Andhra Paper Boosts Capacity with ₹178 Cr Investment 📈

Big news from the paper industry! 📰 Andhra Paper Limited, known by its symbol ANDHRAPAP, has just announced a significant capital investment of up to Rs 178 crore to supercharge its production capabilities.

This substantial investment is earmarked for the upgradation and rebuild of Paper Machine-3 at their Rajahmundry Manufacturing facility. What does this mean for the company? Well, it’s all about making more paper! The project is set to yield an incremental production of up to 60 Tons Per Day (TPD).

To put that into perspective, Andhra Paper’s existing capacity stands at 36,000 Tons per annum, and they’re already running at a full 100% utilization. This new upgrade will add a whopping 60% incremental capacity to their current output, which is a clear sign of strong demand and the company’s ambition to meet it. It’s a smart move, especially since this expansion is right in their core area of operations.

The company expects to complete this capacity addition within an estimated 13 months. Funding for this project will come from a mix of internal accruals and/or bank financing, ensuring a balanced approach to growth.

For investors, this kind of strategic expansion is always worth noting. Andhra Paper’s shares recently traded at Rs 76.5, seeing a slight dip of 1.8%. However, long-term investments in capacity like this often signal confidence in future growth and market position. It’s a move that could strengthen their foothold in the paper manufacturing sector. Keep an eye on this space! 👀

source: Corporate Announcement

Join our Telegram for instant updates!