Operational Disruption
Andhra Paper Declares Lockout at Kadiyam Unit Amid Illegal Strike
NSE
andhrapap
BSE
502330
Andhra Paper Limited has declared a lockout at its Kadiyam manufacturing unit following an ongoing illegal strike by contract workers, leading to production losses
PRICE-SENSITIVE TRIGGER
Event: Lockout due to Labour Strike
Type: Operational Disruption
Impact: Negative
Immediate Effect: Production halted at key unit; daily output loss impacting short-term revenues
Key Metrics:
- Estimated Production Loss: ~70 MT per day
Highlight:
- No physical asset damage reported
What Happened ?
Andhra Paper’s Kadiyam unit operations were disrupted due to:
- Illegal strike by contract workers
- Effective from April 27, 2026
Despite management efforts:
- Workers did not resume duties
- Production losses continued
As a result:
- Company declared lockout effective May 1, 2026 (10:00 PM)
- Lockout remains in force until further notice
key highlights
Affected Unit:
- Location: Kadiyam, East Godavari, Andhra Pradesh
- Type: Manufacturing facility
- Status: Operations halted
Cause of Disruption:
- Strike by contract workers via third-party contractors
- Key demand:
- Higher wages and benefits
Operational Impact:
- Estimated production loss: 70 MT per day
- Continuous loss since strike initiation
- No damage to plant or machinery
Management Action:
- Multiple attempts to resolve strike failed
- Lockout declared to:
- Protect employees
- Safeguard assets
- Situation ongoing
Note:
Insurance not applicable as there is no physical damage
Risk Analysis
Key Risks
- Ongoing production loss
- Revenue impact if prolonged
- Labour relations risk
- Potential delay in order fulfillment
- Reputation risk with customers
Worst Case Scenario
- Extended lockout could lead to significant revenue loss and margin pressure, especially if resolution is delayed
Risk Level: High
Company Commentary
- Strike is illegal and ongoing
- Management attempted resolution
- Lockout declared to safeguard assets
- Situation under monitoring
Official Exchange Filing: Andhra Paper Limited