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Overview of Paper Industry
The Indian paper industry has been historically divided on a three dimensional matrix identified by size, grades manufactured and raw material utilized. Generally, tariff rates have protected smaller units utilizing “unconventional” raw material. Over the years, the growth of various segments, investments levels in specific segments, technological changes, industry fragmentation and intensity of competition have been significantly influenced by the Government tariff policy. The present Excise duty on Paper is 12 %. The Government of India from time to time has given some benefits to small industries in order to protect them i.e. the first 3500 tones produced by a mill is chargeable only @ 8 % and thereafter it is @ 12 %. The three main grades of paper manufactured in India are :1. Newsprint 2. Writing and printing. 3. Industrial Variety ( Craft paper and Duplex Board ) Over 550 players currently populate the industry and the estimated capacity is about 7.00 million Metric Tones Per Annum (MTPA). Fragmentation is severe in the “industrial” (packaging) grades, which rely on “unconventional” raw material such as waste paper and partly agro residues. This division generally comprises of units with an average size of about 10000 MTPA and contributes to 45% of the output of paper and paper boards in the country. Although the other divisions in the Indian paper industry are also fragmented by international standards, the degree of fragmentation is less severe. “Newsprint” till about 1995, was the sole preserve of large public sector units and was well protected by high import tariff barriers. Nevertheless, imports contributed to about 50% of the domestic consumption. Since then, new domestic capacity with private investment has been allowed to be created. This
growth has relied namely on De-inked waste paper as a source of raw material. Currently import duty on newsprint is about 5% and domestic manufacture of newsprint is exempted from excise duty. This tariff structure for newsprint has seen Indian newsprint price closely mapping international prices. Imports still constitute about 30% of consumption and newsprint contributes about 10% of the total production of paper and paperboards. The number of players in the newsprint segment is relatively limited and manufacturing capacities are larger than in the packaging grades segment. Historically, the bulk of the output of “Cultural” grades – comprising of writing, printing, office stationery paper and specialty paper has been the preserve of “large” producers, who use forest based raw material in integrated pulping facilities augmented by imported pulp. This segment has been consistently taxed at higher rates due to its size and use of “conventional” forest based raw material. Investment in plant has also been higher. With relatively smaller number of players and high import tariff protection, prices of end products, generally perceived to be higher quality, have been high. Import tariff levels, although much lower now, still continues a significant barrier to imports. The high investment levels required and limited “conventional” fiber resources are the major deterrents to growth in this segment for both existing players as well as new entrants. “Lower end cultural grades” manufactured by smaller players using unconventional raw materials in low investment, low tech plants cater to consumers in the price sensitive sub segment of this market. This sub segment depends significantly on the tariff differential based on size and raw material for its viability. The Indian Paper industry is going through substantial changes. Global demand for paper is expected to grow by about 4% p.a. over the next 5 years. The domestic demand is expected to grow at about 8% which will result in increase of demand by 30 Lakh tones approximately over the next 5 years. It is expected that customs duty on import of paper will decrease from the current level to the level of 10% over a period of time due to WTO compulsions. The import of raw material for paper including pulp, waste paper and news print is likely to increase by at least 15% to 20% in 2005-06 to keep up with growing demand
for paper in the domestic market. Despite to the constraints like over crowded market and limitation in procuring the desired quality of waste paper, there are indicators of a revival in the Indian Paper Industry. In the current year, selling price has marginally increased and enabled the industry to partially offset the rise in cost of inputs, fuel & labour. The paper industry has an important social role to play for the country. Use of paper is considered as an index of cultural growth. Key social objectives of the Government like eradicating illiteracy, making primary education compulsory etc. are very much related to the paper industry. The paper industry is also contributing towards fulfillment of various requirements of the industry as a whole like information dissemination, publicity etc. which in turn stimulate industrial growth of the country. The paper industry has, thus, a catalytic role to play not only for the overall growth of the industry but also for the living standards of the people. The new millennium is going to be the millennium of the knowledge. So demand for paper would go on increasing in times to come. Because of paper industry’s strategic role for the society and also for overall industrial growth, it is necessary that the paper industry performs well.
The globalisation of Indian economy has lead to a healthy growth of 6 to 7% industry and that is growth happening in all the sectors. Moreover the Per Capita consumption of paper in India is going up with the advent of packaging in the food industry. Due to environmental concerns, the use of plastics is likely to be banned by the Government of India within a short span of time. Hence within 2 to 3 years we will be witnessing an explosive growth of packaging in India mainly in food, textile and export segments. The exposure to foreign packaging technology and the need to satisfy the export customers has led to a drastic change in the industrial packing sector. The
corrugators have started using high BF, high GSM paper instead of the regular grades and shifting from 7 ply and 9 ply boxes to 5 ply and 3 ply boxes. The above change has resulted in more aesthetic and cost effective packing solutions. There is a very good potential market developing for such grades of paper in India. The market of high quality Kraft paper is now catered only by few manufactures from western and northern parts of the country. With the above changes in the industry it would be in the best interest of our company to put up a Kraft paper plant of 100 MT per day producing high B.F., higher GSM paper and exploit the emerging market situations better. The company envisages the following advantages by going for such a plant as follows: l) Most of the existing paper mills in South India operate with single wire machine, which can produce up to 24 BF only, whereas the new plant intended to be set up by SSPML is a twin wire machine which can produce high quality Kraft paper of 24 BF to 40 BF which is sold in the market at a premium. l By making high end paper in south India the company stands to gain a lot in terms of logistics costs when compared to the competition. l SJPML got the advantage of cost benefit while importing raw materials and exporting finished product. l The possibility of exporting substantial quantity of the production to near by countries like, Sri Lanka and eastern African countries is also bright. This may also be substantiated from the fact that paper exports have risen at a CAGR of 14 % pa from 105000 tonnes in the year 2000 to 179000 tons in the year 2004. As a strategic measure to expand the international operations of the company, the company has already started a new business division – International Business Unit to handle the international marketing operations of the Company. 2) The company intends to manufacture the paper by using Twin Wire Technology and also plans to incorporate all latest equipments to have a cost effective production. The twin wire technology employs two wires drawing pulp stock from two separate head boxes. The arrangement is in such a way that the wet webs come into contact before going to the press.
