Enterprise e-commerce unicorn Moglix has acquired Khatema Fibres, a manufacturer of eco-friendly paper products, for approx. Rs 80 crore. This acquisition is a strategic move to enhance Moglix's sustainable packaging offerings, and position in the industrial procurement sector.

Based in Uttarakhand, Khatema Fibres specialises in high-strength kraft paper, food-grade packaging solutions, and machine-glazed papers. With a manufacturing plant in Khatima, it currently has a production capacity of 50,000 tonne, with plans to expand to 75,000 tonne. The deal adds a diverse range of specialty packaging products to Moglix's portfolio, supporting its growing B2B e-commerce packaging business.

Moglix, which is backed by Tiger Global and Accel and valued at USD 2.6 billion, operates a network of over 10,000 manufacturers and 3,000 factories. The company launched its packaging business nearly five years ago and is active s in the B2B e-commerce packaging space. The deal aligns with a global shift from plastic to plant-based, recyclable materials.

Khatema Fibres holds a unique advantage in producing packaging papers from long fibre (softwood fibre), and uses pre-consumed waste from converting units in the US and Europe, employing specialised processes to recover pure fibers while eliminating contaminants.