TITLE: “PAPER BAG MANUFACTURER OF NORTH INDIA” (How much beneficial for Yash Paper Limited

)
A Report Submitted to Ishan Institute Of Management & Technology, Greater Noida as a part Fulfillment to Full Time Post Graduate Diploma In Management

Submitted to: Dr. D.K.Garg, Chairman, IIMT,Greater Noida.

Submitted by: Jay Ganesh Tripathi Enr. No.-14095 PGDBM, 14th Batch

Ishan Institute of Management & Technology
1A, Knowledge Park-I, Greater Noida, Distt. G.B. Nagar (UP) Website: www.ishanfamily.com, E-mail: - ishan_corporate@yahoo.com

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ACKNOWLEDGEMENT
I wish to express my sincere gratitude to all those persons who extended their help, guidance and suggestions without which it would not have been possible to complete the project report. I am deeply indebted to my guide Mr. Shailesh Singh ( Asst. Marketing Manager,Yash Papers Limited Darshan Nagar, Faizabad). For his valuable and enlightened guidance and who encouraged me in compilation of my project. I am really thankful to Dr. D.K. Garg (Chairman, Ishan Institute of Management and Technology), who has been the chief facilitator of this project and I could enhance my knowledge in the field of paper industry.

JAY GANESH TRIPATHI ENR NO-14095

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DECLARATION

The summer training project on PAPER BAG MANUFACTURE OF NORTH INDIA (How much beneficial for Yash Paper Limited ) .Under the guidance of Mr. Shailesh Singh is the original work done by me. This is the property of the institute and use of this report without prior permission of the institute will be considered illegal and actionable.

Date:

SignatureJay Ganesh Tripathi Enr No.-14095

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TRAINING CERTIFICATE

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TABLE OF CONTENT
Title: PAPER BAG MANUFACTURER OF NORTH INDIA (How much beneficial for Yash Paper Limited )
Chapter No. Chapter Name Page No. 6-7 8 9-13 14-16 17-34 35-40 41-89 90-101 102-114 115-119 120-138 139-142 143 144-146 147-166 167-170 171-177 178 179 180-189 190-193 194-211 212-250 251 251-252 253 254-260 261 4

1 2 3

Executive Summary Objective Indian Paper Industry
Paper Industry In India Major Deterrent – Fibre Deficiency Pulp And Paper Industry -(Raw Material Preparation) Indian Paper Manufacturers Association (IPMA) Paper And Its Types

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Study Of Leading Five Companies
Century Pulp And Paper(CPP) Jk Paper Limited Rama Paper Mills Limited West Coast Paper Mills Limited Orient Paper & Industries Limited (OPIL)

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Introduction On Yash Papers Limited
Mission And Vision Code of Conduct & Equipment Products Managing Risks At Yash Papers Managerial Hierarchy Paper Manufacturing Balance Sheet Of Company 10-Year Financial Summary

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Demand And Supply Trade Profile Of Company Business Strategy
Company Policies Marketing Policies Expansion Plan Sales Network Social Commitment

Investors R & D Initiatives

262 262-263 264 264-268 269 270-272 272-273 274-278 279

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Job Profile/ Assignment Profile
Work Assign Finding Swot Analysis Learning Suggestion

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Conclusion Bibliography

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CHAPTER 1 EXECUTIVE SUMMARY
This project was undertaken to understand the market of Paper bag .Yash Papers specialize in low grammage unbleached Kraft Paper made by agricultural residues such as Bagasse (sugar cane waste) and Jute bags. Yash paper is the global trading company, seeking for trade partners to start new business deals and keep onwards the strong relationship. Company aim is to serve you the best as holding on win-win solution. The paper grocery bag is an American innovation and was designed in 1883. It’s made from kraft paper – the word ‘kraft’ coming from the German language meaning ’strong’. Kraft paper is known for its strength and course texture. It’s strength lends to its reusability. According to the American Forest & Paper Association, 2007 marked an all-time high of 56% for the recycling of paper consumed in the U.S. Curbside paper collection is easy and readily available in most parts of the country. While I applaud the consumer and the industry for reaching this goal and beyond (the industries goal is 60% by 2012) I’d like to point out that the manufacturing of paper products, like plastic, consumes natural resources and creates pollution. As a matter of fact, the production of a paper bag consumes 1 gallon of water (yep, per bag) equating to 50 times that of plastic bags. Yikes! How does a paper bag get from forest to grocery store? Trees are found, marked and felled. Machinery is then used to remove the logs from the forest floor – whether by logging or, in more remote areas, helicopters. Machinery requires fossil fuels and roads (which destroy habitat) thereby creating stress on the forests’ inhabitants (even logging a small area has a large impact on the entire ecological chain in surrounding areas). 6

Trees must dry at least three years before they can be used to make paper. Once aged, machinery is used to strip the bark, which is then chipped into 1 inch squares and cooked under tremendous heat and pressure. This wood stew is then ‘digested’ with a limestone and sulfurous acid for eight hours. The steam and moisture is vented to the outside atmosphere, and the original wood becomes pulp. It takes approximately three tons of wood chips to make one ton of pulp. The pulp is then washed and bleached, both stages requiring thousands of gallons of clean water. Coloring is added to more water, and is then combined in a ratio of 1 part pulp to 400 parts water to make paper. The pulp/water mixture is dumped onto a web of bronze wires, the water showers through, leaving the pulp to dry. This final product is then rolled into paper. Whew! What a lot of resources to just make the paper. We must include all of the chemicals, electricity, and fossil fuels used in the shipment of this raw material and in the production and shipment of a finished paper bag.

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CHAPTER 2 OBJECTIVE
How much paper bag manufacture beneficial for Yash Papers Limited?

 To know Demand of paper bag mostly in urban area .  How manufacturing of paper bag is very profitable for business.  To find how the services provided by Yash paper limited are better and cheaper to
there competitors.

 TO find out how much GSM paper use by Paper Bag manufacturer.

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PAPER BAG MANUFACTURER OF NORTH INDIA
CHAPTER 3

INDIAN PAPER INDUSTRY PAPER INDUSTRY
The new millennium is going to be the millennium of the knowledge. So demand for paper would go on increasing in times to come. In view of paper industry's strategic role for the society and also for the overall industrial growth it is necessary that the paper industry performs well. Government has completely delicensed the paper industry with effect from17th 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 Paper industry is a priority sector for foreign collaboration and foreign equity participation upto 100% receives automatic approval by Reserve Bank of India. Several fiscal incentives have also been provided to the paper industry, particularly to those mills which are based on non-conventional raw material.

PAPER INDUSTRY IN INDIA
Paper industry in India is the 15th largest paper industry in the world. It provides employment to nearly 1.5 million people and contributes Rs 25 billion to the government's kitty. The government regards the paper industry as one of the 35 high priority industries of the country. Paper industry is primarily dependent upon forest-based raw materials. The first paper mill in India was set up at Sreerampur, West Bengal, in the year 1812. It was based on grasses and jute as raw material. Large scale mechanized technology of papermaking was introduced in India in early 1905. Since then the raw material for the paper industry underwent a number of changes and over a period of time,

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besides wood and bamboo, other non-conventional raw materials have been developed for use in the papermaking. The Indian pulp and paper industry at present is very well developed and established. Now, the paper industry is categorized as forest-based, agrobased and others (waste paper, secondary fibre, bast fibers and market pulp).

In 1951, there were 17 paper mills, and today there are about 515 units engaged in the manufacture of paper and paperboards and newsprint in India. The pulp & paper industries in India have been categorized into large-scale and small-scale. Those paper industries, which have capacity above 24,000 tonnes per annum are designated as largescale paper industries. India is self-sufficient in manufacture of most varieties of paper and paperboards. Import 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.

Indian paper industry has been de-licensed under the Industries (Development & Regulation) Act, 1951 with effect from 17th July, 1997. The interested entrepreneurs are now required to file an Industrial Entrepreneurs' Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for setting up a new paper unit or substantial expansion of the existing unit in permissible locations. Foreign Direct Investment (FDI) up to 100% is allowed on automatic route on all activities except those requiring industrial licenses where prior governmental approval is required. Growth of paper industry in India 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. Government has taken several policy measures to remove the bottlenecks of availability of raw materials and infrastructure development. For example, to overcome short supply of raw materials, duty on pulp and waste paper and wood logs/chips has been reduced.

Following measures need to be taken to make Indian paper industry more competitive:

Improvements of key ports, roads and railways and communication facilities.

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Revision of forest policy is required for wood based paper industry so that plantation can be raised by industry, cooperatives of farmers, and state government. Degraded forest land should be made available to the industry for raising plantations.

Import duty on waste paper should be reduced.

Duty free imports of new & second hand machinery/equipment should be allowed for technology up gradation

The Indian Paper Industry accounts for about 1.6% of the world’s production of paper and paperboard. The estimated turnover of the industry is Rs 25,000 crore (USD 5.95 billion) approximately and its contribution to the exchequer is around Rs. 2918 crore (USD 0.69 billion). The industry provides employment to more than 0.12 million people directly and 0.34 million people indirectly. The industry was delicenced effective from July, 1997 by the Government of India; foreign participation is permissible. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern.

The mills use a variety of raw material viz. wood, bamboo, recycled fibre, bagasse, wheat straw, rice husk, etc.; approximately 35% are based on chemical pulp, 44% on recycled fibre and 21% on agro-residues. The geographical spread of the industry as well as market is mainly responsible for regional balance of production and consumption.

With added capacity of approximately 0.8 million tons during 2007-08 the operating capacity of the industry currently stands at 9.3 million tons. During this fiscal year, domestic production of paper and paperboard is estimated to be 7.6 million tons. As per industry guesstimates, over all paper consumption (including newsprint) has now touched 8.86 million tons and per capita consumption is pegged at 8.3 kg.

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Demand of paper has been hovering around 8% for some time. During the period 200207 while newsprint registered a growth of 13%, Writing & Printing, Containerboard, Cartonboard and others registered growth of 5%, 11%, 9% and 1% respectively. So far, the growth in paper industry has mirrored the growth in GDP and has grown on an average 6-7 per cent over the last few years. India is the fastest growing market for paper globally and it presents an exciting scenario; paper consumption is poised for a big leap forward in sync with the economic growth and is estimated to touch 13.95 million tons by 2015-16. The futuristic view is that growth in paper consumption would be in multiples of GDP and hence an increase in consumption by one kg per capita would lead to an increase in demand of 1 million tons. As per industry estimates, paper production is likely to grow at a CAGR of 8.4% while paper consumption will grow at a CAGR of 9% till 2012-13. The import of pulp & paper products is likely to show a growing trend.

Foreign funds interest in the Indian paper sector is growing. IFC, the investment arm of the World Bank is already associated with at least three of the IPMA member mills.

GROWTH PANGS
The increasing demand for paper brings with it new challenges of economies of scale, efficient usage of resources, need to develop and expand sustainable use of fibre, and value chain management, etc. Despite the fact that the Indian Paper Industry holds its importance to the national economy, unfortunately it stands fragmented.

Paper sector is dominated by small and medium size units; number of mills of capacity 50000 tons per annum or more is not more than 25. Less than half a dozen mills account for almost 90% production of newsprint in the country. There is a growing need to modernize the Indian mills, improve productivity and build new capacities.

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AGRO FORESTRY
In India, the paper industry is primarily rural based with close linkages with farming community. Over the years it has evolved into an agro-based industry from its earlier character of a forest-based industry.

 WOOD REQUIREMENT OF PAPER INDUSTRY:
Currently Indian paper industry is consuming only about 7 million MT or about 3% of the total wood consumed in India; about 90% is consumed as fuel wood. Additional raw material requirement by 2012-13 is anticipated to be about 8 million tons of wood which will be about 6% of total consumption of the country. This would require afforesting 2 million Ha of land mass to maintain proper ecological balance.

 MYTH AND THE REALITY
While all pervading myth that continues to slur the image of the industry is that it perpetually uses forest raw material and consequently denudes natural forests of the country, the truth is that over the last decade, industry led farm/social forestry have brought around 0.25 million hectares under pulp wood plantations, mainly degraded marginal lands of farmers. At the current estimate, wood based segment of the industry uses 80 per cent of the total requirement from farm produced wood. In particular, IPMA member mills have been actively promoting agro forestry with private land holders/farmers to meet imminent raw material needs in a sustainable manner thereby, positively impacting the Greening India mission of the Government. Also, the industry initiative has created major employment in the remote areas in close proximity to the manufacturing facilities thereby, helping rural development.

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 GLOBAL SCENARIO
Globally, paper industry has realized a linkage between production of paper and the farming community thereby infusing huge capital in agricultural economy. The USA, Latin America, Scandinavian countries, Australia, Japan and neighboring Asian countries viz. China, Indonesia etc. all have been quick to create conducive land use/forestry policies to encourage large-scale production plantations and attract mega investments in pulp and paper/paperboard manufacturing and in the process creating millions of jobs.

 INDIA IMPERATIVE
In order to replicate success stories of major global players in the field of Production/ Industrial Plantation, IPMA continues to advocate for atleast 2% access to degraded forestland on lease. It is IPMA’s firm belief that besides facilitation of social/farm forestry on private/revenue waste lands, if paper mills are permitted to grow pulpable wood in the radius of 150 – 200 KMs to their facilities on the available degraded forest land as well, it would hugely help mills to achieve cost competitiveness in terms of wood and freight and would also, help generate employment, create wealth for the rural poor and lend protection to environment. In this context, IPMA has pleaded for adoption of Multi Stakeholder Partnership (MSP) model recently propounded by MoEF for afforestation of degraded land.

MAJOR DETERRENT – FIBRE DEFICIENCY  WOOD
India’s wood resources are limited therefore, cost of wood is much higher in global comparison. Since there is conspicuous absence of Government’s enabling policies favouring industrial/production plantation, securing future wood supplies will be Industry’s biggest challenge. Wood based segment of the paper industry meets its current

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wood requirements mainly through social/farm forestry and supplements with purchases made from the State Forest Development Corporations.

 BAGASSE/ STRAW
Though annual availability of agro residues is large yet, this may not be able to sustain the future growth of the Industry, taking due account of quality of paper required, environmental issues involved, etc. Moreover, bagasse is increasingly used by sugar mills for co-generation of power and no more easily available to the paper mills as raw material.

 WASTE PAPER
Recovered fibre consumption is going up globally. In India about 850,000-1,000,000 tons of waste paper is being currently recovered annually. The recovery rate works out to about 20% which is much lower in comparison with 65% recovery achieved by many global players. Low recovery is on account of alternate use of paper in wrapping, packing, etc. The utilization rate of recovered fibre is only 47%. Paper mills are heavily dependent on imported waste paper which commands exorbitant price due to inadequate availability. India needs a well-defined and aggressive system for collection, sorting, grading and utilization recyclable waste paper to contain imports.

 ENERGY COST
The Government of India has recently withdrawn core sector status hitherto enjoyed by the paper industry. Cost of coal is escalating and prospect of availability of quality coal is diminishing. The imported coal price (Indonesian Origin – GCV 6000Kcal/Kg) had crossed USD 100/MT; such steep price rise had resulted in escalation of cost of production of those mills which happened to be dependent on imported coal for generation of steam/power. Also, power purchased from the grid is proving expensive for the industry.

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The Indian Paper Industry is among the top 15 global players today, with an output of more than 6 millions tones annually with an estimated turnover of Rs. 150,000 millions. (approx. USD 3400 million).

Paper Industry in India is riding on a strong demand and on an expanding mood to meet the projected demand of 8 million tones by 2010 & 13 million tones by 2020.

A large number of expansion programme & expansion of capacities with an outlay of Rs. 10,000 crores have been announced covering the various sectors like paper, paperboard, newsprint etc.

The Indian Economy is progressing well and targeting 8%+ growth. The economic reforms coupled with the liberalized Government Policies, India today offers excellent business opportunity for investments.

One of the first FDI Projects may come through the proposed Finnish proposal to set up a 400000 tpa capacity plant with an investment of US$240 million.

The expanding Industrial Scenario calls for efforts to tackle related problems:
 

Industry needs capital and technology. Since energy cost accounts nearly 25 per cent of cost of production there is an urgency to improve energy management and energy consumption.

Quantum jump in production, called for by the demand projection is possible only by expansion of existing capacity and creation of additional capability. Upgradation of technology and new capacities also involve massive investment.

Use of agro residues for preparation of pulp also throws up challenges like pollution control, recycling, use of cost effective technology for utilization of agro residues, etc.

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THE WORLD PAPER INDUSTRY
The paper industry tends to be concentrated in those countries that are industrially advanced and have abundant supplies of fibrous raw material, especially wood. There is a large-scale international trade in wood pulp, pulpwood, and paper flowing from those countries with large forest resources to those countries with less or that are as yet undeveloped.

PULP

AND

PAPER

INDUSTRY

-(RAW

MATERIAL

PREPARATION)
WOOD BASED MILLS SELECTION OF CHIPPERS & CONVEYING EQUIPMENT:

Chippers are one of the major consumers of power in a wood based paper mill. It is suggested that energy efficient, high capacity, chippers be selected. The unitisation of equipment (select only one high capacity chipper) results in obtaining good operating efficiency.

Another factor to be seen in achieving optimum efficiency at chipper house is the optimal feed rate. To achieve the optimal feed rate, mechanised conveying to chipper is to be planned at design stage. This will result in better capacity utilisation of the chippers.

Conveying of chips also consumes considerable energy. The different methods of conveying chips are pneumatic conveying, screw conveying or belt conveying. The most energy efficient chips conveying is through belt conveyor. During design stage consideration should be given for layout to minimise transportation. This will result in power savings in chipper house. Planning of belt conveying systems for chips transport

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will also reduce maintenance cost (due to lower wear and tear compared to pneumatic conveying systems) and reduce atmospheric emissions from chippers.

During design stage, the paper mills should plan to burn chip-dust in the paper mill's power boilers. This will reduce consumption of purchased fuels in the paper mill's power boilers and eliminate environmental problems associated with chip-dust disposal.

WASTE PAPER BASED MILLS:
In countries like India, where there is a shortage of conventional raw material, every effort should be made to encourage utilisation of waste paper. It can be either imported or indigenous.

BAGASSE PROCESSING:
The general practice followed in the paper industry is to carry out moist depithing in the paper mill. Instead, the following can be thought of at the design stage itself.

Plan moist depithing operations at sugar mill instead of paper mill. Also, plan to compact the moist depithed bagasse at the sugar mill, before transportation to the paper mill. This will eliminate transportation of pith from the sugar mill to the paper mill, and also reduce the volume of bagasse to be transported to the paper mill.

Plan for burning the pith, generated by moist depithing, in the sugar mill boilers. This will reduce the consumption of purchased fuels in the sugar mill boilers.

Plan a thickening system for pith generated at wet cleaning, and burn the thickened pith in the paper mill's power boilers. This will reduce the consumption of purchased fuels in the paper mill's power boilers.

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PULP MILL Pulping converts wood chips into fibres by the chemical reaction between lignin and the active chemicals in the cooking liquor.

EXTENDED DELIGNIFICATION
WOOD PULPING
The advanced cooking process, with extended delignification based on displacement heating in batch digesters or continuous vertical digesters, has given good results. The benefits of such process sequences are multi-fold.

Saves energy Energy recycling saves upto 75% of steam demand. The steam consumption can be brought down from 2.0 t/t of unbleached pulp to 0.65 t/t of unbleached pulp.

Uniform and better pulp quality/properties, resulting in better machine runnability and efficiency

 

Higher brightness levels can be achieved due to low kappa from digesters Considerable savings in bleaching chemicals, and less pollution

NON-WOOD FIBRES
Continuous digesters may be planned for cooking non-wood fibres instead of using rotary spherical batch digesters. The following are the benefits realised by using continuous digesters.
   

Uniformity in pulp quality Flexible production through controlled retention time Optimum heat economy Incorporation of cold blow system prevents damage to pulp fibres during blowing and eliminates the need for blow heat recovery system.

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WASHING
Though washing is not a major consumer of energy, there still exists a scope for energy saving and environmental impact reduction. The suggested black liquor concentration leaving the washing section is 18% for wood pulp and 12% for agro residues. Some of the proven equipment in washing are
   

Flat belt/wire washer Double wire press DD washer Twin roll press

The above are advanced types of washing equipment and have several advantages. Some of them are
 

Less energy intensive when compared to conventional drum washing. Operate at higher pulp consistency levels; pulp enters at 3.0% consistency and leaves at 32% consistency. BOD and COD discharged with the pulp, is less. Hence, less bleach chemical is required and colour of the bleach plant effluent is significantly reduced.

Increased black liquor solids concentration to evaporators and reduced steam demand in evaporators. The black liquor concentration at inlet to evaporators increases from 15% to 18%.

Chemicals loss is only 10 kg/t of pulp when compared to 20 kg/t of pulp in conventional drum washing.

These equipment operate with a dilution factor of 1.5 as against a dilution factor of 3.0 for conventional drum washers. Hence, water consumption is only 50% as compared to conventional drum washers. This increases the weak black liquor

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(WBL) concentration and results in substantial reduction in steam requirement in black liquor evaporation plant. Hence, it is recommended that such energy efficient washing systems are installed, instead of conventional drum washers.

SCREENING
Many improvements have taken place in screening. The installation of pressure screens can result in good energy savings. The pressure screens can be operated at a higher consistency, typically 3.5%, against the conventional screening at 1.5% consistency. This results in enormous energy savings in pumping energy. The separation efficiency of the pressure screen is 95%, while that of the conventional screens is only 65% to 70%. Another advantage is that the centricleaners can be completely avoided, if high pressure screens with slotted baskets of proper slot size are installed. Therefore, pressure screens should be installed and centricleaners should be avoided in pulp mills.

OXYGEN DELIGNIFICATION
With oxygen delignification, it is possible to reduce the kappa number of the pulp by nearly 50%, thus resulting in savings in bleach chemicals. It also results in reduced effluent load from the pulp mill, with reduction in the formation of organic material, like COD and AOX.

The additional black liquor solids generated in oxygen delignification stage is sent to chemical recovery for recovery of heat and chemicals in black liquor. This stage not only recovers chemical in an environmental-friendly manner but also recovers energy, which otherwise adds to COD, BOD and AOX load of effluent from bleach plant.

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BLEACHING
The type of bleaching sequence significantly impacts environmental aspects. In India, most of the plants still use elemental chlorine as a bleaching chemical. In this era of strict environmental regulations, usage of elemental chlorine is frowned upon. For wood based paper mills, use of elemental chlorine does not permit compliance with the tolerance limits for total organic chlorides in the mill effluent.

Hence, new plants have to consider Elemental Chlorine Free (ECF) or Totally Chlorine Free (TCF) bleaching sequences. In the long run, all plants would be would require to be TCF, if environmental considerations become more stringent. Medium consistency pumping (8 to 12%) is an established practice in developed countries while developing countries normally use low consistency (3 to 4%). The medium consistency pumping brings down the energy consumption for pumping considerably. Hence, ECF/TCF bleaching, with medium consistency (8 to 12%) operation, is suggested.

BLACK LIQUOR EVAPORATION PLANT
Black liquor evaporation plant is one of the major consumer of steam in paper mill. The steam consumption depends on the number of stages at the evaporation section. During design, provision of a seven stage falling film evaporator with a steam economy of six is an ideal choice to optimise the steam consumption. These plants operate with a minimum steam economy of 6.0 compared to the normal steam economy of 4.5. This results in reduction in steam consumption by about 25%.

In the conventional systems, forced circulation consumes a lot of power in terms of pumping. In the new systems, forced circulation is completely avoided with considerable reduction in power consumption. The additional cost for the new system will be paid back in two (2) years.

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In Indian mills efficient screening of weak black liquor is not practiced. This results in down time of evaporation plant in the form of water boiling and steam energy requirement for water boiling. Installation of pressure filters for weak black liquor ensures removal of fibers prior to feeding weak black liquor to multiple effect evaporation plant. This results in reduced 'scaling' of evaporator heat transfer surfaces and, hence, higher availability and capacity. This in turn reduces the steam requirement for water boiling.

At present, in Indian mills, the average black liquor concentration leaving the evaporators is about 50%. A few mills have achieved a black liquor concentration at the outlet of evaporators as high as 65% (abroad, it is 75 to 85%). For the new mills, the black liquor concentration is to be planned at 65% leaving the evaporation plant.

Present day Indian mills do not practice condensate stripping. This results in venting out of obnoxious malodorous mercaptan gases. From an environmental angle, segregation, collection and utilisation of non-condensable gases must be thought of during the design stage, even though energy available in non-condensible gases is recovered in rotary lime kiln/chemical recovery boiler. Design should consider effective thermal insulation of black liquor system and black liquor tankages.

RECOVERY BOILER
At recovery boiler, the steam generation per tonne of black liquor solids depends on the concentration of black liquor entering the boiler. The present average steam generation is only 3 t/t of black liquor solid (with 45% concentration black liquor entering the boiler). The steam generation increase with increased concentration of black liquor is as follows Black Liquor Concentration (in percentage) 45 65 85 Steam Generation (t/t of black liquor solid) 3.0 3.4 3.8

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Therefore, there exists a good potential for increasing the steam generation by at least 13% (from 3 to 3.4 tonnes of steam per tonne of fuel) by improving the black liquor concentration at the evaporator. The advantages of high solids liquor firing are increased capacity of the boiler, increased steam generation, very low SOx emission, low power consumption and high sodium sulphate reduction efficiency.It is suggested recovery boilers be installed with 1)A large economiser (to recover the waste heat from flue gas and to eliminate direct contact secondary evaporator of black liquor by flue gas) increase steam generation and increased availability of boiler 2)A two stage air preheater 3)An ID fan with variable frequency drive 4)FD fans with variable frequency drive 5)Environmental protection equipment such as Electro Static Precipitator (ESP)
 

Causticiser and rotary lime kiln Installation of lime kiln is imperative for the new plants, from environmental considerations of eliminating solid-wastes disposal problems. Kiln is also a major fuel energy consumer. The following points can be considered while designing the lime kiln system

6)The dryness of lime mud feed is to be increased by installing snap blow filters. The suggested dryness is 70-75%. For example, by increasing the dryness from 50% to 70%, the fuel consumption comes down from 220 l/t of burnt lime to 160 l/t of burnt lime. 7)Kiln has to be provided with in-built preheating, double layer (with insulating layer) refractory and a high efficiency, low NOx, burner for higher fuel efficiency .8)Installation of ESP for dust recovery and environmentally friendly operation. Design should also consider good thermal insulation of white liquor tankages.