3) At present the Company is employing single wire technology wherein the pulp stock flows from the head box and gets distributed uniformly for further dewatering, pressing and drying to form a sheet of paper.
The twin wire technology is superior than the single wire technology due to the following factors: 1. Improves formation of paper. 2. Improves strength properties of paper namely, Burst factor, Tear factor, Tensile strength and Ring crush test values. 3. Reduces Cost of Production. The company will be able to derive the synergies of the existing plants and position itself as a largest Kraft paper manufacturer in south India by the installation of the plant. The market expectation for the increased production
Capacity, Production, Raw Material and Import
Government has completely de-licensed the paper industry w.e.f. 17th July, 1997. The entrepreneurs are now required to file an Industrial Entrepreneur Memorandum with the Secretariat for Industrial Assistance for setting up a new paper mill or substantial expansion of the existing mill in permissible locations. The industry is a priority industry for foreign collaboration and foreign equity participation up to 51% receives automatic approval by Reserve Bank of India. Foreign investment even up to 100% is approved by FIPB on case to case basis. Several fiscal incentives have also been provided to the paper industry, particularly to those mills which are based on non-conventional raw material.
There are, at present, about 515 units engaged in the manufacture of paper and paperboards and newsprint in India. The country is almost self-sufficient in manufacture of most varieties of paper and paperboards. Import, however, is confined only to certain specialty papers. To meet part of its raw material needs, the industry has to rely on imported wood pulp and waste paper. The production of paper and paper board during the year 2001-02 is 31.62 lakh tonnes. The proportion of non-wood raw material based paper is increasing over the years. At present about 60.8 per cent of the total production is based on non-wood raw material and 39.2 per cent based on wood. The performance of the industry has been constrained due to high cost of production caused by inadequate availability and high cost of raw materials, power cost and concentration of mills in one particular area. Several policy measures have been initiated in recent years to remove the bottlenecks of availability of raw materials and infrastructure development. To bridge the gap due to short supply of raw materials, duty on pulp and waste paper and wood logs/chips have been reduced. The capacity utilization of the industry is low at 62% as about 194 paper mills, particularly small mills, are sick and/or lying closed. Several policy measures have been initiated in recent years. Imports of paper and paper products were growing over the years. However, it has decreased during 2000-2001.
Demand and Supply gap in Paper Industry
Indian paper industry is the 15th largest in the world and provides employment to 1.3mn people in the country contributing Rs.25bn to the Government. The industry
has recorded a volume growth of CAGR of 5.47% over the last 3 years. In 2003-04, it recorded a volume growth of 6%, in line with the GDP growth. Indian paper industry has a 1:1 correlation with the economy. The demand for paper is linked to the GDP Growth. The government is planning to target a GDP Growth of about 10% in 2-3 years. With this increase in the GDP growth the paper sector is expected to record a similar growth rate. The Indian paper industry has an installed capacity of 6.7mn tons while, the effective capacity is estimated to be lower at 6.15mn tons. The industry produced 5.26mn tons of paper in 2003-04. Newsprint capacity in India is estimated at 1.12mn tons however, domestic production is only 0.59mn tons, while consumption of newsprint is 1.1mn tons. Favorable demand - supply scenario to keep prices firm The demand for paper is influenced by various macro-economic factors like national economic growth, industrial production, promotional expenditure, population growth and the Government’s allocation for the educational sector. Domestic demand for paper is expected to grow at a CAGR of 6-7%. India’s paper demand is expected to touch 8mn t.p.a by 2010. A leading global paper industry consultant projects a shortage of about 0.7mn tpa by 2010. Proposed capacity expansions: Capacity expansions (which cost 50% less than new capacities) have been announced by most players, but would take 1-2 years to be operational. Capacity expansions of over 600,000 tons have been announced by the 7 large players in the sector
WTO as discussed the implication of Indian Paper and Newsprint Industry as part of its negotiations and implications. The Indian Paper Industry has important place in the industrial landscape. The paper industry has a strong backward linkage with forests and environment on one hand and consumers of a variety of products on the other hand. The manufacture of paper through pulp of wood or of other fibrous cellulosic material has been discussed at length. However, recovery of waste or scrap for paper and paperboard manufacture has been looked at from different angle
in the classification of products of Indian Paper Industry. In fact the paper industry which are eco friendly imports lot of waste paper into the country in the manufacturing of paper and paper board. Generally WTO implication is applicable to all the industries. How ever, in respect of paper industry where waste paper is the raw material and which is eco friendly, the impact is not harsh. SSPML is into manufacturing of paper out of the waste paper and is an eco friendly project.
GOVERNMENT REGULATIONS, PERMISSIONS & TAXES 1. Central Excise:
Central Excise is levied @8% for the first 3500 MT production and thereafter @12% on the value of the invoice. The Company is availing permitted Modvat benefits as per Central Excise regulations. For import duty paid on waste paper procured from overseas the Company is entitled to adjust the entire duty paid component as that of Modvat credits.
2. VAT (Value Added Tax):
VAT replaces the existing multipoint taxes levied by various states with effect from April ‘05. As that of other industries, the paper trade is also covered under VAT for domestic sales done in the state of Kerala. However for interstate sales CST is continued to be levied as per existing Government regulations.
3. Service Tax:
Being classified as a manufacturing industry, the industry even for Job Work on conversion basis will not be subjected to Service Tax requirements. A recent notification from Central Government also confirms such a stand.
4. Factory Licenses:
All the licenses required under Municipality Act, Factories Act are obtained and duly renewed.
5. Pollution Control:
Necessary permission under effluent discharge Act is obtained and the facilities required to maintain the permission are in place.
