Certified Green: Banganga Paper Industries wins MPCB nod to operate till 2029 with zero-discharge, RDF-powered facility

How did Banganga Paper Industries secure MPCB approval for extended operations?

Banganga Paper Industries Limited has received formal environmental clearance from the Maharashtra Pollution Control Board (MPCB), allowing its kraft paper production unit to continue operations until March 31, 2029. This renewal serves as official recognition that the company’s Nashik-based subsidiary, Banganga Paper Mills, remains compliant with core environmental laws such as the Water (Prevention and Control of Pollution) Act of 1974 and the Air (Prevention and Control of Pollution) Act of 1981.

The certification is not just an operational formality. It reflects sustained environmental stewardship by the company, particularly in the areas of resource efficiency, circular economy integration, and waste minimisation. With this latest five-year clearance, the kraft paper manufacturer has also amplified its message around sustainability, economic viability, and regulatory compliance.

What environmental measures contributed to regulatory renewal?

The environmental clearance aligns with Banganga Paper Mills’ demonstrated ability to manage waste and emissions through multiple eco-centric strategies. These measures are increasingly being regarded as benchmarks in India‘s pulp and paper sector, where compliance pressure from state boards like the MPCB has steadily grown over the past decade.

One of the cornerstones of the company’s sustainability push is its fuel diversification strategy. The facility integrates refuse-derived fuel (RDF)—produced from non-recyclable municipal solid waste—into its 12 TPH (tonnes per hour) boiler. The RDF supplement is used alongside coal and agricultural waste, thus reducing dependency on carbon-intensive fuels. This shift aligns with wider industry trends to blend biomass or waste-based energy inputs into industrial heat generation systems to lower net emissions and support local circular economies.

Why is Zero Liquid Discharge (ZLD) becoming standard in Indian manufacturing?

Water use efficiency remains a critical benchmark for sustainable industrial operations, particularly in water-scarce regions of India such as Maharashtra. Banganga Paper Mills has responded to these pressures through its Zero Liquid Discharge (ZLD) initiative. The company operates a modern effluent treatment plant (ETP), where wastewater generated from kraft paper manufacturing is treated and completely reused within the facility. The entire cycle eliminates off-site water discharge, thereby meeting stringent MPCB guidelines and safeguarding local ecosystems.

The ZLD model is increasingly being adopted across India’s heavy industries, particularly those with high water intensity such as textiles, chemicals, and pulp and paper. The growing regulatory scrutiny and emerging water reuse mandates have turned ZLD from a best practice into a near-compulsory feature for environmental clearance in many Indian states. In the case of Banganga Paper Mills, its ability to treat and reintegrate process water internally not only ensures compliance but also delivers significant operational savings.

How does waste repurposing help drive sustainability and savings?

The paper manufacturer has further embedded circular economy principles into its waste management framework. Sludge from the ETP is repurposed as manure and sold to external buyers, reducing the burden on landfills and generating supplemental income. Similarly, boiler ash, a residual by-product from its energy generation unit, is sold to brick manufacturers for use in construction materials.

This model of reusing industrial by-products plays a dual role: it mitigates environmental impact and reduces the cost of waste disposal. Moreover, it contributes to the firm’s bottom line through direct savings and by creating new revenue streams from formerly discarded material. According to the company, the cumulative effect of water savings, waste reuse, and energy efficiency translates into a cost reduction of ₹500 per tonne of kraft paper produced. In an industry characterised by tight operating margins and volatile input costs, such resource-led optimisation can meaningfully boost profitability.

What makes Banganga’s approach different from other paper manufacturers?

While India’s kraft paper segment remains fragmented and populated with numerous small to mid-sized units, Banganga Paper Industries has positioned itself as a forward-thinking operator through its investment in environmentally responsible infrastructure. Its mill in Dindori, Nashik spans over 10,000 square metres and has a production capacity exceeding 100 metric tonnes per day. The plant manufactures kraft paper across multiple GSM (gram per square metre) ranges, suitable for making paper bags, paper cones, corrugated boxes, and food-grade packaging.

In contrast to some legacy operators who continue to rely on virgin pulp or have outdated water treatment facilities, Banganga has embedded sustainability into the core of its manufacturing process. The company exclusively uses recycled paper as raw material and recirculates 100% of the water and chemicals used in the process. Its operations run on a six-day continuous cycle, ensuring both high production throughput and adherence to environmental standards.

This approach is reflective of a broader shift in India’s paper sector. Environmental certifications are no longer viewed as regulatory checkboxes but as crucial enablers of market access, especially with retailers and food companies demanding traceable and sustainable packaging inputs.

How does the company view its environmental responsibilities?

According to Banganga Paper Industries Chairman and Managing Director, Mr Karbhari Dhathrak, the company’s long-term environmental strategy is as much about community welfare as it is about regulatory compliance. In a statement accompanying the MPCB certification, he underscored the firm’s continued investment in fuel technologies like RDF and its insistence on water recycling through ZLD systems.

He also highlighted that these initiatives serve multiple objectives: reducing environmental impact, enhancing energy efficiency, and lowering operational costs. By embedding sustainability into daily business practices, Banganga Paper Industries aims to deliver long-term value not only to shareholders but also to the communities in which it operates.

What is the current stock market sentiment around Banganga Paper Industries?

Banganga Paper Industries Limited is listed on the Bombay Stock Exchange under the symbol 512025. In the days following the announcement of its environmental certification renewal, the stock showed a slight uptick in price, indicating a modestly positive investor response. Trading activity has generally remained subdued, characteristic of a lightly traded small-cap industrial firm, but the market reaction suggests cautious optimism.

Over the past six months, the company’s stock has shown stable yet narrow trading patterns, reflecting low volatility and minimal speculative trading. Analysts tracking sustainability-led industrial companies have noted that Banganga’s ESG-centric moves could gradually improve investor sentiment, particularly if backed by consistent financial disclosures.

The prevailing market sentiment is moderately positive, grounded in the company’s regulatory clarity, operational cost efficiency, and environmentally aligned manufacturing practices. However, institutional interest remains limited, likely due to the lack of detailed quarterly financial reporting and muted analyst coverage.

For long-term investors with a high-risk appetite, the stock is currently considered a HOLD, with potential BUY opportunities emerging if the company improves its financial transparency or secures new commercial contracts for sustainable packaging. Short-term investors or those seeking liquidity might remain cautious due to the stock’s limited daily volume.

Triggers such as capacity expansion, increased exports of food-grade kraft paper, or visibility into profitability could serve as catalysts for stronger price action in future quarters.

What does this mean for the company’s long-term trajectory?

By securing MPCB certification through 2029, Banganga Paper Industries has ensured operational continuity and reduced regulatory uncertainty, positioning itself favourably in India’s competitive kraft paper landscape. With increasing domestic and export demand for sustainable packaging materials, especially from e-commerce and fresh produce segments, the company is strategically aligned for growth.

Its integrated approach—spanning RDF fuel usage, zero-discharge water treatment, and waste repurposing—underscores how environmental compliance can serve as a growth lever when paired with disciplined operations. In a sector where sustainability is no longer optional, Banganga’s initiatives may set a precedent for peers and contribute to a more accountable manufacturing ecosystem.

By combining environmental responsibility with cost optimisation and pursuing certification-backed credibility, Banganga Paper Industries is steadily constructing a business model that meets regulatory, economic, and societal expectations alike.