PAKKA LIMITED Reveals Detailed Bifurcation of INR 744 Crore Jagriti Project
PAKKA LIMITED has released a detailed bifurcation of the costs and components associated with its major operational initiative, the 'Jagriti Project'. This extensive capital expenditure program is designed to enhance the company's manufacturing facility through capacity expansion, technological upgradation, and strengthening of integrated operations.The Jagriti Project encompasses several critical areas, including the installation of a new paper machine (PM-4) for producing paper and packaging products. The project scope also includes the upgradation and debottlenecking of existing paper machines, such as PM-3; expansion and modernization of the pulp mill and related processing facilities; establishment of captive power generation facilities and associated utilities; development of chemical recovery, evaporation, and related process systems; and the comprehensive upgrade of the Effluent Treatment Plant (ETP), utilities, and other supporting infrastructure.
Total Project Cost Breakdown
The total revised cost of the Jagriti Project is set at INR 744.00 Crore. This cost is detailed across three phases and two main categories: Capital Expenditure (A) and Pre-operative Expenses (B).The financial structure is presented as follows:
| Details | Amount (INR in crores) | Phase I | Phase II | Phase III |
|---|---|---|---|---|
| Project Land | 9 | 0 | 9 | 0 |
| Civil & Structural Work and Site Development | 85.5 | 14.44 | 71.06 | 0 |
| Plant & Machinery | 540.1 | 69.91 | 470.19 | 0 |
| Total (A) - Capex | 634.6 | 84.35 | 550.25 | 0 |
| Contingency | 23.95 | 0 | 23.95 | 0 |
| Pre-operative Expenses | ||||
| Interest During Construction (IDC) | 60.29 | 4.52 | 54.53 | 1.24 |
| Total (B) | 109.4 | 11.29 | 70.33 | 3.83 |
| Grand Total (A + B) | 744 | 95.65 | 644.53 | 3.83 |
The bifurcation of the cost is based on a revised Techno-Economic Viability (TEV) assessment, which accounts for cost escalations due to design changes, time overruns, and foreign exchange fluctuations.
Project Implementation Timelines
The Jagriti Project is being implemented at the company's existing manufacturing location and involves both capacity expansion and technological upgradation. The phase-wise completion timelines are scheduled as follows:| Phase | Scope of Work | Tentative Timelines |
|---|---|---|
| Phase I | Upgradation of existing facilities, including pulp mill, paper machine(s) and utilities, along with initial civil and infrastructure works. | 31.07.2025 (ETP); January 2025 (Pulp mill, PM#3, Evap); 31.07.2025 |
| Phase II | Installation and commissioning of new plant and machinery, including PM-4, power plant and chemical recovery systems. | August 2026 (Power Plant & Recovery Boiler); December 2026 (PM#4, Recaustizer) |
| Phase III | Integration of all units, trial runs, stabilization, and commencement of commercial operations. | 1st January, 2027 |
Proposed Fund Utilization
The company plans to utilize funds raised through its capital raise to finance the capital expenditure requirements of the Jagriti Project. The projected utilization amount is detailed in the table below:| Sr. No. | Particulars | Mode | Tentative timelines for utilization of Issue Proceeds from the date of receipt of funds | Total estimated amount to be utilized for each of the Objects * (In Rs.) |
|---|---|---|---|---|
| 1 | Investment in Jagriti Project | Equity Shares | Proposed to be utilized towards the capex and project mobilization, within 6 months from the date of receipt of funds. | 29,92,00,000 |
| 2 | Warrants | Out of this 25% shall be received on allotment of warrants and shall be utilized towards initial capex and project mobilization within 18 months from the date of receipt of funds. Out of this balance 75% shall be received on exercise by the proposed allottees and shall be utilized towards phased deployment towards project execution and expansion within 18 months from the date of receipt of funds. | 99,99,00,000 | |
| Total | Total | Total | 1,29,91,00,000 |
PAKKA Stock Price Movement
As of 2:14 PM, shares of PAKKA LIMITED are slipping by 0.82% in live trading, currently hovering at ₹93. The equity is trading on a volume of 81,415 shares, marking a noticeable shift in the market momentum.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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