Orient Paper & Industries Limited has informed the Exchange about General Updates
ORIENTPPR · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Orient Paper & Industries has revised the scope of its ongoing capex project at the Amlai (M.P.) paper plant. Originally approved on 5th August 2025 for modernisation/de-bottlenecking at Rs. 125 crores, the project will now involve installing a new Tissue Machine instead, with the total cost revised upward to approximately Rs. 213 crores. The project will add 23,400 TPA of capacity on top of the existing 1,00,000 TPA, with full operations expected by FY 2029-30 and the implementation period extended to 2027-28. The Board has also decided not to pursue a separate older modernisation project (sanctioned at Rs. 475 crores in March 2023), of which Rs. 239 crores has already been spent or committed, effectively writing off that investment. Funding for the revised project will come from a mix of debt and internal accruals.
Positive in the long run as the company is realigning to the more attractive tissue paper segment with better technology, but the 70% cost escalation and the abandonment of the Rs. 475 crore older project (with Rs. 239 crores already sunk) raise concerns about capital allocation discipline. Shareholders should watch for project execution timelines and any further cost overruns, while near-term returns may be limited given the extended timeline to FY 2029-30.