Nikita Greentech Recycling Ltd IPO

About Nikita Greentech Recycling Ltd

Our Company was originally incorporated as a Private Limited Company with the name Nikita Papers Private Limited pursuant to a certificate of incorporation dated August 18, 1989 issued by the RoC in accordance with provisions of the Companies Act, 1956. Thereafter upon conversion into a public company, pursuant to a shareholders' resolution dated May 26, 2003, the name of the company finally changed to `Nikita Papers Limited and fresh certificate of incorporation was issued by the RoC dated June 12, 2003, As on date of this Draft Red Herring Prospectus, the Corporate Identification Number of our Company is U74899DL1989PLC129066.

An Overview of Indian Paper Industry: According to Indian Paper Manufacturers Association (IPMA), the country ranks among the top 15 major paper producers globally and accounts for about 5% of the world's paper production. The estimated turnover of the industry is INR 80,000 crore and its contribution to the exchequer is around INR 5,000 crore. Paper is a labour-intensive industry in India. The industry provides direct employment to 0.5 million persons, and indirectly to around 1.5 million. In FY 2023, boasting an annual capacity of 30.73 million Tonnes Per Annum (TTPA), India manufactured 23.67 million tonnes of paper and paperboard in FY 2023. This translates to approximately 88% of the capacity utilisation by the industry. Major Challenges faced by Indian Paper Industry: The major challenges faced by Indian paper industry is availability of raw materials. Inadequate raw material availability domestically is a major constraint for the paper industry. As per IPMA, over 90% of wood demand met through industry driven agro/farm forestry (1.2 million hectares); rest through Government sources and other sources. Current demand for pulpable wood by paper industry is estimated at 14 million tonnes per annum (TPA) while domestic availability is 9 - 10 million TPA. In addition to this, rising prices of raw materials and power sources are also creating challenges in the industry. Prices of Coal, one of the major sources of energy for paper mills, have also been on the rise, with a large hike in September 2023, of nearly 27%. Similarly, PPI for wood pulp has also experienced several increases in prices, leading to increased cost and low margins for the paper mills in India.

Nikita Papers Ltd. is a NIKITA GROUP company engaged in manufacturing of Kraft Paper since 1992 to cater to the Specialty Paper Market in India. The Directors of company are educated and have long experience of more than 25 years of Paper manufacturing and Distribution apart from experience in other industries.