Banganga Paper Mills boosts Q3 FY25 performance with advanced manufacturing capabilities, shifting to solar energy for substantial cost savings

Banganga Paper Mills boosts Q3 FY25 performance with advanced manufacturing capabilities, shifting to solar energy for substantial cost savings

- Banganga is well-positioned to meet the increasing demand for sustainable and high-quality paper products

The Pulp and Paper Times

Banganga Paper Industries Limited, one of the leading manufacturer and supplier of a diverse range of kraft paper, has announced its Q3 & 9M FY25 results.

Company has earned a total Income of Rs. 2079.15 Lakhs while Net Profit stood at Rs. 76.09 Lakhs in Q3 of FY25, in 9M, total Income of the company stood at Rs 3768.36 Lakhs, and net Profit Rs. 88.38 Lakhs 

Commenting on the financial performance, Mr. Karbari Dathrak Chairman & Managing Director, Banganga Paper Industries Limited said, “We are pleased with our good performance in Q3 FY25, driven by our advanced manufacturing capabilities and the continued growth of our wholly owned subsidiary, Banganga Paper Mills. With a state-of-the-art facility producing over 100 metric tonnes of kraft paper daily, we are well-positioned to meet the increasing demand for sustainable and high-quality paper products. Our commitment to eco-friendly manufacturing, including the use of recycled materials and efficient resource management, remains a key differentiator in the industry. Looking ahead, we are confident in maintaining our growth momentum, leveraging our operational strengths and market opportunities to deliver continued growth in the upcoming quarters.”

During FY 23-24, the Company has achieved total revenue of Rs. 3,940.15/- thousand as compared to Rs. 5,520/- thousand in the previous financial year. Further, the Company has generated a Net Profit (after tax) of Rs. (218.92)/- thousand for the financial year ended March 31, 2024, as compared to the loss of Rs. 1,360.82/- thousand in the previous financial year 2022-2023. The Company is actively pursuing to be fully operational and pursue activities in consonance with the objectives for which it is established and taking necessary steps to effectively implement the same.

Sustainable energy adoption:

Banganga Paper Industries Limited 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.

As per the agreement, Livint Green Technologies Ltd., will develop, own, and operate a 2.5 MW DC groundmounted solar power plant at Karjat Village, Ahmednagar District, Maharashtra. This solar facility will supply clean energy to Banganga Paper Mills' manufacturing unit in Nashik, ensuring a reliable and costeffective 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 the remaining 74% will be retained by Livint Green Technologies Ltd. The project will 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 strategic move will not only provide energy security but also enable Banganga Paper Mills to leverage carbon credits, reinforcing its environmental responsibility and commitment to green energy solutions. 

The PPA has a minimum lock-in period of 15 years, with provisions for extension upon mutual agreement, demonstrating a long-term commitment to renewable energy and sustainable business practices. 

By shifting to solar energy, the company will benefit from lower per-unit costs compared to current grid tariffs. With the present energy cost at Rs. 10.85 per unit, this initiative will lead to direct savings of approximately Rs. 2.30 to Rs. 2.50 per unit, as power is generated and distributed via the open grid for internal consumption. Additionally, the company is expected to receive a tentative government subsidy of around Rs. 1.50 per unit on captive consumption, further enhancing cost efficiency. Effective April 1, 2025, the company will begin realizing substantial energy cost savings through this initiative.

Banganga Paper Industries Limited (Formerly known as Inertia steel Limited) is one of the leading manufacturers and suppliers of a diverse range of Kraft paper. The company’s wholly owned subsidiary, Banganga Paper Mills, located in Dindori, Nasik, and operates a state-of-the-art 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 papers with different GSM ranges, which are further used in the manufacturing of paper bags, paper cones, boards, and corrugated boxes. Additionally, it manufactures a wide range of craft paper, also available in various GSM ranges.
 

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