The new plant has been designed with the latest manufacturing technology, ensuring higher efficiency, superior product consistency, and greater operational flexibility.
Apr 17, 2026
Subam Papers and Boards Private Limited, the wholly owned subsidiary of Subam Papers Limited, has announced that it has successfully completed its capacity expansion by setting up a state-of-the-art, automated kraft paper manufacturing plant.
With the successful commissioning of the new plant, the total consolidated manufacturing capacity of Subam Papers has increased from 1,80,000 MTPA to 3,07,750 MTPA representing an overall capacity expansion of approximately 70.97%. The Kraft paper manufacturing capacity alone has more than doubled, growing by 96.78% from 1,32,000 MTPA to 2,59,750 MTPA.
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The new plant has been designed with the latest manufacturing technology, ensuring higher efficiency, superior product consistency, and greater operational flexibility. Full automation across the production process minimises human error, reduces turnaround times, and significantly enhances the company’s ability to service large-volume and quality-sensitive customers across the value chain.
The Management views this investment as a cornerstone asset that will underpin the company’s revenue growth and margin improvement trajectory over the medium-to-long term. This represents a landmark milestone in the company’s strategic growth journey and underscores the management’s commitment to investing in world-class infrastructure and technology to strengthen the company’s competitive position in the Indian paper manufacturing landscape.
A defining feature of the new plant is its capability to manufacture Kraft paper in the 80 to 120 GSM (Grams per Square Metre) range. This specific GSM band is the primary raw material used in the manufacture of paper carry bags, a product category that is witnessing exponential demand growth across India, driven by legislative, environmental, and consumer-led forces. This value-added, premium-priced product segment commands higher realisations over standard industrial Kraft grades and positions the company to participate in a consumer-driven, sustainability-mandated upgrade cycle.
The company transitions from a commoditised paper manufacturer to a value-added paper solutions provider, targeting a segment growing at double-digit CAGRSs in India.
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As part of its broader infrastructure and cost optimization strategy, the company is in the process of installing a Co-generation (COGEN) Power Plant which is expected to be commissioned by June 2026. This will additionally create 50 Lakhs units of energy per month, apart from 25 Lakhs units per month from wind mill and solar power. External power purchases will fall sharply from 20 Lakh Units to just 5 Lakh Units per month, a reduction of 75%. Creating overall self-sufficiency in power that will improve from 55.6% currently to 93.75% post-commissioning this COGEN plant.
The Management believes that the ongoing capacity expansion, product diversification strategy, and the favourable secular tailwinds in the Indian paper packaging sector collectively position the company for a transformative phase of growth, which is expected to generate sustained and superior long-term value for all stakeholders.
