News

Andhra Paper gains Rs 400-cr capex plan towards upgradation

The board of Andhra Paper at its meeting held on 26 August 2022 approved a capital expenditure amounting to Rs 400 crore (4 Billion INR) to re-build and upgrade the existing Pulp plant to improve the reliability and efficiency of the Pulp Mill.

This will help sustain the current levels of production, improve efficiency in Pulp Mill processes and lend flexibility in operations, augment pulp production capacity from existing 550 Tonnes per day to 600 Tonnes per day. The expected completion timeline is November 30, 2023. The proposal shall be funded through mix of debt and internal accruals.

Out of the total, about 1.13 billion rupees will go towards equipment to sustain the current levels of production, while 2.87 billion rupees will be for the upgradation of the pulp mill, according to the sources.

The company plans to increase production capacity to 600 tons per day from 550 tons per day. The average capacity utilization will also be increased to 600 tons per day from 530 tons per day.

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