ANDHRA PAPER LIMITED has informed the Exchange about Capacity addition
ANDHRAPAP · price
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Andhra Paper's board has approved a capital investment of up to Rs. 178 crores to upgrade and rebuild Paper Machine-3 at its Rajahmundry manufacturing facility. The project is expected to add incremental production capacity of 60 TPD (tons per day), which represents about a 60% increase over the existing 36,000 tons per annum capacity. The company's current capacity utilization stands at 100%, meaning the expansion is driven by demand. The project is estimated to be completed in 13 months and will be financed through internal accruals or bank financing. Since this is in the company's core paper manufacturing business, it represents a focused capacity expansion rather than diversification.
Positive for long-term shareholders as the expansion comes at a time when existing capacity is fully utilized, indicating strong demand. The 60% capacity boost could meaningfully increase future revenue and margins, but near-term returns may be impacted by the Rs. 178 crore capital deployment and 13-month execution timeline.