Andhra Paper has partially restarted its Kadiam unit, restoring 150 MT per day production, or 70% of capacity. While permanent staff are back, contract worker attendance remains low, impacting full operations.
Andhra Paper Partially Resumes Kadiam Unit
Andhra Paper Ltd has partially resumed manufacturing operations at its Kadiam unit as of July 15, 2026. The company has restarted one paper machine, bringing 150 MT per day of production back online, which is 70% of the unit's total capacity. Permanent employees have returned to their normal shifts.
Reader Takeaway: Partial output recovery is positive, but low contract worker attendance limits full potential.
What just happened
Andhra Paper Limited has partially restarted its Kadiam manufacturing unit. The company has successfully brought back one paper machine into operation, restoring 150 MT per day of production. This represents 70% of the Kadiam unit's overall production capacity. Permanent employees are back on their regular shifts.
Why this matters
This partial resumption indicates a step towards operational normalization after a previous disruption. It reduces the risk of a complete shutdown and signals potential revenue recovery. However, the company still faces constraints in reaching full capacity.
The backstory
The Kadiam unit faced operational challenges leading to a reduction in its production capacity. The company has confirmed no damage to assets and adequate insurance coverage.
What changes now
With 70% of the capacity back online, the company can resume a significant portion of its output. However, the operational constraints persist, preventing a full return to normal.
Risks to watch
The primary risk remains the low attendance of contract workmen, currently at 35% of normal strength. This constraint is hindering supporting activities and preventing the unit from operating at its full production potential.
Peer comparison
Information not available in the filing.
Context metrics (time-bound)
- Production capacity resumed: 150 MT per day (effective July 15, 2026)
- Share of capacity resumed: 70%
- Contract workmen attendance: 35% of normal strength
What to track next
Investors should closely monitor future company announcements regarding the resolution of labor issues and the normalization of contract worker attendance. The ability to reach full production capacity hinges on resolving this bottleneck.