Moglix acquires eco-friendly paper products manufacturer Khatema Fibres for Rs 80 crore

Moglix, a leading B2B e-commerce platform, has acquired Khatema Fibres, a paper manufacturing firm, for Rs 80 crore.

The move strengthens Moglix’s position in the industrial procurement and sustainable packaging sectors while complementing its broader vision of supporting India's development goals under the "Viksit Bharat" initiative by 2047.  

Founded in 1990 in Khatema, Uttarakhand, Khatema Fibres specializes in sustainable paper products, including kraft paper, interleaving sheets, food-grade packaging, and sublimation papers.

The firm boasts an annual production capacity of 50,000 metric tons, with scalability potential to 75,000 tons. Moglix plans to leverage this capacity as it diversifies into five new manufacturing categories.  

Expansion plans and new services  

The acquisition aligns with Moglix’s ambitious expansion strategy, which includes the launch of Next Day Delivery services.

Currently operational in 12 cities, the service is set to reach 40 cities, reinforcing the company's commitment to efficient and timely delivery.

By integrating Khatema Fibres' manufacturing capabilities, Moglix aims to streamline production, reduce lead times, and enhance operational efficiency.  

Rahul Garg, Founder and CEO of Moglix, said, “We are delighted to welcome Khatema Fibres into the Moglix family. This acquisition not only expands our manufacturing footprint but enables us to deliver greater value as we meet the dynamic demands of the market."  

Boosting local economies and sustainability  

Moglix’s entry into Uttarakhand through this acquisition promises positive impacts on the local economy. The company plans to create job opportunities, foster skill development, and support the region’s industrial growth.

Additionally, the firm intends to enhance infrastructure and unlock new market opportunities for local farmers and artisans, promoting community development.  

Khatema Fibres’ eco-friendly products will bolster Moglix’s focus on sustainability. By integrating these products into its portfolio, Moglix aims to meet the growing demand for green solutions in industrial and packaging markets.