Andhra Paper Kadiam Unit Partially Disrupted by Contract Worker Strike

Andhra Paper Limited said operations at its Kadiam unit were partially halted from April 27, 2026, following a strike by contract workers seeking wage revisions from their direct employers.

The disruption is expected to reduce production by around 70 metric tons per day. The company stated that the cumulative financial impact remains below its materiality threshold of ₹158.5 million and has not significantly affected overall financial performance to date.

Andhra Paper added that operations at its Rajahmundry unit continue without interruption, while contingency measures have been implemented to mitigate the impact of the disruption at Kadiam. The company clarified that its core workforce is not involved in the current strike.

While the immediate financial impact is limited, a prolonged disruption could affect supply chains and operational efficiency. The situation highlights ongoing labor-related challenges within the paper sector, particularly concerning contract workforce arrangements.

The company has previously experienced labor disruptions. In April 2024, operations at the Rajahmundry unit were affected by a lockout following worker demands related to wage policies and union elections. In January 2025, the same unit faced a strike that resulted in an estimated daily production loss of 510 metric tons.