AVAILABILITY OF DOMESTIC WASTE PAPER
Waste paper recovery system in India is very unorganized and unplanned . As a result, large quantities of waste paper get diverted for cheaper packaging and other uses or get destroyed as rubbish. Bulk of waste paper collected by street collectors in metropolitan cities goes to household paper bag manufacturers. Due to lack of any grading/ classification system in context of waste paper, no sorting or segregation is done at source and so most of the waste paper varieties are collected in commingled form. The probable sources of waste paper collection are as under: Waste Paper Examples Newspaper, magazines, board cartons.
Source Domestic refuse
Industrial refuse Office refuse
Corrugated boards, duplex & other packaging board, paper sacks etc. Ledger files and papers from Govt. offices, Universities & large business organizations. Boards trimmings from converters & packaging manufactures, paper savings from printers Newspapers and magazines are usually recycled directly as wrapping and packaging papers by the grocers and pretty traders and therefore they are not available for mills in their first rejection. Other fibrous domestic refuse probably find their way as road sweepings.
Trade refuse Road Sweeping
In India, collection of office refuse has not been very high mainly due to unavailability of a viable collection system. In practice, more than 80% of the paper consumed in India is being collected, of which only 20% is being made available to paper industry and the rest 60% is usually diverted for other diversified / secondary uses such as wrapping, packing etc.
The developed countries, which are the major players in paper recycling business, have a well defined and planned waste paper grading system in place, which facilitates the collection of recovered paper sorted in grades with a limited mixture of fiber types. Due to limited capacities of landfill sites and (municipal) incineration plants, increasing waste disposal costs and environmental awareness a wide range of legislation / directives in various countries have been imposed which has promoted material recycling and reduced further , the generation of waste that requires disposal in appropriate facilities. These regulations set responsibilities for taking back used paper products and packaging material independent of the public disposal system and recycling them. In India, however, no such regulations / law / directives are in force to promote use of recyclable resources, as a result of which the recovery of used paper is also low. As per the statistics available , the Indian paper industry is using more than 70% of imported waste paper in its total waste paper consumption . The general issues related with use of imported waste paper in Indian Paper Industry are: Ø Ø Ø Ø Ø Inconsistency in quality and varieties of waste paper grades. High level of contamination i.e. prohibitive & out throws. Price fluctuation in the international market. High price for good quality waste paper i.e. low to negligible level. High ash content in paper leading to low fiber yield / tpaper and generation of inorganic sludge. contamination
ISSUES RELATED TO WASTE PAPER BASED MILLS In spite of the fact that waste paper processing for paper making is considered to be an eco friendly process , there are certain technological & environmental issues still associated with waste paper based mills which needs to be addressed to improve its environmental compatibility. Technological Issues :
The main objective of recycled fiber processing is the removal of contaminants and elimination of their effects as much as necessary to meet quality requirements. Removal of contaminants makes recycled fiber processing systems significantly more complex than systems for virgin fibers. There are several unit operations / stages viz. slushing, screening, cleaning, flotation, disperger etc. to remove the contaminants from recycled fiber stock. The technology is well established to produce newsprint, packaging grades and fine papers and most of the mills in USA, Europe have state-of-art technology for processing of recycled fiber. In India, however, most of the recycled fiber based mills do not have appropriate system configuration for efficient processing, as a result the quality of finished paper is low. The level of technology in majority of mills is obsolete. The operational efficiency of equipments and machines are also considerably below the optimum level . Due to lack of appropriate configurations, the amount of rejects generated are also high and is a major source of solid waste generated in such mills . Environmental Issues : Among the environmental issues associated with recycled fiber mills , solid waste disposal and management is the subject of main concern. Deinkined sludge generated from deinking plants in mills using printed waste paper for producing writing & printing grade of paper , consists of mainly fillers and coating pigments, fibers, fiber fines, printing inks and adhesive components. A characteristic feature of the deinking sludge is its high ash content in the range of 40% - 70%. Traces of heavy metals may also be present in some cases. In most of the cases the heavy metal content is insignificant and sometimes even below the detection limit. The another important issue reported recently is the clandestine import of other waste like plastics, metal and cloth / rags etc (technically defined as prohibitive and out throws) along with waste paper. OBESRVATION & REMARKS : Generally the waste paper being imported in the country are recovered in segregated form as per the request of the importer. However, some cases have been reported wherein municipal solid waste constituting of plastics, metal cans and cloth / rags etc (technically defined as prohibitive and out throws) have been illegally imported
in grab of imported waste paper This has led to the need of defining / formulating the permissible limits for the contaminants like plastics, metal cans and cloth / rags etc. in the imported paper . At present, no data /guideline is available on this issue Therefore; it is recommended to undertake an indepth study on this issue so as to evolve permissible limits for prohibitive and outthrows in the imported waste paper consignments entering into the country.
M/s Shree Jagdambe Paper Mills Limited(SJPML), incorporated in July, 1980 as a private limited Company, commenced its commercial production of Semi Kraft Paper on single production line in March, 1982 with an installed capacity of 1950 M.T. per annum based on agro residue. In the year 1985-86 the capacity was
increased to 3000 M.T. per annum & later in 1987-88 to 5000 M.T. per annum by adding certain balancing equipments. In 1990, SJPML added another production Line and increased the capacity to 10000 M.T. per annum. In 1993-94 the plant has been operated at 95% capacity utilization to give a production of 9587 M.T. SJPML has been promoted by Shri Man Mohan Kumar Goyal, Anil Shri Ramesh and Shri
Kumar Goyal, Shri Surender Kumar Goyal, Shri Parveen Kumar Goyal who have
SJPML has been
converted into a Limited Company on 28.12.94 and also enhanced its production capacity from 10000 M.T. At present to 20000 M.T. per annum through
Modernization- cum-Expansion Scheme. During the year 1994-95 an other sister unit of SJPML for manufacture of Kraft Paper was incorporated as Shree Sita Ram Paper Mills Ltd., at Village Nanasanja Taluka Jagadia, Distt Bharuch (Gujarat) with installed capacity of 20000 MT per annum. As accepted in open market, but due product of the company is well
to Government policies of liberalising
international trade, Import duty on Kraft Paper was reduced resulting dumping of Paper in India by multinational Companies and same also became a reason for down in production for the year 2001 to 2003. Similarly Excise Duty was also increased between 1994-95 to 2000-2001 from 0% to 5% and then to 8% and 16 % ( 2002-2003).
