Company Profile
Nikita Papers Limited is a kraft paper manufacturing company focused on producing environmentally friendly paper products using 100% recycled waste paper. Headquartered in New Delhi, the company operates a well-equipped production facility in Shamli, Uttar Pradesh. Since its incorporation in 1989, Nikita Papers has built a strong presence in the packaging sector by offering a variety of kraft paper grades suited for corrugated boxes and industrial packaging.
The company is committed to sustainable practices, including the use of energy-efficient technologies and a zero-liquid discharge system in its operations. Its products cater to the growing demand for recyclable and eco-conscious packaging materials across India.
Through its upcoming SME IPO, Nikita Papers Limited aims to raise funds for capacity expansion, working capital needs, and general corporate purposes. The company’s focus on quality, efficiency, and environmental responsibility positions it well in the growing market for sustainable paper solutions.
Business Model
Nikita Papers Limited operates on a B2B manufacturing model, focusing on the production and sale of kraft paper made from 100% recycled waste paper. The company primarily serves packaging manufacturers, box makers, and industrial clients who require kraft paper for corrugated packaging solutions.
Key Components of the Business Model:
- Raw Material Sourcing:
The company procures waste paper—its primary raw material—locally and internationally, ensuring a steady supply for continuous production. - In-House Manufacturing:
Using advanced paper manufacturing technology, Nikita Papers produces kraft paper in various grades, weights, and colors tailored to client specifications. - Sustainable Operations:
The business model integrates eco-friendly practices such as zero-liquid discharge and energy-efficient systems, aligning with the demand for green packaging solutions. - Direct Client Distribution:
The finished products are distributed directly to B2B clients, including paper dealers, packaging companies, and exporters, minimizing reliance on intermediaries. - Revenue Generation:
The company earns revenue through bulk sales of kraft paper, with pricing influenced by market demand, input costs, and product grade. - Growth Strategy:
Future expansion includes increasing production capacity, developing value-added paper products, and exploring export opportunities to boost profitability and market reach.
Product Portfolio
Nikita Papers Limited specializes in the production of kraft paper, an essential material used in packaging and industrial applications. The company’s product line is designed to meet the needs of corrugated box manufacturers and other packaging-related industries.
Key Product Categories:
- High BF Kraft Paper (Burst Factor):
Designed for strength and durability, suitable for heavy-duty packaging applications such as industrial cartons and export-grade boxes. - Medium BF Kraft Paper:
Used in standard packaging for domestic and light industrial purposes. Balances strength with cost-effectiveness. - Low GSM Kraft Paper (Lightweight):
Ideal for inner layers of corrugated boards and low-weight packaging. Economical and eco-friendly. - Colored Kraft Paper:
Available in various shades for specialized packaging and decorative uses. Offers visual appeal and customization options. - Recycled Kraft Paper:
Produced entirely from waste paper, supporting sustainable packaging goals for environmentally conscious customers.
Features Across Products:
- Made from 100% recycled raw materials
- Available in various GSM (grams per square meter) and BF (burst factor) grades
- Customizable widths and roll sizes
- Suitable for corrugated box making, wrapping, and protective packaging
Financial Snapshot (as of March 31, 2024)
📊 Financial Highlights (₹ in Crores)
| Metric | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Revenue | ₹346.78 | ₹401.31 | ₹358.49 |
| Profit After Tax | ₹16.60 | ₹8.65 | ₹6.95 |
| Total Assets | ₹299.00 | ₹256.80 | ₹235.30 |
| Net Worth | ₹77.37 | ₹54.74 | ₹46.10 |
| Reserves & Surplus | ₹59.20 | ₹46.13 | ₹37.48 |
| Total Borrowings | ₹189.24 | ₹163.02 | ₹124.74 |
📈 Key Financial Ratios
| Ratio | Value | What It Means |
|---|---|---|
| Earnings Per Share (EPS) | ₹9.81 | Shows the profit allocated to each share; higher EPS reflects better profitability. |
| Return on Equity (ROE) | 21.45% | Indicates how effectively the company is using shareholders’ funds to generate profit. |
| Return on Capital Employed (ROCE) | 28.71% | Measures how efficiently the capital invested is generating returns before taxes. |
| PAT Margin | 4.79% | Reflects net profit as a percentage of total revenue; a sign of cost efficiency. |
| EBITDA Margin | 14.29% | Indicates operating profitability before interest, tax, depreciation, and amortization. |
| Debt-to-Equity Ratio | 0.45 | Suggests a moderate level of financial leverage; low risk from excessive borrowing. |
| Net Asset Value (NAV) | ₹42.57 | Represents the per-share value of the company based on its total assets and liabilities. |
Initial Public Offering (IPO) Plans
Nikita Papers Limited is planning to launch its IPO on the NSE Emerge, a platform tailored for small and medium-sized enterprises. This offering will provide the company with additional capital to support its expansion and operational goals.
