Whalesbook
Jagriti Project Cost Escalates to ₹744 Crore
Pakka Limited has informed stakeholders that the total revised cost for its pivotal Jagriti Project expansion programme now stands at ₹744 crore. This substantial upward revision reflects ongoing capital expenditure aimed at boosting capacity, modernizing technology, and fortifying integrated manufacturing operations.
Project Components and Expenditure Breakdown
The project encompasses the installation of a new paper machine (PM-4), alongside expansions and upgrades to pulp mill facilities, captive power generation, chemical recovery systems, and effluent treatment infrastructure. The revised ₹744 crore expenditure includes ₹540.10 crore allocated for plant and machinery, ₹85.50 crore for civil and structural works, and provisions for pre-operative expenses, interest during construction, and contingencies.
Phased Execution and Extended Timeline
Pakka Limited detailed a phased execution strategy. Phase I, focusing on the upgradation of existing facilities like the pulp mill and PM-3, is slated for completion by July 31, 2025. Subsequently, Phase II, which involves the installation and commissioning of PM-4 and the new power and chemical recovery systems, is scheduled to conclude by December 2026. The final Phase III, aimed at integration, stabilization, and the commencement of commercial operations, is targeted for January 1, 2027.
Funding Strategy and Rationale
Proceeds from a proposed preferential issue will be utilized to fund the Jagriti Project. The company plans to deploy approximately ₹129.91 crore through equity shares and warrants to support phased project execution and expansion. Management cited design modifications, time overruns, and foreign exchange fluctuations as key drivers for the escalated project costs, as per the latest techno-economic viability assessment.
Pakka's Business Focus
Pakka Ltd operates in the sustainable packaging sector, manufacturing compostable products for food service and industrial applications. The company emphasizes eco-friendly solutions and maintains manufacturing facilities in Uttar Pradesh, with a strategic focus on capacity expansion and innovative, integrated operations.