Pakka Jagriti Project: Rs 675 crore expansion by 2026

What Pakka told the exchanges

Pakka Limited, in an intimation to BSE Limited dated 27 March 2024, outlined its ‘Jagriti Project’ for expanding its paper manufacturing operations at Ayodhya, Uttar Pradesh. The plan covers additions across paper machines, pulp capacity, and captive power. The company later said its Board has considered and approved a revised project cost of Rs 675 crore, against a previously approved cost of Rs 550 crore. The higher cost was also recommended by the Audit Committee. For investors tracking capex cycles and capacity-led growth stories, the cost revision and timeline updates are key disclosures.

Board approves higher capex for Jagriti Project

The central update is the revised capital cost: Rs 675 crore versus Rs 550 crore approved earlier. Pakka did not specify the breakup of the incremental Rs 125 crore in the provided disclosures, but confirmed Board and Audit Committee backing. For a project with multiple moving parts across paper, pulp, and power, revised cost estimates can reflect equipment scope, civil and infrastructure work, energy systems, or inflation-linked inputs. What matters from a disclosure standpoint is that the Board has reaffirmed commitment to the project while revising the capital envelope.

Capacity additions: new PM-4 and a PM-3 upgrade

Under the Jagriti Project, Pakka plans to set up one new paper machine, PM-4, with an installed capacity of 100 tonnes per day (TPD). It also plans to increase the installed capacity of one of its existing machines, PM-3, from 70 TPD to 80 TPD. The company also indicated that the new machine (PM-4) would take short bagasse fibres to make customised flexible packaging, aligning output to its stated product strengths. Alongside paper machine changes, the broader expansion aims to support flexible packaging grades and related applications.

Pulp and power expansion at the Ayodhya plant

Pakka’s plan includes an increase in pulp mill capacity from the current 130 TPD to 180 TPD. On the energy side, the company disclosed the installation of a new 12 MW to 15 MW power plant, in addition to the currently installed 6 MW and 2.5 MW plants at the factory. These additions are positioned as part of an integrated expansion at the Ayodhya facility. The focus on captive power and biomass-linked operations also ties back to the plant’s existing energy setup described in the company’s disclosures.

Timelines: mid-2026 vs December 2025 references

Pakka stated that the expansion is expected to be completed by the middle of the year 2026. Separately, later reports around fundraising and the compostable flexible packaging facility noted that the Jagriti project is expected to be operational by December 2025. Both timelines appear in the provided material and point to either different commissioning assumptions or different components becoming operational at different times. The disclosures, as provided, do not reconcile these timelines into a single milestone plan, so investors should track future exchange filings for more precise commissioning schedules.

Snapshot of the current Ayodhya facility

Pakka’s manufacturing plant is situated in Ayodhya (Uttar Pradesh). As per information stated as of 31 March 2023, the manufacturing facility comprised a 130-TPD pulp mill (bleached and unbleached), three paper machines with installed capacity of 39,100 TPA, and two biomass-driven power plants totalling 8.5 MW. The plant also included a 145 MT chemical recovery plant and 20 production lines to produce 18 TPD compostable tableware.

A separate facility description stated as of 31 March 2024 again references a 130 TPD pulp mill, three paper machines with installed capacity of 39,100 TPA, and two power plants generating 8.5 MW from biomass, along with a 140 MT chemical recovery plant and 23 production lines dedicated to manufacturing 14.5 TPD of compostable tableware. These differences in chemical recovery capacity and tableware line configuration are as reported in the provided text.

Funding: Rs 244.7 crore raised for compostable flexible packaging

Pakka announced it raised Rs 244.7 crore in funding, approved by its board, to boost production capacity and set up what it described as the world’s first compostable flexible packaging facility in Ayodhya. Some versions of the same report described the amount as Rs 2.44 billion, which aligns with Rs 244.7 crore. The company also said it plans to invest part of the funding in research and development for compostable flexible packaging. The reports noted that this investment is expected to double the production capacity of Pakka’s manufacturing plant in Ayodhya.

Products and partnerships: flexible packaging and CHUK tableware

Pakka launched compostable flexible packaging products in October 2023, partnering with Brawny Bear, a nutrition company. Separately, the Ayodhya Ram Mandir Trust selected CHUK, a brand under Pakka Ltd, to be the official tableware within the Ram Mandir premises for the inauguration event. The material also mentions a plan to provide up to 10 lakh pieces of compostable tableware for distribution before and after the event, and a supply of around 10,000 special 350 ml container bowls for prasad.

Operating metrics and profitability guidance mentioned in reports

One report cited Pakka’s wrap and carry paper production rising 3.85% to 41,304 MT in FY23-24. Another part of the provided text referenced turnover of Rs 300 crore in 2021-22 and an expectation to reach Rs 500 crore by 2022-24, with Rs 400 crore already reached. On profitability, the funding-related reports mentioned current EBITDA of 23%, with an expectation to increase to 27% to 30% after the fund raise and completion of the expansion. These figures are as stated in the provided material and were not accompanied by detailed reconciliations.

Key facts table

Why the Jagriti Project matters for the stock narrative

The Jagriti Project combines paper machine capacity, pulp availability, and captive power, which together shape unit economics and product mix. The emphasis on bagasse-based fibres and flexible packaging grades ties the expansion to demand shifts toward compostable and recyclable packaging formats. The Rs 675 crore capex size and the separate Rs 244.7 crore funding announcement are important signals on how Pakka plans to finance and execute the next phase of growth. For market participants, upcoming milestones will likely include equipment ordering, commissioning updates, and the ramp-up profile for new grades.

What to watch next

The company has disclosed the revised capex and broad project scope, but commissioning milestones and phased capacity ramp-up will matter for tracking execution. Investors will also watch for clarifications on whether December 2025 refers to a specific facility module and how that aligns with the mid-2026 completion expectation. Any further exchange filings on capex phasing, commercial production dates, and funding utilisation will help connect project progress to financial outcomes.