APL to Invest ₹178 Crore in Rajahmundry Plant Upgrade

Andhra Paper (APL), one of India’s leading integrated pulp and paper manufacturers, has announced a capital investment of ₹178 crore to upgrade and rebuild Paper Machine-3 (PM-3) at its Rajahmundry manufacturing facility.

The project was approved by the company’s Board of Directors on August 5, 2025. The upgrade is expected to increase PM-3’s production capacity by up to 60 tonnes per day (TPD), translating to an additional 21,600 tonnes annually—up from the current 36,000 tonnes per annum (TPA). With the Rajahmundry unit already operating at full capacity, this initiative is projected to boost the machine's output by 60%.

The investment will be funded through internal accruals and/or bank financing, with project completion targeted within 13 months.

Chairman Shree Kumar Bangur noted that the PM-3 upgrade is part of a broader modernisation strategy launched in 2023. So far, the company has invested ₹520 crore in phased improvements across its Rajahmundry and Kadiyam units. These efforts have focused on modernising legacy infrastructure, enhancing energy efficiency, expanding pulp mill capacity, and launching new product variants that have been well-received in the market.

Established in 1964, Andhra Paper remains Andhra Pradesh’s only virgin pulp-based paper mill and continues to play a key role in India's paper manufacturing industry.

News by Rahul Yelligetti.