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REFINERS
Refiners are the major consumers of power in stock preparation section. It is possible to save a considerable amount of energy (20-25% savings) by installing energy efficient refiners. Energy efficient refiners consume very low 'no-load' energy. 'No-load' energy refers to the power consumed by the refiner with pulp stock passing through the refiner when refiner tackles are moved apart. The ratio between net refining energy to total refining energy, should be as high as possible. This should be the selection/sizing criterion for refiners.

CENTRICLEANERS
There is a good scope for optimising the power consumption by considering the following points at design stage
 

Installation of low pressure drop centricleaners (maximum 15 m drop). The operating consistency should be 1% (against the present average consistency of 0.7%). However, this could be over-ridden by the paper machine headbox consistency, which is configuration-dependent.

Installation of double dilution system. It gives better control and saves considerable energy, particularly when machine headbox consistency requirement is low. Centricleaners can then be run at optimum consistency independent of head box consistency.

The water cycle has to be closed as far as possible, to minimise fresh water consumption. The water consumption at paper machine can be brought down to 12 m3/t of paper at paper machine and approach system.

AGITATORS
Agitators also consume considerable energy. There are two types of designs in agitators, namely, mixing type and suspension type. The suspension type agitators are suggested where the pulp has to be kept in suspension for pumping. On the other hand, mixing type agitators are suggested to mix different types of pulp. Therefore, mixing type agitators 25

generally require high torque motors and with higher motor capacity. Proper selection of agitators appropriate to the duty conditions can save upto 50% of power consumption in agitators.

Hence, proper type of agitators as per application should be selected.
   

Paper machine Forming Area Design formers with low power consumption and low friction suction boxes. At the forming area, drainage provisions have to be made with less frictional losses. The flat boxes can be of ceramic material. This saves 5-7% energy.

Evaporation from free wet surfaces is to be avoided by optimising ventilation at the wet end of paper machine.

PRESSES
Paper machine is the major steam consumer in a paper mill. The steam consumption in paper machine area depends mainly on the off-press dryness. The off-press dryness of 50% can be achieved by extended nip press/shoe press. Pulp or paper web should not be overdried by evaporation rather it should be dried maximum by efficient pressing. Hence, new plants should plan with extended nip/shoe press.

CONDENSATE REMOVAL SYSTEM
Proper condensate removal system with the latest design, high speed separation efficiency, stationary siphon improves the evaporation rate at the paper machine drying section. Selection of rotary or stationary siphons is dictated by the machine operating speed. Modern high speed paper machines are with stationary siphons. Design of stationary siphons has advanced to such levels that differential pressure can be kept to the minimum for efficient evacuation of the dryer cans. The amount of blow through steam is dependent upon the siphon differential pressure required for efficient evacuation. The

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lower the differential pressure, lower the blow through steam and higher the overall thermal efficiencies. By choice of the right stationary siphons with low differential pressure requirement, thermal efficiencies can be improved.

At higher machine speeds, the thickness of the condensate rim dictates the heat transfer rates for drying. Lower the rim thickness, higher the heat transfer rates and lower the steam consumption. Siphon clearance dictates the rim thickness. Modern stationary siphons can operate at low siphon clearance.

Breaking the condensate rim by means of spoiler bars can significantly improve thermal efficiencies in drying. With a good steam and condensate system and good siphon design, steam requirements can be brought down to 1.3 kg steam for every kg water evaporated from the paper web. Inefficient systems can be as high as 1.8 kg steam for every kg of water evaporated.

Hence, it is recommended to install stationary siphon with high separation efficiency condensate system.

CLOSED HOOD SYSTEM
A well designed hood system will reduce the heating requirements at the drying section as high as 35%. An automatic hood control system can be installed at the suction of the exhaust fan to have better results. Modern totally closed hoods can operate with dew point as high as 65oC. This would mean that the exhaust air and supply air volumes can be brought down quite substantially, thereby saving on drive power for the fans. Further, since the same amount of heat is available in a smaller quantity of air, this exhaust air is better utilized for heat recovery because of higher differential pressure at the heat recovery units. So , a well designed closed hood system and automatic hood control at the suction of the exhaust fan is recommended.

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TYPE OF DRIVE
In the present context of highly reliable AC drives in the market, it is suggested to install A/c drives for the paper machine main drive.

VACUUM PUMP
Vacuum pumps also consume considerable energy in paper machine area. Some of the simple aspects to be taken at design stage are
  

Selection of energy efficient vacuum pump. Segregation of low vacuum and high vacuum levels. Correct sizing and routing of pipes to minimize losses.

Vacuum pumps shall be limited to minimum possible numbers and to be provided with large capacity motors with double ended shaft and of synchronous motor design. Hence , correct size vacuum pumps have to be selected to optimize power consumption .In recent times, mills abroad are using centrifugal exhausters for vacuum generation at paper machine area. These centrifugal exhausters are energy efficient by 30% compared to water ring vacuum pumps. Conventional liquid ring vacuum pumps are fixed volume/variable vacuum intensity devices and, therefore, have constant power characteristic. Centrifugal exhausters are variable volume/fixed vacuum intensity devices and, therefore, have a varying power characteristic. Paper machine vacuum systems are characterized by variable air flow requirements in the life cycle of the machine clothing. Liquid ring vacuum pumps will consume the same quantity of power through this life cycle. Centrifugal exhausters follow the system characteristics and, thereby, offer savings in power (lower power when air flow requirements are on the lower side during the felt life cycle).Hence, a centrifugal exhauster can be selected, instead of vacuum pumps.

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MOISTURE CONTROL SYSTEM
An online moisture control system is very helpful to monitor the moisture to be maintained at the paper machine (immediately after the drying cylinders). The advantages are.
 

Better control on the moisture. Avoids over drying, saves steam and increases the production.

Hence online moisture control is suggested.

GENERAL MILL-WIDE DESIGN FEATURES
The following general mill-wide design features have to be considered while designing a new plant

Transport: The plant should be designed with minimum transport of raw
material, chemicals, fuel, steam and water.

Pipe lengths: Steam water, chemicals and pulp pipe lengths should be
minimum to minimise temperature loss and pressure losses. Plant layout should take care of this.

SOURCE OF POWER FOR NEW PULP AND PAPER MILL
Cost of electrical energy being about 25% of the manufacturing cost of paper, it is of vital importance to have a correct choice of in plant generation and utility drawal of power. At present, the grid power cost exceeds the in plant generation cost in most of the cases. The 100% in plant generation is a better option for mill design, considering the utility scenario obtained in the country, with its vagaries, interruption in availability and higher cost of grid power.

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PUMPS & FANS
Over-sizing of pumps and fans should be minimized and energy efficient pumps and fans need to be selected. A detailed write-up on the selection and energy conservation aspects to be considered in pump and fans. A margin of 10% is considered adequate at design stage.

INSTALLATION OF VARIABLE FREQUENCY DRIVE (AC DRIVE)
The concept of installation of variable frequency drive (VFD) is picking up in paper industry. VFDs are recommended wherever speed variation is required from 50 to 100% range. Several mills abroad are operating with VFD for all the pumps. Indian paper industry should also explore the possibility of installing VFD for different equipment. The suggested areas where VFDs can be considered in paper industry are as follows i) Recovery Boiler a) Installation of VFD for forced draught fans b) Installation of VFD for induced draught fan ii) Washing, Screening and Bleaching a) Replacement of eddy current drives with VFD for drum washers drives b) Installation of VFD for primary, secondary and tertiary centricleaners, pumps of unbleached/bleached pulp. c) Installation of VFD for all dilution pumps of unbleached and bleached sections. iii) Stock Preparation a) Installation of VFD for stock pumps to blending chest 30

b) Installation of VFD for machine chest pumps iv) Paper Machine a) Installation of VFD for fan pumps b) Installation of VFD for secondary and tertiary centricleaner pumps c) Installation of VFD for mould fan pumps d) Installation of VFD for save-all clarified water pump e) Installation of dual speed motors for couch pit and press pit agitators f) Installation of VFD for MG machine/MF machine hood fans g) Installation of VFD for coating knife edge blowers h) Replacement of small steam turbines with DC drives or AC motors with VFDs v) Raw Water/Recycle Water Pumps a) Installation of VFD for raw water/recycle water pumps vi) Effluent Treatment Plant a) Installation of VFD for roots blower (for agitation purposes) b) Installation of VFD for final effluent discharge pumps

MOTORS
Over sizing of motors to be minimized and energy efficient motors are to be planned at the design stage for the complete mill. Energy efficient motors will give a 2% saving in the energy input when compared to the motors that were hitherto being used.

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HIGH PULP CONSISTENCY OPERATIONS
Higher the pulp consistency, lesser will be the pumping requirements in the mill. Hence, it is advisable to design the mill with higher pulp consistencies wherever possible.

INSULATION
Proper insulation of steam lines, condensate lines, digesters, paper machine sides, black liquor piping and tanks should be given due consideration at design stage to, to effect significant energy savings.

CONDENSATE RECOVERY
The plant should be designed and operated with maximum condensate recovery to improve the fuel economy and also reduce water consumption.

TRAPPING SYSTEM
Selection of proper trapping system saves steam considerably.

UTILISE NATURAL LIGHT
The building should be designed with adequate natural light to minimise artificial lighting during day time. Use of energy efficient lamps like high pressure sodium vapour lamps will result in a 40% reduction in energy needed for lighting.

POWER FACTOR IMPROVEMENT
The power factor in the industry should be maintained at 0.95 or better, to save the maximum demand drawn from the grid and also obtain effective usage of in plant generation. The reduced demand on the grid not only reduces energy bill but also saves the national grid from the "wattless" current and increased utilization capacity of their

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equipment. The capacity of the electrical equipment in mills is utilized better with enhanced power factor. The cost of installation of capacitors to improve the power factor at 0.9 is paid back in less than a year.

APPLICATION OF PAPER

To write or print on: the piece of paper becomes a document; this may be for keeping a record (or in the case of printing from a computer or copying from another paper: an additional record) and for communication.

Paper can be produced with a wide variety of properties, depending on its intended use.

To represent a value: paper money, bank note, cheque, security (see Security paper), voucher and ticket

 

For entertainment: book, magazine, newspaper, art, zine, For packaging: corrugated box, paper bag, envelope, wrapping tissue and wallpaper

 

For cleaning: toilet paper, handkerchiefs, paper towels, facial tissue and cat litter For construction: papier-mâché, origami, quilling, Paper honeycomb, used as a core material in composite materials, paper engineering, construction paper and clothing

Other uses: emery paper, sandpaper, blotting paper, litmus paper, universal indicator paper, paper chromatography and Capacitor Dielectrics (Permittivity 1.5 - 3)

ISSUES AND CONCERNS
The Indian paper and paperboards industry has potential and also capabilities to service the growing demand in domestic and international market and also to create huge employment avenues in the rural-India through agro/production – forestry and at mills, provided the competitiveness of the value chain is encouraged by the government.

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CERTIFICATION
Forest stewardship council certification is becoming a non trade barrier for Indian paper companies. As bulk of the raw material is obtained from farm and agro- forestry, IPMA is of the view that it would not be practical for huge number of farmers involved in social/farm forestry to group and obtain the FSC certificate for their produce. Though the farm forestry is a sustainable model promoted by the paper industry, the FSC principles and criterions are difficult to satisfy. IPMA is monitoring the move set afoot by the Government of India to establish Indian Forest Stewardship Council to help the process of certification.

DEVELOPMENTAL CHALLENGES
 Enhancing Industry’s competitiveness to face global competition  Economies of scale  De-fragmentation of industry  Modernization of mills  Building new capacities  Meeting incremental demand of paper  Productivity/quality improvement  Creation of robust raw material base  Environmental upgradation and green technologies  Setting mechanism for collection, sorting, grading and utilization of recyclable waste paper

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INDIAN PAPER MANUFACTURERS ASSOCIATION (IPMA)
Indian Paper Manufacturers Association (IPMA) as a body represents the resurgent and organized face of paper sector in India. Large Integrated Paper Mills from private and public sector with a product mix of all varieties of paper (writing, printing, packaging, speciality, paperboards and newsprint) located in all regions and using conventional fibre such as wood and bamboo and also unconventional raw materials like recyclable waste paper, agro-residues, viz. bagasse and wheat straw comprise the membership of IPMA in a broad spectrum.

IPMA members account for more than one-third of industry’s production of paper and paperboard. IPMA is registered with the registrar of socities, Goverment of NCT of Delhi.

IPMA Secretariat: IPMA secretariat is located in the prestigious premises of PHD
Chamber of Commerce & Industry, at New Delhi. The Secretariat is professionally managed and equipped with office automation. It is fully geared to meet the growing requirements of paper industry and others, directly and indirectly associated with it. IPMA welcomes intraction and exchange of information with individuals, agencies and organizations having interest in paper industry.

HISTORY
Indian Paper Manufacturers Association (IPMA) is a national level organization having come into being in December 1998 with merger of more than century old Indian Paper Makers Association, Delhi and the 63 year old Indian Paper Mills Association, Calcutta (Kolkata).

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OBJECTIVES
As an association of large, dynamic paper manufacturers with global vision, IPMA presents a broad based platform to project Indian paper industry’s views and articulate its strategy The overriding objective of IPMA is to promote the interests of paper industry in India and help it achieve global competitiveness while striving to be an active participant in the policy making process.

ACTIVITIES
 Interface with government, media, opinion leaders, NGOs and industry associations so as to present the perspective of paper industry and thereby participate in the policy making process  Promote excellence in paper manufacturing through presentation of awards  Networking with international bodies with a view to gain better visibility for Indian paper industry  Coordinate with research institutes and arrange platforms for industry-research collaboration  Convene meetings and discussions to evaluate policies having direct or indirect bearing on the paper industry and to make suggestions to the policy makers on the issues and concerns of constituent member mills  Sponsor and participate in events, workshops, seminars, exhibitions, delegations and promotional activities related to paper industry

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 MEMBERS

AFFILIATIONS/PARTICIPATION
IPMA has wide spectrum linkages with apex industry chambers in India and paper industry associations both nationally and internationally. Besides it actively collaborates with R&D institutes, Academic institutes and Economic Research institutes in advancing the study and research on various aspects of pulp and paper industry. These include contribution of paper to Indian economy, enhancing competitive edge of paper industry, upgradation of technologies, raw materials availability through agro - forestry and initiatives such as recycling of paper.

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 NATIONAL  INTERNATIONAL  NATIONAL
Here is a partial list of organizations (arranged alphabetically) which IPMA is affiliated with or actively collaborates Nationally:  Apex Chambers
    

Confederation of Indian Industry (CII) Federation of Indian Chambers of Commerce & Industry (FICCI) Associated Chamber of Commerce & Industry (ASSOCHAM) PHD Chamber of Commerce & Industry (PHDCCI) Indian Chamber of Commerce and Industry (ICCI)  Research Institutes

        

Central Pulp and Paper Research Institute (CPPRI), Saharanpur Centre for Science and Environment (CSE), New Delhi Forest Research Institute of India, Dehradun Institute of Forest Genetics and Tree Breeding, Coimbatore Indian Grass and Fodder Research Institute, Dharwad (Karnataka) Indian Council of Forest Research & Education, Dehradun Sugarcane Breeding Institute, Coimbatore Thapar Centre for Industrial Research and Development, Yamuna Nagar Tata Energy Research Institute (TERI), New Delhi  Economic Think-tank

 

Centre for Monitoring Indian Economy (CMIE) CRISIL Limited (A Standard & Poor’s Company) 38

 Academic Institutes
 

Acharya N G Ranga Agricultural University, Hyderabad Indian Institute of Forest Management, Bhopal  Trade Associations

 

All India Federation of Master Printers (AIFMP) Federation of Paper Traders Association (FPTA)  Government Bodies

   

Bureau of Indian Standards Development Council for Pulp, Paper & Allied Industries National Manufacturing Competitiveness Council Peer & Core Committee of Central Pollution Control Board  Industry Bodies

Indian Pulp & Paper Technical Association (IPPTA)

 INTERNATIONAL
Here is a partial list of organizations (arranged alphabetically) which IPMA is affiliated with or actively collaborates Internationally:  Research Institutes
 

Centre Technique Du Papier, France STFI, Sweden

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 Trade Associations
   

FINPRO, Finland Swedish Trade Council Swedish Pulp and Paper Technology Group (Stockholm) Zellcheming, Germany

 Industry Bodies
                

Asian Pulp and Paper Association Chinese Taipei Paper Industry Association Confederation of European Paper Industry, Brussels (CEPI) FAO’s Advisory Committee on Paper and Wood Products Federation of ASEAN Pulp and Paper Industry (FAPPI) Indonesian Pulp & Paper Association International Council of Forest and Paper Associations (ICFPA) India-China Trade Centre Japan Paper Association Korean Paper Manufacturers Association Malaysia Pulp & Paper Manufacturers Association Pulp and Paper Technical Association of Brazil (ABTCP) Philippines Pulp & Paper Manufacturers Association Pulp and Paper Technical Association of Canada Taiwan Paper Industry Association The Thai Pulp and Paper Industries Association Vietnam Pulp & Paper Association

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PAPER AND ITS TYPES PAPER
Paper is thin material mainly used for writing upon, printing upon or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets. Paper is a versatile material with many uses. Whilst the most common is for writing and printing upon, it is also widely used as a packaging material, in many cleaning products, in a number of industrial and construction processes, and occasionally as a food ingredient, particularly in Asian cultures.

HISTORY
The word paper derives from the Greek term for the ancient Egyptian writing material called papyrus, which was formed from beaten strips of papyrus plants. The immediate predecessor to modern paper is believed to have originated in China in approximately the 2nd century CE, although there is some evidence for it being used before this date. Papermaking is considered to be one of the Four Great Inventions of Ancient China, since the first papermaking process was developed in China during the early 2nd century CE by the Han court eunuch Cai Lun. China used paper as an effective and cheap alternative to silk, letting them sell more silk, leading to a Golden Age. The use of paper spread from China through the Islamic world, and entered production in Europe in the early 12th century. Mechanized production of paper in the early 19th century caused significant cultural changes worldwide, allowing for relatively cheap exchange of information in the form of letters, newspapers and books for the first time. In 1844, both Canadian inventor Charles Fenerty and German inventor F.G. Keller had invented the machine and process for pulping wood for the use in paper making.[1] This would end the

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nearly 2000-year use of pulped rags and start a new era for the production of newsprint and eventually all paper out of pulped wood. Paper has a long history, beginning with the ancient Egyptians and continuing to the present day. For thousands of years, hand-made methods dominated and then, during the 19th century, paper production became industrialised. Originally intended purely for writing and printing purposes, a wide variety of paper grades and uses are now available to the consumer.

3000BC
Of all the writing and drawing materials that people have employed down the ages, paper is the most widely used around the world. Its name derives from papyrus the material used by the ancient Egyptians, Greeks and Romans. Papyrus, however, is only one of the predecessors of paper that together are known by the generic term ‘tapa’ and are mostly made from the inner bark of paper mulberry, fig and daphne.

Tapa has been found extensively in nearly all cultures along the Equatorial belt and is made by what is possibly the oldest papermaking technique – one still practised in some parts of the Himalayas and South East Asia. Indeed, recent archaeological excavations in China have revealed some of the oldest ‘tapa’ paper ever found which shows that paper was being produced in China before western records began.

The tapa technique involves cooked bast, which is flattened with a wooden hammer to form a thin, fibrous layer and then dissolved in a vat with water to make a pulp. A screen consisting of a wooden frame with a fabric base is then laid in a puddle or big basin and floats with the fabric just under the surface of the water. The papermaker then pours the quantity of pulp needed to make one sheet into this ‘floating mould’ and spreads it evenly, by hand, across the surface. The screen is then carefully lifted out of the water, allowed to drain off and a sheet of paper forms on the wire. Once the water has dripped off, the screen is placed in the sun or near a fire to dry. When dry, the sheet easily peels 42

off and, apart from possible smoothing, requires no further treatment. This technique has two basic drawbacks. Firstly, a separate screen is needed for each new sheet, and is only available for use again after the last sheet has dried. And secondly, an increase in production can soon lead to a shortage of raw material, since fresh bast is not always available everywhere in the required quantity.

The fibers normally used for textiles, like flax and hemp, also served as substitutes for bast. In later times, the fabric was replaced by fine bamboo sticks, which freed the papermaker of the need to let the paper dry naturally in the mould, since the poured or ladled sheet could be ‘couched’ off.

AD 105
In AD 105, the Chinese court official, Ts'ai Lun, (if we are to believe the chronicle recording the claim) invented papermaking from textile waste using rags. This can be considered as the birth of paper as we know it today. Later, Chinese papermakers developed a number of specialities such as sized, coated and dyed paper, and paper protected against ravages by insects, but they had great problems satisfying the growing demand for paper for governmental administration. They also used a new fiber-yielding plant - bamboo - which they de-fiberd by cooking in lye.

AD 610
Chinese papermaking techniques reached Korea at an early date and were introduced to Japan in the year 610. In these two countries, paper is still made by hand on a large scale in the old tradition, preferably from the fresh bast fibers of the mulberry tree (kozo in Japanese). Following the cooking process, the long, uncut fibers are merely prepared by beating, which gives the paper its characteristic look and excellent quality. The latter is due, among other things, to multiple, rapid immersions of the mould, which results in a multi-layer fiber mat.

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Very soon, knowledge of papermaking spread to Central Asia and Tibet and then on to India. When the Arabs, in the course of their eastern expansion, neared Samarkan they too became acquainted with the production of paper and paper mills were subsequently set up in Baghdad, Damascus and Cairo, and later in Morocco, Spain and Sicily. Owing to the lack of fresh fibers, the raw material used by the Arabs was made almost entirely from rags: however, their defective and poorly designed processing equipment (such as breaker mills) produced a rather inferior ground pulp. But, by using this method, with screens made of reeds, thin sheets were made and then ‘coated’ with starch paste. This gave Arabian paper its good writing properties and fine appearance.The export of Arabian-made paper, along with the secrets of its product

14th CENTURY
In the course of the rapid expansion of trade in the late Middle Ages, more and more merchants dealt in the commodity called ‘paper’ that was growing in importance for public and intellectual life. The Nuremberg councillor Ulmann Stromer (Stromeir) mulled over the advantages of making his own paper and, with the help of skilled workers from Italy, transformed the ‘Gleismühle’ by the gates of his home town into a paper mill. The dates noted in his diary, 24 June 1390 (start of work on the waterwheel) and 7 and 11 August 1390 (oaths sworn by his Nuremberg foremen), are the first assured records of papermaking on German soil.

The wording of Stromer's diary entries suggest that he regarded papermaking as a largely unknown and secret art, that he had to prevail against the clan of immigrant Italians, and that he had to overcome many technical difficulties. Stromer’s mill - illustrated in the world chronicle of Hartmann Schedel in 1493 - was initially designed with two waterwheels, 18 stamping hammers (i.e. six holes) and 12 workers using one or two vats.

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16th CENTURY
The advantages of this mill-based papermaking technique, which spread throughout Europe in the 15th and 16th centuries far outweighed the disadvantage of considerable outlays of time and capital for building and fitting out with new machinery and equipment. However, the change in the production process, thanks to the division of labour, boosted output and improved quality. And it could certainly generate a profit, as some examples prove. On the other hand, there was a growing risk of an imbalance between costs and earnings, a state of affairs noted in the numerous reports of business failures among papermakers.

Later, many paper merchants took over the mills as owners, while the master papermakers practised their trade as lessees. This trend was stepped up by the special conditions prevailing in the book sector, where a book printer or publisher had to fund the production costs (paper, composition, printing) of a work before the sale of the print run generated revenue. The result was that he was often indebted to the paper suppliers.

Work at the vat normally involved four people: the vatman, who made the sheet using a mould; the couch squirt, who worked in time with the vatman and placed the sheet on felt; the layman, who drew off the still moist sheets from the felt after pressing; and the apprentice, who had to feed material to the vat and provide for vat heating. The press was operated jointly by the team. Depending on format and basis weight, up to nine reams (4,500 sheets) of paper could be made in the course of a working day of around 13 hours.

17th CENTURY
Technical progress continued in the 17th century. Smoothing the sheets by hand, using a creasing knife or ‘blood stone’, was supplemented by the use of a smoothing hammer (similar to a forging hammer). This led to a split in the craft between the traditionconscious ‘smoothers’ and the modern ‘stampers’ who refused to recognise one another

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as fully-fledged papermakers. Towards the end of the 17th century, a new and much more efficient beater, called a ‘hollander’, was invented. This supplemented, or even replaced the stamping mill and further divided papermakers into two new camps.

The tremendous upsurge in papermaking during the Reformation in the 16th century, coupled with the introduction of printing with movable type, soon led to a serious shortage of raw materials and to regulations governing the trade in rags. The systematic search for substitute materials met with little immediate success. In the early 18th century straw was certainly used as a raw material but failed to make headway on quality grounds. Only the invention of groundwood pulp by Saxon Keller (1843) and of chemical pulp (first patented in 1854 by Mellier Watt) solved this problem.

