 15 global paper producers, contributing ~5% of global paper output. As per the Indian Paper Manufacturers Association (IPMA):

• Industry Turnover: ₹80,000 crore

• Tax Contribution: ₹5,000 crore

• Employment: 0.5 million (direct), 1.5 million (indirect)

Production & Capacity (FY 2023):

Metric	Value
Installed Capacity	30.73 million TPA
Operating Capacity	25.61 million tonnes
Actual Production	23.67 million tonnes
Capacity Utilization	~88%

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Key Paper Types and Applications

Printing & Writing Paper:

• Uncoated (Cream Woven, Copier, Maplitho)

• Coated paper

Industrial Paper / Board:

• Kraft paper

• Duplex boards

Newsprint & Specialty Paper:

• Tissue paper, insulation, filter, greaseproof, absorbent papers

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Kraft Paper & Paperboard in Packaging

Kraft Paper:

• Known for high elasticity and tear resistance

• Classified by Burst Factor (BF):

  • Low BF (<35)

  • High BF (≥35)

Applications:

• Corrugated boxes

• Paper bags & wraps

• Sacks, envelopes, sandpaper

• Stationery products

Kraft paper is favored for being eco-friendly, recyclable, and biodegradable, making it a preferred choice in green packaging.

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Recent Industry Trends

• FY 2018 & FY 2019: Rising consumption & production

• FY 2021: Decline due to COVID-19 disruptions

• FY 2022 & FY 2023: Strong rebound; production up by 39%, consumption up by 33%

E-commerce growth and reopening of markets contributed significantly to this resurgence.

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Conclusion

The Indian packaging industry is entering a golden phase, driven by consumption-led growth, robust policy support, and environmental awareness. With paper and paperboard packaging gaining prominence, particularly in sustainable solutions, India is well-poised to become a global leader in modern, innovative, and eco-friendly packaging

Business Strengths

1. Experienced Promoters
Promoters bring over 25 years of expertise in the paper industry, enabling effective navigation of market fluctuations and reinforcing the company’s competitive position.

2. Expansion into Fluting Media
Commissioned Paper Machine-2 with a capacity of 250 TPD, enabling production of multi-liner kraft and fluting media—a key input in corrugated packaging—expanding the product portfolio and revenue streams.

3. Rising Market Potential
Increasing regulatory restrictions on plastic and growing demand for eco-friendly packaging enhance long-term market opportunities for kraft and recycled paper products.

4. Advanced Technology & Equipment
Adoption of modern machinery boosts efficiency, quality, and cost optimization, offering a competitive edge and supporting scalable, sustainable growth.

5. Strategic Location Advantage
Facility located at a well-connected industrial site, ensuring seamless access to raw materials, utilities, and transportation infrastructure, thereby reducing logistics costs and lead times.

6. Diverse Customer & Dealer Network
Serves a broad client base including MNCs, converters, and packaging firms across sectors like FMCG, pharmaceuticals, food, and cosmetics in both domestic and international markets.

7. Robust Raw Material Supply Chain
Strong supplier partnerships within a 150 km radius and access to imported waste paper ensure stable input sourcing and support supply chain efficiency and innovation initiatives.

Business Risk Factors and Concerns

1. Geographical Concentration Risk
All operations are concentrated in Shamli, Uttar Pradesh, making the company vulnerable to localized disruptions such as social unrest, natural disasters, or infrastructure breakdowns, which could significantly impact business continuity and financial performance.

2. Infrastructure and Competitive Pressure
Increased entry of similar industries in the region without parallel infrastructure upgrades may lead to overburdened facilities and heightened competition, affecting operational efficiency and margins.

3. Raw Material Price Volatility
Profitability is sensitive to waste paper price fluctuations, driven by factors like recycling rates, global demand, and economic conditions. Rising input costs may compress margins unless mitigated through efficiency improvements and diversified sourcing strategies.

4. Customer Concentration Risk
A substantial portion of revenue is derived from a limited number of customers. The top 10 customers contributed over 70% of revenues in recent years. Loss of any major customer could significantly impact revenue and profitability.

Nikita Papers Ltd. faces key risks from geographic concentration, raw material price volatility, customer dependence, and regional competition pressures. These factors could adversely affect operational stability and financial performance unless effectively managed.