Andhra Paper partners with Valmet for Cutting-Edge Tissue Paper Production Line at INR 125 Crores

Andhra Paper partners with Valmet for Cutting-Edge Tissue Paper Production Line at INR 125 Crores

The Pulp and Paper Times | 13th May 2024

Andhra Paper Limited (APL), a prominent player in the paper and pulp industry, has signed an agreement with Valmet AB (Sweden) on May 9, 2024 for supply and commissioning of Tissue paper production line of Capacity Maximum 129 tons per day to produce different grades of tissue Paper.

Supply and commissioning of Tissue production line of Capacity Maximum 129 tones per day to produce different grades of tissue paper. The value of order is INR 125 Crores approximately (part of the capex INR 270 Crores)

The Board of Directors of Andhra Paper Limited has given its nod for the installation of a cutting-edge Tissue Paper Machine at its Kadiyam Manufacturing facility. The machine is set to have a daily production capacity of 129 tons, employing state-of-the-art technology to diversify the company's product portfolio.

Machine delivery 14 months from contract effective date

APL has successfully secured the "consent to Establish" from the Andhra Pradesh Pollution Control Board, a crucial step towards the installation of the tissue paper machine.

In its earlier submission to the Securities and Exchange Board of India (SEBI), APL highlighted the factors driving this strategic expansion. The rise in urbanization, a heightened emphasis on hygiene driven by government initiatives like Swachh Bharat, and a steady increase in demand from the healthcare and hospitality sectors are anticipated to fuel the demand for tissue paper, napkins, and toilet and towel-grade paper consumption.

With this move, Andhra Paper Limited aims not only to meet the evolving market demands but also to reinforce its position as a leading manufacturer by incorporating the latest technology into its production processes. The expansion is poised to contribute significantly to the growth of the company and the Indian paper industry at large.

The proposed capacity addition is set for the production of various grades of tissue paper, including facial tissue, toilet tissue, napkin, and towel grade tissue. 
 

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