Andhra Paper to Expand Production with State-of-the-Art Tissue Paper Machine in Kadiyam Facility

Andhra Paper to Expand Production with State-of-the-Art Tissue Paper Machine in Kadiyam Facility

East Godavari, Andhra Pradesh | The Pulp and Paper Times

In a recent development, the Board of Directors of Andhra Paper Limited (APL), a prominent player in the paper and pulp industry, has given its nod for the installation of a cutting-edge Tissue Paper Machine at its Kadiyam Manufacturing facility. The machine is set to have a daily production capacity of 100 tons, employing state-of-the-art technology to diversify the company's product portfolio.

The capital investment for this expansion is estimated to be Rs 270,00,00,000 (Rupees Two Hundred Seventy Crores only). APL has been a key contributor to the Indian paper industry since its inception in 1964, renowned for its production of high-quality specialty grade products, including writing and printing paper as well as paper boards.

The Board's decision follows its earlier in-principle approval to explore opportunities in the Tissue Paper segment, assessing commercial feasibility, technical viability, and obtaining necessary regulatory approvals. APL has successfully secured the "consent to Establish" from the Andhra Pradesh Pollution Control Board, a crucial step towards the installation of the tissue paper machine.

The proposed capacity addition is set at 35,000 Tons Per Annum (TPA) for the production of various grades of tissue paper, including facial tissue, toilet tissue, napkin, and towel grade tissue. The company anticipates commencing production within an estimated 15 months.

In a submission to the Securities and Exchange Board of India (SEBI), APL highlighted the factors driving this strategic expansion. The rise in urbanization, a heightened emphasis on hygiene driven by government initiatives like Swachh Bharat, and a steady increase in demand from the healthcare and hospitality sectors are anticipated to fuel the demand for tissue paper, napkins, and toilet and towel-grade paper consumption.

With this move, Andhra Paper Limited aims not only to meet the evolving market demands but also to reinforce its position as a leading manufacturer by incorporating the latest technology into its production processes. The expansion is poised to contribute significantly to the growth of the company and the Indian paper industry at large.
 

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