Stock Under Rs 100: Packaging Company Announces Rs 744 Crore Jagriti Expansion Project.

The Indian equity markets traded lower on Tuesday, with the benchmark Nifty 50 index declining 1.46 per cent to 23,468.05 during the session. Despite weakness in the broader market, select packaging and paper sector stocks remained in focus. In this segment, Pakka remained in focus after the company provided detailed bifurcation and execution timeline for its ongoing Jagriti Project expansion programme. On Tuesday, Pakka share price declined 0.82 per cent to Rs 93.00.

Pakka Jagriti Project Update

Pakka Limited informed exchanges that the total revised cost of its Jagriti Project stands at Rs 744 crore. The project relates to the company’s ongoing capital expenditure programme aimed at capacity expansion, technological upgradation and strengthening of integrated manufacturing operations.

According to the company, the project includes installation of a new paper machine (PM-4), expansion and modernization of pulp mill facilities, captive power generation infrastructure, chemical recovery systems and upgradation of effluent treatment and utility infrastructure.

The revised project cost includes Rs 540.10 crore towards plant and machinery, Rs 85.50 crore towards civil and structural works, along with pre-operative expenses, interest during Construction and contingency provisions.

Phase-Wise Execution Timeline

The company stated that Phase I involving upgradation of existing facilities including pulp mill and PM-3 is expected to be completed by July 31, 2025.

Phase II covering installation and commissioning of PM-4, power plant and chemical recovery systems is scheduled for completion by December 2026, while Phase III involving integration, stabilization and commencement of commercial operations is targeted by January 1, 2027.

Fund Raising and Capex Utilisation

Pakka Limited stated that proceeds from the proposed preferential issue will be utilised towards funding the Jagriti Project. The company plans to deploy around Rs 129.91 crore through equity shares and warrants towards phased project execution and expansion activities.

The revised project configuration reflects cost escalations arising from design changes, time overruns and foreign exchange fluctuations, as per the updated techno-economic viability assesSMEnt.

About Pakka 

Pakka Ltd is engaged in manufacturing sustainable packaging and compostable products catering to food service and industrial applications. The company focuses on eco-friendly paper and packaging solutions through integrated manufacturing operations.

The company operates manufacturing facilities in Uttar Pradesh and continues to focus on capacity expansion, sustainable packaging innovation and backward integration initiatives.

Share your views on Pakka Limited’s Jagriti Project expansion plans in the comments below.
Disclaimer: This article is for informational purposes only and not investment advice.