Andhra Paper Limited has partially resumed manufacturing operations at its Kadiam unit effective July 15, 2026, restoring approximately 70% of the facility's production capacity. The restart follows a period of disruption where workmen failed to report for duty despite the revocation of a lockout and the company's preparations for resumption. One paper machine with a production capacity of 150 MT per day is now operational, though full normalisation remains contingent on increased manpower attendance.

The company's permanent employees have returned to their respective shift schedules. However, the attendance of contract workmen engaged through third-party contractors continues to lag, currently standing at around 35% of the normal strength. This limited availability of contract support is causing operational constraints in supporting activities at the unit located in East Godavari, Andhra Pradesh.

The disruption was initially attributable to demands raised by contract workmen regarding the revision of certain contractual terms. The company confirmed that there has been no physical damage to assets and that all insurable assets are adequately covered. Consequently, no quantifiable loss or damage has been reported in the update submitted to the exchanges.

Operational Status at Kadiam Unit

The following table outlines the current operational parameters disclosed by the company:

Andhra Paper continues to monitor the situation closely and is implementing necessary operational measures to stabilise production. The company stated that it will inform the stock exchanges of any further material developments in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Andhra Paper has reported a continued disruption of manufacturing operations at its Kadiam Unit in East Godavari, Andhra Pradesh, despite revoking the lockout effective May 29, 2026. The company disclosed that workmen have not resumed their duties following the lockout revocation, resulting in a production loss of approximately 205 tons per day and a revenue loss of ₹143 lacs per day. This ongoing disruption constitutes a material event under Regulation 30 of the SEBI (LODR) Regulations, 2015.

The disruption at the Kadiam Unit is attributed to demands raised by contract workmen regarding the revision of certain contractual terms. While the company has made all necessary arrangements for the immediate resumption of manufacturing operations, the non-resumption of duties by workmen has led to a significant loss in production capacity. The management is actively engaging with workmen representatives and concerned authorities to resolve the impasse and restore normal operations.

Operational Impact

The cumulative financial impact of the disruption since the lockout revocation is being assessed in accordance with the company's policy for determining materiality of events. The company anticipates a resolution within a short timeframe, allowing for a phased restoration to full operational capacity. Key details of the disruption are outlined below:

The company stated that all assets are covered by insurance. It will continue to monitor the situation and keep the stock exchanges informed of further developments until normalcy is restored.