Andhra Paper plans INR 178 crore investment to upgrade and rebuild PM-3 at its Rajahmundry Unit

Andhra Paper plans INR 178 crore investment to upgrade and rebuild PM-3 at its Rajahmundry Unit 

The Pulp and Paper Times

Established in 1964, Andhra Paper Limited (APL) stands as one of India’s leading integrated paper and pulp manufacturers based in Andhra Pradesh with a production capacity of 2,20,500 TPA of virgin pulp and 2,59,400 TPA of paper, APL is the only paper mill in Andhra Pradesh using virgin pulp.

Andhra Paper Limited has announced an investment of INR 178 crore to upgrade and rebuild Paper Machine-3 at its Rajahmundry manufacturing facility. 

The Board of Directors in its meeting on 5th August has approved the Capital Investment outlay for an aggregate amount not exceeding Rs.178 crores for Upgradation and Rebuild of Paper Machine-3 at Rajahmundry Manufacturing facility which is estimated to yield an incremental production up to 60 TPD.

The project aims to enhance production capacity by up to 60 tonnes per day (TPD), adding to the current annual output of 36,000 tonnes per annum (TPA). This capacity expansion, focused on the company's core operations, is expected to be completed within 13 months.

With the Rajahmundry facility already operating at full capacity, the proposed upgrade is anticipated to boost overall output by 60%. The investment will be funded through a mix of internal accruals and/or bank financing.

“To overcome these challenges, we have significantly enhanced our operational framework and market positioning. When we took over in 2020, our manufacturing infrastructure was significantly outdated, relying heavily on traditional technologies. Recognising the need for continuous modernisation, your Company, invested around H520 crores in critical capital projects in a phased manner since 2023 at its Rajahmundry and Kadiyam manufacturing facilities. These initiatives focused on advanced technology to optimise resource and utility consumption, pulp mill capacity enhancement, achieve energy efficiency. Process upgrades have improved product quality, productivity, and recovery rates, while costefficiency measures have enhanced our competitiveness. New product variants introduced during the year received an encouraging market response,” Mr. Shree Kumar Bangur Chairman of Andhra Paper said in the annual report for FY 24-25.

“We will continue expanding our product portfolio, leveraging surplus pulp sales, and driving operational excellence by leveraging efficiency in operations, infrastructure upgrades and prudent fiscal measures”. He added.
 

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