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Andhra Paper Faces Operational Setback as Rajahmundry Strike Halts Production, Talks Underway

Updated: July 07, 2025 13:13

Image Source : Paper Mart
 Andhra Paper Ltd is grappling with a significant disruption at its Rajahmundry manufacturing unit following an illegal strike initiated by workers’ unions. The strike, which began on January 3, 2025, has led to a daily production loss of approximately 510–520 metric tonnes, impacting both pulp and paper output. The company is actively engaging with trade unions to resolve the issue and restore normalcy.
 
Key Developments and Operational Impact:
 
  • The strike was triggered by demands for higher wages ahead of upcoming settlement negotiations.
  • Operations at the Rajahmundry unit, a key production hub, have been suspended since the onset of the strike.
  • The disruption has also affected the Kadiyam unit, which relies on pulp supply from Rajahmundry, leading to a temporary shutdown there as well.
  • Despite the halt, Andhra Paper confirmed that all plant assets, including machinery and inventory, are fully insured.
 
Management Response and Outlook:
 
  • The company is in active discussions with the concerned trade unions and local authorities to reach an amicable resolution.
  • Andhra Paper has assured stakeholders that it will provide timely updates on the situation and is committed to minimizing further production losses.
  • The strike has had a marginal impact on the company’s stock, which dipped around 2% following the announcement.
 
Conclusion: While the strike poses short-term operational challenges, Andhra Paper’s proactive engagement with unions and insurance coverage for assets provide a cushion against deeper financial strain. A swift resolution will be critical to restoring supply chain continuity and meeting customer commitments.
 
Sources: CNBC TV18, Business Upturn, Andhra Paper Regulatory Filings, Company Website

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