Parkhe's first large venture was Paper & Pulp Conversions Pvt Ltd (PAPCO), a board mill started in Lower Parel, Bombay in 1942. By 1947, it became a public limited company with M. S. Parkhe & Co as the managing agents, in accordance with the prevalent company laws. In 1951, PAPCO started its second unit in Khopoli, Maharashtra, which made paper, and, eventually paperboards; it was the flagship company of the group. The first paper manufacturing machine installed at Khopoli was procured from Japan. PAPCO issued dividends without interruption for over next 40 years.