Andhra Paper's Kadiam Unit Remains Non-Operational, Citing ₹1.43 Crore Daily Revenue Loss

Andhra Paper Ltd has reported that its Kadiam Unit is still non-operational even after the lockout was officially revoked on May 29, 2026. The facility has not resumed manufacturing as employees have not returned to work, leading to a daily revenue loss of ₹1.43 crore.

Reader Takeaway: Production halt continues; daily revenue loss of ₹1.43 crore is a key concern.

What just happened

The Kadiam Unit of Andhra Paper Ltd, despite the lockout being officially revoked on May 29, 2026, has not resumed operations. Employees have not yet returned to their duties, causing a significant daily production loss of 205 metric tons and a revenue shortfall of ₹1.43 crore.

Why this matters

This ongoing disruption directly impacts the company's financial performance. The daily revenue loss of ₹1.43 crore, if prolonged, could materially affect Andhra Paper's profitability. The situation is classified as a material event under SEBI regulations, requiring immediate disclosure.

The backstory

The production stoppage is due to demands raised by contract workmen concerning the revision of certain contractual terms. The company had initiated a lockout, which has since been revoked, but a resolution with the employees on their demands is still pending.

What changes now

While the legal lockout has ended, the operational halt continues. The company is actively engaged in discussions with workmen and authorities to find a solution. Management anticipates a resolution within a short timeframe, aiming for a phased restoration of full capacity.

Risks to watch

The primary risk is the uncertainty surrounding the timeline for resuming operations. The daily revenue loss of ₹1.43 crore is a significant pressure point. Investors need to watch for updates on the resolution of labor disputes and the physical return of employees to work.

Peer comparison

Specific peer comparisons for this type of labor disruption are not publicly available. However, prolonged operational shutdowns can impact any manufacturing company's financials, affecting market share and investor sentiment.

Context metrics (time-bound)

• Daily Production Loss: 205 MT
• Daily Revenue Loss: ₹1.43 crore (₹143 lakh)
• Lockout Revocation Date: May 29, 2026

What to track next

Investors should closely monitor future company announcements for updates on the settlement of demands with contract workmen, the resumption of operations at the Kadiam Unit, and the timeline for achieving full production capacity.