Commencement of Commercial Production at New Manufacturing Facility
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Subam Papers Limited's wholly owned subsidiary, Subam Papers and Boards Private Limited, has commenced commercial production of Kraft paper at a new automated manufacturing plant in Tirunelveli, Tamil Nadu. The expansion has boosted consolidated manufacturing capacity from 1,80,000 MTPA to 3,07,750 MTPA, representing a 70.97% increase. Kraft paper capacity specifically more than doubled from 1,32,000 MTPA to 2,59,750 MTPA (96.78% increase). The new plant can produce Kraft paper in the 80-120 GSM range, targeting the high-growth paper carry bag segment driven by single-use plastic bans. A COGEN power plant is also under installation at the subsidiary, expected to commission by June 2026, which will improve power self-sufficiency from 55.6% to 93.75%.
This is a major positive development for shareholders as the capacity more than doubles the company's scale, enabling meaningful revenue and profit growth potential with limited incremental fixed costs. Entry into the 80-120 GSM paper carry bag segment positions the company in a structurally growing market supported by regulatory tailwinds from plastic bans.