Orient Paper pivots to tissue with Rs 213-crore Amlai investment

Orient Paper and Industries has revised its capital expenditure plan for its Amlai facility in Madhya Pradesh, redirecting its strategy towards tissue manufacturing with an investment of Rs 213 crore.

Approved at the Board meeting on 27 March 2026, the move replaces elements of a previously announced modernisation programme with the installation of a new, technologically advanced tissue machine. The project is scheduled for implementation by FY2027-28, with full operational capacity expected by FY2029-30.

The expansion will add 23,400 tonnes per annum (TPA) to the facility’s existing 1,00,000 TPA capacity. The company aims to strengthen its presence in the fast-growing tissue and hygiene segment, with a focus on premium and sustainable products, including bamboo pulp-based and virgin tissue grades.

The revised capex also signals a departure from the earlier modernisation project approved in March 2023, which had a total outlay of Rs 475 crore. The company had already incurred or committed Rs 239 crore before deciding to discontinue the project in favour of a more targeted investment approach.

According to the company, the strategic shift is driven by evolving market dynamics, rising demand for higher-quality tissue products, and the need for improved cost efficiency. The new machine is expected to deliver enhanced productivity, better product quality, and greater flexibility in product mix.

The project will be funded through a mix of internal accruals and debt. It also includes provisions for maintenance, modernisation, and energy optimisation.

The development reflects a wider trend in the paper industry, where manufacturers are increasingly investing in value-added segments such as tissue and hygiene to capture emerging growth opportunities.