Andhra Paper (APL), a leading integrated pulp and paper manufacturer in India, has announced a capital investment of Rs 178 crore to upgrade and rebuild its Paper Machine-3 (PM-3) at the Rajahmundry manufacturing unit.

The Board of Directors approved the project during its meeting on 05August, 2025. The upgrade is expected to enhance production capacity by up to 60 tonnes per day (TPD), adding 21,600 tonne annually to the current 36,000 TPA output from PM-3. With Rajahmundry already running at full capacity, the upgrade is projected to increase overall output by 60 percent.

The company plans to fund the project through internal accruals and/or bank financing, with completion expected within 13 months. 

Chairman Shree Kumar Bangur highlighted the company's broader modernisation efforts since 2023, which have included Rs 520 crore in phased investments across its Rajahmundry and Kadiyam units. These initiatives focused on upgrading legacy systems, improving energy efficiency, boosting pulp mill capacity, and introducing new product variants that have received strong market reception. Established in 1964, APL remains Andhra Pradesh’s only virgin pulp-based paper mill.