Seshasayee Paper and Boards Announces Rs. 25 Crore Expansion of Copier Paper Facilities

Seshasayee Paper and Boards Limited (NSE: SESHAPAPER, BSE: 502450) has announced a targeted capital investment aimed at strengthening its presence in the value-added paper segment. Following a Board of Directors meeting on May 12, 2026, the company disclosed plans to upgrade its processing capabilities at its key manufacturing sites.

Focus on Market Participation

The company has approved a capital expenditure of Rs. 25.00 crores (net of GST input tax credit). This investment is specifically earmarked for the augmentation of copier paper conversion facilities at both its Erode and Tirunelveli units.

The primary objective of this project is to allow the company to capture a larger share of the "Copier Market"-a segment that typically demands high-quality, precision-cut paper suitable for office and home printing.

Operational Impact and Capacity

It is important to note that this investment focuses on the "conversion" stage of production-where large jumbo rolls of paper are cut, finished, and packaged into retail-ready reams. Consequently:

Manufacturing Capacity: There is no change to the company's overall paper manufacturing capacity, which remains at 2,55,000 tonnes per annum across its two units.

Infrastructure: The project involves adding machinery and streamlining the finishing lines rather than expanding the primary pulp or paper-making machinery.

Project Timeline and Funding

The company has outlined an aggressive schedule for the upgrade:

Start Date: June 2026.

Completion: The project is slated to be finished within six months of commencement, targeting a rollout by the end of 2026.

The management noted that the investment aligns with their policy on materiality and long-term growth. By enhancing conversion facilities, Seshasayee Paper and Boards can more effectively turn its raw paper output into branded copier products, which often command better visibility and market positioning compared to bulk paper grades.

Shares of Seshasayee Paper and Boards Limited was last trading in BSE at Rs. 251.05 as compared to the previous close of Rs. 265.60. The total number of shares traded during the day was 894 in over 87 trades.

The stock hit an intraday high of Rs. 267.30 and intraday low of 249.65. The net turnover during the day was Rs. 230868.00.

Source : Equity Bulls

Keywords

SeshasayeePaperandBoards INE630A01024 Capex Expansion CopierPaper