Roopa Screen shut Narol factory after approvals were absent

Roopa Screen Limited shut its 14,400-screen-a-year Narol factory on December 15, 2025 because its factory licence or registration and Gujarat Pollution Control Board consents were not in place. Production is now handled at the 74,400-screen Sanand facility, while past Narol operations remain open to possible regulatory inquiry.

Why did Roopa Screen shut the Narol factory after approvals were absent?

Roopa Screen shut the Narol factory because statutory approvals required for manufacturing were unavailable. The company discontinued manufacturing at 6, Sudama Estate, Behind Swastik Basindhar, Opposite Sudama Furniture, Narol, Ahmedabad, with effect from December 15, 2025, citing the absence of an applicable factory licence or registration and requisite Gujarat Pollution Control Board consents.

Before the shutdown, Roopa Screen operated two manufacturing sites in Ahmedabad, Gujarat. The Narol unit had installed capacity of 14,400 rotary nickel screens a year, compared with 74,400 screens a year at Gallops Industrial Park II, Sanand. Narol therefore accounted for 16.22% of the two sites' combined 88,800-screen annual capacity, while Sanand accounted for 83.78%.

Roopa Screen states that no manufacturing activity is now undertaken at Narol. The premises have been retained as the registered office and warehouse from December 15, 2025, separating their continuing administrative and storage use from the discontinued manufacturing operation.

How is Roopa Screen meeting production needs after the Narol factory closure?

Roopa Screen is meeting production requirements through its existing Sanand manufacturing facility until the proposed new Sanand facility is completed and receives applicable approvals. The active plant's installed capacity is 74,400 screens a year, or 5.17 times the former Narol capacity of 14,400 screens.

This arrangement concentrates manufacturing in one active site during the transition. Roopa Screen identifies production-capacity constraints at Sanand, or delays in starting the proposed facility, as factors that could affect its ability to meet increased customer demand or fulfil orders on time.

Roopa Screen proposes to shift the plant and machinery at Narol to the new Gallops Industrial Park II facility after construction is complete and the relevant approvals are received. The disclosure does not provide a construction-completion date, commissioning date, capital budget or installed capacity for that proposed facility, so continuity depends on Sanand supporting demand in the interim and on the new site securing approvals.

Can Roopa Screen face action for past Narol factory operations?

Roopa Screen can face future regulatory action relating to past Narol manufacturing, although it had received no notice, demand or regulatory action as of the Red Herring Prospectus date. The company says authorities may initiate an inquiry, inspection or proceeding concerning the period in which manufacturing took place at Narol.

The stated exposure relates to factory and environmental compliance. Roopa Screen identifies the Factories Act, 1948; the Water (Prevention and Control of Pollution) Act, 1974; the Air (Prevention and Control of Pollution) Act, 1981; and the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, read with the Environment (Protection) Act, 1986, as relevant laws.

Under the Factories Act provision cited by Roopa Screen, a fine may extend to Rs 1 lakh, imprisonment may extend to two years, or both may apply. Under the environmental-law framework cited in the prospectus, designated persons may face imprisonment ranging from eight months to six years, in addition to any fines imposed. These are possible statutory consequences rather than a disclosed penalty, prosecution or demand against Roopa Screen.

A legal opinion dated February 8, 2026 from Asha Agarwal & Associates, Advocates, said Roopa Screen was not then required to submit a compounding application, a process used to settle specified legal defaults, for the past Narol defaults. That opinion relied on manufacturing having ceased at the premises and no prosecution having been initiated against Roopa Screen, its officers, directors or promoters; it does not rule out future proceedings.

What approval risks remain at Roopa Screen's Sanand operations?

Roopa Screen has two pending boiler-related applications for its existing Sanand facility, while the proposed facility will require further approvals. On August 31, 2026, the company applied to renew the Certificate for Use of Boiler for the boiler installed at Sanand, and on September 1, 2026 it applied to record the name Roopa Screen Limited in the relevant boiler records.

Both boiler applications were pending as of the Red Herring Prospectus date. Roopa Screen says it believes its permits and licences are adequate except as disclosed in its Government and Other Approvals chapter, but notes that some permissions have fixed validity periods and require renewal. Failure to renew, maintain or obtain approvals could interrupt operations or create financial liabilities.

The proposed additional Sanand facility will require statutory approvals or amendments to existing approvals, including consent to operate and a factory licence. Roopa Screen also identifies power and water procurement approvals as requirements, meaning construction alone would not make the new facility operational.

How do business concentrations affect the Narol factory transition?

The Narol factory closure makes uninterrupted Sanand production more consequential because Roopa Screen derives almost all revenue from textile-sector customers. The company also serves chemicals, dyes and engineering entities, but identifies the textile industry as its major end-use segment; changes in textile demand, trade policy or environmental requirements could reduce orders while manufacturing is concentrated at Sanand.

Penta Screen contributed Rs 19.52 crore, or 38.54%, of product-mix revenue in Fiscal 2026, compared with Rs 17.78 crore, or 39.28%, in Fiscal 2025 and Rs 15.06 crore, or 42.24%, in Fiscal 2024. Penta Screen is a rotary nickel screen designed for higher paste flow and wider coverage in applications such as background printing and bold patterns. Its share declined by 3.70 percentage points from Fiscal 2024 to Fiscal 2026, but it remained the largest disclosed product variant by revenue contribution in Fiscal 2026.

Roopa Screen also relies on nickel cathodes and related chemicals to manufacture rotary nickel screens. Its top 10 suppliers represented Rs 32.46 crore, or 96.73%, of Fiscal 2026 purchases, and the company has no long-term contracts or exclusive arrangements with those vendors. Supply delays, quality variations or price changes could affect output at Sanand while the company awaits completion and approval of the proposed facility.

Conclusion

Roopa Screen's Narol factory closure removed 14,400 screens of annual installed capacity from production after December 15, 2025 and left the 74,400-screen Sanand plant as the operating manufacturing site. Stopping manufacturing addresses the immediate absence of approvals at Narol, but does not prevent authorities from examining operations undertaken before the closure.

The next disclosed milestones are the pending Sanand boiler-certificate renewal application of August 31, 2026, the boiler-record name-change application of September 1, 2026, and approvals for the proposed Sanand facility. Construction, machinery relocation and commissioning must proceed alongside those approvals for the planned replacement manufacturing capacity to become available.