Operational Update
Andhra Paper Partially Resumes Manufacturing Operations at Kadiam Unit
NSE
ANDHRAPAP
BSE
502330
Andhra Paper Limited informed the stock exchanges that manufacturing operations at its Kadiam Unit have partially resumed from July 15, 2026. One paper machine with a production capacity of 150 MT per day has restarted operations, while supporting activities continue to face manpower constraints due to lower attendance of contract workers.
PRICE-SENSITIVE TRIGGER
Event: Partial resumption of manufacturing operations at the Kadiam Unit.
Type: Operational Update
Impact: Positive
Immediate Effect: Production has restarted on one paper machine, restoring around 70% of the Kadiam Unit’s production capacity. The company expects operations to normalize progressively as manpower availability improves.
What Happened ?
Andhra Paper Limited announced that manufacturing operations at its Kadiam Unit have partially resumed with effect from July 15, 2026, following an improvement in the labour situation.
The company stated that one paper machine with a production capacity of 150 MT per day, representing approximately 70% of the Kadiam Unit’s production capacity, has resumed operations. Permanent employees have returned to their scheduled shifts, although attendance of contract workers remains below normal levels.
key details
Operational Update:
- Manufacturing operations partially resumed on 15 July 2026.
- One paper machine with a capacity of 150 MT per day has restarted production.
- The resumed machine accounts for approximately 70% of the Kadiam Unit’s production capacity.
- Permanent employees have resumed duties across their respective shifts.
- Attendance of contract workers remains at around 35% of normal strength.
- Supporting operational activities continue to face manpower constraints.
Background:
- The disruption followed labour issues involving contract workers seeking revision of certain contractual terms.
- The company had earlier informed exchanges regarding operational disruptions after the revocation of the lockout.
- Andhra Paper expects further improvement in manpower availability, leading to gradual stabilization and full resumption of operations.
Note: The company reported no physical damage to assets and stated that no loss or damage has been caused. Insurance claims are not applicable in this case.
Risk Analysis
Summary:
- While production has resumed partially, full operational normalization depends on improved attendance of contract workers and stabilization of support functions.
Key Risks:
- Supporting operations continue to face manpower shortages.
- Contract worker attendance remains significantly below normal levels.
- Full production restoration is subject to improved workforce availability.
- No physical asset damage or production loss due to equipment issues has been reported.
Worst Case:
- If manpower availability does not improve, the company may experience delays in restoring full production capacity and operational efficiency at the Kadiam Unit.
Risk Level: Medium
Company Commentary
- Manufacturing operations at the Kadiam Unit have partially resumed from 15 July 2026.
- One 150 MT/day paper machine has restarted production.
- Permanent employees have resumed work, while contract worker attendance remains around 35% of normal levels.
- The company continues to implement operational measures to stabilize and normalize plant operations and will keep stock exchanges informed of further material developments.
Official Exchange Filing: Andhra Paper Limited
