VMPL
New Delhi [India], March 19: The manufacturing process for kraft paper can have a significant environmental impact--factors such as the location of production, the carbon footprint from transportation, the energy source used, waste production, chemical disposal, and water usage all play a part. Making sustainable choices means looking beyond surface-level claims of "natural" or "eco-friendly" and doing the research to find truly sustainable products.
Banganga Paper Industries Limited, earlier known as Inertia Steel Limited and one of the leading manufacturers and suppliers of high-quality kraft paper, has taken a significant step toward sustainable energy adoption. Its wholly owned subsidiary, Banganga Paper Mills Limited, has entered into a Power Purchase Agreement (PPA) with Livint Green Technologies Ltd for the procurement of solar power under a captive power generation model.
According to the agreement, Livint Green Technologies Ltd will develop, own, and operate a 2.5 MW DC ground-mounted solar power plant at Karjat Village in the Ahmednagar District of Maharashtra. This solar facility will supply clean energy to Banganga Paper Mills' manufacturing unit in Nashik, ensuring a reliable and cost-effective renewable energy source.
To comply with captive power generation regulations, Banganga Paper Mills Limited will hold a 26% equity stake in the power-producing entity, while Livint Green Technologies Ltd will retain the remaining 74%. The project is set to be developed under a Build-Own-Operate model, ensuring long-term sustainability and operational efficiency. Additionally, under a Wheeling and Banking Agreement, any surplus electricity generated from the solar power plant will be banked with the state's power distribution company for later use. This arrangement will provide energy security and allow the company to leverage carbon credits.
Shifting to solar energy will also benefit the company economically. With the present energy cost at Rs10.85 per unit, this initiative is expected to lead to direct savings of approximately Rs2.30 to Rs2.50 per unit, as power is generated and distributed via the open grid for internal consumption.
Banganga Paper Mills, located in Dindori, Nasik, operates a facility spread across more than 10,000 square meters with an installed production capacity of over 100 metric tonnes per day. The facility produces various types of corrugated and kraft papers in different GSM ranges, which are further used in the manufacturing of paper bags, paper cones, boards, and corrugated boxes--mainly aimed at packaging.
In its commitment to sustainability, the company manufactures its products using recycled paper, ensuring an eco-friendly approach to production. The products are food-grade, making them suitable for packaging fruits, vegetables, and other food items. Moreover, Banganga Paper Industries Limited adopts an environmentally conscious manufacturing process by reusing 100% of its water and chemicals, significantly reducing fresh water consumption. Operating round-the-clock on a six-day working cycle, the company maintains uninterrupted production while upholding high standards of safety, quality, and environmental responsibility.
In India, the kraft paper market size reached 11.0 million tons in 2024. Looking ahead, the IMARC Group expects the market to reach 21.3 million tons by 2033, with a growth rate (CAGR) of 7.23% during 2025-2033. Globally, the market is expected to grow steadily from USD 16.8 billion in 2024 to USD 21.2 billion by 2033, driven by the need for packaging and e-commerce. With urbanization prompting an influx of rural populations to cities, sustainable packaging is becoming increasingly important across the country.
This move toward solar energy and efficient resource management marks a balanced effort by Banganga Paper Industries Limited to address environmental concerns while continuing to meet market demands.
Disclaimer
Certain statements in this document that are not historical facts are forward looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local, political or economic developments, technological risks, and many other factors that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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