Andhra Paper to Install 100 TPD Capacity Tissue Paper Machine with INR 270 Crore Capex - Papermart
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Andhra Paper to Install 100 TPD Capacity Tissue Paper Machine with INR 270 Crore Capex

The state-of-the-art tissue paper machine will be installed at Andhra Papers’ Kadiyam manufacturing facility. It will have 35,000 TPA capacity and is expected to commence production within 15 months.

Feb 26, 2024

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Leading manufacturers of integrated paper and pulp in India, Andhra Paper Limited, has approved the installation of a cutting-edge tissue paper machine, having daily production capacity of 100 tonnes, at its manufacturing facility in Kadiyam, East Godavari, Andhra Pradesh, with a capital investment of INR 270 crore. 

The state-of-the-art machine, having a proposed capacity of 35,000 Tonnes Per Annum (TPA), will produce various grades of tissue paper, such as facial tissue, napkin, toilet paper, and towel grade tissue. As per the company, the machine is expected to commence production within the next 15 months.

The Board of Directors of APL, during their recent meeting, gave nod to the installation of the cutting-edge tissue paper machine, to diversify the company’s product portfolio. 

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The decision followed APL’s earlier in-principle approval to explore opportunities in the tissue paper segment, assessing commercial feasibility, technical viability, and obtaining necessary regulatory approvals. 

The company, renowned for its production of high-quality specialty grade products, including writing and printing paper as well as paper boards, 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.

In a recent filing before the Securities and Exchange Board of India (SEBI), APL attributed this strategic expansion to 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 & hospitality sectors, which was expected to fuel the demand for the consumption of tissue paper, napkins, toilet and towel-grade paper.

Also Read: India Imports Paper & Paperboard Worth INR 10,000 Crore; Import Volume Rise to 37 Percent in Apr-Dec’23

APL has remained a key contributor to the Indian paper industry since its inception in 1964. With this expansion, the company not only aims at meeting the evolving market demands, but also looks at reinforcing 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 APL, as well as of the Indian paper industry at large.