Orient Paper & Industries Modifies Capital Expenditure Project for Tissue Production
Orient Paper & Industries Limited announced modifications to a capital expenditure project at its Amlai (Madhya Pradesh) manufacturing facility on March 27, 2026. The changes were reviewed and approved by the Board of Directors during a meeting held on the same day.The company is now planning to install a new Tissue Machine incorporating advanced technology, replacing previously planned modernization initiatives. This shift reflects evolving market dynamics within the paper industry, including changing demand patterns and a focus on product quality and cost optimization.
The revised project is anticipated to improve operational efficiency, increase production capacity, enhance product quality, and improve cost competitiveness, specifically strengthening the company’s position in the tissue paper segment. The project implementation period is extended up to 2027-28.
The estimated investment for the modified project has been revised from approximately Rs. 125 crores to Rs. 213 crores. The company intends to finance the project through a mix of debt and internal accruals. The new tissue machine is expected to add a capacity of 23,400 tonnes per annum (TPA), with full operational capacity expected by fiscal year 2029-30. Current capacity is 1,00,000 TPA.
Separately, the Board noted that the modernization project approved on March 15, 2023, has incurred and obligated Rs. 239 crores against a sanctioned outlay of Rs. 475 crores. The company has decided to discontinue pursuing this project further
| Particulars | Details |
|---|---|
| Existing capacity | 1,00,000 TPA |
| Proposed Capacity addition | 23,400 TPA (the full capacity is expected to be operational during the FY 2029-30). |
| Estimated Investment | Rs. 213 crores (approx.). |
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