Orient Paper and Industries revises capex plan, Approves 23,400 TPA new Tissue Machine at Amlai unit

Orient Paper and Industries revises capex plan, Approves 23,400 TPA new Tissue Machine at Amlai unit

Orient Paper and Industries revises capex plan, Approves 23,400 TPA new Tissue Machine at Amlai unit

- Revised proposal – Installation of new tissue machine and expenses related to maintenance, modernization and energy cost optimization 
- The estimated project cost has been revised from Rs. 125 crores to approximately Rs. 213 crores

The Pulp and Paper Times

New Delhi, March 27, 2026: Orient Paper and Industries has announced a modification in the scope of its capital expenditure project at its manufacturing facility in Amlai (M.P.), in continuation of its earlier disclosure dated August 5, 2025.

The Board of Directors, at its meeting held on March 27, 2026, reviewed the status of ongoing capital expenditure projects related to modernization and capacity enhancement of the Company’s manufacturing operations. After due consideration, the Board approved a modification to the originally sanctioned plan for the Amlai paper plant. The revised scope includes installation of a new tissue machine incorporating advanced technology, replacing certain previously envisaged modernization initiatives.

The Company stated that the revision in scope has been undertaken in view of the evolving market dynamics in the paper industry, including changing demand patterns, increasing emphasis on product quality, cost optimisation, and the need for adoption of more advanced and efficient manufacturing technologies. Accordingly, it was considered prudent to realign the project to better address current and anticipated market requirements while ensuring optimal utilisation of capital.

According to the Company, the modified project is expected to deliver improved operational efficiency, enhanced production capacity, superior product quality, and better cost competitiveness, thereby strengthening its position in the tissue paper segment.

In a related development, the Board noted that the modernization project approved on March 15, 2023 has incurred and obligated Rs. 239 crores out of the sanctioned outlay of Rs. 475 crores. In light of the revised strategic direction, the Company has decided not to pursue the said project further.

Under the revised plan, the existing capacity of 1,00,000 TPA will be augmented by an additional 23,400 TPA, with full capacity expected to be operational during FY 2029–30. The implementation period has been extended up to 2027–28.

Following the modification, the estimated project cost has been revised from Rs. 125 crores to approximately Rs. 213 crores, to be financed through a mix of debt and/or internal accruals. The rationale behind the revision includes product mix optimization, improvement in operational efficiency, enhanced productivity, and cost optimization.

The details as required under Regulation 30 of SEBI (LODR) Regulations read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026:

•  Existing plan – Modernisation/de-bottlenecking 
•  Nature of change – Modification in scope of the existing project 
•  Revised proposal – Installation of new tissue machine and expenses related to maintenance, modernization and energy cost optimization 
•  Existing capacity – 1,00,000 TPA 
•  Proposed Capacity addition – 23,400 TPA (the full capacity is expected to be operational during the FY 2029-30) 
•  Implementation Period – Extended project period up to 2027–28 
•  Estimated Investment – Following the modification of the project scope, the total project cost has been revised from Rs. 125 crores to Rs. 213 crores (approx.) 
•  Mode of financing – Mix of debt and/or internal accruals 
•  Rationale – Product mix optimization, improvement in operational efficiency, enhanced productivity, and cost optimization 

Published at : Mar 30, 2026 05:21 AM (IST)

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