Andhra Paper Anticipates Wood Price Softening and Reassesses Greenfield Expansion Amid Sluggish Demand

Andhra Paper Limited (APL), a leading integrated paper and pulp manufacturer in India, expects wood prices to ease in the second half of 2025, prompting a cautious outlook on its Greenfield Expansion Project. Facing challenging market conditions in FY25, including a 14% decline in total income due to weak domestic demand and import competition, APL is strategically realigning its expansion plans. The company is investing INR 520 crores in upgrades across its Rajahmundry and Kadiyam units to enhance efficiency, energy use, and product quality. Notably, APL is entering the tissue paper segment with a new 100 TPD greenfield facility expected to commence in Q1 FY26-27. The proposed mill expansion includes a significant capacity increase with new paperboard and writing paper machines, alongside energy and pulp mill upgrades. APL’s sustainable initiatives, such as its extensive Farm Forestry Programme, reflect its commitment to renewable resource sourcing and environmental responsibility. The company aims for recovery aligned with improving market demand and prudent phased expansion