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The Green Giant of Rajahmundry: Inside Andhra Paper Limited’s Industrial Legacy - AP Industries

 

The Green Giant of Rajahmundry: Inside Andhra Paper Limited’s Industrial Legacy - AP Industries


In the heart of Andhra Pradesh, where the Godavari River nurtures lush landscapes, stands Andhra Paper Limited (APL). As a cornerstone of India’s pulp and paper sector, APL is more than just a factory; it is a flagship of sustainable manufacturing and a primary driver of the Andhra Pradesh industries sector.

Established over six decades ago, this integrated paper mill has evolved from a local venture into a global powerhouse. Let’s explore how APL is shaping the future of the AP paper industry through innovation and environmental stewardship.


A Legacy of Innovation: The History of Andhra Paper Limited



The journey of APL began in 1964 as Andhra Pradesh Paper Mills Ltd. Starting with a modest capacity of 10 tonnes per day (TPD), it sought to tap into the region's abundant bamboo and hardwood.


Key Milestones in APL’s Evolution:


  • 1970s–1980s: Rapid modernization, scaling capacity to 75,000 TPA.

  • 2011: Acquired by International Paper (IP), introducing global best practices.

  • 2019: Reacquired by Indian promoters (Bangur Group) and rebranded as Andhra Paper Limited.

  • 2020s: Strategic pivot toward sustainability and the booming tissue paper market.

Today, APL is distinguished as the only mill in Andhra Pradesh using virgin pulp, a premium standard in an increasingly recycled-heavy market.


State-of-the-Art Operations: Manufacturing Excellence


APL operates two high-tech facilities: the main mill at Rajahmundry and a satellite unit at Kadiyam.

Getty Images

Production Capacity at a Glance

MetricRajahmundry & Kadiyam Combined
Paper Production259,400 TPA
Pulp Production220,500 TPA
Workforce~2,500 Direct (4,800+ Total)

Diverse Product Portfolio


  • Writing & Printing: Brands like Primavera and Reflection for notebooks and stationery.

  • Copier Papers: Truprint and HP Premium for office needs.

  • Industrial/Specialty: Andhra Cup Stock (packaging) and Andhra Thermal Base (medical/POS).


Driving the Andhra Pradesh Economy


The paper industry is a multi-billion rupee contributor to the state's GDP. APL’s financial footprint is massive, with a revenue of approximately ₹1,800 crore in FY 2023-24.


The Multiplier Effect:


  1. Farm Forestry: APL distributed over 115 million clones and seedlings in FY 2024-25, benefiting 86,000 farmers across 37,139 acres.

  2. Global Reach: Exporting to 29 countries, APL enhances the state's international trade profile.

  3. Local Livelihoods: Beyond direct staff, the supply chain supports thousands of families in the East Godavari district.


Sustainability: Green Practices in the AP Paper Industry


APL proves that "industrial" doesn't have to mean "polluting." By weaving sustainability into its DNA, the company meets strict APPCB (Andhra Pradesh Pollution Control Board) norms and global standards.


  • Renewable Energy: 65-68% of power is generated internally; recovery boilers run on 100% biofuel.

  • Circular Economy: Recycling over 200,000 tonnes of waste annually and pursuing Zero Liquid Discharge.

  • Eco-Certification: Holder of the FSC (Forest Stewardship Council) certification for responsible forest management.


The Future: Tissue Expansion and Beyond


The outlook for Andhra Paper is ambitious. With a recent investment of ₹178 crore to upgrade Paper Machine-3 and a ₹270 crore investment in a new tissue paper machine at Kadiyam, the company is targeting the high-growth hygiene segment.

As Andhra Pradesh aims for a $1 trillion economy by 2027, APL’s expansion into greenfield projects and wastepaper recycling positions it as a leader in India’s industrial renaissance.


For more information visit : Andhra Paper Limited


Frequently Asked Questions (FAQs)



1. Who owns Andhra Paper Limited?

The company is currently under the leadership of Indian promoters, including the Bangur Group, following its transition from International Paper in 2019.


2. Where are APL’s factories located?

The primary manufacturing facilities are located in Rajahmundry and Kadiyam, in the East Godavari district of Andhra Pradesh.


3. Does Andhra Paper export its products?

Yes, APL exports high-quality paper to approximately 29 countries, with exports accounting for roughly 4-6% of its annual turnover.


4. How does APL support local farmers?

Through its massive farm forestry program, APL provides millions of saplings and technical support to farmers, ensuring a sustainable supply of wood while boosting rural incomes.


For any Andhrapradesh Industries related information to visit  : AP Industries



Disclaimer

The information provided in this blog post is for educational and informational purposes only. While every effort has been made to ensure the accuracy of the data regarding Andhra Paper Limited (APL) and the Andhra Pradesh industries sector, production capacities, financial figures, and project timelines are subject to change based on corporate disclosures and market conditions. This post does not constitute financial or investment advice. 

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