BRIEF PARTICULARS OF THE COMPANY
The Company was incorporated under the name & style of M/s Jagdambe Industries(P)Ltd., vide certificate of incorporation No.H-10725 Paper dated
31.07.1980, with Registrar of Companies, Delhi & Haryana, (New Delhi). The name of the Company was changed to Shree Jagdambe Paper Mills (P) Ltd., on 10.02.1994. Now Company’s constitution has been changed to that of a Limited Company on 28.12.94. The Company has General of Technical Development, India for manufacturing of Paper for No.1020(89)DLR dated 17.11.1989 & registered Paper 10000 itself with vide Directorate Registration per Delhi, Ministry of Industry, Government of Board M.T. And memorandum for
expansion of capacity
to 20000 M.T.
Has been filed with SIA as
acknowledgement dated 23.08.94.
BRIEF PARTICULARS ABOUT PROMOTERS OF THE COMPANY
The Project was promoted by Shri Murli Dhar Jhuthran and Shri Ramesh Kumar Goyal. Shri Murli Dhar Jhuthran retired as Director in 1982. After then promoters were Shri Man Mohan Kumar Goyal, the Chairman of the Board of Directors, Sh Ramesh Kumar Goyal, Managing Director, Sh Surender Kumar Goyal,
Director(Sales), Sh Anil Kumar Goyal, Director(Production), Sh Parveen Kumar Goyal, Director (Personnel). Shri Man Mohan Kumar Goyal started his career at the age of 17 years by joining his father's Brick Kiln business. Being the eldest son of late Sh Ram Saran Dass Goyal, he was involved in planning and managing all business activities of the family. He has hands-on experience in running brick kilns,
Manufacturing of steel utensils, ice, managing agency, business of cement & match boxes, petrol filling station and all properties. In manufacturing of paper and now he is 1980, he came into the
an established Industrialist with a 14
years of experience in paper manufacturing. Sh Man Mohan Kumar Goyal resigned from director ship of the company w.e.f. 15.12.2001 & shifted to Gujarat to look after day to day affairs of sister company Shree Sita Ram Paper Mills Ltd.,
Shri Surender Kumar Goyal, B.A., started his career by joining family business. Later he was instrumental in setting up of M/s Aggarwal Ice Factory. In 1982, he joined the captioned company as Director (Sales). He has been instrumental in developing network of dealers/agents and monitoring sales. Shri Anil Kumar Goyal, Chartered Accountant started his career by joining SJPML in the year 1984. Being an Accountant by profession he could read, analyze and plan the business to make the operations cost effective. Shri Parveen Kumar Goyal, B.A.started his career in 1981 at the age of 18 years and joined SJPML. Due to his strong human relation trits he was also given the responsibility of handling personnel functions and inducted as Director, in 1984. Sh Parveen Kumar Goyal resigned from director ship of the company w.e.f. 15.12.2001 & shifted to Gujarat to look after the day to day
affairs of sister company M/s Shree Sita Ram Paper Mills Ltd., Bharuch
LOCATION OF MANUFACTURING PLANT AND ITS BRANCHES
SJPML has free hold land measuring 126 kanal 13 marla, situated at Begu nearest railway station is 3 K.M. at Sirsa. Road,
Sirsa. Site is on metalled road about 2 K.M. from Sirsa. City in the municipal limits
Begu Road, Sirsa (Haryana)
Sector: Medium Scale Industry Registered Office : 161, Deepali, Pitampura, Punjabi
Branch : Shree Jagdambe Paper Mills Ltd.,
11, Jeet Building, Phase Ist, Ashok Vihar, Delhi
NAME OF THE SISTER COMPANIES/CONCERNS
a) Shree Sita Ram Paper Mills Ltd., Taluka Jagadia, Village NanaSanjha, Distt. Bharuch (Gujarat) Shree Sita Ram Paper Mills Ltd., incorporated in the year 1995 is sister company of Shree Jagdambe Paper Mills Ltd., involved in manufacturing of Multi Liner Craft Paper having production capacity of 20000 MT per annum. b) Shree Amba Paper (P) Ltd., 73/4, Village Ghavera, Delhi c) Ahmedabad Chemical Trading (P) Ltd., 44, Ekjot Apartments, Maduban Chowk, New Delhi
Both of two companies are the sister companies of Shree Jagdambe Paper Mills Ltd, based at Delhi, involved in trading for various types of paper and paper board.
A loyal customer base is SJPML biggest quality endorsement. The institutional customers comprise brand-enhancing names like Action Shoes, Micro Teck, Lakhani Shoes Ltd., among others.
The SJPML takes a holistic approach in the business of making paper and customer relationship enjoys a priority in this. The SJPML customer service stands for dependable quality, every possible choice and anytime product availability.
Convenience : We provide customers the benefit of staggered delivery so that
they do not need to keep a large inventory at their end; this maximises working capital efficiency
Customer service : We weave the marketing and manufacturing functions
together. Quick and punctual delivery has added to customer convenience
PROCUREMENT OF RAW MATERIALS
Main raw material for the company is corrugated boxes/waste paper which is purchased through local suppliers. Company has adopted inventory control system for purchase Raw material. Decision for making purchase is taken by the Executive Director (Purchase) after considering the indents for requirement of raw materials, received from the production department. Director (Purchase) is assisted by team of purchasers, who calls quotations from different suppliers of raw materials.
