Shree Ajit Pulp and Paper Ltd Resumes Unit 1 Trial Work

Shree Ajit Pulp and Paper Ltd resumed work at Unit 1 on a trial basis from the evening of October 11, 2026. The update is relevant because the Vapi-based kraft paper producer operates two manufacturing units and supplies paper used in corrugated boxes, food cartons and paper bags.

What did Shree Ajit Pulp and Paper Ltd announce about Unit 1?

Shree Ajit Pulp and Paper Ltd said that Unit 1 resumed work on a trial basis from the evening of October 11, 2026. The company disclosed the update under Regulation 30 read with Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

The information provided does not state when Unit 1 had stopped operating, the reason for the interruption, or the expected duration of trial operations. It also does not provide production volumes, financial impact, dispatch details or a date for a full operational restart. Trial resumption therefore indicates that the unit has restarted activity, while the disclosure does not establish the level of production being achieved.

Shree Ajit Pulp is a kraft paper manufacturer. Its products include testliner and multilayer testliner, which are used primarily in making corrugated boxes. The company converts waste paper into brown packaging paper used across packaging applications such as cartons and paper bags.

The restart notice concerns one of the company's two Vapi facilities. Unit 1 is located at Morai, Vapi, while Unit 2 is located in GIDC, Vapi, Gujarat. Maintaining operations at these manufacturing locations is central to the company's ability to produce and supply kraft paper to packaging customers.

Where are Shree Ajit Pulp's manufacturing facilities located?

Shree Ajit Pulp operates two manufacturing units in Vapi, Gujarat: Unit 1 at Morai and Unit 2 in GIDC, Vapi. The company has developed from a 16,500-tonne plant into a two-unit operation since its incorporation in 1995 and the start of production in 1997.

The company completed commercial trial production at Unit 2 with Phase I machine installations on January 1, 2024. That development added an operational milestone for the second unit, while the October 2026 disclosure relates specifically to the resumption of work at Unit 1.

Kraft paper manufacturing is energy intensive because paper machines require electricity and process steam, including for paper drying. Shree Ajit Pulp has developed captive power assets intended to meet part of these requirements and reduce reliance on externally purchased electricity.

Its power arrangements include two windmills in Gujarat with combined capacity of about 2.75 MW. The company has wheeling arrangements with Gujarat Energy Transmission Corporation Limited and Dakshin Gujarat Vij Company Limited, under which electricity generated by the windmills is set off against consumption at its manufacturing operations.

How does captive power support Shree Ajit Pulp's operations?

Shree Ajit Pulp's captive power system supports its paper-making process by supplying electricity and steam for manufacturing. The company operates wind assets and a coal-fired cogeneration plant, combining renewable generation with on-site thermal power and steam production.

The cogeneration facility had a capacity of 2.0 MW in FY24 and 6.85 MW as of September 2025. In a cogeneration process, a boiler produces both steam for manufacturing and electricity for machines. This differs from separately buying power from the grid and generating process steam through another system.

The company's first wind power plant, with 1.50 MW capacity at Miyana in Rajkot district, was commissioned in March 2010. It began power generation on March 29, 2010. A second 1.25 MW windmill at Taluka Dwarka in Jamnagar district started generation on March 30, 2012.

The earlier 1.50 MW cogeneration plant was commissioned in October 2013. The subsequent reported expansion of cogeneration capacity to 6.85 MW by September 2025 reflects the greater role that captive energy infrastructure has assumed in the company's operating setup.

What are the latest market figures for Shree Ajit Pulp?

Shree Ajit Pulp was listed in the provided paper-stock data at a share price of Rs 310, with a market capitalisation of Rs 2,758 million. Its reported price-to-earnings ratio was 9.2 times, return on equity was 10.8%, and debt-to-equity ratio for the current financial year was 0.9 times.

The same data showed a three-year sales compound annual growth rate of 23.5% and a three-year profit compound annual growth rate of 13.2%. These figures provide context on the company's reported recent growth trend, but they do not quantify the effect of the Unit 1 restart on revenue or profit.

For investors, the Unit 1 update is an operational disclosure rather than a financial result. The company has not disclosed the scale of output during the trial, the utilisation of either unit, or the incremental costs connected with the restart. Those details would be needed to assess any direct effect on earnings or cash flows.

Why does the Unit 1 trial restart matter for the paper business?

The Unit 1 trial restart matters because Shree Ajit Pulp's business depends on continuous manufacturing of packaging-grade kraft paper. The company's products are used in corrugated boxes, food cartons and paper bags, making plant availability relevant to its ability to serve packaging-related demand.

The paper sector's cost structure is influenced by raw material and energy requirements. Shree Ajit Pulp uses waste paper as an input and maintains captive wind and cogeneration facilities. Its energy assets are designed to offset electricity consumption and provide process steam, both of which are essential to paper production.

The announcement provides no customer-level information, order data or statement on supply commitments. It also does not identify any effect on local employment, vendor activity or product pricing. As a result, the confirmed takeaway is limited to the resumption of Unit 1 work on a trial basis.

The company's two-unit structure and captive power base provide operational context for the disclosure. However, neither the trial restart nor the reported power capacities alone confirms future production levels, sales growth or profitability. Any such assessment would require further company disclosures or financial results.

Conclusion

Shree Ajit Pulp and Paper Ltd has resumed Unit 1 work on a trial basis from October 11, 2026, restoring activity at one of its two Vapi manufacturing sites. The update is significant for a company focused on kraft paper for corrugated packaging and supported by wind and cogeneration assets for its energy-intensive production process.

The next point to watch is whether Shree Ajit Pulp provides an update on the transition from trial work to regular operations, including production volumes or financial implications. The available disclosure does not state a completion date for the trial phase or quantify its effect on output, sales or profitability.