Andhra Paper Limited , a leading paper manufacturer, has announced a significant capital investment to upgrade its production capabilities at its Rajahmundry manufacturing facility. The company's Board of Directors has approved an investment of up to Rs 178.00 crore for the upgrade and rebuild of Paper Machine-3, a move that is set to substantially increase the company's production capacity.

Capacity Expansion Details

The ambitious project aims to increase the production capacity of Paper Machine-3 by a substantial 60%. This expansion will add up to 60 tonnes per day to the existing capacity, which currently stands at 36,000 tonnes per annum. The company reports that its current capacity is operating at 100% utilization, underscoring the need for this expansion.

Project Timeline and Financing

According to the company's filing with the stock exchanges, the capacity addition is estimated to be completed within 13 months. Andhra Paper plans to finance this significant investment through a combination of internal accruals and bank financing, demonstrating the company's financial flexibility and confidence in the project's returns.

Strategic Alignment

The company stated that this capacity addition aligns with their core area of operations. This strategic move is likely to strengthen Andhra Paper's position in the market and potentially increase its market share in the paper industry.

Financial Implications

While the exact financial impact of this expansion is yet to be seen, the substantial investment of Rs 178.00 crore indicates the company's commitment to growth and its positive outlook on market demand. The increased production capacity is expected to contribute to the company's revenue and potentially its profitability in the coming years.

Market Reaction

Investors and market analysts will be closely watching how this significant capital expenditure translates into financial performance for Andhra Paper Limited. The stock market's reaction to this news could provide insights into investor sentiment regarding the company's growth strategy.

This move by Andhra Paper Limited reflects a broader trend in the Indian paper industry, where companies are investing in capacity expansion and technological upgrades to meet growing demand and improve operational efficiency. As the project progresses, stakeholders will be keen to see how effectively the company executes this expansion and capitalizes on the increased production capacity.

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.