RAW MATERIAL MANAGEMENT Director (Purchase) after considering lowest quotations along with sample of raw material, place order for supply of raw material. TESTING/CHECKING OF RAW MATERIAL After receipt, consignment of raw material is weighted at company’s own weighing bridge. Weight as per company’s weighing bridge is tallied with the weighing slip as produced by the supplier of raw material. Bill of the material is also collected by the gate office for their necessary inward material entries. Weight of the raw material is tallied with the weighing slip/bill of the supplier. If the weight is not tallied with the weighing slip/bill due to shortage, it is immediately informed to supplier/driver. A written consent on the back side of bill is taken for information of shortage to supplier. Vehicle is then allowed to go to raw material godown for unloading with prior intimation to quality checking supervisors. Raw Material Quality Supervisor got unloaded the material in his presence. Sample from different bundles of raw material is taken for checking of quality/moisture etc. If, moisture is found in any bundle, sample of same is handed over to laboratory technician, who tested the percentage of moisture in the material. A report is being prepared by Lab. Technician for moisture and other prohibited contents like plastic strips, kaccha material, reel core material etc. present in the lot of raw material. Report is also signed by Lab. Incharge as well as supplier of material. Weight of moisture/other prohibited contents present in the material is deducted from the total weight of material. Lab. Report so prepared, is forwarded to Director (Purchase) for his information and signature purpose. Copy of the report is then given to supplier of raw material. If, supplier does not accept weight of moisture/prohibited contents he is allowed to take his material back. Copy of the report, is attached with bill of supplier and handed over to gate department for entries in their inward receipt register. Rates of different type of raw materials are as under :-
1. 2. 3. 4. 5. 6.
Corrugated Cartoons (Fresh) Corrugated Cartoons (used) Corrugated Cuttings (Fresh) Corrugated Cuttings (Old) Media (Kaccha Material) Media (Core Pipes)
Rs.8000/- PMT Rs.7000/Rs.6800/Rs.6500/Rs.5500/Rs.5000/,, ,, ,, ,, ,,
MANUFACTURING PROCESS ; Paper is manufactured using corrugated cartoons/waste paper, Chemicals and
water. The manufacturing process can be bifurcated in to four stages. A) PULPING : Corrugated Boxes/Waste Paper after cutting and dusting feed in to the pulpers for pulping. The waste paper can directly be beaten and washed in the beaters for pulping. B) PREPARATORY TREATMENT OF STOCK : Pulp, as it, is not fit for being converted in to paper and machine, the stock must be must undergo some
preparatory treatment depending on the end product. Before going to the paper prepaid uniformly with a fixed thickness and be screened and refined by crushing so that it may be reduce in to fixed thickness with uniform properties in a uniform speed. The treatment is carried out in appratus called refiner and sizing agents like alum, dyes, loading materials are added in the process to develop its strength. The main flow of pulp which is freed from tailings in the vibrating screen and fine pulp sieved out from the tailings are put together and sent to the centricleaners which work quite efficiently in removing fine dust.
C) PAPER MAKING : Prior to going in to the paper making machine the stock which has gone through necessary treatments, is diluted in the mixing box, down to the required consistency with the use of back water generated in the paper making process. Similarly speaking, the paper making machine performs its function in this way :In the pulp stock which goes over travelling wire the fiber is separated from water & sheets of paper is formed. The wet sheet is pressed dried and smoothened by going through several sets of roll machines. To get M.G.Kraft Paper, the sheet is then passed through M.G.Dryer which imparts glaze to the paper. Paper is finally wound up by means of pop-reel machines. The out put of a paper machine is determined by the trimmed width of paper, the speed of machine and grammage of paper. D)FINISHING OF PAPER : Paper and board intended for sale in reels and cut sheets is rewound & cut to certain fixed measurements. Defective paper and board sheets are removed . The rejected produce is returned to pulping section and mixed into the main flow of pulp stocks. DISPATCHES Reels so prepared, is then wrapped by plastic cloth and clipped with the help of plastic strips. Supervisor on duty mark a serial number, size and grammage on each reel for the purpose of identification. Wrapped reels are then weighted through electronic weighing scale. Weight as shown on the display is written in the reel by the supervisor. Supervisor also maintained a register in which he entered weight of each reel along with serial number of the reel. Reel is then shifted in finished goods godown from where it is dispatched as per orders received. Complete record of reels manufactured and reels dispatched are forwarded to account office.
QUALITY CONTROL : SJPML has got a well equipped laboratory with all the latest equipments for test cobb value, Tear Factor, Burst Factor, Consistency, Degree SR and Grammage etc. NET WORK OF SALES SJPML has a wide range of net work of dealers spread all over the India, which covers mostly all the states of India. CLIENTS SJPML keeps stringent control over quality for consistent quality which has helped it have clients like :a) b) c) d) e) f) g) h) i) j) k) l) Micro Tek, Parwanoo Action Shoes, Delhi H.P.Cotton Textiles Mills Limited, Hissar Baldeo Mange Lal, Ujjain Patel Paper Box, Udaipur Perfect Pack Ltd., Faridabad Lakhani Group of Industries, Faridabad Ravi Sons, Chandigarh Kamal Boxes, Jalandhar Jay Ambe Overseas, Surat Industrial Packers, Daman Meiyappa Paper, Chennai
EMPLOYEES CAPACITY Details of employees are as under :1. 2. 3. 4. 5. 6. 7. 8. 9. Repair & Maintenance Staff Engineering & Manufacturing Staff Clerk Supervisors Connected with Process Supervisors Connected with Production Supervisor Connected with Despatches Supervisor Quality Checking Officer Staff Security 15 18 10 5 5 5 5 5 5
SHREE JAGDAMBE PAPER MILLS LTD., SIRSA PROCESS FLOW DIAGRAM
Waste Paper Along with 12% Normal Moisture,
23 Stapple Pins & Adhesives)
WIRE PART HEAD BOX
DUMPING CHEST HIGH DENSITY CLEANER TURBO
M.G.DRUM FLOW BOX
MIXING CHEST CHEST NO.2
REWINDER FINISH PRODUCT
Solid Waste to Boiler/ETP
REMMUNERATION OF WHOLE TIME DIRECTOR Sri Surinder Kumar Goyal
Sri Surinder Kumar Goyal a Post Graduate in Commerce and has been in the services of the Company as Director (Sales) since the incorporation of the Company. He will be entitled to the following remuneration as fixed at the Board meeting Committee and as approved at the Annual General Meeting of the Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule XIII and all other applicable provisions if any of the Companies Act, 1956 or any statutory modifications or re-enactment thereof.