18th CENTURY
During the 18th century there had been some concentration of craft activities in large operations, the ‘manufactories’, which were dependent on skilled papermakers organised into craft groups. The efforts made to step up production as much as possible and to have many of the jobs done by machine (partly to get round the constraining rules of papermakers' craft ‘usages’) culminated in the design and construction of paper making machines. The initial model was the vat that was used by J.N.L. Robert, who built the first flat-screen papermaking machine in 1798. This was further developed in England, mostly by Donking and the Fourdrinier brothers.

Shortly afterwards other types appeared, like the Dickinson’s cylinder machine, and machines which filled wire moulds transported on an endless chain and couched the sheets on an continuous felt. Flat screen and cylinder machines, which were first seen in the 19th century, were continually improved and extended to include a dryer section. This soon led to a considerable widening of the paper web and to an increase in production speeds.

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It also heralded industrialisation. In this new era, the small operators who were unable or unwilling to afford machines sought to survive with piece-work or by producing special grades, but they were sooner or later compelled to discontinue their activities. Others had to adapt their existing buildings or set up new mills elsewhere

19th & 20th CENTURY
The history of the paper industry in the 19th and 20th centuries can be broken down into five partly overlapping periods, each marked by definite trends.

In the first stage (from about 1800 to 1860), all work sequences previously performed by hand were mechanised. This included the rag preparation, the use of fillers, pulp beating, the paper machine with its various parts, and the machines required for finishing the paper (the headbox, wire section, press section, dryer section, units for reeling, smoothing and packaging).

During the second stage (about 1840 to 1880), efforts were made to obtain rag substitutes on an industrial scale (groundwood pulp and chemical pulp) and appropriate industrial plants (groundwood and chemical pulp mills) were developed.

The third stage (1860 to 1950) was marked by the enlargement of the web width, an increase in working speeds, the introduction of electric drive and further improvements to various machine parts. Machines designed specifically for the production of particular paper and board grades (for example the Yankee cylinder and multi-cylinder machines) were also developed. The web working width grew from 85 cm (1830) to 770 cm (1930), while production speeds rose from 5 m/min. (1820) to over 500 m/min. (1930).

The fourth stage (1950 to 1980), which was still dependent on the old methods as far as the mechanics were concerned, brought unprecedented changes in papermaking. Alongside further increases in web width and working speeds, there was the use of new

47

materials (thermo-mechanical pulp, deinked recovered paper, new fillers, processed chemicals and dyes), new sheet forming options (e.g. by twin-wire formers), neutral sizing, greater stress on ecology (closed loops) and, most of all, automation. The operational impact of these changes was: specialisation in certain paper types; development of new paper grades (LWC - lightweight coated paper); corporate mergers; company groups with their own raw material supply and trading organisations; closure of unprofitable operations.

1980 ONWARDS
The fifth stage leads into the future. The evolution of new sheet-forming principles (with fluid boundaries between paper and non-woven fabrics) and chemical pulp processes have been the main process improvements. However, the situation on the global market (increased demand, above all in the Third World, trends in chemical pulp prices, problems of location), are again raising capital intensity and encouraging the formation of big company groups with international operations. At the same time there are definite opportunities for smaller, local firms satisfying specific needs.

2000 & BEYOND
The new Millennium will be dominated by the tremendous progress that has been made in computer science, thus triggering a complete change in our commercial and private communication and information behavior. Does this mean that the paper era will come to an end? The answer is most definitely "No".

Clearly there will be a huge amount of data being generated electronically, but the issue is how to preserve it. The difficulties of data storage over a long period of time are well known (for example, the durability of disks; frequent changes of hard and software, electronic breakdowns etc.). Once again, paper offers the most convenient and durable storage option. The advance in technology will affect only the printing of items like short-lived handbooks and encyclopedias.

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Reading a book will remain a great pleasure into the future and paper, as a ubiquitous material with its many uses, will continue to play an influential role. Many artists will continue to express themselves by using this most versatile material.

PAPERMAKING
 CHEMICAL PULPING
The purpose of a chemical pulping process is to break down the chemical structure of lignin and render it soluble in the cooking liquor, so that it may be washed from the cellulose fibers. Because lignin holds the plant cells together, chemical pulping frees the fibres and makes pulp. The pulp can also be bleached to produce white paper for printing, painting and writing. Chemical pulps tend to cost more than mechanical pulps, largely due to the low yield, 40–50% of the original wood. Since the process preserves fibre length, however, chemical pulps tend to make stronger paper. Another advantage of chemical pulping is that the majority of the heat and electricity needed to run the process is produced by burning the lignin removed during pulping. Papers made from chemical wood-based pulps are also known as woodfree papers. The Kraft process is the most commonly practiced strategy for pulp manufacturing and produces especially strong, unbleached papers that can be used directly for bags and boxes but are often processed further, e.g. to make corrugated cardboard.

 MECHANICAL PULPING
There are two major mechanical pulps, thermomechanical pulp (TMP) and mechanical pulp. The latter is known in the USA as groundwood pulp. In the TMP process, wood is chipped and then fed into large steam-heated refiners where the chips are squeezed and fibreized between two steel discs. In the groundwood process, debarked logs are fed into

49

grinders where they are pressed against rotating stones and fibreized. Mechanical pulping does not remove the lignin, so the yield is very high, >95%, but also causes paper made from this pulp to yellow and become brittle over time. Mechanical pulps have rather short fibre lengths and produce weak paper. Although large amounts of electrical energy are required to produce mechanical pulp, it costs less than chemical pulp.

 RECYCLED PAPER
Paper recycling processes can use either chemical or mechanical pulp. By mixing with water and applying mechanical action the hydrogen bonds in the paper can be broken and fibres separated again. Most recycled paper contains a proportion of virgin fibre in the interests of quality. There are three main classifications of recycled fibre:.  MILL BROKE OR INTERNAL MILL WASTE — this incorporates any substandard or grade-change paper made within the paper mill which then goes back into the manufacturing system to be repulped back into paper. Such out-of-specification paper is not sold and is therefore often not classified as genuine reclaimed recycled fibre. However, most paper mills have been recycling their own waste fibre for many years, long before recycling become popular.  PRECONSUMER WASTE — this is offcuts and processing waste, such as guillotine trims and envelope blank waste. This waste is generated outside the paper mill and could potentially go to landfill, and is a genuine recycled fibre source. Also includes de-inked preconsumer (recycled material that has been printed but did not reach its intended end use, such as waste from printers and unsold publications). [2]  POSTCONSUMER WASTE — this is fibre from paper which has been used for its intended end use and would include office waste, magazine papers 50

and newsprint. As the vast majority of this paper has been printed (either digitally or by more conventional means such as litho or gravure), it will either be recycled as printed paper or go through a de-inking process first. Recycled papers can be made from 100% recycled materials or blended with virgin pulp. Recycled papers are (generally) not as strong nor as bright as papers made from virgin pulp.

 ADDITIVES
Besides the fibres, pulps may contain fillers such as chalk or china clay, which improve the characteristics of the paper for printing or writing. Additives for sizing purposes may be mixed into the pulp and/or applied to the paper web later in the manufacturing process. The purpose of sizing is to establish the correct level of surface absorbency to suit the ink or paint.

 DRYING
After the paper web is produced, the water must be removed from it by pressing and drying. Pressing the sheet removes the water by force. Once the water is forced from the sheet, felt (not to be confused with the traditional felt) is used to collect the water. When making paper by hand, a blotter sheet is used. Drying involves using air and or heat to remove water from the paper sheet. In the earliest days of papermaking this was done by hanging the paper sheets like laundry. In more modern times, various forms of heated drying mechanisms are used. On the paper machine, the most common is the steam-heated can dryer. These dryers can heat to temperatures above 200°F (93°C) and are used in long sequences of more than 40 cans. The heat produced by these can easily dry the paper to less than 6% moisture.

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 FINISHING
The paper may then undergo sizing to alter its physical properties for use in various applications. Paper at this point is uncoated. Coated paper has a thin layer of material such as calcium carbonate or china clay applied to one or both sides in order to create a surface more suitable for high-resolution halftone screens. (Uncoated papers are rarely suitable for screens above 150 lpi.) Coated or uncoated papers may have their surfaces polished by calendering. Coated papers are divided into matte, semi-matte or silk, and gloss. Gloss papers give the highest optical density in the printed image. The paper is then fed onto reels if it is to be used on web printing presses, or cut into sheets for other printing processes or other purposes. The fibres in the paper basically run in the machine direction. Sheets are usually cut "long-grain", i.e. with the grain parallel to the longer dimension of the sheet. All paper produced by paper machines as the Fourdrinier machine are wove paper, i.e. the wire mesh that transports the web leaves a pattern that has the same density along the paper grain and across the grain. Textured finishes, watermarks and wire patterns imitating hand-made laid paper can be created by the use of appropriate rollers in the later stages of the machine. Wove paper does not exhibit "laidlines", which are small regular lines left behind on paper when it was handmade in a mould made from rows of metal wires or bamboo. Laidlines are very close together. They run perpendicular to the "chainlines", which are further apart. Handmade paper similarly exhibits "deckle edges", or rough and feathery borders.

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MANUFACTURE OF PAPER AND PAPERBOARD PREPARATION OF STOCK
Mechanical squeezing and pounding of cellulose fibre permits water to penetrate its structure, causing swelling of the fibre and making it flexible. Mechanical action, furthermore, separates and frays the fibrils, submicroscopic units in the fibre structure. Beating reduces the rate of drainage from and through a mat of fibres, producing dense paper of high tensile strength, low porosity, stiffness, and rattle. An important milestone in papermaking development, the Hollander beater consists of an oval tank containing a heavy roll that revolves against a bedplate. The roll is capable of being set very accurately with respect to the bedplate, for the progressive adjustment of the roll position is the key to good beating. A beater may hold from 135 to 1,350 kilograms (300 to 3,000 pounds) of stock, a common size being about 7 metres (24 feet) long, 4 metres (12 feet) wide, and about 1 metre (3.3 feet) deep. A centre partition provides a continuous channel. Pulp is put into the beater, and water is added to facilitate circulation of the mass between the roll and the bedplate. As the beating proceeds, the revolving roll is gradually lowered

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until it is riding full weight on the fibres between it and the bedplate. This action splits and mashes the fibres, creating hairlike fibrils and causing them to absorb water and become slimy. The beaten fibres will then drain more slowly on the paper machine wire and bond together more readily as more water is removed and the wet web pressed. Much of the beating action results from the rubbing of fibre on fibre. Long fibres will be cut to some extent. The beater is also well-adapted for the addition and mixing of other materials, such as sizing, fillers, and dyes. By mounting a perforated cylinder that can rotate partially immersed in the beater stock, water can be continuously removed from the beater, and the stock therefore can be washed. Although many design modifications have been made in the Hollander beater over the years, the machine is still widely used in smaller mills making specialty paper products. For large production modern mills have replaced the beater by various types of continuous refiners. In mills that receive baled pulp and use refiners, the pulp is defibred in pulpers. While there are a number of variations in basic design, a pulper consists essentially of a large, open vessel, with one or more bladed, rotating elements that circulate a pulp-water mixture and defibre or separate fibres. The blades transform the pulp or wastepaper into a smooth mixture. Unlike beaters and refiners, pulpers do not reduce freeness and cause fibrillation in the fibres. A typical pulper has a capacity of 900 kilograms (2,000 pounds) of fibre in 6 percent solution and requires 150 horsepower to drive it. The original continuous refiner is the Jordan, named after its 19th-century inventor. Like the beater, the Jordan has blades or bars, mounted on a rotating element, that work in conjunction with stationary blades to treat the fibres. The axially oriented blades are mounted on a conically shaped rotor that is surrounded by a stationary bladed element (stator).

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Like other refiners, the disk refiner consists of a rotating bladed element that moves in conjunction with a stationary bladed element. The disk refiner's plane of action, however, is perpendicular to the axis of rotation, simplifying manufacture of the treating elements and replacement. Since the disk refiner provides a large number of working edges to act upon the fibre, the load per fibre is reduced and fibre brushing, rather than fibre cutting, may be emphasized. Sizing has been described above as the treatment given paper to prevent aqueous solutions, such as ink, from soaking into it. A typical sizing solution consists of a rosin soap dispersion mixed with the stock in an amount of 1 to 5 percent of fibre. Since there is no affinity between rosin soap and fibre, it is necessary to use a coupling agent, normally alum (aluminum sulfate). The acidity of alum precipitates the rosin dispersion, and the positively charged aluminum ions and aluminum hydroxide flocs (masses of finely suspended particles) attach the size firmly to the negatively charged fibre surface. Paper intended for writing or printing usually contains white pigments or fillers to increase brightness, opacity, and surface smoothness, and to improve ink receptivity. Clay (aluminum silicate), often referred to as kaolin or china clay, is commonly used, but only in a few places in the world (Cornwall, in England, and Georgia, in the United States) are the deposits readily accessible and sufficiently pure to be used for pigment. Another pigment is titanium dioxide (TiO2), prepared from the minerals rutile and anatase. Titanium dioxide is the most expensive of the common pigments and is often used in admixture with others. Calcium carbonate (CaCO3), also used as a filler, is prepared by precipitation by the reaction of milk of lime with either carbon dioxide (CO2) or soda ash (sodium carbonate, Na2CO3). Calcium carbonate as a paper filler is used mainly to impart improved brightness, opacity, and ink receptivity to printing and magazine stocks. Specialty uses include the filling of cigarette paper, to which it contributes good burning properties. Because of its reactivity with acid, calcium carbonate cannot be used in systems

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containing alum.Other fillers are zinc oxide, zinc sulfide, hydrated silica, calcium sulfate, hydrated alumina, talc, barium sulfate, and asbestos. Much of the filler consumed is used in paper coatings . Since most fillers have no affinity for fibres, it is necessary to add an agent such as alum to help hold the filler in the formed sheet. The amount of filler used may vary from 1 to 10 percent of the fibre. The most common way to impart colour to paper is to add soluble dyes or coloured pigment to the paper stock. Many so-called direct dyes with a natural affinity for cellulose fibre are highly absorbed, even from dilute water solution. The so-called basic dyes have a high affinity for groundwood and unbleached pulps. Various agents are added to paper stock to enhance or to modify the bonding and coherence between fibres. To increase the dry strength of paper, the materials most commonly used are starch, polyacrylamide resins, and natural gums such as locust bean gum and guar gum. The most common type of starch currently used is the modified type known as cationic starch. When dispersed in water, this starch assumes a positive surface charge. Because fibre normally assumes a negative surface charge, there is an affinity between the cationic starch and the fibre. The natural cellulose interfibre bonding that develops as a sheet of paper dries is considered to be due to interatomic forces of attraction known to physical chemists as hydrogen bonding or van der Waals forces . Because these attractive forces are neutralized or dissolved in water, wet paper has practically no strength. Although this property is convenient for the recovery of wastepaper, some papers require wet strength for their intended use. Wet strength is gained by adding certain organic resins to the paper stock that, because of their chemical nature, are absorbed by the fibre. After formation and drying of the sheet, the resins change to an insoluble form, creating water-resistant bonds between fibres.

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FORMATION OF PAPER SHEET BY MACHINES
In a paper machine, interrelated mechanisms operating in unison receive paper stock from the beater, form it into a sheet of the desired weight by filtration, press and consolidate the sheet with removal of excess water, dry the remaining water by evaporation, and wind the traveling sheet into reels of paper. Paper machines may vary in width from about 1.5 to 8 metres (5 to 26 feet), in operating speed from a few hundred metres to 900 metres (about 3,000 feet) per minute, and in production of paper from a few tons per day to more than 300 tons per day. The paper weight (basis weight) may vary from light tissue, about 10 grams per square metre (0.03 ounce per square foot), to boards of more than 500 grams per square metre (1.6 ounces per square foot). Traditionally, paper machines have been divided into two main types: cylinder machines and Fourdrinier machines . The former consists of one or more screen-covered cylinders, each rotating in a vat of dilute paper stock. Filtration occurs by flow action from the vat into the cylinder, with the filtrate being continuously removed. In the Fourdrinier machine a horizontal wire-screen belt filters the stock. In recent years a number of paper machines have been designed that depart greatly from traditional design. These machines are collectively referred to as "formers." Some of these formers retain the traveling screen belt but form the sheet largely on a suction roll. Others eliminate the screen belt and use a suction cylinder roll only. Still others use two screen belts with the stock sandwiched between, with drainage on both sides. In a typical modern Fourdrinier machine the various functional parts are the headbox; stock distribution system; Fourdrinier table, where sheet formation and drainage of water occur; press section, which receives the wet sheet from the wire, presses it between woolen felts, and delivers the partially dried sheet to the dryer section; dryer section, which receives the sheet from the presses and carries it through a series of rotating, steam-heated cylinders to remove the remaining moisture; size press, which permits

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dampening the sheet surface with a solution of starch, glue, or other material to improve the paper surface; calender stack, for compressing and smoothing the sheet; and the reel. The function of the headbox is to distribute a continuous flow of wet stock at constant velocities, both across the width of the machine and lengthwise of the sheet, as stock is deposited on the screen. Equal quantities of properly dispersed stock should be supplied to all areas of the sheet-forming surface. The early headbox, more commonly called a flowbox or breastbox, consisted of a rectangular wooden vat that extended across the full width of the machine behind the Fourdrinier breast roll. The box was provided with baffles to mix and distribute the stock. A flat metal plate extending across the machine (knife slice) improved dispersion of the fibre suspension, providing distribution of flow across the machine, and also metered the flow to produce a sheet of uniform weight. To accommodate increased speed in modern headboxes, the knife slice is designed to develop a jet of liquid stock on the moving wire. Modern headboxes are enclosed, with pressure maintained by pumping. The Fourdrinier table section of a paper machine is a large framework that supports the table rolls, breast roll, couch roll, suction boxes, wire rolls, and other Fourdrinier parts. The wire mesh upon which the sheet of fibre is formed is a continuous rotating belt that forms a loop around the Fourdrinier frame. The wire, not a permanent part of the machine, is delicate and requires periodic replacement. It is a finely woven metal or synthetic fibre cloth that allows drainage of the water but retains most of the fibres. The strands of the Fourdrinier wire are usually made of specially annealed bronze or brass, finely drawn and woven into a web commonly in the range of 55 to 85 mesh (strands per inch). Even finer wires are used for such grades as cigarette paper, coarser wires for heavy paperboard and pulp sheets. Various types of weave are used to obtain maximum wire life.

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The table rolls, in addition to supporting the wire, function as water-removal devices. The rapidly rotating roll in contact with the underside of the wire produces a suction or pumping action that increases the drainage of water through the wire. The dandy roll is a light, open-structured unit covered with wire cloth and placed on the wire between suction boxes, resting lightly upon the wire and the surface of the sheet. Its function is to flatten the top surface of the sheet and improve the finish. When the dandy roll leaves a mesh or crosshatch pattern, the paper is said to be "woven." When parallel, translucent lines are produced, it is said to be "laid." When names, insignia, or designs are formed, the paper is said to be "watermarked." Paper watermarks have served to identify the makers of fine papers since the early days of the art. A watermark is actually a thin part of the sheet and is visible because of greater transmission of light in its area compared with other areas of the sheet. Because light transmission can be varied by degrees, it is possible to produce watermarks in the form of portraits or pictures. The final roll over which the formed sheet passes, before removal from the Fourdrinier wire, is the couch roll. Prior to the transferring operation, the couch roll must remove water from and consolidate the sheet to strengthen it. In modern machines the couch roll is almost always a suction roll. The press section increases the solids content of the sheet of paper by removing some of the free water contained in the sheet after it is formed. It then carries the paper from the forming unit to the dryer section without disrupting or disturbing sheet structure and reduces the bulk or thickness of the paper. The first two functions are always necessary. Pressing always results in compaction, and this may or may not be desirable depending upon the grades being made. Felts for the press section act as conveyor belts to assist the sheet through the presses, as porous media to provide space and channels for water removal, as textured cushions or

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shock absorbers for pressing the moist sheet without crushing or significant marking, and as power transfer belts to drive nondriven rolls or parts. Woven felts of wool, often with up to 50 percent synthetic fibres, are made by a modified woolen textile system. Selected grades of wool are scoured, blended, carded, and spun into yarn. The yarn is woven into flat goods, leaving a fringe at each end. The ends are brought together and joined to produce an endless, substantially seamless belt. Paper machine felts have a limited life ranging from about a week to several months. Their strength and water-removal ability is gradually lost through wear and chemical and bacterial degradation and by becoming clogged with foreign material. Press rolls must be strong, rigid, and well-balanced to span the wide, modern machines and run at high speed without distortion and vibration. Solid press rolls consist of a steel or cast iron core, covered with rubber of various hardnesses depending upon the particular service required. Suction press rolls consist of a bronze or stainless steel shell two inches (five centimetres) or more in thickness and usually covered with one inch of rubber.

Paper leaving the press section of the machine has a solids content or dryness of 32 to 40 percent. Because of the relatively high cost of removing water by evaporation, compared with removing it by mechanical means, the sheet must be as dry as possible when it enters the dryers. The dryer section of a conventional paper machine consists of from 40 to 70 steam-heated drying cylinders. After passing around the cylinders, the sheet is held in intimate contact with the heated surfaces by means of dryer felts. Until recent years, relatively heavy, rather impermeable cloths composed of wool, cotton, asbestos, or combinations of these materials covered the dryer portion of the paper machine. Such cloths are termed dryer felts, though felting or fulling process is rarely used in their manufacture. Relatively lightweight, highly permeable cloths called dryer fabric also are employed. 60

For conventional dryer felts, cotton is still the most commonly used fibre, although it is seldom used alone. The main difference between the conventional dryer felt and the open-mesh dryer fabric is air or vapour permeability. High permeability is desirable because it allows the escape of the water vapour from the sheet. For every ton of paper dried on the paper machine, approximately two tons of water are evaporated into the atmosphere. About 50 to 60 tons of air are required to remove the water vapour, with about 2,700 kilograms (6,000 pounds) of steam required by the dryers.

FINISHING AND CONVERTING
The rolls of paper produced by the paper machine must still undergo a number of operations before the paper becomes useful to the consumer. These various operations are referred to as converting or finishing and often make use of intricate and fast-moving machinery. There are two distinct types of paper conversion. One is referred to as wet converting, in which paper in roll form is coated, impregnated, and laminated with various applied materials to improve properties for special purposes. The second is referred to as dry converting, in which paper in roll form is converted into such items as bags, envelopes, boxes, small rolls, and packs of sheets. A few of the more important converting operations are described here. Paper has been coated to improve its surface for better reproduction of printed images for over 100 years. The introduction of half-tone and colour printing has created a strong demand for coated paper. Coatings are applied to paper to achieve uniformity of surface for printing inks, lacquers, and the like; to obtain printed images without blemishes visible to the eye; to enhance opacity, smoothness, and gloss of paper or paperboard; and to achieve economy in the weight and composition of base paper stock by the upgrading effect of coating. 61

The chief components of the water dispersion used for coating paper are pigment, which may be clay, titanium dioxide, calcium carbonate, satin white, or combinations of these; dispersants to give uniformity to the mixture or the "slip"; and an adhesive binder to give coherence to the finished coating. The latter may be a natural material such as starch or a synthetic material such as latex. Equipment installed between dryer sections on the paper machine can apply the coating (on-machine coating), or it can be done by a separate machine, using rolls of paper as feed stock (off-machine coating). The extrusion-coating process, a relatively new development in the application of functional coating, has gained major importance in the past 20 years. The process is used to apply polyethylene plastic coatings to all grades of paper and paperboard. Polyethylene resin has ideal properties for use with packaging paper, being waterproof; resistant to grease, water vapour, and gases; highly stable; flexible in heat sealing; and free from odour and toxicity. In the extrusion-coating machine, the polyethylene resin is melted in a thermoplastic extruder that consists of a drive screw within an electrically heated cylinder. The cylinder melts and compacts the resin granules and extrudes the melt in a continuous flow under high pressure. The resin is discharged through a film-forming slot die. The die has electric heaters with precision temperature controls to give uniform temperature and viscosity to the plastic melt. The slot opening can be precisely adjusted to control film uniformity and thickness. The hot extruded film is then stretched and combined with paper between a pair of rolls, one of which is a rubber-covered pressure roll and the other a water-cooled, chromiumplated steel roll. The combination takes place so rapidly that a permanent bond is created between the plastic film and the paper before they are cooled by the steel roll.

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The most widely used package for commodities and manufactured products is the corrugated shipping container. A corrugated box consists of two structural elements: the facings (linerboard) and the fluting structure (corrugating medium). Linerboard facings are of two general types: the Fourdrinier kraft liner is made of pine kraft pulp, usually unbleached, in an integrated mill as a continuous process from the tree to the paper web; and the cylinder liner is made from reprocessed fibres, generally from used containers, providing a content of about two-thirds kraft. The operation begins by unwinding the single-face liner and corrugating medium from holders, threading the medium into the fluting rolls, applying adhesive to the tips, and bringing the medium in contact with the liner to form a single-face web. Next, the singleface web passes another glue roll that applies adhesive to the exposed flute tips of the medium. The second face liner is brought in contact with the single-face web, and the combined board travels through a hot plate section between belts to set the bond, to a cooling section, and then to a slitter-scorer.

STRENGTH AND DURABILITY
The strength of paper is determined by the following factors in combination:
  

The strength of the individual fibres of the stock, The average length of the fibre, The interfibre bonding ability of the fibre, which is enhanced by the beating and refining action,

The structure and formation of the sheet.

