Andhra Paper Limited (APL) has announced significant developments following its recent board meeting, including a major capital investment and the appointment of new directors.

Capital Investment for Production Capacity Expansion

The board of Andhra Paper Limited has approved a capital investment of Rs. 178 crore for upgrading Paper Machine-3 at its Rajahmundry manufacturing facility. This strategic move is expected to boost the production capacity by 60% from the current 36,000 tons per annum. The project, slated for completion within 13 months, aims to enhance the company's core operations.

Key details of the investment include:

Appointment of New Independent Directors

In a move to strengthen its leadership, APL's board has appointed two new Additional Directors in the capacity of Non-Executive Independent Directors:

1. Mr. Ramesh Kumar Aggarwal (DIN: 00442059): With 38 years of experience in finance, accounts, commercial, projects, and business development, Mr. Aggarwal brings a wealth of expertise to the board. His track record includes successful turnarounds of loss-making projects and companies, as well as significant international experience with the Aditya Birla Group.

2. Mr. Deepak Jalan (DIN: 00758600): As the Promoter and Managing Director of Linc Limited, Mr. Jalan has over 38 years of experience in the writing instruments industry. He has led Linc's transformation from a small-scale enterprise to a publicly listed company with a turnover exceeding Rs. 500.00 crores.

Both appointments are effective from October 29, 2025, for a period of three years, subject to shareholder approval through a postal ballot.

Financial Results and Regulatory Compliance

The board has approved the unaudited financial results for the quarter ended June 30, 2025, along with the limited review report from statutory auditors M/s. MSKA & Associates.

Additionally, the company noted the payment of fines under protest levied by NSE and BSE for alleged non-compliance with regulations. Andhra Paper Limited has submitted an appeal petition before the Securities Appellate Tribunal, Mumbai, regarding this matter.

These developments underscore Andhra Paper Limited's commitment to growth, governance, and regulatory compliance as it positions itself for future expansion in the paper industry.

Andhra Paper Limited (APL) has announced a lockout at its Rajahmundry manufacturing plant in response to an ongoing workers' strike, marking a significant development in the company's operations.

Strike and Lockout Details

The company reported that workers' trade unions initiated a strike on July 6, 2025, disrupting operations at the Rajahmundry unit. Despite management's appeals to end the "illegal strike," workers had not resumed their duties as of July 10. Consequently, APL declared a lockout effective from 8:00 AM on July 11, 2025, citing the need to safeguard employees, plant machinery, materials, and other assets.

Reasons and Legal Status

According to the company's disclosure, the strike was called for "enhancement of wages in the wage agreement." However, APL maintains that the strike is illegal, as the dispute is currently pending with the industrial tribunal for adjudication. The company emphasized that resorting to a strike during ongoing tribunal proceedings is prohibited.

Impact on Production

The lockout is expected to have a significant impact on the company's operations. APL estimates a daily production loss of approximately 520 metric tonnes at the Rajahmundry facility. This disruption could potentially affect the company's supply chain and market commitments if prolonged.

Financial Safeguards

While the situation is concerning, APL has assured stakeholders that all assets at the Rajahmundry unit are covered by insurance. The company stated that there is no expected quantum of loss or damage caused by the current situation.

Outlook

The lockout will remain in force until further notice, according to the company's statement. The resolution of this labor dispute will likely depend on negotiations between management and workers' representatives, as well as potential intervention by local authorities or the industrial tribunal.

Investors and stakeholders of Andhra Paper Limited should monitor further announcements for updates on the situation and its potential impact on the company's performance in the coming quarter.