1. 2. 3.
Salary Rs. 30000/- per month Commission : N.a. Perquisites House rent allowance at the rate of 50% (fifty percentage) of the Salary Medical expenses:- Medical expenses for the Director and his Family subject to a ceiling of one month’s salary in a year or three month’s salary over a period of three years Personal Accident insurance – an amount of the annual premium of which does not exceed Rs. 12000/Gratuity payable – Not to exceed half a month’s salary for each completed year of service. Provision of Car for use on Company’s business and Telephone at residence Perquisites shall be evaluated as per Income tax rules, 1962 wherever applicable.
Sri Anil Kumar Goyal Sri Anil Kumar Goyal a Chartered Accountant is in the services of the Company as Director (Finance) since the incorporation of the Company. He will be entitled to the following remuneration as fixed at the Board meeting Committee and as approved at the Annual General Meeting of the Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule XIII and all other applicable provisions if any of the Companies Act, 1956 or any statutory modifications or re-enactment thereof. 1. 2. 3. Salary Rs. 30000/- per month Commission : N.a. Perquisites House rent allowance at the rate of 50% (fifty percentage) of the Salary Medical expenses:- Medical expenses for the Director
and his Family subject to a ceiling of one month’s salary in a year or three month’s salary over a period of three years Personal Accident insurance – an amount of the annual premium of which does not exceed Rs. 12000/Gratuity payable – Not to exceed half a month’s salary for each completed year of service. Provision of Car for use on Company’s business and Telephone at residence Perquisites shall be evaluated as per Income tax rules, 1962 wherever applicable.
Sri Rakesh Kumar Goyal Sri Rakesh Kumar Goyal a Graduate in Commerce and has been in the services of the Company as Director since 1996. He will be entitled to the following remuneration as fixed at the Board meeting Committee and as approved at the Annual General Meeting of the Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule XIII and all other applicable provisions if any of the Companies Act, 1956 or any statutory modifications or re-enactment thereof.
1. 2. 3.
Salary Rs. 25000/- per month Commission : N.a. Perquisites House rent allowance at the rate of 30% (fifty percentage) of the Salary Medical expenses:- Medical expenses for the Director and his Family subject to a ceiling of one month’s salary in a year or three month’s salary over a period of three years
Personal Accident insurance – an amount of the annual premium of which does not exceed Rs. 12000/Gratuity payable – Not to exceed half a month’s salary for each completed year of service. Provision of Car for use on Company’s business and Telephone at residence Perquisites shall be evaluated as per Income tax rules, 1962 wherever applicable.
Sri Manoj Kumar Goyal Sri Manoj Kumar Goyal a Graduate in Commerce and has been in the services of the Company as Director since 2000. He will be entitled to the following remuneration as fixed at the Board meeting Committee and as approved at the Annual General Meeting of the Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule XIII and all other applicable provisions if any of the Companies Act, 1956 or any statutory modifications or reenactment thereof. 1. 2. 3. Salary Rs. 20000/- per month Commission : N.a. Perquisites House rent allowance at the rate of 30% (fifty percentage) of the Salary Medical expenses:- Medical expenses for the Director and his Family subject to a ceiling of one month’s salary in a year or three month’s salary over a period of three years Personal Accident insurance – an amount of the annual premium of which does not exceed Rs. 12000/Gratuity payable – Not to exceed half a month’s salary for each completed year of service. Provision of Car for use on Company’s business and
Telephone at residence Perquisites shall be evaluated as per Income tax rules, 1962 wherever applicable.
DETAILOF DIFFERENT DEPARTMENTS Finance/Administration Department
Mr. Anil Goyal is a Chartered Accountant, has a distinguished career in the area of Corporate Finance and brings with him a unique combination of skills from Accounting, Costing, Secretarial Services and Financial Management. He started his career in 1985 and added to his profile significant skills in the areas of Taxation, Costing, Insurance, Working Capital Management, Project funding by way of debt from multinational agencies, raising equity etc. Ever since he joined SJPML he has been instrumental in bringing in the financial discipline and analysis that helped the Management to take various cost effective decisions. He has made significant contributions in identifying the financial institutions for sourcing the funds for the Mill Development Plan.
Accounts Department has also been supervised by Sh Anil Goyal, Director Finance under assistance of Accounts Manager & Accounts Assistances. Under his supervision and new ideas company has a modern and high-tech accounting software and a well established computer lab.
Purchase of raw material is supervised by Sh Manoj Goyal, Director Purchase. Director Purchase is assisted by Purchase Manager and Raw Material Quality Managers.
Production is supervised by Sh Rakesh Goyal, Director Production. He is assisted by the Production Manager and Plant Supervisors. He is the key
contributor to the process of developing the Quality Assurance and R&D Functions in the organization. His contribution in customer development and customized product development has been unparalleled. Later on with his abilities in technical and administrative skills, took over the role of managing the Production Operations. He is specialized in the areas of Technical Sales, Customer service, and Product development. He is the critical In-house Resource for various Learning Events being conducted in various technical areas.
Dispatch Department has also been supervised by Sh Rakesh Goyal. He is assisted by supervisors and dispatch clerks.
SJPML’s Human Resource Processes are rooted in business priorities, market realities and long term oriented. Inherent in them are the qualities like innovation, continuous learning and improvement in the work processes, talent identification and nurturing. SJPML through its concerted efforts aims at becoming the most preferred employer in the Industry and create one of the best places to work in the manufacturing sector. Our HR processes stem from the faith in Human Potential and its Creative Power. Our work culture that enable its Human Resources enjoy professional freedom. Our Learning Center is a forum where unique learning events take place as a part of the process of institutionalization of continuous learning. The compensation package of the SJPML matches with the Industry Standards with qualities of flexibility, valuing talent and encouraging career growth.
Our Performance Management System encourages its Human Resources to add value and increase their contribution to the growth of the organization on a continuous basis thereby guarantees timely reward and recognition.