Resistance to rupture when subjected to various stresses is an important property in practically all grades of paper. Most papers require a certain minimum strength to withstand the treatment received by the product in use; but even where use requirements are not severe, the paper must be strong enough to permit efficient handling in

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manufacture. Tensile strength is the greatest longitudinal stress a piece of paper can bear without tearing apart. The stress is expressed as the force per unit width of a test specimen. Since the weight of the paper and the width of the test specimen affect the force of rupture, a conventional method of comparing inherent paper strength is the breaking length--that is, the length of a paper strip in metres that would be just self-supporting. This value varies from about 500 metres for extremely soft, weak tissue to about 8,000 metres for strong kraft bag paper, and to about 14,000 metres for sheets of paper made under ideal laboratory conditions. Because some paper products such as towels, sanitary tissues, and filter paper are subjected to wetting by water in their normal use, wet tensile testing has become important. This test is essentially the same as that for dry tensile strength, except that the specimen is wetted. Paper that has not been specifically treated to produce wet strength possesses from about 4 to about 8 percent of its dry strength when completely wetted. By treating paper as described above, wet strength can be raised to about 40 percent of the dry strength. One of the oldest and most widely used strength tests for paper and paperboard is the bursting test, or Mullen test. It is defined as the hydrostatic pressure (caused by liquids at rest) necessary to cause rupture in a circular area of a given diameter. Other strength tests for which standard methods exist are tearing strength and folding endurance. The resistance of paper to a bending force is evident in the various operations of its manufacture and in its many uses. The range in this property extends from very soft, flexible tissues to rigid boards. Thicker and heavier sheets tend to be stiff, whereas soft, flexible sheets are light and thin. Even at the same weight there is a considerable difference in stiffness, chiefly due to the compactness and the amount of bonding of the sheet

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Because paper is composed of a randomly felted layer of fibre, the structure has a varying degree of porosity. Thus, the ability of fluids, both liquid and gaseous, to penetrate the structure is a property both highly significant to the use of paper and capable of being widely varied by the conditions of manufacture. Sizing paper with vegetable materials and rosinlike substances has already been described. When paper began to be used for wrapping, consumers demanded sizing treatments that could protect the contents of the package from the effects of fluid transfer through the paper wrapping. In some instances complete impermeability was required. In another direction the use of paper as an absorbent medium for wiping up liquids, for filtering, and for saturating has created a demand for maximum wettability and permeability toward water and other fluids. In certain types of packaging, paper must resist grease and oil penetration. The resistance of paper to the penetration of water can be increased by treatment of fibre with materials that lack affinity for water, with little effect upon sheet porosity, but the penetration of oil materials is little affected by such treatment. Oil and grease resistance is attained, in fact, by reduction in porosity. So-called greaseproof paper is made by beating an easily hydrated pulp to extremely low freeness, which results in a dense sheet with very little void space. Absorbent papers such as toweling, sanitary tissue, and blotting and filter paper are normally made from lightly beaten stock. Since cellulose is naturally hydrophilic (i.e., has a strong affinity for water), absorbent papers have a minimum of foreign materials associated with the fibre. Of particular importance are the wood rosins that may be present in pulp and produce a self-sizing effect, especially upon aging.

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APPLICATIONS PAPER CUTTER  To write or print on: the piece of paper becomes a document; this may be for
keeping a record (or in the case of printing from a computer or copying from another paper: an additional record) and for communication; see also reading. Paper can be produced with a wide variety of properties, depending on its intended use.  TO REPRESENT A VALUE paper money, bank note, cheque, security (see Security paper), voucher and ticket  FOR STORING INFORMATION: book, notebook, magazine, newspaper, art, zine, letter

for personal use: diary, note to remind oneself, etc.; for temporary personal use: scratch paper

for communication to someone else:

by transportation of the paper from the place where it is written or printed to the place where it is read: delivered by sender, transported by a third party (e.g. in the case of mail), or taken by the receiver

by writing at the same place as where it is read:
o

if sender and receiver are not there at the same time, in the case of a posted notice

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o

if sender and receiver are both present, but use paper for illustration, or if communication by talking is not suitable:
 

because one is mute or the other is deaf to avoid other people hearing it, because it is secret, or in order not to disturb them

in a noisy environment

 FOR PACKAGING corrugated box, paper bag, envelope, wrapping tissue, Charta emporetica and wallpaper  FOR CLEANING toilet paper, handkerchiefs, paper towels, facial tissue and cat litter  FOR CONSTRUCTION origami, paper planes, quilling, Paper honeycomb, used as a core material in composite materials, paper engineering, construction paper and clothing  OTHER USES emery paper, sandpaper, blotting paper, litmus paper, universal indicator paper, paper chromatography, electrical insulation paper (see also dielectrics and permittivity) and filter paper

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 TYPES, THICKNESS AND WEIGHT
Card and paper stock for craft use comes in a wide variety of textures and colors. The thickness of paper is often measured by caliper, which is typically given in thousandths of an inch. Paper may be between 0.07 millimetres (0.0028 in) and 0.18 millimetres (0.0071 in) thick. Paper is often characterized by weight. In the United States, the weight assigned to a paper is the weight of a ream, 500 sheets, of varying "basic sizes", before the paper is cut into the size it is sold to end customers. For example, a ream of 20 lb, 8½ x 11" paper weighs 5 pounds, because it has been cut from a larger sheet into four pieces. In the United States, printing paper is generally 20 lb, 24 lb, or 32 lb at most. Cover stock is generally 68 lb, and 110 lb or more is considered card stock. The 8.5" x 11" size stems from the original size of a vat that was used to make paper. At the time, paper was made from passing a fiber and water slurry through a screen at the bottom of a box. The box was 17" deep and 44" wide. That sheet, folded in half in the long direction, then twice in the opposite direction, made a sheet of paper that was exactly 8.5" x 11". In Europe, and other regions using the ISO 216 paper sizing system, the weight is expressed in grammes per square metre (g/m2 or usually just g) of the paper. Printing paper is generally between 60 g and 120 g. Anything heavier than 160 g is considered card. The weight of a ream therefore depends on the dimensions of the paper and its thickness. The sizing system in Europe is based on common width to height ratios for different paper sizes. The largest standard size paper is A0 (A zero). Two sheets of A1, placed upright side by side fit exactly into one sheet of A0 laid on its side. Similarly, two sheets

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of A2 fit into one sheet of A1 and so forth. Common sizes used in the office and the home are A4 and A3 (A3 is the size of two A4 sheets). The density of paper ranges from 250 kg/m3 (16 lb/ft3) for tissue paper to 1500 kg/m3 (94 lb/ft 3) for some speciality paper. Printing paper is about 800 kg/m3 (50 lb/ft3)

 PAPER TYPES
 ABRASIVE KRAFT Used For : Abrasive Kraft is used for making sand paper used in roughening applications.  ABSORBENT KRAFT Used For : Used for Laminates, tube making and defence applications.  ALKALINE PAPER Paper having pH values greater than 7 made by an alkaline manufacturing process.  ANTI RUST PAPER Paper which has the property of protecting the surfaces of ferrous metals against rust.  ANTIQUE PAPER Printing paper having good bulk and opacity with rough or matt surface.  ART PAPER Normally, china clay (kaolin) coated on both sides of the paper. This finish of both the sides is same, be it glossy or matt.

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Used For : Brochures, calendars, magazine covers, magazine text, where high quality printing is required  AZURELAID PAPER A laid paper usually bluish green in colour having a good writing surface.  BAROGRAPH PAPER Red thin paper coated on one side with a white wax, so that the needle of the barograph leaves a red line on a white ground, sold in rolls and coils and to suit the type of barograph.  BASE PAPER This paper is generally used by a converter to either coat or laminate. Different grades are available for different applications. Used For : Mostly used for converting into a value added grade  BATTERY JACKET Used For : Used for Laminates, tube making and defence applications.  BEEDI WRAP PAPER Used For : Used for decorative purposes in different colours.  BIBLE PAPER Thin white opaque heavily loaded, used for printing bibles. Not suitable for pen and ink, because of its absorbency.

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 BLADE WRAPPER (SS) Used For : Used for making of small packs for keeping razor blades.  BOND PAPER This paper has good strength properties, good stiffness and good aesthetical look. The name "bond" was originally given to a paper which was used for printing bonds, stock certificates, etc. Important characteristics are finish, strength, and freeness fro Used For : Mostly used for letterheads and for image building stationery  BOOK PAPER A general term used to define a class of papers used by the book publishing industry; most commonly used for the book text paper but also for book cover paper.  BUSINESS FORMS PAPER Paper made for the manufacture of business forms. Used For : Used for business forms and data processing such as computer printouts.  CARBON BASE Carbon is normally manufactured in lower grammages like 20 gsm or less. The most important property in this paper is porosity which should be controlled at about 15-20 ml/min, so that absorption leads to cost increase while less absorption makes poor quality of carbon paper which is used many a time.

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 CARBON PAPER This thin paper could be either coated on one side or both sides with dry impressionable ink. The main function being to impart an identical copy of the original on the substrate. Used For : Mostly used where more than one copy is required simultaneously.  CARBONLESS PAPER Paper stock specially treated or coated to provide copies without the use of interleaved carbon. The copy process requires mechanical pressure such as from writing or typing and sometimes a chemical reaction. Used For : Application forms, computer stationery, time saving stationery. Also used in copying applications without carbon paper.  CARDBOARD A range of various boards such as pulp board, paste board, bristol board, ivory board, art board, chromo board in the form of a coherent sheet or web used for printing, packaging, decorating etc.  CAST COATED PAPER A coated paper with high gloss and absorptivity in which the coating has been allowed to harden or set while in contact with a mirror like polished chrome surface.  CHROMO PAPER China clay (kaolin) coated on one side. The coating on one side could be glossy or matt as per requirement of the customer.

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Used For : Mainly used for self adhesive stickers, calendars , posters, labels and for applications where only one side has to be printed  CIGARETTE SLIDE Used For : Used for making of Cigarette Slides (180-200 gsm).Pulp board are multi layer boards can be used  CIGARETTE TISSUE It is a product of fashion. Hence brightness and whiteness of paper needs to be maintained. It is highly technical. Used For : Used in bobbins of 25 mm width or so.  CINEMA POSTER Used For : For printing Cinema posters, Wall papers  CLAY COATING BASE PAPER Used For : Used for coating with Clay for making chromo and art paper  COATED PAPER Paper could be coated on either or both sides. Coating applied on the paper could be as per the requirement. For example, china clay coating for glossy paper used for high quality printing or gum coated paper for use of printing stamps Used For : Could have different applications for different coated papers

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 COPIER PAPER Mainly used for copying. Used extensively in photocopiers, plain paper faxes, etc. and other office stationery. Thickness could range from 70 GSM onwards. Used For : Copying, typing, plain paper faxes, general stationery  CREAMWOVE PAPER Used For : Used for Computer Stationery purposes.  DEFENCE KRAFTS Used For : Used for Laminates, tube making and defence applications.  DIARY PAPER Used For : Used for making of diaries and sometimes for book printing and other applications.  DIAZO BASE PAPER The process involves coating of paper with Diazo solutions and a coupler. This is exposed to ultra violet rays coming through the image. The final print is developed by making the coating alkaline. In some cases it is developed by ammonia vapour. Used For : Used for making of ammonia paper for image recording.  ELECTRICAL INSULATING PAPERS Used For : Used for Electrical insulation.

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 EXTENSIBLE SACK KRAFT This paper is characterised by very high stretch and high capability to absorb tensile energy. Used For : Used for packaging in sacks, the bulk commodities.  FAX BASE PAPER It is first coated with photo conductive zinc oxide on which images exposed. Hence electrical conductivity / resistivity is to be controlled to ensure that the image is not conducted through the paper to the other side Used For : For making Fax images  FLEXIBLE CARTON BOARD Used For : Used for making Flexible Cartons.  FLUORESCENT PAPER Used For : Used for Labels, Posters and decorative applications.  FLUTING MEDIUM Used For : Used for Corrugated Board manufacturing.  FOIL BASE POSTER, BOARD Paper is laminated with metal foil using a suitable adhesive. Hence paper must have porosity to accept glue. Used For : Used for lamination of paper with metal foil.

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 GENERAL WRITING PAPER (NOTE BOOK) Paper used for Note Books should have excellent bulks because note book should appear bulky, as otherwise it will be perceived as having less number of pages. Another important factor is cobb, since writing ink must go into the paper instantly and dry. Used For : Used for note books.  GLASSINE PAPER These papers are characterised by very low porosity (air permeability less than 10 cubic cm min. Preservation of aroma and perfection against attack of external environment to the packed contents are also important qualities of the subject papers. Used For : Used for food packagings and other special wrapping applications.  GREASEPROOF PAPER These papers are characterised by very low porosity (air permeability less than 10 cubic cm min. This gives resistance to grease and moisture. Preservation of aroma and perfection against attack of external environment to the packed contents are also important qualities of the subject papers. Used For : Used for food packagings and other special wrapping applications.  GYPSUM BOARD Used For : This is used for making panel boards for interior partitions, false ceiling etc.  ICE CREAM CUP Used For : Used for making Ice Cream Cups.

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 INTER LEAVING KRAFT Used For : Inter Leaving Kraft is used for separation of steel sheets in a stack.  KITE POSTER Used For : Used for decorative, purpose, Kites  LABEL PAPER Labels are normally printed on offset machine. Hence good wax pick is required. Wire side of the paper used for application of gum should have adequate porosity. Good printability, compressibility, absorbency and ink hold out give satisfactory printing. Used For : Used for printing of labels in multi colour.  LASER PAPER Used For : Used for printing purposes where Laser beams are used.  LINER BOARD Used For : Used for Corrugated Board manufacturing.  METALISATION BASE PAPER Used For : Used for vacuum metalisation for packaging applications.  MICR CHEQUE PAPER MICR stands for Magnetic Ink Character Recognition. Codes, figures and words are read by computer by magnetic field created on them. By careful formulations the paper is designed to react against a wide range of ink eradicators. It gives a characteristic coloured

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stain of "flare up" on contact with acid, alkali, bleach and organic solvents like acetone, benzene, ethanol. Used For : Used in making of cheques which are processed by computer.  MULTI PART STATIONERY Used For : Multi part stationery paper is used for computer applications where number of copies are printed in one attempt.  NEWSPRINT It has to be made with adequate strength properties and surface characteristics; especially wax pick. Optical properties brightness is required for better readability and appeal (with ink to paper contrast which improves readability of print) and opacity. Used For : Used for printing our daily news papers and associated issues. It is used under very stringent shop-floor conditions by the news paper blouses for printing our daily news papers and associated.  ONE TIME CARBON (OTC) PAPER A carbon paper intended to be used once as opposed to many times or multiple use carbon papers. Used For : Mostly used in multi-part continuous stationery.  POLY EXTRUSIN BASE PAPER Used For : Used for Poly Extrusin for packaging.

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 SANITARY TISSUE Sanitary Tissues are made with rag pulp content in lower grammages from 5 gsm onward. Normal gsm range is 15 to 30. These papers are made in soft loosely felted conditions in order to obtain max. absorbency so that they can take water quickly and hold it after absorption. Made with high content of Alpha Cellulose or Rag %, they are treated with wetting agents to improve absorbency. Used For : Used as Paper Towels, napkins, toilet tissues etc.  SHELL BOARDS Used For : Used for making of Cigarette Slides (180-200 gsm).Pulp board are multi layer boards can be used  SOAP WRAPPER POSTER (ARSR) Used For : Used for Wrapping of Soaps and detergents.  SOAP WRAPPER POSTER (TDL) Used For : Used for Wrapping of Soaps and detergents.  TEA BAG PAPER Used For : Used for retail packing of tea.  TEXTILE TUBES AND CONES Used For : Used for Laminates, tube making and defence applications.

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 TWIST WRAP TISSUE It possess properties of with standing breaking stress when twisted during packing of toffees. High bursting strength combined with excellent machine runnability makes it suitable for special packing operations which require papers with high twisting properties. Used For : It is used in packing of pharmaceutical products after poly lamination or coating.  WALL PAPER Coated with multiple colours or floral designs. Used For : Used as an alternative to paint. To give better aesthetic appeal to the walls.  YELLOW PAGES Paper used for this needs to have high bulk (1.1 to 1.2), high tensile strength of about 2 kg/15 mm in MD and good opacity (90%) so that the fine print made on thin paper like 40 gsm would be readable on both side. Excellent reel build up is required for smooth feeding during printing. This requires every uniform profile of bulk, gsm, caliper, moisture etc. Used For : Used for printing classified addresses and information in telephone directory.

TYPES OF PAPER
Paper is often characterized by weight. The weight assigned to a paper is the weight of a ream (500 sheets) of varying "basic sizes", before the paper is cut into the size it is sold to end customers.

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DENSITY OF PAPER
The density of paper ranges from 250 kg/m3 (16 lb/ft3) for tissue paper to 1500 kg/m3 (94 lb/ft3) for some speciality paper. Printing paper is about 800 kg/m3 (50 lb/ft3).

SOME OTHER TYPES OF PAPER
                   

Bank Paper Bond Paper Book Paper Construction Paper/ Sugar Paper Cotton Paper Electronic Paper Fish Paper (Vulcanized fibres for electrical insulation) Ink jet Paper Kraft Paper Laid Paper Leather Paper Mummy Paper Tyvek Paper Paper Towels Wall Paper Washi Wax Paper Wet and Dry Paper Wove Paper Coated Paper: glossy and matt surface

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 BANK PAPER
Bank paper is a thin strong writing paper of less than 50g/m2 commonly used for typewriting and correspondence.

 BOND PAPER
Bond paper is a high quality durable writing paper similar to bank paper but having a weight greater than 50 g/m2.It is used for letterheads and other stationery and as paper for electronic printers. Widely employed for graphic work involving pencil, pen and felt-tip marker. It is largely made from rag pulp which produces a stronger paper than wood pulp.

 BOOK PAPER
A book paper (or publishing paper) is a paper which is designed specifically for the publication of printed books. Traditionally, book papers are off white or low white papers (easier to read), are opaque to minimize the show through of text from one side of the page to the other and are (usually) made to tighter caliper or thickness specifications, particularly for case bound books. Typically, books papers are light weight papers 60 90gsm and often specified by their caliper/substance ratios (volume basis).

 CONSTRUCTION PAPER / SUGAR PAPER
Construction paper or sugar paper, is a type of coarse colored paper typically available in large sheets. The texture is slightly rough, and the surface is unfinished. Due to the nature of the source material from which the paper is manufactured, small particles are visible on the paper’s surface.

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 COTTON PAPER
Cotton paper is made from 100% cotton fibers. Cotton paper is superior in both strength and durability to wood pulp-based papers, which may contain high concentrations of acids.May also be known as cotton rag or ragged paper.

Cotton fiber papers is known to last several hundred years without fading, discoloring, or deteriorating; so is often used for important documents such as the archival copies of dissertation or thesis. As a rule of thumb, each percentage point of cotton fiber, a user may expect one year of resisting deterioration by use (the handling to which paper may be subjected).(reference - Southwest Paper Co). Legal document paper typically may contain 25% cotton.Cotton paper is also used in banknotes.

 ELECTRONIC PAPER/ E- PAPER
Electronic Paper is a display technology designed to mimic the appearance of ordinary ink on paper.Electronic paper reflects light like ordinary paper and is capable of holding text and images indefinitely without drawing electricity, while allowing the image to be changed later.E-paper can be crumpled or bent like traditional paper. Pixels on e-paper are image stable, or bistable, so that the state of each pixel can be maintained without a constant supply of power.

 INKJET PAPER
Inkjet paper is paper designed for inkjet printers, typically classified by its weight, brightness and smoothness, and sometimes by its opacity.

 PHOTO PAPER
Photo paper is a category of inkjet paper designed specifically for reproduction of photographs. The best of these papers, with suitable pigment-based ink systems, can match or exceed the image quality and longevity of traditional materials used for printing color photographs, such as Fuji CrystalArchive (for color prints from negatives) and 83

Cibachrome/Ilfochrome (for color prints from positive transparencies). For printing monochrome photographs, traditional silver-based papers are widely felt to retain some advantage over inkjet prints.

 KRAFT PAPER
Kraft paper is paper produced by the Kraft process from wood pulp. It is strong and relatively coarse. Kraft paper is usually a brown colour but can be bleached to produce white paper. It is used for paper grocery bags, multiwall sacks, envelopes and other packaging.

 LAID PAPER
Laid paper is a type of paper having a ribbed texture imparted by the manufacturing process.Laid paper is still commonly used by artists as a support for charcoal drawings.

 TYVEK / TYVEX
Tyvek is a brand of flash spun high-density polyethylene fibers, a synthetic material; the name is a registered trademark of the DuPont Company. The material is very strong; it is difficult to tear but can easily be cut with scissors or any other sharp object. Water vapor can pass through Tyvek, but not liquid water, so the material lends itself to a variety of applications: medical packaging, envelopes, car covers, air and water intrusion barriers (housewrap) under house siding, labels, wristbands, mycology, and graphics. Tyvek is sometimes erroneously referred to as "Tyvex."

 PAPER TOWEL
A paper towel is a disposable product made of paper. It serves the same general purposes as conventional towels, such as drying hands, wiping windows and dusting. Because paper towels are disposable, they are often chosen to avoid the contamination of germs.

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 WALL PAPER
Wallpaper is material which is used to cover and decorate the interior walls of homes, offices, and other buildings; it is one aspect of interior decoration. Wallpapers are usually sold in rolls and are put onto a wall using wallpaper paste. Wallpapers can come either plain so it can be painted or with patterned graphics. Wallpaper printing techniques include surface printing, gravure printing, silk screen-printing, and rotary

printing."Wallpaper" is also a term for computer wallpaper.

 WASHI
Washi or Wagami is a type of paper made in Japan. Washi is commonly made using fibers from the bark of the gampi tree, the mitsumata shrub (Edgeworthia papyrifera), or the paper mulberry, but also can be made using bamboo, hemp, rice, and wheat. Washi comes from wa meaning Japanese and shi meaning paper, and the term is used to describe paper made by hand in the traditional manner.Washi is generally tougher than ordinary paper made from wood pulp, and is used in many traditional arts.

 WAX PAPER
Wax paper (also called waxed paper) is a kind of paper that is made moisture proof through the application of wax.The practice of oiling parchment or paper in order to make it semi-translucent or moisture-proof goes back at least to medieval times. Thomas Edison claimed to have invented wax paper in 1872, but what he really invented was a cheap and efficient means to manufacture such paper.Wax paper is commonly used in cooking, for its non-stick properties, and wrapping food for storage, as it keeps water out or in. It is also used in arts and crafts.

 WOVE PAPER
Wove paper is a writing paper with a uniform surface, not ribbed or watermarked.

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 COATED PAPER
Coated paper is paper which has been coated by an inorganic compound to impart certain qualities to the paper, including weight and surface gloss, smoothness or ink absorbency. Kaolinite is the compound most often used for coating papers used in commercial printing. One function of coating is to protect against ultraviolet radiation.

PAPER POLLUTION
The production, use and recycling of paper has a number of adverse effects on the environment which are known collectively as paper pollution. Pulp mills contribute to air, water and land pollution. Discarded paper is a major component of many landfill sites, accounting for about 35% by weight of municipal solid waste (before recycling). Even recycling paper can be a source of pollution due to the sludge produced during deinking. "People need paper products and we need sustainable, environmentally safe production." The amount of paper and paper products is enormous, so the environmental impact is also very significant. It has been estimated that by 2020 paper mills will produce almost 500,000,000 tons of paper and paperboard per year, so great efforts are needed to ensure that the environment is protected during the production, use and recycling/disposal of this enormous volume of material. Pulp and paper is the third largest industrial polluter to air, water, and land in both Canada and the United States, and releases well over 100 million kg of toxic pollution each year (National Pollutant Release Inventory, 1996). Worldwide, the pulp and paper industry is the fifth largest consumer of energy, accounting for 4 percent of all the world's energy use. The pulp and paper industry uses more water to produce a ton of product than any other industry.

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 SOURCES OF PULP MILL RELATED POLLUTION CHLORINE AND CHLORINE-BASED MATERIALS
Chlorine and compounds of chlorine are used in the bleaching of wood pulp, especially chemical pulps produced by the kraft process or sulfite process. Plants using elemental chlorine produced significant quantities of dioxins. Dioxins are persistent organic pollutants that are generally recognized among the most toxic human-released pollutants in existence. Elemental chlorine has largely been replaced by chlorine dioxide and dioxin production very significantly reduced. The promise of complete removal of chlorine chemistry from bleaching processes to give a TCF (totally chlorine-free) process, which peaked in the mid-1990s, did not become reality. The economic disadvantages of TCF, the lack of stricter government regulation and consumer demand meant as of 2005 only 5-6% of kraft pulp is bleached without chlorine chemicals. A study based on U.S. Environmental Protection Agency (EPA) data concluded that "Studies of effluents from mills that use oxygen delignification and extended delignification to produce ECF (elemental chlorine free) and TCF pulps suggest that the environmental effects of these processes are low and similar." The used process water from a pulp mill contains a lot of organic material such as lignin and other organic material from the trees (including chlorinated organic material) resulting in high biological oxygen demand (BOD) and dissolved organic carbon (DOC). It also contains alcohols, and chelating agents and inorganic materials like chlorates and transition metal compounds. Recycling the effluent (see black liquor) and burning it, using bioremediation ponds and employing less damaging agents in the pulping and bleaching processes can help reduce water pollution.

