Indian paper industry sees investment in capacity expansion

Andhra Paper is set to invest INR 178 crore in the upgradation and rebuilding of Paper Machine-3 at its Rajahmundry manufacturing facility. This initiative is projected to increase the facility's production by 60-tpa, with the new capacity expected to be operational within 13 months. The Rajahmundry plant is currently running at its full capacity of 36,000-tpa.

Orient Paper & Industries has committed approximately INR 125-crore for capacity expansion and efficiency improvements over the next 24 months. This investment will add 8,500-tpa to its existing 100,000-tpa paper production capacity, with current capacity utilisation at 93%. The company aims to debottleneck operations and enhance cost efficiency, financing the project through a mix of debt and internal accruals.

Kuantum Papers, while reporting strong Q1FY26 financial results with an operational income of INR 2,229-million and a PAT of INR 121-million, is also in an investment mode. The company's operational discipline and focus on value-added packaging signal long-term scalability. Kuantum Papers is steadily emerging as a disciplined mid-cap player within India’s paper and packaging ecosystem, with management expecting mid-to-high single-digit revenue growth in FY26 driven by product mix optimisation and expansion into institutional packaging.

Satia Industries (SIL) is planning a significant capital expenditure of INR 4-4.5-billion over FY26–FY27. This investment will go towards upgrading its PM-3 paper machine, recovery boiler, and general maintenance. The PM-3 upgrade, scheduled for November 2025 with a six to nine-month completion timeline, is expected to add 18,000-20,000-mtpa to SIL's capacity, resulting in a 10% increase and driving volume growth from FY28.

Meanwhile, NR Agrarwal’s chairman and managing director has successfully finalised a state-of-the-art 1,020-mt per day machine. This milestone will boost the company’s production capabilities, ensuring that it continues to deliver top-notch products.

A paper industry expert who spoke to PrintWeek said, “The Indian paper industry is anticipated to report revenue growth between 6% and 9%. The packaging paper and paperboard market is experiencing significant growth, with an annual rate of 8.2%. In 2023-24, domestic consumption of packaging paper and paperboard reached approximately 15-million metric tonnes, accounting for nearly 65% of the total paper, paperboard, and newsprint market of 23-million metric tonnes in the country." 

Today India's per capita paper consumption, currently at 16-kg, is low compared to the global average of 57-kg, indicating substantial growth potential. Paper consumption in India is projected to reach 30-million tonnes by March 2027.