Extensive monitoring, analysis, and control would optimize mechanical/electrical systems, manage energy usage, pinpoint problem sources, and avoid unnecessary downtime. For electrical maintenance SJPML has flexible solution with comprehensive energy consumption logs and immediate access to a range of electrical parameters, presenting information remotely via the company's existing computer network. Power Measurement offered the right set of capabilities with its energy management software, installed on distributed workstations, and a network of intelligent power meters. The system proved to be a valuable aid in the design and operation of electrical installations. Further operational savings are being realized, especially related to fast alarm response, and the system's modular architecture facilitates affordable growth of all energy management applications.
SJPML has always been concerned and committed to improve the mill energy performance levels continuously. Basically because it realizes that natural energy resources available are finite with no way of replenishing the quantum consumed and also heavy investments are required for energy sector for meeting the demands and these resources are to be consumed with prudence to conserve the energy. For SJPML, conservation of energy has become a way of life. It reflects and manifests itself in all the endeavors. SJPML realizes that this not only is a means to improve competitiveness, enhance profitability but also is a source of moral responsibility.
To achieve the above objectives of energy performance, SJPML has constituted an independent Energy Conservation Department and engaged reputed proven “Energy Consultants” as early as in 1987 for energy audit, 1990-91, 1996-97, 2001-02 for detailed energy audit with mass; and energy balance and in 2007 for energy audit. These studies are conducted for identification and implementation of energy saving proposals, reduction in energy cost and wastage with improved housekeeping and monitoring practices. The department is bestowed with the functions of bringing awareness of; importance of energy to the employees by conducting in house training programs, by organizing energy conservation week celebrations, Energy Conferences, etc. The Energy Conservation department prepares and monitors daily energy performance of the mills through computerized daily energy performance reporting system. SJPML has installed energy meters and measurement devices for all energy inputs like power, water, steam, fuels, compressed air and condensate return. The energy performance report indicates the figures of today and till date against best achieved norms for immediate comparison and for identification of variances on total and specific energy consumption figures of various sections of the mill for all the above energy inputs. These daily reports are put for specific discussions on energy performance in daily production meetings, for taking effective corrective actions. The detailed monthly energy performance reports are also presented in monthly executive performance review meetings for identifying areas of improvement and for making; necessary exclusive decisions. Energy Consumption: SJPML, being an integrated pulp and paper mill, consumes steam and power for the production. Steam is generated not only for the process, but also captive power generation. The fuel for steam generation is husk, the solid waste dust generated in the process is also used as fuel.
The Mills has operating TG sets for co-generation, Double-Extraction-Condensing type of 12 MW capacity and fully condensing set of 5 MW capacity. The 12 MW and 5 MW steam turbo generator sets are operated continuously. In the year 2006-2007 the fuel consumed in the boilers for process steam requirements and the power generation is a total of 197274 Tons out of which 108579 tons is used for process steam 88695 tons for power generation. Energy Conservation is an ongoing process. Realizing the need for energy conservation, SJPML puts its efforts for improving the energy performance on continuous basis. Description of the energy conservation schemes Installation of energy efficient booster water pump in paper machines. Mill water header pressure is maintained at 2.6 kg/cm2. The pressure could not be reduced to 2.2 kg/cm2 due to bleach plants pressure requirement at 2.5 kg/cm2. Booster water pumps of 2.5 kg/cm2 pressure are installed in bleach plant and mill water pressure is reduced to 2.2 kg/cm2. Investment is Rs. 6.5 lakhs, savings Rs. 4.43 lakhs per annum and simple payback period is 8 months. Conversion of non-lubricating type compressor into lubricating type and installation in paper machines: Compressors are unitized in power block area . The removed compressor is converted to non-lubricating type and installed in paper machines there by unitizing four numbers of compressors in that area. Installation of energy efficient vacuum pumps in paper machines:
Paper Machine commissioned in 1966 has old version vacuum pumps of N14 E model. Two pumps are replaced with Nash make energy efficient pumps of 904 M2 model.
SAFETY & ACCIDENT PREVENTION
1. The Safety and Accident Prevention activities at SJPML are monitored by a participative safety committee with equal number of members from Management and Workmen. This committee is in existence since 1976. There are 3 department level safety sub-committees, which look in to local level safety and accident prevention activities in collaboration with the Safety Committee and Safety Department. The Safety Department is manned by qualified safety officers and other administrative assistance. 1. Accident Reporting and Investigation : All the accidents and near miss accidents are reported and investigated and reviewed by the Safety Committee. The accident data is analyzed and Safety Performance is measured monthly, quarterly and yearly and communicated to concerned depts. and higher authorities. 2. Identification of Hazards : Frequent inspections are being carried out by using checklists. The Safety Committee and Sub-committees also inspect the plants regularly. 3. Safety Systems : Safety Work Permit System and Danger Tag System are in use for carrying out repair and maintenance works, hot works in fire prone areas, entry in to confined space, work on roof, excavation, etc. 4. Safety Training :
General and need based training is given regularly to all employees including cont. workmen
Motivation : National Safety Day is celebrated every year. Many competitions like slogans, stories, posters, essays, etc. are organized on the occasion of National Safety Day Celebrations every year. An accident reduction contest is organized. .
Publicity : Posters, Slogans, Bulletins, etc. are displayed through out plant Safety Magazine is published
Personal Protective Equipment : Shoes are provided once in a year to all employees including contract workmen Helmets are provided to all employees All other Personal Protective Equipment is issued based on the need Some equipment like Self Contained Breathing Apparatus; Canister Masks, PVC suits etc. are kept in the depts. for use whenever and wherever those are needed
Emergency Planning & Preparedness & Response Emergency Plan is made and copies distributed to all concerned personnel. Periodic mock drills are being organized Emergency control centers established. Active role is being played in preparation of Off Site Emergency Plan being made by District Emergency Authority.
Occupational Health : Occupational Health Centre is established. One doctors and 2 nurses are working in Occupational Health Centre. It is operated round the clock Periodical medical exams are being carried out for the identified personnel.