SULFUR, HYDROGEN SULFIDE, AND SULFUR DIOXIDE
Sulfur-based compounds are used in both the kraft process and the sulfite process for making wood pulp. Sulfur is generally recovered, with the exception of ammonia-based 87

sulfite processes, but some is released as sulfur dioxide during combustion of black liquor, a byproduct of the kraft process, or "red liquor" from the sulfite process. Sulfur dioxide is of particular concern because it is water soluble and is a major cause of acid rain. In 2006 the pulp and paper industry in Canada released about 60,000 tonnes of sulfur oxides (SOx) into the atmosphere, accounting for just over 4% of the total SOx emission from all Canadian industries. A modern kraft pulp mill is more than self-sufficient in its electrical generation and normally will provide a net flow of energy to the local electrical grid. Additionally, bark and wood residues are often burned in a separate power boiler to generate steam. If the harvested trees are replanted a kraft mill can be carbon-neutral, but reforestation has been criticized for reducing biodiversity. Air emissions of hydrogen sulfide, methyl mercaptan, dimethyl sulfide, dimethyl disulfide, and other volatile sulfur compounds are the cause of the odor characteristic of pulp mills utilizing the kraft process. Other chemicals that are released into the air and water from most paper mills include the following:
       

carbon monoxide ammonia nitrogen oxide mercury nitrates methanol benzene volatile organic compounds, chloroform.

MECHANICAL PULP MILLS
Wood pulp produced primarily by grinding wood is known as "mechanical pulp" and is used mainly for newsprint. These mechanical processes use fewer chemicals than either

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kraft or sulfite mills. The primary source of pollution from these mills is organic material such as resin acids released from the wood when it is processed. Mechanical wood pulp is "brightened" as opposed to bleached using less toxic chemicals than are needed for chemical pulps.

PAPER MILL POLLUTION
It is a common misconception that all mills are "pulp and paper" mills. This is true only for "integrated mills" that consist of both a pulp mill and a paper mill on the same site. While pulp mills are often conspicuous by their size and odor, paper mills are often indistinguishable from factories seen in most communities. The major effluent from a paper mill is a suspension of paper fibers in water and it is in the mill's best interest to keep such fiber loss to a minimum since any lost fiber translates to lower paper production.

 THE FUTURE OF PAPER
Some manufacturers have started using a new, significantly more environmentally friendly alternative to expanded plastic packaging made out of paper, known commercially as paperfoam. The packaging has very similar mechanical properties to some expanded plastic packaging, but is biodegradable and can also be recycled with ordinary paper. With increasing environmental concerns about synthetic coatings (such as PFOA) and the higher prices of hydrocarbon based petrochemicals, there is a focus on zein (corn protein) as a coating for paper in high grease applications such as popcorn bags. Also, synthetics such as Tyvek and Teslin have been introduced as printing media as a more durable material than paper.

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CHAPTER 4
STUDY OF LEADING FIVE COMPANIES

CENTURY PULP AND PAPER(CPP)
Century Pulp and Paper(CPP) a division of Century Textile and Industries Ltd (CTIL) is manufacturer of Rayon Grade Pulp (RGP) and an exhaustive range of excellent quality of Writing & Printing Paper. The unit successfully achieved significant efficiencies in various disciplines within a short span of time. Located at Lalkua (District Nainital, U.K.), CPP has provided direct and indirect employment to the people of the surrounding areas.

Century Pulp and Paper(CPP) a division of Century Textile and Industries Ltd (CTIL) is manufacturer of Rayon Grade Pulp (RGP) and an exhaustive range of excellent quality of Writing & Printing Paper. The unit successfully achieved significant efficiencies in various disciplines within a short span of time. Located at Lalkua (District Nainital, U.K.), CPP has provided direct and indirect employment to the people of the surrounding areas.

BRIEF PROFILE
Century Pulp & Paper (an ISO-9001:2000 & ISO-14001:2004 certified Division of Century Textiles and Industries Ltd.) , a Division of Century Textiles and Industries Ltd. is a member of B.K. Birla Group of Companies. The company chairman is Syt. Basant Kumarji Birla. Established in 1984, the Division is situated at Lalkua on the BareillyNainital Highway. The Head Office of the Division is on the 11th Floor of Industry House, 10, Camac Street, Kolkata.

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Product range of the CPP comprises a vast range of quality Writing & Printing Paper and superior quality dissolving Rayon Grade Pulp used for Viscose/Staple fiber/filament yarn. It has other uses in preparing urea, formaldehyde, melamine formaldehyde and phenol formaldehyde.

CPP has a well equipped and planned department for Environmental Conservation and Pollution Control. CPP pays sincere attention to the overall development of its employees and that of the community. It also has a well organized HRD Department for supervising these activities. CPP maintains an excellent infrastructural set up with modern facilities in order to carry out organizational activities.

Century Pulp & Paper is the recipient of the following awards
 Eco-Mark by BIS for its Bagasse based products.  Central Pollution Control Board and National Productivity Council have selected the company as a “Model” unit in the field of “Waste Minimization” among pulp and paper industries.  CPP’s Effluent Treatment Plant has been selected by Central Pollution Control Board for carrying out studies and data collection for preparation of Minimal National Standards (MINAS) for large pulp and paper industry group.  CPP’s waste reduction schemes have been included in the “World Bank” – Data Base on Waste Minimisation.  Awarded Indo German Greentech Award for Environment Excellence for the year 2000-01.  CPP was awarded ‘First Prize’ at All India Farmer’s fair for the year 2004-2005 for its significant efforts towards farm forestry.  CPP was adjudged as the “Efficient Unit” in energy conservation by CII for the year 2004-2005

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CPP was awarded “First Prize” for energy conservation by Indian Paper Makers Association as well as the “National Award” for Energy Conservation in Pulp & Paper Sector by the Hon’ble Prime Minister of India for the year 2004-2005.

VISION
Our vision for the millennium remains manufacturing of international quality products at optimum cost in consistence with the physical and psychological environment best suitable for customers and stakeholders.

CONCRETE VISION ELEMENTS
 Product quality  Safety and Environment  Satisfaction of customer and stakeholders  Cost Effectiveness  Energy conservation

BUSINESS STRENGTHS
Century Pulp and Paper is the manufacturer of Rayon Grade Pulp, Wood based Writing Printing Paper & Bagasse based Writing Printing Paper. CPP employs around 2500 well trained manpower including 700 staff and 1800 workmen.

CPP SPECIALTIES IN MANUFACTURING
 Wide variety of quality writing printing paper (agro based) with Bagasse as raw material.  Best quality photocopiers paper which has been highly appreciated in the market, both international and domestic.

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The mill established at Lalkua is unique because : It is the only mill in the world producing both rayon grade pulp, wood-based paper and bagasse based paper.  The level of control instrumentation is relatively high.  CPP is the first mill in the world to use ClO2 for bagasse pulp bleaching.  The mill features a unique pile building system for preventing deterioration of stored bagasse fiber. Bagasse fiber fed to the digester has a high fiber pith ratio (more than 5:1).  CPP’s farm forestry scheme ensures that raw material is cultivated and replenished. CPP is the driver for good forestry management and manages socioforestry nurseries for cultivation and distribution of plant saplings.  The mill has a well equipped laboratory to monitor various water and air pollution control measures including AOX level.

MARCHING AHEAD
CPP has embarked on a prestigious green field expansion programme to implement a modern technology paper manufacturing unit of 250 TPD based on Secondary Fiber including de-inking plant.

FINANCIAL HIGHLIGHTS
Value in INR (Crores) Year (2002 – 03) Turnover Profit Year (2003 – 04) Turnover Profit Year (2004 – 05) Turnover Profit 463.78 4.43 497.66 30.53 556.35 30.41 Value in US$ (million) 103.06 0.98 110.59 6.78 123.63 6.75

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PRODUCT  PRODUCT 1
CPP’s range of products includes some of the finest varieties of writing and printing paper which has carved a niche in the market. CPP also manufacturers raw material for viscose filament yarn/staple fiber and also paper grade pulp. A. Writing and Printing Papers (45 to 210 gsm)

(Wood based)  Azurelaid  Maplitho White/NS  Maplitho Deluxe CG  SS Maplitho  Dye line base  Offset printing paper  Maplitho NS (ARSR)  Century Parchment  Super Printing  Century Bond  Railway Bond  Copier  Continuous Stationery (HB)  Base Paper for coating  Plain Paper  Opaline Base Paper  Overlay tissue  Century Maplitho 94

 NCR Base Paper  MICR Cheque Paper  Color Ptg Paper  Century Excel Ptg  Century Index Paper  Broke cover MF – Sticker Base

(BAGASSE PLANT)
 Copier  Super Maplitho white  Super shine Printing B. Rayon Grade Pulp

C. Bleached Hardwood Pulp (Paper Grade)

 PRODUCT 2  PACKING DETAILS
Pulp Sheets of Size 80+ 60 cms. Packed in Bales with strong wropper & tied with steel wires by Automatic Tying Machine. Bale Wt : 175 Kgs. CPP is following IS specification for its entire range of product. However, various properties can be custom made to meet the customer requirement.

MESSAGE TO THE INTERNATIONAL AUDIENCE
 At Century Pulp & Paper, we do not confine ourselves to manufacturing superior quality products. Besides catering to the society, we also take deep interest in maintaining the ecological balance i.e. restoring natural resources. We have explored the natural world and have associated it with the main streamline of 95

our business. Since our main thrust is on export, we have chosen the net as the best medium to connect to our international friends. We wholeheartedly welcome business enquiries from your end and look forward to a long-lasting relationship.  Century Pulp & Paper, is headed by dynamic and experienced people from different fields. Their rich experience and expertise has enabled the organization to operate successfully over the years and deliver to the society the best of products. Maintaining a perfect balance between the society and nature has been the key word in Century since its inception and retaining it over the years goes to the credit of the excellent management skills of the people managing the company.

 QUALITY CONTROL
Century Pulp and Paper, Lalkua has well organized laboratory equipped with modern pulp and paper testing equipments including Autoline from L&W Sweden, Qualified and experienced staff manage the quality control department. For all inputs fibrous/non fibrous, in-process material (digester section, bleaching section, stock preparation); finished material (Paper/Pulp) at paper machine rewinders/cutters, finishing house and Godowns, standards/ specifications are followed as per guidelines of ISO-9001:2000) quality system (quality Inspection Plant). Inputs and Finished product is allowed only after conforming to standards. Testing/analysis is carried out as per TAPPI/ISO standard.

A separate customer cell has been formulated to redress customer grievances and recourse to quick solutions. This cell understands changing needs of customers, caries out periodical market research to improve customer-choice process and also monitors competitor moves

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 PRODUCTION PROCESS PROCESS
CPP is the first large pulp and paper mill in India, who had not only floated the idea of consuming bagasse for manufacturing Quality paper but also gave concrete base to its idea in the form of Bagasse Unit. The Bagasse Unit of CPP was commissioned in early 1995 with a capacity of 211 TPD for manufacturing quality paper. The salient features of bagasse unit are latest bagasse handling, pulping and paper making technologies.

Bagasse handling, moist depithing, pile building reclaiming and washing Bagasse cooking continuous digester, cold blow to avoid Emissions and to retain fiber strength Brown Stock Washing. Screening and cleaning Bleaching system based on C/D, E/O D sequence to attain final pulp brightness of +88 without affecting the strength of pulp.

Beloit UK.

Sunds

HDO Ahlstrom,Finland Sunds, Sweden

BAGASSE
Bagasse is received from the Sugar Mills either in bale form or in loose form as per the requirement. Whole bagasse from the sugar mill is available only in the sugar cane crushing season which is stretched over a period of maximum six to seven months only, whereas the process of production of paper is continuous throughout the year.

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Therefore, it is essential to store bagasse in a proper way so as to make it available for paper making through out the year i.e. during off season without affecting the quality

Hence, the total amount of bagasse required for the production throughout the year is carefully stored so that the production is not affected due to the shortage of bagasse

WRITING AND PRINTING PAPER PLANT PROCESS (WPP)
This integrated plant is based on Eucalyptus and Bamboo furnish to produce paper ranging between 45 to 210 gsm.

The best selected species of Eucalyptus and other hard wood/bamboo which are locally available from nearby forest is used for pulping. Pulping process is conventional kraft process. For high brightness and good strength pulp output latest technology of bleaching sequences consisting of Hydrogen peroxide, chlorine dioxide & sulphur dioxide is used. Pulp is further processed in highly sophisticated continuous stock preparation plant.

To cater to market requirement of reels and sheets facilities of winding, sheeting and packing is available. The packing of reels & sheets is conforming to seaworthy standards suitable for export

 TECHNOLOGY WRITING & PRINTING PAPER PLANT (WPP)
Capacity - 37250 TPA Integrated Pulp & Paper Unit based on Eucalyptus & Bamboo Furnish. Two Paper Machines equipped with size press.

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Paper Grammage Range Machine deckle Rewinders R/W speed Cutters

45-210 2.69 Meters Jagenberg 1000 m/min 1.45 m width with 200 m/min. speed

BAGASSE PAPER PLANT
CPP has recently commissioned Bagasse Paper Plant to manufacture 211 TPD quality paper based on Bagasse furnish. The salient features of the project are the latest pulping technology involving oxygen bleaching and a comprehensive computer-aided control system. Bagasse handling,depithing, pile building Reclaiming & Washing. Bagasse cooking: continuous digester cold Blows to avoid emissions and to retain Fiber strength. Brown stock washing & deckering. Screening & Cleaning Bleaching System based on D/C-E/O–D Sequence to attain final pulp brightness of 88(+). Paper Machine Equipped with Film-Press for on-line coating Voith-Sulzer, Germany Capacity Deckle Qualities 84600 TPA 5.2 MTR Fine varieties of writing & printing paper 53-130 GSM including light weight coated varieties copier. Slitters & Cutters Jagenberg, Germany Hindustan Door-oliver AhlstromCorpn.Finland Sunds Defibrator, Sweden Sunds Defibrator, Sweden Beloit Corporation, U.K.

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RAYON GRADE PAPER PLANT/PAPER GRADE PULP
Based on Eucalyptus furnish Bleaching sequence includes Chlorine-DiOxide treatment Sheeting Machine with 105 TPD capacity (Carmano, Italy) Deckle 2.4 Meters with on-machine cutters and Bailing Press

POWER BLOCK
3 Nos. AFBC Coal Fired Boilers 1 No. Spreader Stroker Coal Fired 2 Nos. AFBC Coal Fired Boilers BHEL Recovery Boiler ABL Recovery Boiler 6.8 MW BHEL TG Set 21 MW TDK TG Set DG Sets Grid Power available 132 KVA Producer Gas Plant 23T/Hr (47 ata, 420° C) 25T/Hr (47 ata, 420° C) 50T/Hr each (53 ata, 480° C) 325 Tons/day dry solids (47 ata, 420° C) 350 Tons/day dry solids (63 ata, 480° C) Extraction Back Pressure Double Extraction, Condensing 3 x 1450 KVA 10 MVA at (Maximum demand) An innovation and pioneering project implemented to substitute RFO in Lime Kiln.

CPP has also undertaken a project to generate green power by installation of a Boiler dedicated on Bio-fuels.

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COMPANY POLICY
We at Century Pulp and Paper are committed to strengthen our position as market leader in manufacturing of writing and printing paper and rayon grade pulp by developing a company wide culture that promotes :  Customer delight  Quality, Environment, Safety and Information Security initiatives  Environment friendly, Safe and Energy efficient operation  Protecting Information of all Stakeholders We will continuously pursue for :  Continual improvement in our products, processes & services in all areas.  Protecting information assets and customer information from all threats through the implementation of suitable information security management systems.  Remain incompliance with applicable legislations.  Communicate and reinforce this policy through out the company.  This policy is made available to employees and on request to interested parties.

EXPORT FIGURES MAJOR COUNTRIES EXPORTED
Major countries to which Century has exported during the year 99-00 are UAE, Singapore, Sri Lanka, Egypt, Bangladesh, Nepal & Myanmar.

COUNTRIES EXPORTING CURRENTLY
CPP is currently exporting to UAE, Singapore, Sri Lanka, Egypt, Bangladesh & Nepal, Myanmar, Malaysia, South Africa, Malta, Tanzania and Austria.

SEEKING EXPORT ENQUIRIES
CPP is currently seeking export enquiries from all over. The company wholeheartedly welcomes innovative ideas and productive schemes.

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JK PAPER LIMITED
JK Paper Ltd. is among India’s foremost paper manufacturers. It is part of one of India’s leading Business Houses – JK Organisation, which has a significant presence in Automotive Tyres, Cement, V-Belts, Oil-Seals, Agri-seeds and Pulp & Paper. JK Paper Ltd., India’s largest producer of Branded papers is a leading player in the Printing and Writing segment. It operates two plants in India, one in the East – JK Paper Mills (JKPM) in Rayagada, Orissa with a capacity of 125,000 tonnes per year and the other in the West – Central Pulp Mills (CPM), located in Songadh, Gujarat with a production capacity of 55,000 tonnes per year. Both plants are ISO 9001 – 2000 and ISO 14001 certified and operate at around 120% capacity utilization. The aggregate annual output is over 180,000 tonnes per year of Paper and Pulp, using contemporary technology. The Company has commissioned a 46,000 TPA state-of-the-art Coating Plant at its JKPM unit in July 2005. This facility employs superior blade coating technology to produce international quality coated art paper and boards, being marketed in the brand name of JK Cote. About 40% of paper produced by the Company is sold under various brand names, JK Copier, JK Excel Bond, JK Bond, JK Savannah, JK Copier Plus and JK Easy Copier. Being the largest selling branded copier paper in India, JK Copier is the Company’s flagship brand. The other major product is JK Maplitho, a superior uncoated Writing and Printing paper. The Company sells through a nationwide distribution network of over 120 distributors and 2500 dealers.

JK Paper enjoys highest Operating Margins and Highest Net Sales Realization (NSR) in over 90% of the products it sells, amongst the paper mills across India. It is the only Company in the industry with such a large share of branded products in its portfolio. The Company passionately believes in Environment and Safety and has been introducing cleaner and environment-friendly technologies. JK Paper Mills at Rayagada has been adjudged as the Greenest Paper Mill in India.

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The Company’s plantations, driven by in-house research programme, have covered more than 45,000 hectares of land over the years. By providing farmers high quality plant species through the Company’s plantation research centre, it is helping the farmers to improve their economic well being. Very large number of farmers in the states of Orissa, Chhattisgarh, West Bengal, Andhra Pradesh, Gujarat and Maharashtra are benefiting from this programme. The plantation with its superior quality plants contribute towards a strong base for high quality raw materials. The Company is also implementing TPM with the help of Japan Institute of Plant Maintenance. The Company has an export footprint for high value branded products in the Middle East, South East Asia, SAARC and various African countries.

MANUFACTURING FACILITIES
JK Paper has two large integrated paper manufacturing plants - Paper Mills in the Eastern part in the State of Orissa with 1,25,000 tons coated, uncoated and market pulp manufacturing capacity; and Central Pulp Mills in the Western part in the State of Gujarat with 55,000 tons paper and market pulp manufacturing capacity. Both the mills manufacture premium grade writing and printing papers largely branded.

 JK Paper Mills
JK Paper Mills, a Unit of JK Paper Ltd. is a premier integrated Pulp and Paper Mill located at Jaykaypur, Dist. Rayagada, Orissa. Since its inception, JK Paper Mills has strived for excellence and consistently set high standards in quality, productivity, conservation of energy and water, industrial safety as well as pollution control and environment protection which are indicated by achievements like:  Manufacture of surface sized Maplitho for the first time in the country with indigenous raw material.  Capacity utilization of 120%.  First Paper Mill in India to get ISO 9001 and ISO 14001.

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 Adjudged First Greenest Paper Mill in India in 1999.  Most modern and largest pulp mill in the country.

JKPM was commissioned in the year 1962 with an integrated pulp and paper plant with 15000 TPA installed capacity for manufacturing high quality writing and printing papers. Over the years, the production capacity has been enhanced to a level of 127,000 TPA with the addition of 4 more paper machines manufacturing diversified product range from 29 GSM to 300 GSM of different grades of paper. In 2005, an offline coating machine has also been set up to manufacture premium grades of coated papers.The secret of success of the mill is attributed to its policy for sustained efforts for quality, new product development and continuous offering of value added products to customers.

The company was a pioneer to introduce in market a surface sized finished paper - JK Maplitho - equivalent to uncoated woodfree printing paper in international parlance. Since then JKPM has further consolidated its position in the market and has established itself as a brand leader in different varieties of writing and printing papers like JK Copier, JK Copier Plus, JK Bond, JK Excel Bond, Super Hibrite (SHB) Maplitho and JK Cote premium coated paper and board. All these brands are extremely popular papers in the market place throughout the country and are invariably the first choice of the consumer.

OUR PHILOSOPHY
At JK Paper, we believe that leadership is not merely a matter of size. With leadership, comes theresponsibility to drive growth in all its possible dimensions. Leadership demands transformation. The ability to constantly move up the value chain from what is to what can be. And to that extent, leadership shapes the very quality of growth.

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Growth needs to be viewed in a holistic manner. At JK Paper, it is this ceaseless quest for holistic growth that has shaped our operations in the present as well as influenced our investments in the future - in world-class technologies for enhancing our customer experience, besides enabling us to fulfill our social responsibilities.

At JK Paper, technology up-gradation has meant more than just better business sense. We have moved beyond enhanced productivity, wider product range and better value, to investing in and nurturing a future ready organization that is driven by its two core growth engines Customers and Environment.We firmly believe that much more than the technology, it’s how well equipped we are to harness it, that determines the road to transformation. And therefore, our investments are focused on continuous and consistent up-gradation of processes, people and nature. Be it converting wastelands into productive plantations to produce world-class pulp, or scouting for and mentoring professionals who can drive the technology movement at JK Paper.

JK PAPER & TECHNOLOGY
Over the last decade the constant endeavour of JK Paper has been to upgrade its manufacturing processes at grass-root levels to help create customer value. Be it the most modern Pulp Mill or an automatic cut-size line for branded products, it has been a saga of continuous process development with an eye on the customer.

JK Paper Ltd. has always leveraged technology for constant product upgradation and has been a pioneer in many arenas, of the paper industry. Some of the landmarks which JK Paper achieved much before the rest of the Indian paper companies are:-

• First to introduce Surface Sized Woodfree Paper • First Paper Mill to get ISO 9001 certification. • First Paper Mill to get ISO 14001 certification.

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These pioneering moves have given JK Paper pride of place as the change leader, ushering in a phase of complete makeover in the Indian paper market. On the pathway of moving focus from commodity to branded and high value categories, JK Paper Ltd. has undergone major technical upgradation in the machines and processes for manufacturing paper.

The Company has taken a major initiative to deliver world-class service through implementation of an Enterprise Resource Planning system. This transformational technology will bring in best practices across all functions of the organization to deliver highest value to all external and internal customers.

Continuing the chain of constant technological development our operational state-of-theart Coated Paper manufacturing facility at Jaykaypur, Orissa, is driving the next big revolution in the Indian paper industry. The project to manufacture high quality coated paper was completed in a record time of just 15 months from Concept to Commissioning.

The plant manufacturing coated paper owes the excellence achieved in manufacturing coated paper to its fully automated coating colour kitchen that ensures world-class quality. Besides the advantage of using the high quality base paper made in-house at JK Paper Mills, it derives its strength from the well controlled, feature- laden coating plant with features like three-stage online controls for GSM, coat weight, moisture etc. It is also equipped with electronic controls for cross profile and gloss. On the other hand, due attention has been given to the finishing and packaging end by installing state-of-the-art synchro fly sheet cutters, ensuring perfect cutting and finishing.

Apart from commissioning the Coating Plant, this has been a watershed year, considering the path- breaking initiative from JK Paper in setting up a state-of-the-art Packaging Board Plant at its Central Pulp Mills Unit, Songadh, Gujarat at a substantial Rs.235 crore investment. This plant of 60,000 TPA capacity will be equipped with the most

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contemporary technology sourced from global leaders like Voith of Germany and several other leading names in the paper board machinery sector. Once again, technology will be the key driver to revolutionize packaging in India.

JK PAPER & QUALITY
We at JK Paper have always believed that it is our customer, who is our best teacher as he indeed, is our best critic. It is with this belief which we have always listened to him with an open mind that has kept us constantly ahead. Clearly, it is this philosophy that has led to the creation of the ‘Quality Culture’ placing the customer at the core of all our business plans and strategies. Be it investments in the area of technological excellence, continuous improvement, development of the human resource, building of brands and customer relationships, our constant endeavour has driven us to a state of Customer Obsession across the organization. No wonder, JK Paper Mills was the first Paper Mill in India to attain ISO 9001 certification in 1995. Central Pulp Mills followed in 2003. Establishing international quality benchmarks and creating customised products to meet the unique needs of the different consumers has been the essence of our product development activities. It is this philosophy that has led us to develop and enlarge the range of our products and brands to meet the consumers’ needs across all quality and price points.

In the Printing & Writing segment, our journey which began with SS Maplitho for the specific customer needs of quality has moved on to customers of SS Maplitho SHB in the High Bright category and subsequently to SHB Evervite for top end customers.

Over the last four decades, this journey covered several milestones, starting with products like SS Maplitho. Ranging from the top end segment ‘JK Evervite’ to the middle segment Maplitho SHB, it has continuously enriched its product portfolio, meeting the wider customer requirements. Brands like ‘JK Copier Plus’, a multi purpose premium business

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paper, ‘JK Copier’ for the mid segment high speed Copier Machines to ‘JK Easy Copier’ for the economy range, reflects the company’s diversity of product portfolio and dominant leadership in the Branded Segment.

In the Branded water-marked segment, ‘JK Bond’, a name synonymous with the House of JK over the years, has led to the development of premium products like ‘JK Excel Bond’, available in international consumer friendly packs. ‘JK Savannah’ is yet another offering of an exclusive grade of office stationery paper just introduced in select markets.

In all its product segments, JK commands an undisputed Quality leadership position in the Industry. No wonder, with quality being a way of life at JK Paper, we do not attempt to restrict quality to a mere definition.

JK PAPER & ENVIRONMENT
Any improvement in technology has an impact on the environment. At JK Paper, we have always been indebted to Mother Nature and have worked ceaselessly towards employing processes that are in sync with ecology. This passion and sense of responsibility is evident in the various initiatives that the Company has undertaken.