🔹 IPO Details (Proposed)
- Type of Issue: SME IPO (Book Building)
- Exchange: NSE Emerge
- Expected IPO Launch: To be announced
- Lot Size, Price Band: Yet to be disclosed
- IPO Size: Not officially published
🎯 Use of IPO Proceeds
The funds raised through the IPO are proposed to be used for:
- Setting up a captive power plant to reduce energy costs
- Meeting working capital requirements
- General corporate purposes
- Covering costs related to the public issue
🏭 Strategic Objective
By going public, Nikita Papers aims to strengthen its financial position, enhance production capacity, and support long-term sustainable growth. The company is also focused on adopting cleaner and more efficient technologies in its operations.
Objectives of the Issue
Nikita Papers Limited intends to utilize the proceeds from its Initial Public Offering (IPO) to support its business expansion and strengthen its financial health. The key objectives are as follows:
- Establishment of a Captive Power Plant
To reduce dependency on external energy sources and lower operating costs by setting up an in-house power generation unit. - Working Capital Requirements
A portion of the funds will be used to support day-to-day operational needs, including raw material purchases and manufacturing expenses. - General Corporate Purposes
The company plans to use part of the proceeds for activities that support overall business growth, such as technology upgrades, staff expansion, and infrastructure improvements. - Public Issue Expenses
Covering the costs related to the IPO process, including regulatory fees, listing charges, and professional services.
🎯 Objectives of the IPO
- Set up a Captive Power Plant:
To enhance energy efficiency and reduce dependence on external power sources. - Meet Working Capital Requirements:
To finance day-to-day operations such as raw material procurement and inventory management. - General Corporate Purposes:
To support business growth initiatives, including technology upgrades and infrastructure development. - Cover Issue-related Expenses:
To pay for costs associated with the IPO process like regulatory fees, underwriting, and marketing.
Future Outlook
Nikita Papers Limited is positioned for strong growth as it plans to expand its manufacturing capacity and explore new markets. The company aims to increase production by adding advanced machinery that will boost output and improve product quality, especially for export markets.
A key part of its growth strategy includes investing in energy-efficient infrastructure like a captive power plant, which will reduce operating costs and improve sustainability. The company is also committed to environmentally friendly manufacturing practices, including waste management systems that minimize pollution.
Nikita Papers is targeting both domestic and international customers, seeking to broaden its reach in the packaging and paper industries. With steady financial performance and a focus on innovation, the company expects to enhance its market position and create long-term value for shareholders.
Key Growth Areas:
Capacity Expansion:
Investing in new machinery to increase production capacity and meet growing demand for kraft paper.
Export Market Development:
Targeting international markets like China, Dubai, and Korea to diversify revenue streams and boost sales.
Sustainable Manufacturing:
Enhancing eco-friendly operations through energy-efficient power plants and waste management systems to appeal to environmentally conscious customers.
Product Diversification:
Developing new grades and customized kraft paper products to serve a wider range of packaging and industrial applications.
Operational Efficiency:
Improving cost management and production processes to enhance profitability and competitiveness.
🧭 Vision and Leadership
Vision:
Nikita Papers Limited aims to be a leading manufacturer of high-quality kraft paper, committed to sustainable practices and customer satisfaction. The company focuses on innovation, environmental responsibility, and operational excellence to create value for its stakeholders.
Leadership:
The company is guided by an experienced leadership team with a strong background in the paper manufacturing industry. The management emphasizes ethical business practices, strategic growth, and continuous improvement to maintain a competitive edge in the market.
Market Positioning and Growth Prospects
Market Positioning:
Nikita Papers Limited is a recognized manufacturer of high-quality kraft paper, focusing on recycled and eco-friendly products. The company serves various industries, including packaging, textiles, and consumer goods, mainly in northern and central India. It has built a solid reputation for product reliability and strong customer relationships. Expanding into export markets such as China, Dubai, and Korea is part of its strategy to diversify revenue sources.
Growth Prospects:
The company plans significant capacity expansion by installing new machinery to increase output and cater to rising demand for sustainable packaging. Investments in energy-efficient infrastructure, including a captive power plant and advanced waste treatment, reflect its commitment to environmental sustainability. Financially, Nikita Papers has shown steady revenue growth and aims to improve operational efficiency and profitability through strategic initiatives.
With a clear focus on quality, sustainability, and market expansion, Nikita Papers Limited is well-positioned for continued growth and enhanced market presence.