This includes X-rays, Clinical examination; Blood exam; Lung function test; audio metric, stool exam; eye exam as per the requirement under Factories Act 1948
ENVIRONMENT CELL AT SJPML SJPML has established a separate, dedicated ENVIRONMENT CELL for Water and Air pollution abatement, which indicates the commitment of the Industry in controlling the pollution. ENVIRONMENT LABORATORY: Environment Cell is having an exclusive Environment Laboratory equipped with modern monitoring/testing facilities. Testing facilities available at Environment Laboratory. • • • • • Water and Waste Water Testing AOX Testing Stack Monitoring Facilities Ambient Air Quality Monitoring Meteorological Station with automatic data logger
The Environmental issues are reviewed in the daily coordination meeting chaired by Vice President (Operations). WATER POLLUTANTS AND TREATMENT MEASURES WASTE WATER TREATMENT: The main pollutants in the effluent discharged are Suspended Solids, B.O.D, and C.O.D etc. The wastewater from the mills is treated in Effluent Treatment Plant consisting of Primary Treatment to remove the suspended solids and Secondary
Treatment (Activated Sludge Process) to remove B.O.D and C.O.D and then treated by Land Treatment process to remove even the Colour of the effluents. SJPML is the only mill discharging effluents upstream and drawing water from down stream. PRIMARY TREATMENT: Wastewater is passed through bar screens and perforated screens to remove any foreign material and pumped to primary clarifiers (2 Nos.). of each 7500 M3. The settleable solids are removed from the bottom and clarified effluent from the top of the clarifier is taken to Secondary Treatment. SECONDARY TREATMENT (ACTIVATED SLUDGE PROCESS): The effluent from the Primary Treatment is taken to an aeration tank of 25000 M 3 volume. There are 11 Nos. of mechanical surface aerators, each of 75 HP. Nutrients like Urea and SSP (Single Super Phosphate), are dosed in to the aeration tank as food to the bacteria. From the aeration tank the effluent is taken to the secondary clarifiers (2 Nos.) of 6000 M3 each. The effluent after Secondary Treatment is pumped to Land Treatment. LAND TREATMENT: It is a well recognized fact that top layer of the soil maintains a Micro Environment within which soil Flora and Fauna decompose varieties of organic matter. Thus, top layer of soil can be utilized for the treatment of Biodegradable Organic Waste water. Several conventional (natural, physical and biological) treatment processes occur in Land Treatment. Considering such capability of land for treating wastewater, land treatment is well recognized as Living Filter all over the World. As wastewater is discharged on land for treatment, part of it infiltrates down wards and part evaporates and part gets transpired by Plants. The remaining portion gets utilized under the influence of Land as Living Filter. The removal of constituents from wastewater by filtering and straining action of soil are excellent in this RI system. B.O.D, T.S.S & Faecal Coliform are almost completely removed. It is also observed that the effluents after percolation through land is void of colour. The soil seems to be working as colour removal media which is
otherwise prohibitively expensive treatment. This is an additional benefit achieved through Land Treatment. AIR POLLUTION CONTROL MEASURES: In Paper Manufacturing Process steam is required at various stages. For generating the steam the Mills has installed five Coal Fired Boilers and three Recovery Boilers, where in the black liquor is fired in the furnace to recover and reuse the valuable chemical in the process. The Mill also installed one Rotary Lime Kiln where the lime sludge (CaCO3) is burnt to get burnt lime (CaO) to reuse in the Causticizing Process. ELECTROSTATIC PRECIPITATORS: The emissions from the boilers contain dust particles (Suspended Particulate Matter, SPM) and contain gases like Sulphur dioxide and Hydrogen sulphide etc,. In order to control the dust particles and gases from the boilers the Mills has installed most modern sophisticated Electro Static Precipitators as Pollution Control Equipments to all the nine stacks. INCINERATION SYSTEM: The Company has taken an altogether different approach to eliminate odour completely and installed “Non-Condensable Gases Handling System” consisting of Collection, Transportation and Incineration of NCG. The system is first of its kind in Pulp and Paper Industry in India to control Odour problem. Thus the Mill is fully conscious of its social obligations towards the abatement of air pollution and had spent quite a lot of money towards pollution control measures and striving hard and putting all its sincere efforts for minimizing the pollution from the mills.
RECOMMENDATIONS OR SUGGESTIONS
During my training in SJPML, I have got exposure of so many things related to this field. I am very grateful to SJPML to offer me such an opportunity. I feel that it is my responsibility to recommend some suggestions these will ultimately for the benefit of the company. Some important recommendation or suggestions are as under:1. SJPML should check its supply & distribution channels. Presently company is selling their product through commission agents network. If company, sell its products through agencies/dealer network, company could get better realisation.
SJPML mostly deals in cash payment/advance payment transactions. If the company allows some credit period to the consignor, sales realisation & marketing position of the will automatically improve.
Paper manufactured by the company is mainly used by the corrugated units for manufacture of corrugated boxed used for packaging. Presently improved global market demands corrugation in different colours & different patterns. If the company install such equipment’s through which they can manufacture packing paper in different colours, market position of the company will improve globally.
Presently company does not accept any order which is less than 10 M.T. There are many consumers with small-corrugated units in surroundings areas.
But due to policy of company they are not able to purchase product of the company. So, it is necessary company should change its policy to enhance its infrastructure. 5. Presently Company does not have any sales in south region. Company should advertise its product in south region to achieve better orders. 6. Companies Officer should held regular visits to their clients, end user with this they are able to find out any problem prevailing in market. 7. Company should improve its packing section. Presently reels of paper
manufactured are packed in Hession cloth(Jute). It is better for the company if they start using plastic cloth for packing of reels which is much cheaper & strong than hession cloth
The extent to which study is reliable, it is important to note the limitations under which the study has been conducted. These limitations are as follows:10. Due to shortage of time it was not possible to cover all the network of the Company. 11. It being my first attempt to undertake such a study, thus inexperience is also a obstacle to accomplish the project in proper way. 12. It is also difficult for me to get information about some other confidential clients of the company.
For more Notes, Presentations, Project Reports visit a2zmba.blogspot.com hrmba.blogspot.com mbafin.blogspot.com
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