Our technology based plantation movement with in-house R&D along with the involvement of thousands of farmers across several states, has aided our plans to enhance raw material availability, greening of surroundings and livelihood for a large number of local population. It has been part of JK Paper’s corporate philosophy to protect the environment through process innovations rather than end-of-the-gate treatment. The results of our investments in environment have been widely recognized in various fora winning us numerous awards over the years.  Rated as the Greenest Paper Mill of India (JK Paper Mills) by Centre for Science and Environment (CSE) in their first study on paper industry (1999)

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 Again won the prestigious 3 Leaves award in 2004-05 from CSE in their second study  ISO 14001 Environment Management System since 1998 (JK Paper Mills) – first in India; in 2003 (Central Pulp Mills) Beyond Plantations, the Company’s thrust on environment is also visible in various ecofriendly processes that it employs at its Plants like the most modern Fibreline based on latest technology (Oxygen delignification)

Today, the Company sources nearly 60% of its raw material requirement from man-made plantations. Side by side, it also promotes social/farm forestry within a radius of 200 KMs from its plants. Till date, in excess of 48,000 Ha of land has been planted with high yielding pulpwood species by the farmers in the adjoining areas of mill locations with the assistance of the Company. Every year it adds another 4500/5000 Ha by distributing 30 million saplings to the farmers. Through its dedicated R&D wing, the Company has been able to develop 6 JK Superclones for Eucalyptus, which gives 2-3 times higher yield to the farmer.

JK Paper & People
Customer obsession is at the core of JK Paper’s mission statement. Passion to deliver highest value to all our external and internal customers has led the Company to take major initiatives in the direction of implementing Enterprise Resource Planning (ERP) system in the organisation. This ERP System will tie-up the total supply chain, enabling seamless flow of information in ‘Real time’. It will open a transparent dialogue between the supplier and the customer, bringing in greater of efficiency, responsibility and effectiveness to the entire system at JK Paper.

At JK Paper, we recognize the power of knowledge. Hence, extensive investments are made toward people and people practices. Fostering the spirit of entrepreneurship among

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these professionals has enabled JK Paper to establish the role of true leadership guiding the future growth and development of the industry. The talent pool at JK Paper would rank among the very best in the Indian Paper Industry today.

Today, these world-class people practices have galvanized TPM (Total Productive Maintenance) into a Truly People’s Movement at JK Paper. A practice that is best exemplified by JK Paper’s much acclaimed ‘Quality Circle’ practice that started way back in 80s and actually paved way for the successful implementation of TPM. Today JKPM Orissa alone has over 66 such quality circles that constitute of over 40% employees, ensuring active involvement in implementation and decision making at all employee level. At JK, you can see in practice, people of grass-root level involved emotionally and physically to bringing up new ideas of improvement.

But, like any other movements the real momentum was fuelled from the top management, who actually got down to the shop floor to lead by example. So whether it was about getting involved in cleaning and maintenance of machines and equipment every morning or helping workmen find and plug daily problems on the shop floor, the top leaders demonstrated and practiced what they were preaching. Finally, this TPM movement has not only helped further the cause of quality commitment but also brought about a total transparency, Spirit of sharing and caring and willingness to continuously improve and take on new challenges in the Organisation.

PRODUCT
 OFFICE DOCUMENTATION We offer a range of Office Documentation Papers from Economy to Premium grades. They include Photocopy and Multi Purpose Papers for use in Desktop, Inkjet and Laser Printers, Fax Machines, Photocopiers and Multi-functional Devices.

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Premium Watermarked and Laidmarked Business Stationery Papers are also being marketed to satisfy the varied needs of Corporates and Individuals. Jk Copier Plus Ideal for Quality Photocopying, Project Reports, Resumes, Inkjet & Laserjet printers, Presentation copies or any aesthetic job JK Copier Suitable for any job on Office printers - Inkjet and Laserjet, Photocopiers and Multifunctional Devices Sparkle Copier Ideal for photocopying & desktop printing JK Copier Easy Ideal for Photocopying JK Excel Bond Ideal for Letterheads, Brochures, Certificate, Presentations, Project Reports, Envelopes, Pamphlets, Manuscript writing, Corporate Stationery JK Savannah

Suitable for Corporate Stationery, Reports, Certificates, Presentations, Resumes, Invitation Cards, Hotel/Airline Menu Cards, Personal Letterheads

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 UNCOATED PAPER & BOARD
Our Maplitho paper has been acknowledged in the market for its superior performance and we offer a range of such uncoated writing & printing paper for varied needs including the super bright JK Evervite. Apart from this, we also produce MICR cheque paper as well as High-end Pulp Boards, Ledger Papers and Parchment grades

 JK Evervite
Features  Superior brightness (brightness value 93 plus)  Higher strength  Excellent printability  Long lasting colour and shade

End Uses   Sizes  Available in standard folio sizes as well as special sizes on order, Also available in Reels  GSM-60 to 100

Printing of Quality Books, Calendars, Maps Making Premium Diaries, Hi end Exercise Book, Notepads, Scribble Pad

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 JK Maplitho Paper
Features  Long lasting shade  Superior strength  Excellent dimensional stability  Trouble free Printing  Excellent Smoothness End Uses  Printing of Books, Calendars, Maps  Making Diaries, Notepads, Scribble Pad, Exercise Book  Also used in Food grade applications Sizes  Available in standard folio sizes as well as special sizes on order, Also available in Reels  GSM-60 to 150  JK MICR Cheque Paper Features  Hi Quality Paper For Cheques  Lost Lasting & Strong Paper End Uses  Used For Making Cheques

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Sizes  Standard Sizes in Reels & Sheets  GSM-95  Packaging Board Range of High-end Coated Packaging Boards to service the varied needs of the packaging industry:  JK TuffCote  JK Ultima  JK PureFil base  JK TuffPac  JK IV Board

 Corporate Vision
To be a dynamic benchmark and leader in the Indian paper industry

 Corporate Mission
To achieve growth and leadership through the JK brand equity, customer obsession, technological innovation and cost leadership, with a clear focus on environment, while continuously enhancing shareholder value

 Quality Policy
To provide 'customer delight' - both internal and external - through our products and services at lowest cost by continuous improvement in processes, productivity, quality and management systems

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RAMA PAPER MILLS LIMITED
Rama Paper Mills Limited was incorporated as a Public Limited Company in the year 1985 to manufacture Newsprint, Duplex Board and Writing and Printing paper by recycling waste paper. RMPL commissioned its duplex manufacturing unit with an installed capacity of 3300 TPA in the year 1988. It then diversified into writing and printing/newsprint paper in 1992-93. Today the total installed capacity of 3 units is 44000 TPA, located at Kiratpur, Distt Bijnor in Uttar Pradesh. The company has further undertaken the installation of one more unit for manufacturing Tissue & Poster Paper having capacity of 16320 TPA, thus increasing the total capacity to 60320 TPA. The site of unit is well located; excellent connectivity by road and rail transport makes availability of raw materials and inputs easy and also brings finished products markets in close proximity. The company is professionally managed by a well-qualified, highly motivated and experienced personnel. It employs around 500 people including skilled, semi skilled and unskilled workforce.  INFRASTRUCTURE The site of unit is well located having all infrastructure facilities like road and rail connections easy availability of raw material and inputs locally or from nearby areas and close proximity to potential finished product markets Rama Paper Mills Limited has 12 acres of land which is fully developed and in actual use of company for its industrial activities. All the essential facilities like internal roads , water supply , electricity , pollution control equipments etc. are fully installed and functional at the factory site.The company has build a residential colony for its employees which has 36 livable units for its executive and 100 units for workers.

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 PRODUCTS Unit-I:- A multi-cylinder mould plant to manufacture coated/uncoated varieties of
Duplex board of medium quality. This is used t make small packaging / small cartoons used by pharmaceuticals, soaps, paste, apparels, tea and other similar industries. PRODUCTS LWC DUPLEX BOARD LWC PREMIUM DUPLEX GSM 230-410 230-410

BOARD

UNIT-II:- A Fourdinier wire part M.F machine to manufacture Writing/Printing ,
Newsprint and Kraft grades of paper. PRODUCTS DELUXE WOVE SUPER CREAM WOVE PRIME CREAM WOVE SUPER NEWSPRINT DELUXE 48+ 60+ DELUXE 54-80 54-80 66+ 72+ CREAM GSM 50-80 BRIGHTNESS 60+

UNIT-III:- A high speed M.F machine to manufacture Newsprint and also capable of
making other varieties of paper such as writing / printing paper.The plant has been

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imported from Germany through Bon Engineering-Sweden.It is a second hand refurnished machine. PRODUCTS STANDARD NEWSPRINT DELUX NEWSPRINT GSM 48 48 BRIGHTNESS 45+ 52+

 BUSINESS ENQUIRIES
For business, product, supplies and other enquires, please contact Vice President Marketing at our Delhi corporate office, or mail us.

 FINANCIAL REPORT

Operating Performance Capacity Utilisation Sales Gross Profit Interest Depreciation Net Operating Profit/ (Loss) Prov. For Taxation Net Profit / (Loss) after tax

Rs in Lacs (2007) 94% 8390.00 1227.00 176.00 239.00 812.00 434.00 378.00

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Financial Position Net Fixed Assets Net Current Assets Bank Borrowing for W/c Long term Liabilities Unsecured Loan Equity Share Capital Pref. Capital Reserves Net Worth

Rs in Lacs (2007) 5606.32 2455.30 1512.93 2223.19 121.03 966.47 500.00 1987.02 3453.49

 Social Activities
SOCIAL RESPONSIBILITY & ENVIRONMENTAL RESPONSIBILITY While discharging commercial functions, the company had not forgotten its responsibilities towards society and environment. The company is virtually a zero discharge unit. All effluent is FULLY treated and entire water is recycled and reconsumed. A waste in the shape of sludge having left out fibres is converted into millboard and sold in market that yields a good price for waste. Millboard manufacturing equipments have been installed for this conversion. The company’s endeavor is to make wealth from waste and proud to be associated with the national cause of conserving its forest reserve and making environment green and clean by consuming waste paper.

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Investors Information

Stock Exchange
Stock Exchange BSE Scrip Code Mumbai Stock Exchange BSE – 500 357

DEMAT Details
CENTERAL DEPOSITORY SERVICES LIMITED (CDSL) DP ID: 12026000 ISIN NO
SHARE TRANSFER

INDUS PORTFOLIO PVT LIMITED, NEW DELHI INE 425E 01013

In House

SECRETARIAL DEPTT. 12/22, 2 nd Floor EAST PATEL NAGAR, NEW DELHI –110 008 PH.NO. 011-25851185, 25850503 E-MAIL : delhi@ramapaper.com

Registrar

INDUS PORTFOLIO PVT LTD G-65, BALI NAGAR NEW DELHI -110 015. PH.NO 25422805/25422801 (SEBI REGISTRATION NO: INR000003845)

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WEST COAST PAPER MILLS LIMITED
The West Coast Paper Mills Ltd. is the flagship company of SK Bangur Group, based at Kolkata. The mill location was opted as the most suitable and advantageous, Dandeli being situated in the heart of thick forests on the bank of river Kali.

The prospects of continued supply of forest-based raw materials on the assurance of the then State Government of Karnataka, perennial availability of water, assured power supply, vicinity of rail and road linkages were the major factors that weighed in favour of Dandeli.

CORPORATE PROFILE
The West Coast Paper Mills Ltd., is the flagship company of SK Bangur Group, based at Kolkata. The SKB Group is a growing conglomerate with diverse interests across Paper, Power Cables, Telecommunication Cables, Chemicals, Tea, Coffee, Rubber and Wind Mills. Approximately 60% of the group’s revenue is contributed by West Coast.

Established in the year 1955 at Dandeli, Karnataka, over the past five decades the Company has exemplified all the qualities of leadership in the Industry, with a vision to make the nation self reliant in paper production. Today Paper, Paperboard and Coated Duplex Board from the The West Coast Paper Mills Ltd. address the writing, printing and packaging demands of millions of customers across the globe. West Coast is an ISO 9001:2000 accredited by the DNV, the Netherlands.

The mill location was opted as the most suitable and advantageous, Dandeli being situated in the heart of thick forests on the bank of river Kali. The prospects of continued supply of forest-based raw materials on the assurance of the then State Government of Karnataka, perennial availability of water, assured power supply, vicinity of rail and road linkages were the major factors that weighed in favour of Dandeli.

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Not one to rest on its laurels, the Company is looking ahead and is sensitive to meet the emerging challenges and trends. Actively engaged in Research and Development to design and develop the products for tomorrow’s needs, the Company has a progressive outlook that will take it through a second innings, with goals, plans and a vision to take it forward through the next 50 years.

At the same time, the West Coast is consciously engaged in giving back to nature through forestation drives, looking after its employees through community development initiatives and ensuring prosperity to its shareholders through sustainable growth policies.

SHEER LONGEVITY:

West Coast has grown from strength to strength across five decades (established 1955)

 

This has established the Company as a key player in the industry. The wealth accumulated over the decades comprises rich goodwill, process and product knowledge, trend reading capability and distribution depth.

Its competitive strengths are based on low historical costs in what is otherwise a capital-intensive business.

CAPACITY:

Originally the plant was designed to manufacture 18,000 MT per year of writing, printing and packaging paper.

 

The commercial production from May 1959. The company was granted a license in December 1964 for 45,000 TPA capacities and the balancing equipments program was completed in 1972 to increase the production to 45,000 TPA.

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The company also implemented the Crash program in 1974 to increase production capacity to 60,000 TPA against the license issued in July 1972 for 60,000 TPA.

The license capacity was re-endorsed for 69,000 TPA in November 1991 on the basis of actual production.

 

The paper industry has been de-licensed from July 1997. The production capacity has increased to 119750 TPA after successful completion of modernization / expansion program in 1999.

After commissioning of 100 TPD duplex machines (PM-IV) and rebuilding of PM – II production capacity has further increased to 163750 TPA in 2001-02.

PRODUCTIVITY & RECOGNITION

Recognized as an efficient paper mill with utilization of 106% of its installed Capacity in 2004-2005.

Consumption of 1,169 units of energy per tonne of production (paper, paperboard and duplex), lower than the industry average.

Thirteen awards conferred by the National Productivity Council (Government of India) and other organizations including Chemical & Allied Products, Export Promotion Council.

The performance of the company during the last 5 years period was as under: Year Ended Production (Paper & Net Board) [in M.T.] 1,63,714 1,73,070 1,76,221 1,78,871 1,69,891 Sales Gross Profit

31st March 2004 2005 2006 2007 2008

with Excise Duty [Rs. in Crores] 491.84 533.35 606.84 619.44 652.66 60.57 56.48 69.22 95.52 114.38

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The Company has an excellent track record of timely repayment of loans/ lease rentals to financial institutions and leasing companies and has maintained such record even in the recession period to which this industry has been subjected many a times. This has been highly appreciated by the financial institutions & lessors.

 INFRASTRUCTURE & FACILITIES
 RAW MATERIAL: The main source of raw material is wood i.e., Eucalyptus, Casuarina, Subabul & other Hardwood to the extent of 100% of the furnish. Bamboo, which was earlier, the main source of the raw material has now become scarce and is not used. Small quantity of Pine wood pulp is also imported for specialty papers. The company's raw material procurement is basically from private cultivators within the state and from Andhra Pradesh, Tamilnadu & Pondicherry. Total requirement of raw material is about 3,50,000 MT per annum. The company is dependent on private cultivators for its raw materials i.e. hard woods and no problem is faced in procurement of wood. Eco-friendly environment norms are strictly observed in this regard.

 WATER: The water is drawn from Kali river - a perennial river. The water is soft and of very low iron contents, pure and potable. The water requirement is of the order of 75,000 to 80,000 KL/day.

 POWER: Though the company has a dual system of drawing purchased and self generated power, it has achieved total self-sufficiency on power front – having 4 turbines with capacity totaling to 40.30 MW, 3 multi-fuel based power plants of 11.84 MW - aggregate captive power generating capacity being 52.14 MW. It has contracted demand of 8,500 KVA from the Karnataka Power Transmission Corporation Ltd. 123

 Steam: The Company has 4 coal fired boilers (two FBC & two chain grate) and one chemical recovery boiler to meet the steam demand for process as well as power generation. The major boilers are FBC boilers [capacity 60 MT/hour & 65 MT/hour] and recovery boiler [capacity 79.5 MT/hour]. Three Waste Heat Recovery Boilers of 2 TPH each have been installed to recover waste heat from Multi fuel based power plants. One more coal fired Boiler (FBC Boiler III) is under installation.

Enterprise Resource Planning System (ERP)

The company successfully implemented the ERP system, connecting mills with corproate offices and branch offices.

West Coast has embarked on an ERP solution to enhance informed decision making.

 

Solution to connect all branches, dealers & suppliers across the country To enable the company to know what inventory is lying where for timely allocation

To enable volume to be scaled without increasing people

Rs. 4.50 crore ERP solution was commissioned by Tata Consultancy Services Ltd.

 DEVELOPMENT  Expansions going ahead
The Company, with a vision to intensify the development activities towards fibre resource management, quality improvement, upgradation of technology to achieve energy efficiency, to be environmental friendly and ergonomic coupled with effective utilization of human resources have embarked on an ambitious expansion cum modernisation plan

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for increased production facility in the existing mill at Dandeli. This programme includes the replacement of existing Pulp Mill with new fibre line, a new paper machine for writing/printing grade papers, additional equipments in Chemical Recovery and utility section. PROJECTS UNDER CONSIDERATION - RS. 1100 CRORE:

Complete fibre line of 725 TPD bleached pulp capacity comprising of wood chipper, chip screen, chip silo,modified batch cooking system, brown stock washing & screening, oxygen delignification of pulp, ECF bleaching and chlorine dioxide generation plant.

New paper machine comprising continuous stock preparation, head box to pope reel rewinder QCS & DCS systems,converting equipments, mechanised handling of paper in converting, finishing and godown stages.

   

Rotary lime kiln of 230 TPD lime production capacity. Black liquor evaporators of 230 m3/hr. water evaporation capacity. Chemical recovery boiler of 1100 TPD black liquor solids firing capacity. Causticizing section comprising liquor clarification equipments,mud washing and thicknering etc.

Power plant comprising boilers and turbine to meet additional requirement of steam and power.

Additional equipment for effluent treatment plant, environmental protection and to improve basic infrastructure.

The production capacity will go upto 3,20,000 TPA after completion of the said investment programme as against 1,63,750 TPA at present.

 Research & Development
The company has set up a separate R&D department with the modern research center at Dandeli to carry out the research on:

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1. Suitability of pulping various types of hard wood available 2. Improving process efficiency 3. Developing/Optimisation of process for improving productivity and energy conversation 4. Substituting Imports

QUALITY CONTROL / CENTRAL LABORATORY
The company has a fully equipped laboratory for quality control and to conduct research on raw material. Detailed analysis of process material, intermediate product, water, effluent stack gasses etc are carried out in the central laboratory. Customer service, quality complaints, product development apart from normal work of inspection, testing and monitoring is carried out by the quality control laboratory.

INDUSTRIAL SAFETY
The company has facilities for industrial safety, which are more than required by the law. The safety department has qualified and trained personals and is fully equipped with safety equipments. The company also has a separate fire-brigade division and extensive network of hydrants spread over in the entire mill area.

POLLUTION CONTROL
The company is meeting the standards laid down by the pollution control board for air and water. Company is also making conscious efforts to reduce water consumption. The consents granted by pollution control board are valid.

 CORPORATE SOCIAL RESPONSIBILITY INITIATIVES
West Coast supports the community of its presence through initiatives that go beyond direct indirect employment and has invested significantly in Dandeli’s upkeep through various initiatives.

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The Company maintains a self-sufficient colony with facilities of Shopping Complex, Temple, Hospital, Theatre, Club and Cable TV Network. The Company has also been rendering financial support since 1963 to Dandeli Education Society, Dandeli, the premier educational network of Dandeli, which runs several institutions including two Pre-University Colleges and a Degree College as well as a Post Graduate Course in Pulp & Paper Technology.

Stabilized fly-ash dumps through biological means, developed better drainage system, supported educational institutions (including pulp and paper technology courses), Commissioned educational facilities for needy children and organized various social awareness programs.

 GREEN INFO
The West Coast Paper Mills Ltd., although dependent heavily on trees for supply of raw materials, remains one of the foremost ecology conscious concern in the country. With the threats of ozone depletion and global warming, the company has taken a number of steps to protect ecology as well as to ensure steady supply of raw material.

The natural forests in India being under tremendous pressure, the Company has started a programme of distributing quality seedlings of fast growing species like Eucalyptus, Casurina, Acacia and Subabul (which are the raw materials of the plant).

The beneficiaries are owners of low yielding local agricultural lands in the vicinity of the plant, i.e Uttar Kannada, part of Shimoga, Belgaum and Dharwar districts. The target is to distribute to the tune of 4 million quality seedlings.

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The Company has implemented Clonal Technology to achieve the following:
   

Supply genetically high quality planting stock. Improve land productivity and yields from pulpwood plantation Provide fuelwood etc. for local use Improve the economic conditions of the growers through

clonal plantation

Encourage overall tree forming practices.

The company has been playing a very active role in developing the backward district of Uttara Kannada. Stabilising fly-ash dumps by biological means, developing better drainage systems, organising education from primary to graduate, including pulp and paper technology course, facilities for needy children, organising various social awareness programmes etc. are some of the steps it has taken to manifest its commitments to social and environmental causes.

 CAPTIVE PLANTATION
TREE IMPROVEMENT THROUGH CLONAL FORESTRY

THE WEST COAST PAPER MILLS EXPERIENCE The productivity of the plantation can be increased sustainably by promoting technology based plantations. Of late in India, clonal forestry is gaining acceptance among the progressive Foresters and Plantation Managers. Clonal technology is a strategy adopted in tree improvement programme to capture and exploit the best recombinations in a shortest possible time. The ultimate objective of tree improvement is to produce quality seeds. Seeds are the carriers of entire improvement made in one generation to the next generation. Keeping in view the improved superior seeds are the major source for

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propagation. Seeds from known sources mainly half sib seeds or full sib seeds are collected and propagated.

The principles and practices of plant breeding of trees are well established and they apply equally to industrial plantations and small holder agroforestry and community plantations also. The goal of tree improvement for agroforestry is to increase the effectiveness of land for productivity, suitability and sustainability of land use for rural communities. It consists of: • Germination of the species or geographic sources within a species in a given area. • Kind and causes of variability within a species. • Packaging the desired qualities into improved individuals. • Mass production of improved individuals for planting purposes. • Developing and maintaining a genetic base population for advanced generation.

Success in the establishment and productivity of forestry plantations is determined largely by species used and the source of seed within species. The higher gain in most of the forestry improvement programmes can be made by assuring the use of the proper species.

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PLANTS PLANTED IN CAPTIVE PLANTATION & FARM FORESTRY (No.In Lacs) Farm Forestry Karnataka 41.67 42.57 50.00 41.56 9.05 70.32 95.12 121.23 97.92 59.74 Tamilnadu

For Year

Captive

Total Actual 116.58 139.53 177.31 164.83 117.22

Plantations 4.59 1.84 6.08 25.35 48.43

2004 2005 2006 2007 2008

ACTUAL PLANTED AREA FOR THE LAST FIVE YEARS (Area in Acres) Farm Forestry Karnataka 2083.50 2128.50 2500.00 2078.00 452.50 1598.18 2161.82 2755.23 2225.45 1357.72 Tamilnadu

For Year

Captive

Total Actual 4191.68 4494.32 5905.23 6644.45 7905.22

Plantations 510.00 204.00 650.00 2341.00 6095.00

2004 2005 2006 2007 2008

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 PRODUCT
 RAW MATERIAL REQUIREMENTS
 PRINTING & WRITING: We require Bleached Soft Wood/Hard Wood Pulp around 7800 ADMT p.a.  COATED DUPLEX BOARD: For our Multi-Layer Duplex board manufacturing facility on Paper Machine IV and V we require the following raw materials: Sl Description 1. Box Board Cuttings 2. Supermix waste as per specification 3. Old News Paper 4. Light Colour cuttings 5. White Cuttings As per PS-01, Item 8 15000 M.Tons 3000 M.Tons Specification As per PS-01, Item 4 As per PS-01, Item 2 Quantity P/A (M.T.) 20000 M.Tons 15000 M.Tons

As per PS-01, Item 31&35 3000 M.Tons

 PREMIUM PRODUCTS
WCPM manufacturers the following products also in premium range:
   

Sud. MICR Cheque Paper SS Maplitho Classic Ultrashine Maplitho SS Pulp Board UHB

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   

Legend Copier B2B Copier Budget Copier Parchment

 EXPORTS
DISTRIBUTION NETWORK IN WORLD MAP:

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Africa - South Africa - Botswana - Uganda - Ghana - Sudan - Nigeria - Kenya - Tanzania - Benin - Togo Asia - Pacific - Bangladesh - Nepal - Myanmar - Sri Lanka - Mauritius - Fiji - Malaysia - Indonesia Europe -Greece Middle East - UAE - Sultanate of Oman - KSA - Egypt

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- Yemen - Jordan - Iran - Iraq

 WCPM CODE OF CONDUCT
As per the revised Clause 49 of the Listing Agreement pertaining to Corporate Governance, the Company has to evolve and implement a ‘Code of Conduct’ for all members of the Board and Senior Management (hereinafter collectively referred as ‘Officers’). All the Board members and Senior Management personnel shall abide by and affirm the compliance of the Code of Conduct on an annual basis. The Annual Report of the Company shall contain a declaration to this effect signed by the Chief Executive Officer of the Company.

