With the commercialization of glazed paper machinery, Sillverton Industries is expected to reach over Rs 2,000 crore in revenue in fiscal 2027

With the commercialization of glazed paper machinery, Sillverton Industries is expected to reach over Rs 2,000 crore in revenue in fiscal 2027

-Post completion of ongoing capex on glazed paper machinery, the expected increase in capacities and diversity in product basket will strengthen the business risk profile of the group.
-Sillverton Industries is undertaking a capex of Rs 270-280 crore for setting up a glazed paper manufacturing capacity, revenue climbs to Rs. 1,350 cr in FY25

The Pulp and Paper Times

SPPPL (Silverton Pulp and Papers Private Limited), incorporated in 2005, was renamed as Sillverton industries Limited (SIL) in May-2025. The company manufactures high-grade kraft paper, WPP, and cupstock, which find application in the packaging industry. Its unit is in Muzaffarnagar, Uttar Pradesh.

Eco-friendly paper manufacturer Sillverton Industries has filed draft papers with markets regulator Sebi seeking its approval to garner funds through an initial public offering (IPO).

Market position

In its report, Crisil Ratings said, presence of more than three decades in the industrial paper industry has enabled the promoters of SIL to develop a strong understanding of market dynamics and establish healthy relationships with customers (traders, corrugated box manufacturers, publishers and fast-moving consumer goods industry). The product basket is diverse and comprises high-grade kraft paper, WPP and the specialty segment of cup stock, thus providing a one-stop solution to customers, resulting in steady flow of orders and improvement in business performance. The revenue of the group increased to Rs 1,350 crore in fiscal 2025 along with operating margin improving to 13.4% from 11.9% in fiscal 2024 supported by focus on high grade kraft paper. Post completion of ongoing capex on glazed paper machinery, the expected increase in capacities and diversity in product basket will strengthen the business risk profile of the group. Timely completion of the capex with no time/cost overrun will remain a key monitorable.

“At the group level, revenue has grown at compound annual growth rate of 4.3% in the five fiscals through 2025. Though revenue grew to Rs 1,350 crore in fiscal 2025 from Rs 1,150 crore in fiscal 2024 driven by 16% volume growth, it remains at moderate levels. Backed by increase in volume sales of high-grade kraft paper, such as virgin kraft and cooling pad paper, and contribution from the water packaging segment, revenue is expected to grow to Rs 1,500-1,550 crore in fiscal 2026. With expected commercialization of the glazed paper machinery in the latter half of fiscal 2026, revenue is expected to rise to over Rs 2,000 crore in fiscal 2027. However, any delay in the commissioning of the glazed paper machine impacting the revenue growth shall be a key monitorable,” Crisil Ratings says.

Healthy operating profitability: The profitability of the group improved from 11.9% in fiscal 2024 to 13.36% in fiscal 2025. Despite the increase in wastepaper prices in fiscal 2025, the operating margins improved due to the efficiency driven capex. The group had set up a waste to energy boiler in fiscal 2025 which led to a reduction in power and fuel costs thereby leading to an improvement in operating profitability. Further, the group is focused on manufacturing high grade kraft and writing and printing paper along with specialized segment of cupstock as well as setting up of another refused derived fuel boiler which will further lead to an improvement in the margins to 14-15% in fiscals 2026 and 2027.

Exposure to project related risks: The group is undertaking a capex of Rs 270-280 crore for setting up a glazed paper manufacturing capacity and incremental capex of Rs. 200 crores on another waste to energy boiler, gas generation plant, and upgradation of the technology. While Rs. 200 crores have already been incurred on the glazed paper capacity, the balance is to be incurred fiscal 2026 and the further capex plans shall be completed in another 1-2 years’ time. Hence, the group continues to remain exposed to the risk of timely completion of the capex without any cost overrun. While the risk is partly mitigated by the long-standing experience of the management in the paper industry and their technical know-how, timely completion of the capex and steady demand offtake post the commissioning of glazed paper capacity shall remain monitorable.

Liquidity: Strong Liquidity is strong, supported by estimated cash accrual of Rs. 137 crore in fiscal 2025. Expected net cash accrual of Rs 150-170 crore per annum over the medium term will sufficiently cover annual debt obligation of Rs 15-30 crore. The surplus will support liquidity and cushion strategic investments and capex. It had unencumbered funds of Rs. 139 crore as on March 31, 2025. Fund-based bank limit of Rs 175 crore was utilized 26% on average over the 11 months through March 2025. The current ratio is estimated at 2.8-3.0 times as on March 31, 2025. Low gearing and moderate networth support financial flexibility and will help withstand adverse conditions or downturns in the business.

Exclusively talking to The Pulp and Paper Times, Mr. Akshay Jain, CMD, Sillverton Industries Limited, said, "With this IPO, we will take our company to the next level. We are setting up an RDF-based 14 MW cogeneration plant along with a 5-ton-per-day Compressed Biogas (CBG) generation plant, and we will significantly reduce the debt taken for capacity expansion — from 265,000 tons per annum to 365,000 tons per annum. We aim to deliver full value to the market, as our top line is expected to increase by INR 1,000 crore in FY 2026–27, with all the gains directly benefiting the new investors in the company."

Industry Outlook 

Domestic demand rose in fiscal 2024, Paperboard and specialty paper to drive long-term volumes 

The paper and paperboard (including newsprint) demand are estimated to grow by 5-7% on-year in fiscal 2025. In fiscal 2024, the W&P segment has posted a moderate growth post recovery in previous fiscal. Whereas the paperboard segment is estimated to grow at the fastest rate on back of healthy demand from the end use industries like FMCG, pharma and e-commerce. The end-use industries are growing in high double-digit. The paperboard segment accounts for 63% of the share in total demand and it is the fastest growing segment among all other segments. The paperboard segment and specialty paper segment will support the domestic paper growth. The newsprint segment is on a declining trend and some of the capacities of the newsprint segment as well as W&P segment are being converted into paperboard and specialty paper segment. Going ahead, we expect demand for W&P paper will be supported by the rolling out of the NEP (National Education Policy), the W&P paper demand is expected to increase by 2-3% CAGR and reach ~6.1-6.3 million tonne by fiscal 2027. Nevertheless, enrollment of students (schools as well as higher education) is expected to increase at a relatively faster pace of 1.5-2% CAGR over the next 3 years. Also, with new education policy coming to effect and a gradual rise in education spend by the government (~20% higher spend between fiscals 2020 and 2023 compared with the previous three fiscals) and increased thrust on education (through initiatives such as Sarva Shiksha Abhiyaan/Education for All) are likely to support demand for creamwove and maplitho paper (~60-65% of total W&P paper). The printing of textbooks in regional languages and in braille for visually impaired individuals is also expected to add to the demand of W&P paper.

Demand for copier paper (24% of the W&P segment) is expected to increase at 5-7% CAGR through fiscal 2027, primarily on account of moderation spending on stationery by corporates due to focus on digital-based communication. Demand growth for coated paper is expected to remain moderate at 2-4% CAGR through fiscal 2027.We have also noticed a shift in preference for folding box board instead of the traditional art board for book covers by publication houses. This remains a key monitorable.

Web Title: With the commercialization of glazed paper machinery, Sillverton Industries is expected to reach over Rs 2,000 crore in revenue in fiscal 2027