Andhra Paper (APL) has signed a Memorandum of Agreement (MoA) with the government of Andhra Pradesh on 4 March 2023 to facilitate investment in the state in the interest of the economic growth of the state.

APL will set up a facility to manufacture pulp and folding box boards in Andhra Pradesh; and the state government has agreed to work together to facilitate investment in the state and thereby further contribute to the economic benefits. The state will expedite and provide necessary aid for implementation of the proposed project through single window clearances.

To be established in Kadiyam, Rajahmundry, the proposed facility will produce approximately 2,50,000-mtpa of bleached pulp and 2,38,000-mtpa of paper board, with an estimated investment of Rs 2,000-crore. The project is expected to create employment for approximately 2,300 people.

The memorandum is valid for a period of one. 

According to reports, paperboard demand is expected to grow 9-11% CAGR between 2022 and 2026.