Andhra Paper's Kadiam unit is still silent. Each idle day costs ₹1.4 crore.
Workmen didn't come back after the lockout was lifted. The company now faces a total production halt, with a daily revenue loss it says is material.
What's new
- Workers have not returned after the lockout at Kadiam was revoked on May 29.
- Daily production loss is now 205 MT, translating to ₹1.4 cr in lost revenue each day.
- The company has declared the cumulative impact material under SEBI rules.
Why this matters
Andhra Paper is a micro-cap with a market cap of ₹1,239 cr. A total production stoppage is a severe threat to near-term revenue and earnings. The quantified daily loss is also more than double the initial strike estimate of 70 MT/day.
What we're watching
- Whether the phased resumption management expects actually materialises.
- The timeline for resolving the dispute with workers and local authorities.
- Any revised financial guidance from Andhra Paper as the shutdown drags on.
The full read
Andhra Paper's Kadiam unit is still shut. The lockout was lifted on May 29, but workmen haven't come back. The company now puts the daily loss at 205 MT of production, or about ₹1.4 crore in revenue. That's more than double the 70 MT/day hit from the initial contract-labour strike in late April. For a company with a market cap of ₹1,239 cr, this is no longer a minor operational hiccup. Andhra Paper has declared the cumulative impact material under SEBI rules, signalling the scale of the damage to near-term earnings. Management says it is negotiating a phased restart. The timeline is vague. The longer the silence from the workers, the bigger the hole in the next quarter.
Questions answered
- Why did production not resume when the lockout was revoked?
- The company says workmen failed to report for duty after the lockout was lifted on May 29. The dispute, which began as an illegal contract-labour strike in late April, remains unresolved.
- How does the current shutdown compare to the initial strike?
- The initial strike caused an estimated 70 MT/day production loss. The current, total shutdown is for 205 MT/day, more than double that figure.
- What is the total scale of the disruption so far?
- Andhra Paper has declared the cumulative impact material under SEBI regulations. It did not give a total figure, but the shutdown has continued for several weeks.
- What is management doing to resolve the situation?
- Management says it is in talks with workers and local authorities to resolve the dispute. It expects a phased resumption of full capacity 'shortly'.