Contravention of the SEBI Code would lead to serious consequences for the Company and its directors and such Senior Management personnel who would be liable for of fines, penalties and also for prosecution under SEBI Act.

Explanation: For this purpose, the term “senior management” shall mean personnel of the company who are members of its core management team excluding Board of Directors. Normally, this would comprise all members of management one level below the executive directors, including all functional heads.

This Code of Conduct of the Company shall be known as “WCPM - Code of Conduct” (hereinafter referred as “The Code”). This Code has been evolved pursuant the SEBI directives and Stock Exchange Listing Agreement. Wherever there is any variation between the provisions of the Code and the provisions of Listing Agreement, the latter would prevail over the provisions of the code.

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The objective of the Code is to ensure compliance with legal requirements and set standards for business conduct so that concerned officers act in accordance with the highest standards of personal and professional integrity, honesty and ethical conduct, while working for and on behalf of the Company.

This Code of Conduct helps ensure compliance with legal requirements and sets standards for business conduct. All the concerned are expected to read and understand this Code, to uphold these standards in day-to-day activities and comply with all applicable policies and procedures.

Please sign the acknowledgment form at the end of this Code of Conduct and return the form to the Finance/Secretarial Department indicating that you have received, read, understand and agree to comply with the Code.

DUTIES AND RESPONSIBILITIES All Directors and officers shall observe and implement following code of conduct in their official day to day activities;

SINCERE, HONEST AND ETHICAL CONDUCT

All Directors and all officers shall observe high standard of personal, professional integrity, honesty and ethical conduct which is free from fraud and deception, while in employment with the organization. They should act in good faith, responsibly, with due care, competence and diligence, without allowing their independent judgment to be subordinated. Directors will act in the best of interest of the Company and fulfill the fiduciary obligations. All concerned are expected to devote full attention and are committed to optimizing the growth of the Organization by adopting best of the corporate governance practices and ethos.

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STATUTORY COMPLIANCE

All Directors and Officers shall take utmost care and pay attention to comply with all applicable laws, regulations, rules and regulatory orders in letter and in spirit. They are also expected to acquire appropriate knowledge of the requirements relating to their duties sufficient to enable them to recognize potential dangers and to report to the Board or management the possible violation of laws and regulations or code of conduct.

CONFLICTS OF INTEREST

Directors shall avoid situations where a conflict of interest might occur or appear to occur on account of personal transactions and investments which conflict with interest of the Company. A Conflict of interest exists when any personal or professional interest is adverse to or may appear adverse to the interest of the Company. Conflict of interest may also arise when a director/officer, or member of his or her family or firm, an organization with which the director/officer is directly or through relatives or otherwise is affiliated receives improper personal benefits as a result of his or her position as Director/officer of the Company. Such conflict of interest impairs ability to exercise good judgment on behalf of the Company and is not in the best interest of the Company. Following engagement/activities shall be treated as conflicting with interest of the Company; (i) Employment/ Outside Employment. Directors/Officers should avoid engaging themselves in any activity/employment that interferes with performance or responsibilities to the Company or is otherwise in conflict with or prejudicial to the Company.

(ii) Outside Directorships. It is a conflict of interest to serve as a director of any company that competes with the Company. Directors should ensure to report such directorship to the Board. 136

(iii) Related Party Transactions. Directors should avoid conducting business with relatives or with firm/company in which a relative/related party is associated in any significant role. If such related party transactions are unavoidable it must be fully disclosed to the Board or the Head of Finance of the Company and such transactions shall be referred to Audit Committee for its review and comments. Any dealings with a related party must be conducted in such a way that no preferential treatment is given.

CORPORATE OPPORTUNITIES

Directors and Officers should not exploit for their own personal gain opportunities that are discovered through the use of corporate property, information or position unless the opportunity is disclosed fully in writing to the Company’s Board of Directors and the Board of Directors declines to pursue such opportunity.

PROTECTION OF ASSETS

Protecting the Company's assets is a key responsibility of every employee. Care should be taken to ensure that assets are not misused, misappropriated, loaned to others, or sold or donated, without appropriate authorization.

CONFIDENTIALITY OF INFORMATION

Any information concerning the Company’s business, its customers, suppliers etc, which is not in the public domain and to which the director or officer has access or possesses such information must be considered confidential and held in confidence, unless authorized to do so and when disclosure is required as a matter of law. The Company’s confidential information includes product architectures; source codes; product plans and road maps; names and lists of customers, dealers, and employees; and financial information. All confidential information must be used for Company business purposes only. 137

INSIDER TRADING

Directors and Officer of the Company shall not derive benefit or assist others to derive benefit by giving investment advice from the access to and possession of information about the Company not in public domain and therefore constitutes insider information. All concerned shall ensure to comply with the Insider Trading Code of the Company and Insiders Trading Regulations of the SEBI since failure to do so attracts serious consequences in terms of penalties and prosecutions. DISCIPLINARY ACTIONS

The matters covered in this Code of Business Conduct and Ethics are of the utmost importance to the Company, its stockholders and its business partners, and are essential to the Company's ability to conduct its business in accordance with its stated values. It is expected that all will adhere to these rules in carrying out their duties for the Company. The Board shall determine appropriate actions to be taken in the event of violations of the Code.

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ORIENT PAPER & INDUSTRIES LIMITED (OPIL)
Orient Paper & Industries Limited (OPIL) believes that resources must be dynamically matched with a strong commitment to excellence in products and processes though a team of dedicated people, while ensuring a clean environment for our planet, the earth. All to server the customer better. Today and tomorrow. Across the country and beyond its borders, graced with service from the heart which says, "you mean the world to us".

Orient Paper Mills is one of India's major players in Paper with a wide range of writing, printing, industrial and specialty papers. Fully integrated with facilities for production of high strength pulp combined with reafforestation.

Incorporated in 1939 with a single paper machine and now a multi-product, multilocation Company, that's much more than paper. That's Orient Paper and Industries Limited, a proud member of one of the premier and most dynamic business houses of India, the G P Birla/C K Birla Group.

The G P Birla / C K Birla Group has promoted and established a large number of industrial undertakings manufacturing a diverse range of products such as Automobiles, Earthmoving Equipment, Engineering Products, Ball Bearings, Building Materials, Chemical Plants and Software Development etc.

In keeping with the Birla philosophy, giving shape to customers' aspirations is Orient Paper and Industries Limited's pivotal strength. Keeping abreast of new technology, its credo. Preserving the hues and shades of nature, its obsession.

No wonder then, that in the Paper Industry Orient Paper and Industries Limited commands the status of a leader with a vision. In cement, it has earned a solid reputation. 139

In appliances, Orient, has become a household name.And, all combined Orient Paper and Industries Limited in seen as a company with a cutting edge. A hi-tech, customer friendly, eco-responsive corporate citizen, that is Shaping a Better Tomorrow for everyone.

 PRODUCT
Orient Paper Mills is one of India's major players in Paper with a wide range of writing, printing, industrial and speciality papers.

Fully integrated with facilities for production of high strength pulp combined with reafforestation, high speed paper machines and independent power generation, Orient Paper Mills is in total control right from raw materials to the production of a variety of superior papers and boards.

The Orient Paper Mills plants at AMLAI, Madhya Pradesh have manufacturing facilities to produce a variety of grades and types of papers. Judicious deployment of new technology, abiding commitment to total quality management systems and ingenuity in research and product development have enabled Orient Paper Mills to carve out an important niche not only in the Indian market but in several other countries as well.

The Company has recently set up state-of-the-art facilities to produce a spectrum of Soft Tissue Paper of world class quality.

On the global plane, Orient Paper Mills has blazed a trail by promoting and successfully managing Pan African Paper Mills Limited, Kenya, in partnership with the Government of Kenya and International Finance Corporation.

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To perpetuate progress, the Paper Division of Orient Paper Mills continually improving its people, products and processes as it marches ahead in its quest for even higher standards of excellence.

 MAKING IMPRESSIONS THE WORLD
As an integral part of its growth oriented strategy Orient Paper Mills has always identified exports as a priority area. That Orient Paper Mills has been in the forefront in this field is a reflection of this attitude, as more and more countries express satisfaction with Orient Paper Mills quality, its papers and paper boards are in wide demand in several countries. Orient Paper products are being regularly shipped to Africa, Middle East, Bangladesh, Sri Lanka and Nepal.

 RESEARCH & DEVELOPMENT
 ENSURING EXCELLENCE IN QUALITY At Orient Paper and Industries Limited, Quality is of prime importance. It has been integrated into everything the Company does and stands for. Continuous value addition from raw material to finished products, regular investments in better resourcemanagement and a vision to anticipate the changing needs of the market are the obvious outcome of this philosophy. Each operation-centre of the Group adheres to the same values, offering Quality that's backed by rigorous and multi-dimensional Quality Assurance Systems and Programmes.

All these lean to the most vital aspect treasured by the Company-Customer care and Customer relationship. After all, a happy customer is the best proof of Quality!

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 EXCELLING IN RESEARCH & DEVELOPMENT

The success story of Orient Paper and Industries Limited greatly hinges upon its commitment to continuous Research and Development. At all its locations and in all its Divisions, the Orient Paper and Industries Limited scientists are always exploring new ideas and technologies for optimum results.

Orient Paper and Industries Limited's Research & Development Centers are some of the most well-equipped in the country and are duly recognized by the Government of India.

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CHAPTER 5 YASH PAPERS LIMITED

Yash Papers (located in Faizabad, India) is synonymous with machine-glazed varieties of paper. Our brand revolves around the manufacture of the best wrapping grades of papers in India. The Company manufactures wrapping tissues in both brown and white varieties. If Yash Papers has grown over more than two decades – the Company was commissioned by entrepreneur-promoter KK Jhunjhunwala - from an installed capacity of 1940 MT per annum in 1983, it is because of a singular discipline, focus on specialty products and quality and plough back surpluses into additional capacity. As a result, we have grown significantly to an installed capacity of 39,100 MT per annum that makes us the largest producers of wrapping grades in the country Year 1983 1989 1991 1993 1994-95 2007 Effective capacity 1,940 MTPA 4,000 MTPA 10,000 MTPA 12,000 MTPA 16,000 MTPA 39,100 MTPA Initiatives Original capacity in 1983 when the project went on stream First expansion phase Addition of PM II with 6000 MTPA capacity PM I capacity enhanced by 2,000 MTPA PM II capacity increased by 4,000 MTPA PM III has been started from June 2007

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The consistent feature of our business strategy has been value-addition. We invested periodically in the manufacture of specialised grades – a distinctive preference for the value approach over a volume one. This preference for the value-approach is reflected in the Company’s product mix - hard tissue, wrapping grade and packaging/stationery grades. These varieties are used in specialised downstream applications like soap wrapping, food wrapping, pharmaceutical covers, interleaving sheets, laminating sheets, paper bag, bidi wrapping, gum tape, notebook covering paper, PE coating in mattress, tube light packaging among others. So even as we are based in India, our products find loyal customers in countries across the globe.

 VISION
To create the largest speciality paper manufacturing company in the world by 2025.

 MISSION
 Ensure higher profitability than the industry average year-on-year for continuous growth.  Provide a working environment with freedom of thought and innovation; hire and cultivate the best people and provide work conditions that energies.  Find solutions for customers and add value to their processes. Create a dedicated customer base.  Work as partners with vendors; ensure integrity and create processes that provide them with ease in dealing with us.  Provide the optimum ROI to our stakeholders, ensuring their continuous support.

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 Invest time, effort and resources to continuously improve the environment; ensure ‘clean and green’ surroundings for future generations.  Develop the community around us by encouraging entrepreneurship.  Spread the goodwill of our nation around the world.

WHAT WE BELIEVE IN
Yash Papers represents a small soul in a growing body. We are a customer-facing organisation. Which means that all initiatives are taken with the customer in mind. The management structure is flat. Decision-making decentralised. Doors open. Communication direct. Trust complete. Such a management philosophy helps us cater to the stated and unstated needs of our customers in the shortest possible time.

 SELF-MANAGEMENT TEAMS
At Yash Papers, we are proud to have created a unique management structure, adapted to our local culture. Resulting in maximised employee ownership and enhanced organisational effectiveness.  Each employee works in a self-managing team called a sangh  Each sangh is classified on the basis of its function – the raw material department is known as Kachha Maal Vyapaar Sangh, the pulping department as Pulp Mill Vyapaar Sangh and the finished goods department as Kaagaz Vyapaar Sangh, among others.

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 These sanghs serve as a knowledge-sharing platform; they discuss relevant issues with corresponding action plans with each worker involved in active decisionmaking.  Each sangh is headed by a representative called Pradhan and he escalates issues at a higher level called Pradhan Sangh comprising team heads. The senior management team is called the Sangrakshak Sangh which discusses broad organisational issues and is attended by a Pradhan Sangh representative (selected by rotation).

 TRAINING AND DEVELOPMENT
At Yash Papers factory we manufacture paper; at Yash Papers Company, we develop people. This people development is driven by a training agenda that is conducted at various levels.  Trainers, both within the Company and outside, train our people regularly.  Equipment suppliers are actively engaged in employee training.  Handpicked workers engage in quality and cost management training  The training extends to behavioural aspects as well.

 THE GURU-SHISHYA PROGRAMME
At Yash Papers, we have blended our training initiatives with the age-old Indian guru-shishya (teacher-protégé) tradition to promote multi-skilling for a whole new world of customer satisfaction. This is what makes us special:  Any employee can voluntarily choose any individual from another department as his Guru (teacher).

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 It is the Guru’s responsibility to share as much as he knows, as it is the Shishya’s (student) responsibility to learn.  This cross-functional training is incentivised with employee remuneration.

 EMPLOYEE APPRAISAL
At Yash Papers, we believe that it is not only important to be fair, it is critical to appear so as well. As a result, the progress of each employee is monitored through a comprehensive appraisal system based around self-appraisal. Each worker sets his or her own annual target, monitored quarter wise. This performance is then appraised at two levels: First by the Pradhan of the respective sangh and a member of the senior management. In addition to the unambiguous numerical target against which the performance is judged, the other appraisal parameters comprise cross-functional learning, attitude orientation and motivation.

CODE OF CONDUCT
 PREAMBLE This Code of Conduct (“Code” hereinafter) has been adopted by the Board of Directors of the Company as a set of standards, values and guidelines for Directors and senior management personnel of the Company so as to promote ethical behaviour and provide guidance to help them recognise and deal with ethical issues in pursuit of Company’s goals and objectives from time to time.The Code is not exhaustive and does not cover every issue that may arise or every situation where ethical decisions must be made. Rather, it has set forth broad guiding principles in dealing with them.

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 APPLICABILITY This Code of conduct is applicable to all
   

Directors, Functional heads, Senior executives, Any other employee or officer of the Company who has the opportunity to materially influence the integrity, strategy and operation of the business and financial performance of the Company.

The Code came into effect from 1st day of January 2006 and each and every person to whom the provisions of this Code extends or applies shall sign the acknowledgement form at the end of this Code and return the same as a token of having received, read and understood and having agreed to comply with and adhere to the provisions of this Code. As required under the Listing Agreement, each year as part of annual review, all employees, officers to whom the code applies and Directors would be required to sign an acknowledgement indicating their continued adherence to the provisions of this Code.

 CONFLICT OF INTEREST
All Directors and employees to whom this Code applies shall conduct themselves in an honest and ethical manner and act in the best interests of the Company and shall endeavour to avoid actual or apparent conflicts of interest with that of the Company in personal and professional relationships. Generally, a conflict of interest occurs when a Director’s / employee’s personal interest interferes or has the potential to interfere or appears to interfere materially with the interests or business of the Company; or the ability of the Director/employee to carry out his or her duties and responsibilities objectively.

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Although it would not be possible to visualise and enumerate here each and every situation in which a conflict of interest may arise, the following situations illustrate where conflict of interest arises:  Working in any capacity for a competitor, customer, supplier or other third party while employed by the Company.  Accepting gifts of more than modest value or receiving personal and exclusive discounts (if such discounts are not generally offered to the public) or other benefits as a result of the position in the Company from a competitor, customer or supplier.  Having an interest in a transaction involving the Company, a competitor, customer or supplier (other than as an employee, officer or Director of the Bank and not including routine investments in publicly traded companies).  Receiving a loan or guarantee of an obligation as a result of the position.  Directing business to a supplier owned or managed by, or which employs, a relative or friend. In the event that an actual or apparent conflict of interest arises between the personal and professional relationship and activities of an employee, officer or Director, the employee, officer or Director involved is required to handle such conflict of interest in an ethical manner in accordance with the provisions of this Code.  CORPORATE OPPORTUNITIES In carrying out their duties and responsibilities, Directors and employees to whom this Code applies should endeavour to advance the legitimate interests of the Company when the opportunity to do so arises. Accordingly they should avoid:

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 using for themselves personal opportunities that are discovered in carrying out their duties and responsibilities to the Company;  using Company property or information, or their position for personal gain; and  competing with the Company, in each of the foregoing cases, to the material detriment of the Company.  FAIR DEALING Each person to whom this Code applies shall deal fairly with customers, suppliers, competitors, the public and each other at all times and in accordance with ethical business practices. No one should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing. No payment in any form shall be made directly or indirectly to or for anyone for the purpose of obtaining or retaining business or obtaining any other favourable action. Occasional business gifts to and entertainment of non-employees in connection with business discussions or the development of business relationships are generally deemed appropriate in the conduct of the Company’s business. However, extending such gifts should be infrequent and their value should be modest. Gifts or entertainment in any form that is likely to result in a feeling or expectation of personal obligation should not be extended or accepted.

 PROTECTION AND PROPER USE OF COMPANY’S ASSETS
It is the duty and responsibility of each person to whom the provisions of this Code extend to protect Company’s assets and resources from any loss, theft or misuse. Any suspected loss, misuse or theft should be promptly brought to the notice of the higher

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management for taking appropriate action. The Company’s assets and resources shall be applied and used only for the legitimate business purposes of the Company. LEGAL COMPLIANCES The Company is committed to conduct its business operations with integrity and in full compliances of all legal and regulatory requirements. Accordingly, no employee, officer or Director of the Company shall commit an illegal or unethical act or instruct others to do so for any reason. TRADING ON INSIDE INFORMATION Using non-public information to trade in securities of the Company, or providing a family member, friend or any other person with a “tip” is illegal. All non-public information should be considered inside information and should never be used for personal gain. The Board of Directors of the Company has already put in place a Code of Conduct for Prevention of Insider Trading, copies of which have been circulated / distributed to all applicable employees, officers and Directors. Accordingly all the officers, employees and Directors shall continue to adhere and follow the provisions of the said Code as amended by the Board from time to time. CONFIDENTIALITY All persons to whom this Code applies should observe the confidentiality of information that they acquire in carrying out their duties and responsibilities, except where disclosure is approved by the Company or legally mandated. Confidential information includes, but is not limited to, all non-public information that might be of use to competitors, or harmful to the Company or its customers, if disclosed. Of special sensitivity is financial information, which should, under all circumstances, be considered confidential.

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Compliance with this Code and reporting of any illegal or unethical behaviour. It is the responsibility of each employee, officers and Directors to whom this Code applies to strictly adhere and comply with the guiding principles and provisions contained herein and to report to appropriate higher authorities, Audit Committee or Board of Directors as the case may be, as and when any instance of violations or unethical conduct is noticed. WAIVER AND AMENDMENTS Any waiver of, or amendment to, the requirements of this Code may only be authorised by the Board of Directors, and will be subject to public disclosure to the extent required by law or the listing standards / requirement.

 CODE OF CONDUCT FOR PROVISION OF INSIDER TRADING
 This Code of Conduct will be known as "Yash Papers Limited Code of Conduct for prohibition of Insider Trading" hereinafter referred to as “Code”.  This Code of Conduct has been made pursuant to Regulation 12 of the SEBI (Prohibition of Insider Trading) Regulations, 1992, as amended, hereinafter referred to as the "Regulations ".  Applicability  The Code on Insider Trading is formulated with a view to abide by the spirit of the SEBI regulations on the insider trading. The Code will govern the framework for acquisitions, purchases and sale of the securities of the Company and will be applicable to Directors/ Officers/ Designated Employees of Yash Papers Limited and their dependent family members as defined therein.  The definitions as framed in Regulation 2 of Chapter I of the Regulations, shall apply and form part of this Code.

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a) "Act" means the Securities and Exchange Board of India Act, 1992. b) "Body Corporate" means a body corporate as defined under Section 2 of the Companies Act. c) "Board of Directors" means the Board of Directors of the Company. d) "Committee" means the Committee, if any, constituted by the Company for the implementation of these Regulations. e) "Companies Act" means The Companies Act, 1956. f) "Company" means Yash Papers Limited. g) "Compliance Officer" means the existing Company Secretary of the Company or the Officer appointed by the Board of Directors of the Company for the purpose of this Code and the Regulations. h) "Dealing in securities" means an act of subscribing, buying, selling or agreeing to subscribe, buy, sell or deal in any securities by any person either as principal or agent. i) "Dependent Family Members" shall include dependent spouse and dependent children. j) "Designated Employees" shall mean all employees comprising the top tier of the Company’s Management, all employees in the finance, accounts and secretarial departments and such other employees who may be so designated from time to time by the Company for the purpose of this Code and who may be able to have access to any ‘price sensitive information’ as defined in this Code or the Regulations. k) "Insider" means any person who is or was connected with the Company or is deemed to have been connected with the Company, and who is reasonably expected 153

to have access to unpublished price sensitive information in respect of securities of the Company or who has received or has had access to such unpublished price sensitive information. l) "Officer of the Company" means any person as defined in Clause (30) of Section 2 of the Companies Act, including the Auditors of the Company. m) "Price Sensitive Information" means any information, which relates, directly or indirectly, to the Company and which, if published, is likely to materially affect the price of securities of the Company.

 EXPLANATION
The following shall be deemed to be price sensitive information:  Periodical financial results of the Company;  Intended declaration of dividends (Interim and / or Final);  Issue of Securities or Buy-back of Securities;  Any major expansion plans or execution of new projects;  Amalgamation, merger or takeover;  Disposal of the whole or substantially the whole of the undertaking;  Any significant changes in policies, plans or operations of the Company having material impact on the financials of the Company. n) "Regulations" mean the SEBI (Prohibition of Insider Trading) Regulations, 1992, as amended. o) "Securities" means Equity (Ordinary) Shares and all other securities of the Company issued and / or to be issued from time to time and listed / to be listed on the stock exchange(s).

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p) "Stock Exchange" means any stock exchange, which is recognised by the Central Government or SEBI under Section 4 of Securities Contracts (Regulation) Act, 1956. q) "Threshold Limit" means the minimum number of securities as decided by the Board of Directors of the Company from time to time. Until otherwise resolved by the Board, 5,000 equity shares for members of the Board and 2,500 equity shares for officers and other designated employees shall be the Threshold Limit. r) "Trading Window" - means a trading period for trading in the Company's Securities as specified by the Company from time to time. All days shall be the Trading Period except those days specified in Clause 8 hereunder. s) "Unpublished Information" means information, which is not published by the Company or its Agents and is not specific in nature. EXPLANATION Speculative Reports in print or electronic media shall not be considered as Published Information. t) Words and phrases not specifically defined herein shall have the same meaning as defined under the Act, Companies Act, and the Regulations as amended from time to time.  CONFIDENTIALITY OF PRICE SENSITIVE INFORMATION a) Directors / Officers / Designated Employees shall maintain the confidentiality of all price sensitive information. They shall, while in possession of any price sensitive information, neither deal in the securities of the Company on the basis of price sensitive information nor pass on such information to any person directly or indirectly

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by way of making a recommendation for the purchase or sale of securities of the Company. b) Price Sensitive Information is to be handled on a "need to know" basis. It should be disclosed only to those within the Company who need the information to discharge their duty. c) Files containing confidential information shall be kept secured. Computer files must have adequate security of login and password, etc. d) Directors/officers/designated employees shall not acquire/purchase/sell the Company’s securities either on behalf of themselves or others, when in possession of unpublished price sensitive information. e) Directors/officers/designated employees shall not communicate, counsel or procure, directly or indirectly, any unpublished information to any person by way of making recommendation for acquisition/purchase/sale of the Company’s securities.

 FUNCTIONS, DUTIES AND RESPONSIBILITIES OF THE
COMPLIANCE OFFICER The Compliance Officer shall be subject to the supervision of the Board of Directors of the Company. The Compliance Officer shall be responsible for Setting forth policies, procedures and monitoring adherence to the Rules for the preservation of Price Sensitive Information, Pre-clearance of trades of Directors, officers and designated employees and their dependent family members and monitoring of trades and implementation of this Code.  Maintaining record of Directors, officers and designated employees and incorporate changes from time to time.

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 Assisting all employees in addressing any clarifications in the Regulations or this Code.  Ensuring that all Directors, officers and designated employees of the Company shall conduct their dealings only when the Trading Window is open.  Ensuring that all Directors, officers and designated employees furnish the details of transactions in the securities of the Company as stated in Clause 7 in the prescribed form and maintain a record of all the intimation received for a period of at least three years.  Maintaining records of all declarations as stated in Clause 7 in the prescribed form and to place the same before the Managing Director, on a quarterly basis.  Obtaining initial and continual disclosures from Directors, officers and designated employees, major shareholders and to give information in respect of the disclosures made to all the stock exchanges where the securities are listed, within five working days of receipt.

 REPORTING REQUIREMENT FOR TRANSACTIONS IN SECURITIES
A. By Directors, officers and designated employees  Initial Disclosures All Directors, officers and designated employees shall forward the following details of their securities, including that of their dependant family members, to the Compliance Officer in Form A annexed hereto: Details of securities of the Company held:  at the time of joining of the Company and  by new Directors, officers and designated employees within four working days of becoming Directors, officers and designated employees.

