Detailed Coverage

Andhra Paper Kadiyam Unit Reaches 93% Operational Capacity

Andhra Paper Limited's Kadiyam Unit has achieved approximately 93% operational capacity as of July 23, 2026, signifying a substantial recovery from previous disruptions. The plant's operational capacity stood at around 70% before this recent improvement.

Reader Takeaway: Production capacity is nearing full recovery; labor issues are the primary concern.

What just happened

Andhra Paper Limited announced that its Kadiyam Unit has reached an aggregate operational capacity of approximately 93%. This was achieved following the recent resumption of a second paper machine. The facility previously operated at about 70% capacity.

Why this matters

The increase in operational capacity is a crucial step for Andhra Paper to normalize its supply chain and revenue streams from the Kadiyam Unit. It indicates a return to near-normal production levels following a period of disruption.

The resumption of the second paper machine, which has a capacity of 55 MT per day, brings the total operational capacity to 93%. The first paper machine has a capacity of 150 MT per day.

The backstory

Previous operational issues at the Kadiyam Unit were linked to demands from contract workmen regarding their contractual terms. The company has stated that there was no physical damage to the plant's assets during the disruption period.

What changes now

With operations at 93% capacity, Andhra Paper is expected to significantly increase its output and sales. The company is continuing to implement measures to fully stabilize and restore complete manufacturing operations.

Risks to watch

While production is recovering, the underlying labor issues with contract workmen need to be fully resolved to ensure long-term operational stability and prevent future disruptions.

Peer comparison

Information on specific peer operational capacities or recovery metrics following similar disruptions is not provided in the filing.

Context metrics (time-bound)

As of July 23, 2026, the Kadiyam Unit's operational capacity reached ~93%.
Previously, capacity was ~70%.
The second paper machine adds 55 MT per day capacity.
The first paper machine has a capacity of 150 MT per day.

What to track next

Investors should monitor further company announcements regarding the achievement of 100% operational capacity and the long-term resolution of labor-related issues at the Kadiyam Unit.