Out of the total capex of Rs 400 crore, an estimated amount of Rs 113 crore shall be towards equipment reliability & sustainability of the current levels of production.

The balance amount of Rs 287 crore shall be towards upgradation of Pulp Mill. The present designed capacity of the Pulp Mill mill is 550 TPD, with an average capacity utilization of 530 TPD. The company proposes to raise the designed capacity to 630 TPD with an aim to achieve an average capacity utilization of 600 TPD.

Andhra Paper is engaged in manufacturing of writing, printing and cut-size papers for foreign and domestic markets and offers a wide range of high quality specialty grade products for a diverse range of applications. The papers are available in best-in class brightness and produced with elemental chlorine free (ECF) pulp technology. The manufacturing facilities of APL comprise two mills located at Rajahmundry and Kadiyam, both in East Godavari district, and a conversion centre at SN Palem in Krishna District, all units are located in the state of Andhra Pradesh.

The company's net profit surged to Rs 84.95 crore in the quarter ended June 2022 as against Rs 26.14 crore during the previous quarter ended June 2021. Sales rose 74.91% to Rs 452.01 crore in Q1 FY23 over Q1 FY22.