Backed by a multi-year capex plan of INR 4-5 billion, Satia Industries is gearing up to expand paper production capacity and modernise its operations, with the investment expected to enhance efficiency and support future volume growth.
Jul 29, 2026
Satia Industries Limited (SIL) is set to invest INR 4-5 billion in capital expenditure (capex) over FY27-FY29 to enhance paper production capacity and improve operational efficiencies, according to India Ratings & Research (Ind-Ra), which has reaffirmed the company’s credit ratings.
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The expansion is likely to incur investment for the upgradation of one of its paper machines (PM-3), along with a chemical recovery plant and boiler, investment property, and routine maintenance over a six-month period starting June 2026. The upgrade is expected to add 18,000-20,000 TPA to the existing installed capacity of over 200,000 TPA by the end of Q3 FY27, increasing overall capacity by around 10 percent. While the temporary shutdown of PM-3 is likely to impact production volumes in FY27, the remaining three paper machines will continue operations, with volume growth expected to pick up from FY28.
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According to Ind-Ra, although the ongoing investments and temporary production disruption may increase leverage and moderate earnings in the near term, the additional capacity and efficiency improvements are expected to strengthen the company’s operational performance from FY28 onwards. The agency noted that Satia Industries remains focused on improving returns through operational efficiency rather than undertaking large-scale expansionary projects in the near to medium term.
