1. Steam and power system revamp - Phase I - A high-pressure boiler is being procured to replace the old boiler and turbo-generator, with Phase I completion slated by the end of March, 2026 at a planned outlay of ₹250 crore. Modernising the captive power system can lower energy cost per tonne and improve reliability, directly supporting margin expansion across both paper units.
2. Product mix shift to virgin-fibre boards and cup stock - Following the Unit-II pulp mill start-up, TNPL shifted from low-margin grey-back board to high-margin SBS board, re-entered the cup-stock market, and is developing aqueous-barrier-coated products as a polyextrusion alternative. Despite this richer mix of folding box board, SBS, and specialty grades, realisations declined in FY25 due to lower sales prices.
3. New product - paper bags and liquid packaging board - TNPL has designed and is producing paper-bag-grade paper at Kagithapuram and superior-quality liquid packaging board at Mondipatti for milk and liquid cartons. These open two fast-growing packaging segments where the company can place incremental volume at better margins than standard printing and writing grades.
4. Rooftop solar - Unit-I and Unit-II - A 1 MW rooftop solar plant at Unit-I was completed in June 2025, with Unit-II to follow by August 2025 and a further 2 MW plant in the pipeline. Incremental captive solar generation trims purchased power cost, providing a small but permanent uplift to operating margin.
5. Cement plant - waste utilisation - The 900-tonne-per-day cement plant consumed 1.21 lakh MT of solid waste from both paper units in FY25, meeting 69% of its raw-material requirement. Converting mill waste into saleable cement turns a disposal cost into a revenue stream, adding a steady, albeit modest, earnings contributor.
6. Mill expansion plan - Phase 2 ambition - Management targets over 1 million tonnes per annum by end-2030 and is in active discussions with machine manufacturers to enter newer value-added paper categories. While timing is conditional on market improvement, the stated ambition signals a path to step-change scale beyond the current \~0.6 million-tonne base.