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Monthly / Annual disclosures

 In addition to the above, they shall also furnish to the Compliance Officer the following:

Monthly statement of transactions in securities of the Company in Form B annexed hereto. If there is no transaction in a particular month, nil statement need not be submitted.

Annual statement of all their holdings in securities of the Company to be submitted within 30 days of the closure of each Financial Year in Form C annexed hereto.

Continual Disclosures

Any change in shareholding or voting rights: If there is a change in such holdings from the last disclosure made and the said change exceeds Rs.5,00,000/- in market value or 5,000 shares or 1% of the total share holding or voting rights, whichever is lower. Such changes in shareholding or voting rights, to be disclosed to the Company within four working days or such other time limit as may be specified in Form D B. By other major shareholders  Initial disclosure Any person holding more than 5% shares / voting rights in the Company shall disclose the number of shares or voting rights held within four working days of receipt of intimation of allotment of shares or the acquisition of shares in Form A annexed hereto.  Continual disclosure Any person who holds more than 5% shares or voting rights in the Company shall disclose to the Company the number of shares or voting rights held and change in the shareholding or voting rights held, even if such change results in shareholding falling

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below 5%, if there has been change in such holdings from the last disclosure and such change exceeds 2% of total shareholding or voting rights in the Company.

 PREVENTION OF MISUSE OF PRICE SENSITIVE INFORMATION
All Directors, officers and designated employees of the Company shall be subject to trading restrictions in the following manner TRADING WINDOW (i) All Directors, officers and designated employees of the Company shall trade in the Company's securities only during the period specified by the Company from time to time. The ‘Trading Window’ shall be closed during the time the information referred to hereunder is unpublished. When the ‘Trading Window’ is closed, the Directors, officers and designated employees shall not trade in the securities of the Company during that period. (ii) The ‘Trading Window’ shall, inter-alia, be closed From the date of the notice to the stock exchange of the meetings of the Directors or committee of Directors until one day after the date of declaration /publication of the annual /half yearly /quarterly results as the case may be;  From the date of the notice to the stock exchange of the meetings of the Board of Directors where the decision on any of the following matters is taken/ intended to be taken until one day after the decision is made public: a) Intended declaration of dividends (interim and / or final); b) Issue of securities or buy-back of securities;

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c) Any major expansion plans or execution of new projects; d) Amalgamation, merger or takeover; e) Disposal of the whole or substantially the whole of the undertaking; f) Any significant changes in policies, plans or operations of the Company having material impact on the financials of the Company.  ‘Trading Window’ may be closed by the Company during such time in addition to the above period, as it may deem fit from time to time.  The date of Board Meeting and/or closure of ‘Trading Window’ during such time as specified above are informed to the Directors/departmental heads. Any Director/officer/designated employee who proposes to acquire/ purchase/ sell the Company’s securities has an obligation to verify the Board Meeting date and/or date of closure of ‘Trading Window’ with the Company Secretary and refrain from acquiring/ purchasing/ selling the Company’s securities during the closure of ‘Trading Window’ and also abide by the pre-clearance procedure. iii) The ‘Trading Window’ shall be opened 24 hours after the information is made public. iv) No Director, Officer or designated employee shall conduct any dealing in the securities of the Company during the closure of the ‘Trading Window’. In case of ESOPs (Employee Stock Option Plan), exercise of option may be allowed during the period when the ‘Trading Window’ is closed. However, sale of shares allotted on exercise of ESOPs shall not be allowed when ‘Trading Window’ is closed.

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PRE-CLEARANCE OF TRADES
All Directors, officers and designated employees of the Company intending to deal in the securities of the Company up to the Threshold Limit fixed, as defined and provided herein before, may do so without any pre-clearance from the Compliance Officer. In all other cases, they should pre-clear the transactions as per the pre-dealing procedure as provided hereunder: a) Make an application in the prescribed format enclosed along with Form E annexed hereto, to the Compliance Officer indicating the estimated number of securities that he/she intends to deal in, the details as to the depository(ies) with which he/she maintains a security account, the details as to the securities in such depository mode and such other details as may be required by any rule made by the Company in this behalf. b) He / she shall execute an undertaking in favour of the Company incorporating, therein, inter alia, the following clauses, as may be applicable: i) that he / she does not have any access or has not received Price Sensitive Information upto the time of signing the undertaking ; ii) that in case he/she has access to or receives Price Sensitive Information after the signing of the undertaking but before the execution of the transaction he/she shall inform the Compliance Officer of the change in his/her position and that he/she would completely refrain from dealing in the securities of the Company till the time such information becomes public ; iii) that he/she has not contravened any provisions of this Code, as may be notified by the Company from time to time ; iv) that he/she has made a full and true disclosure in the said matter.

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c) The Directors/officers/designated employees shall execute their transactions in respect of securities of the Company within one week after the approval of pre-clearance is given failing which the transaction has to be pre-cleared again. They shall hold their investments in securities for a minimum period of 30 days from the date of purchase/actual allotment. In case of a personal emergency the 30 days holding period may be waived by the Compliance Officer (application to be made in Form F) after recording in writing the reasons in this regard. In case of the Compliance Officer intending to deal in the securities of the Company beyond the threshold limit the pre-clearance of the Managing Director will have to be obtained. Similarly in case of personal emergency Compliance Officer may obtain the waiver from the Managing Director with regard to complying with the minimum period of holding investments for 30 days.

 RESTRICTIONS ON THE COMPANY
The Company shall not deal in the securities of another Company or associate of that other Company, while in possession of any unpublished Price Sensitive Information of that other Company.

 PENALTY
a) Any Director, officer or designated employee, who trades in securities or communicates any information for trading in securities in contravention of this Code, shall be penalised and appropriate action shall be taken against him/them by the Company after giving reasonable opportunity for ‘show cause’. He/she shall also be subject to disciplinary action, as deemed appropriate, including wage freeze, suspension, in-eligibility for future participation in ESOPs etc.

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b) In addition to the action, which may be taken by the Company, the persons violating the Regulations or this Code shall also be subject to action by SEBI as per SEBI Act. In case of any violation, the Company shall inform SEBI accordingly.

 GENERAL
The decision of the Board of Directors of the Company with regard to any or all matters relating to this Code shall be final and binding on all concerned. The Board of Directors of the Company shall have the power to modify, amend or replace this Code in part or full as may be thought fit from time to time in their absolute discretion. This Code has been duly approved by the Board of Directors at their meeting held on and this Code shall be deemed to have come into force with effect from the said date.

 EQUIPMENT Facilities Include:
System PM1 PM2 PM3 Bagasse Pulp Mill Jute Pulp Mill Waste Paper Pulp Mill Bamboo Pulp Mill (under implementation) Power Plant 1 Capacity Capacity 6000 TPY Capacity 10000 TPY Capacity 23000 TPY Capacity 43000 TPY Capacity 3500 TPY Capacity 1300 TPY Capacity 10000 TPY 2.5 MW

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Power Plant 2 Chemical recovery plant

6 MW 145 BD MT solids per day

 RAW MATERIALS
The profitable manufacture of paper will be increasingly influenced by the availability of raw material. In this raw material-sensitive business, Yash Papers is attractively placed for the following reasons:  We do not use wood but bagasse as our principal raw material. This will protect it from the raw material under-supply and price increase affecting wood-based paper manufacturers.  We are located in the Faizabad district of Uttar Pradesh, which proximate to a number of sugar mills, creating an easy access to bagasse (Uttar Pradesh is the largest producer of sugarcane in the country with an estimated production of over 112 million tons per annum).  We possess the potential to source nearly 550,000 tons of bagasse from within 250 kms of its plant, nearly three times its post-expansion bagasse requirement.

The raw material used at Yash Papers :
 Bagasse  Old gunny/ jute mesta goods  Imported waste paper  Softwood Pulp

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 ENVIRONMENTAL CONCERNS
At Yash Papers, we believe that we must conduct business not only with a respect for economic viability but also environmental responsibility. This responsibility has been woven into the business in a fundamental way. For instance, bagasse, a cane by-product and the principal raw material, is more environment-friendly than wood. At Yash Papers, respect for environment management is not just a senior management agenda; it is an across-the-board commitment. Over the years, it has sensitised all employees towards the need for environment protection, resulting in a clean and green factory comprising effective waste segregation and disposable with compost pits for biodegradable waste. Environmental concern are reflected in the following measures:  CHEMICAL RECOVERY PLANT Yash Papers is one of the few agro based units in the world to have its own chemical recovery system. Over 90% of Caustic Soda (NaOH) used in the pulp cooking system is recovered and recycled.  EFFLUENT TREATMENT PLANT The anaerobic effluent treatment system has a primary, a secondary and a tertiary clarifier along with large lagoons for microorganism growth and aeration tanks for oxidation that purifies water to the extent of it being usable for agricultural purposes.

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 SOLID WASTE Most of the solid waste generated during manufacture is either reused or sold for use in downstream products. The solid waste or sludge generated is used to produce sundried boards while the rest is disposed as landfill.  AIR POLLUTION All operational boilers in the Company are accompanied by an Electro Static Precipitation that enables additional collection of any ash particles before flue gases are let into the atmosphere.  NOISE POLLUTION The principal source of noise pollution inside a paper mill is derived from the vacuum pumps. We commissioned special silencers to reduce the noise.  WATER CONSUMPTION The Company is focusing upon reduction in water consumption by reusage of as much water as possible. The target taken at present is 90 cubic meters / PMT of paper which is far lower than prescribed norms.

 PRODUCT
At Yash Papers, our principal objective is to be a dependable one-stop shop for the growing requirements of our customers. Over the years, this translated into product development and the following product range:
  

Hard tissues (18 – 30 GSM) Wrapping grades (30 – 60 GSM) Packaging/ stationery grades (60 – 80 GSM) with average GSM range of 49 – 64.

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Manufacture of speciality paper, out-performing the domestic paper industry growth by a factor of two.

Product range comprising the manufacture of unbleached kraft paper including hard tissues (28–30 GSM), wrapping grades (30–60 GSM) and

packaging/stationery grades (60–80 GSM) with average GSM range of 49–64.

Commenced the production of MG poster paper (26–70 GSM), extensively used in FMCG (soaps, detergents,packaged food and health drinks, among others) and pharmaceutical (band-aid and medicine packaging) applications.

Alternative paper varieties catering to the growing downstream demand for matchboxes, bidi covers,cigarette recliners, gum tape, plywood, coated papers and tea pouches, among others.

The full product list: Variety code DEP DER SDP SDR GDP GDR GSP GSR Variety description Deluxe plain Deluxe ribbed Super deluxe plain Super deluxe ribbed Golden deluxe plain Golden deluxe ribbed Golden super deluxe plain Golden super deluxe ribbed

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The full product list of poster/ hard tissue Variety code ASP TDP REP NSP Variety description Alkaline Sized Poster Titanium Dioxide Loaded Poster Regular White Poster Natural Shade Poster

PAPER GRADES CODE

 Code Disrciption
1: DEP 2: DER 3: DOR 4: GDP 5: GSR 6: GSP 7: GDR 8: KGT 9: KEP 10: KFR 11: LSR 12: MSP 13: SDP 14: SDR Deluxe Plain Deluxe Ribbed Deluxe Orange Ribbed Golden Deluxe Plain Golden Super Deluxe Ribbed Golden Super Deluxe Plain Golden Deluxe Ribbed Kraft Gum Tape Base Kraft Envelop Plain Kraft Fire Work Ribbed Light Shade Ribbed Malpani Super Deluxe Plain Super Deluxe Plain Super Deluxe Ribbed

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15: ASP 16: DPR 17: DPP 18: NSP 19: NSR 20: PCB 21: PFB 22: PTB23: PRB 24: PGT 25: REP 26: RER -

Alkali Resistence Soap Resistence Deluxe Pink Ribbed Deluxe Pink Plain Natural Shade Poster Natural Shade Ribbed Poster Chromo Base Poster Foil Base Poster Thermal Base Poster Release Base Poster Gum Tape Base Regular Poster Plain Regular Paper Ribbed

27: SWB - Soap Wrapper Base 28: ODD - B Quality 29: OSD 30: RCP 31: SCP 32: SSP Super Deluxe- B Quality Regular Side Cut Poster Side Cut Plane Super Deluxe Side Cut Plain

 BUSINESS
 The largest manufacturer of low-grammage unbleached kraft paper through the ‘green’ route (bagasse raw material) in India.  Commenced the production of white paper (various grades of MG poster paper) through the installation of paper machine III in 2007-08.With this, we possess the largest installed capacity of poster paper in the country, producing up to 23,100 MT per year.

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 Commissioned an integrated infrastructure comprising a state-of-the-art 130-tpd pulping stream, chemical soda recovery plant and a 6-MW cogeneration facility.  Realigned the Company’s operating period from the calendar year to a financial year, resulting in a 15-month working period in 2007-08.  Focused on the development of customerspecific speciality paper grades.  Listed on the Uttar Pradesh Stock Exchange, Kanpur and Bombay Stock Exchange, Mumbai.

 POST-BALANCE SHEET DEVELOPMENTS
 Fully commercialized PM III with an average capacity utilization of 70 percent (first quarter of 2008-09).  Secured PM III paper supplies to Hindalco, Hindustan Unilever and McDonald’s converters, among others.  Completely switched production on PM III from unbleached paper to bleached varieties in April 2008, enhancing realizations.  Stabilized the cogeneration of power with an average plant load factor of 79 percent in the first quarter of 2008-09; caustic recovery stabilized at 88–90 percent during the period under review.  Commenced sales of excess pulp from June 2008,helping enhance revenues while efficiently utilizing idle plant capacity.  Increased income by 118.36 percent to Rs 1855.42 lacs in Q1 FY’09 compared with Rs 870.48 lacs in the corresponding quarter of the previous year.  Increased EBIDTA by 390 percent to Rs 457.83 lacs in Q1 FY’09 compared with Rs 93.42 lacs reported in the corresponding quarter of the previous year.  Strengthened cash profit by 627.96 percent to Rs 125.50 lacs in Q1 FY’09 compared with Rs 17.24 lacs in the corresponding quarter of the previous year.  Reinforced post-tax profit to Rs 13.45 lacs in Q1 FY’09 compared with a loss of Rs 84.68 lacs reported in the corresponding quarter of the previous year.

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 LOCATION
 Mills located in the Faizabad district of Uttar Pradesh, India’s largest sugarcane belt, facilitating the easy procurement of bagasse, our primary raw material.  Products distributed through a network comprising 37 dealers in India; exports to more than 15 countries.

 MANAGING RISKS AT YASH PAPERS
Risks are integral to business. At Yash Papers, risk management encompasses an organised and coherent process of identifying, assessing,prioritising and managing the existing and potential risks in a planned manner. The management strives hard to balance business risks and opportunities and analyse potentially negative or positive outcomes.

 BUSINESS ENVIRONMENT RISKS Competition as well as supply-demand imbalances in the paper, packaging and wood product industries – which are mature, capital-intensive and highly competitive – impact profitability. Yash Papers’ principal competitors include a number of large domestic companies and numerous regional organisations.

Economic cycles and changes in consumer preferences may reduce product demand and affect profitability. The ability to respond to evolving customer tastes and develop new products on a competitive basis entails continuous market and end-use monitoring.

Increased input costs comprising energy, fibre, other raw materials, transportation and labour might dent profits. Securing access to low-cost supplies and proactive management of costs and productivity are of fundamental importance.

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Changes in legislation, especially environmental regulations, may affect Yash Papers’ operations. However, the Company’s adherence to environment norms acts as an effective hedge against official censure.

 BUSINESS DEVELOPMENT RISKS
Business development risks are mainly related to the Company’s strategy and also include risks related to the supply and availability of natural resources, raw materials and energy. Yash Papers intends to reduce business volatility by preparing a less cyclical portfolio. It aims to enhance profits through greenfield, inorganic growth options and operational improvements in the existing production base. Besides,the export value in the growth markets may be affected by political,economic and legal developments in those countries. Yash Papers manages these risks through export guidelines to ensure strategic and financial targets, in addition to considering the environmental and socialresponsibility risks.

 RAW MATERIAL RISKS
Non-availability of fibre may disrupt the supply chain, forcing the Company to pay higher prices or alter manufacturing operations.Yash Papers is adequately derisked in this regard. The primary raw materials consumed by the Company are bagasse (a byproduct of sugarcane), wheat straw and other long-fibres like softwood, old gunny and kraft carrier board. Yash Papers, located in the Faizabad district of Uttar Pradesh, is proximate to the country’s two largest sugar mills and other smaller ones, ensuring adequate resource availability. The apparent threat of bagasse unavailability following an increase in its captive use for power generation is inaccurate, as power generation becomes unviable below a certain capacity level.Single-location capacity enhancement becomes a constraint because of high capital expenditure and well defined cane procurement areas.The Company signed long-term contracts with suppliers, creating sustainable supplies. It also marketed clonal eucalyptus trees to

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farmers and landowners of the region, ensuring a regular supply of wood fibre with the possibility of setting up a wood-based paper manufacturing line in 2008-09.

 HUMAN RESOURCE RISK
A talented and hardworking human pool is the key to the success at Yash Papers. The Company evaluates the competence of its personnel through surveys and other assessments. Structured programmes are conducted to train employees and an annual succession planning process hedges against attrition.

 CLIMATE CHANGE RISKS
To mitigate the effects of climate change, Yash Papers seeks opportunities to reduce its carbon footprint. The Company implements clean, affordable and safe energy practices required for the production, transportation and reduction of energy

consumption.Additional measures include energy-efficiency initiatives, use of carbonneutral biomass, utilisation of combined heat and power and sequestration of carbon dioxide in forests and forest products.Moreover, wood products are an attractive alternative to carbonintensive products. The company’s environment focus through the clean development mechanism (CDM) earned it 23,500 CERs,translating into an attractive income of Rs 2.10 cr in 2007-08. The income, thus accrued, increased due to a change in the monitoring period dates and extension of the working period by three months,up to 30 June 2008; the monitoring report is expected to be posted on the UNFCCC site soon.

 MARKET RISKS
Risks related to demand, price, competition, customers, suppliers and raw materials are regularly monitored and evaluated to get a perspective of the Company’s profit-making potential. Cyclical product prices are affected by changes in capacity and production in the industry. Customer demand for products, which also determine prices, is influenced by economic conditions and inventory levels.While prices differ across products and

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geographic regions, changes in raw material and energy costs can also upset profits, as raw material resources accounts for 23.17 percent and power and fuel 18.57 percent of the Company’s production costs (including depreciation).

 OCCUPATIONAL HEALTH AND SAFETY (OHS) RISKS
Yash Papers aims at creating workplaces free from accidents and work-related illnesses. Workplace accidents cause human suffering and temporary disruption in operations. The Company faced minimal safety hazards, resulting in low lost-time injury frequency rate (LTIFR).

 FINANCIAL RISKS
Financial risk management insulates against fiscal volatility. The objectives and principles are defined in the Company’s financial risk policy, which is regularly reviewed and approved by the Board of Directors. Besides, compliance is monitored by internal controls and audits. Yash Papers is also exposed to different kinds of market risks,such as currency risk, funding risk and interest rate risk, among others.

 INFORMATION TECHNOLOGY RISK
Yash Papers operates in a business environment where information is necessary to support business processes. The Company’s ERP systems,aided by its IT functions and standardised business applications,support the development of new IT infrastructure and monitor IT processes continually. These activities reduce risks related to internal control and financial reporting, besides promoting informed decisionmaking.

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 COMPANY POLICY
We at Yash Paper are committed to strengthen our position as market leader in manufacturing of writing and printing paper and rayon grade pulp by developing a company wide culture that promotes :  Customer delight  Quality, Environment, Safety and Information Security initiatives  Environment friendly, Safe and Energy efficient operation  Protecting Information of all Stakeholders We will continuously pursue for :  Continual improvement in our products, processes & services in all areas.  Protecting information assets and customer information from all threats through the implementation of suitable information security management systems.  Remain incompliance with applicable legislations.  Communicate and reinforce this policy through out the company.  This policy is made available to employees and on request to interested parties.

 CORPORATE MISSION
To achieve growth and leadership through the JK brand equity, customer obsession, technological innovation and cost leadership, with a clear focus on environment, while continuously enhancing shareholder value

 QUALITY POLICY
To provide 'customer delight' - both internal and external - through our products and services at lowest cost by continuous improvement in processes, productivity, quality and management systems

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 CORPORATE VISION
To be a dynamic benchmark and leader in the Indian paper industry

 THE FALAFEL MAY BE QUINTESSENTIALLY TURKISH. THE PAPER INTEGRALLY INDIAN FROM YASH PAPERS.
Few consumers may know of us; few industries don’t. Because at Yash Papers, we have created a range of papers to help our customers make better products. So that their consumers, in turn, can benefit from enhanced convenience.

The result is that Yash’s products address the growing needs of diverse downstream sectors like food, pharmaceuticals, stationery, personal care, household products and industrial applications.

 THE LOCATION MAY BE INTERNATIONAL. THE PAPER USED IN PRODUCT PACKAGING COMPLETELY INDIAN FROM YASH PAPERS.
 The bottom line is a customer’s smile.  The bottom line is a repeat product offtake using our products.  The bottom line is enhancing the brand of our customer.

At Yash Papers, we have integrated sales, marketing, technology and manufacturing competencies. Unleashing the potential of these resources. To keep packaged foods safe, fresh and hygienic. Working closely with newer technologies. But actually getting closer to people.

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 APPLICATIONS ACROSS SECTORS AND INDUSTRIES SOLUTIONS FROM YASH.
At Yash Papers, we are committed to converge all our resources to understand customer problems and provide relevant solutions.This ability has been institutionalised through the recruitment of specialists. Specialists who understand industry

requirements.Specialists who can stand in the customer’s shoes. Specialists with in-depth knowledge and application knowhow.Providing a superior price-value proposition.

 ENDURING APPLICATIONS FROM YASH PAPERS
Textbook covers would require to be changed twice a year. Before Yash Papers came in. We researched. We customised. We manufactured. We tested. We improved. We delighted. Our consistent focus on technology and service is the driving force leading to superior performance.

 THE BRAND MAY BE MULTINATIONAL. THE PACKAGING PAPER YASH.
At Yash Papers, we combine the principles of teamwork, innovation and marketing. The result is a loyal customer relationship with personal healthcare companies. Addressing product safety, convenience and sophistication.Creating the best possible products at home, work or on-the-go.

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MANAGERIAL HIERARCHY

Name
Mr. G Narayana Mr. Ved Krishna Ms. Manjula Jhunjhunwala Mr. R.N. Chakraborty Mr. G.N. Gupta Dr. P Banerjee Ms. Sheetal Jhunjhunwala Mr. Basantt Khaitan Mr. Ramesh Narayan Mr. Yash Krishna Mr. K.D. Pudumjee Mr. Nirupam Mishra Mr. Sachin K. Srivastava Mr. Brijesh Maliwal Mr. Atiq Ur Rahman
Mr. Shailesh Singh

Position
Chairman Managing Director Director Executive Director Director Director Director Director Director Director Director Vice-President Marketing Assistant Manager Secretarial Manager - HR Asst. Manager - Export
Asst. Marketing Manager

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PAPER MANUFACTURING
TECHNOLOGY/PROCESS DESCRIPTION:
Yash Paper Limited manufactures paper of various qualities using Bagasse as raw material. The production process is as follows:

Wood

Chipping

Digester

Washing

Screening

Causticing

Recovery Boilers

Evaporator Bleaching

Bagasse

Fiber Preparation

Digester

Washing

Bleaching,Screeing & Cleaning

Waste Paper

Waste Paper Processing

External Pulp

Slushing

Stock Preparation

Paper Machine & Finishing

Paper Manufacturing Process

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BALANCE SHEET OF COMPANY

QUARTERLY RESULTS 2008-09
Rupe es in lacs 3 mont hs ended Corresponding Year to Date Yea r to Date 3 mont hs figures for figures ended in the Cur rent for the Period previous 15 previous period ended mont h period ended 31/03/2008 Una udit ed 1418.28 110.31 1528.59 65.89 333.37 218.42 181.02 128.17 174.97 196.11 1297.95 230.64 230.64 305.55 (74.91) (74.91) (353.58 ) 278.67 278.67 31/03/2009 Una udit ed 8358.14 402.99 8761.13 35.50 2745.87 1321.55 1641.92 481.55 633.90 1056.34 791 6.63 844.5 844.50 1136.53 (292.03 ) (292.03 ) (44.50) (247.53 ) (247.53 ) 31/03/2008 Audited 5141.24 295.10 5436.34 (260.08 ) 1462.37 1016.36 1158.52 467.45 548.70 794.35 5187.67 248.67 248.67 787.70 (539.03 ) (539.03 ) (214.80 ) (324.23 ) (324.23 )

Particulars 31/03/2009 Una udit ed 2315.77 85.05 2400.82 53.66 877.08 340.34 379.28 147.51 159.13 293.97 2250.97 149.85 149.85 295.91 (146.06 ) (146.06 ) (67.90) (78.16) (78.16)

1. (a) Net Sales/I ncome from Operations (b) Othe r Operating Inco me 2. Expenditur e a. Incre ase/decrease in stock in trade and work in progress b. Cons umpt ion of raw mate rials c. Manu fact uring exp ense s d. Powe r and fuel e. Employe es cost f. Depreciation g.Other expe nditure h. Total 3. Profit from Operations before Other Income , Interest and 4. Othe r Income 5. Profit before Interes t and Excepti ona l Items (3+4) 6. Inte rest 7. Profit afte r Inte rest but before Exceptiona l Items (5-6) 8. Exceptional ite ms 9. Profit (+)/ Loss (-) from Ord inar y Activit ies before tax 10. Tax expense 11. Net Profit (+)/ Loss (-) from Ordinar y Activit ies afte r tax (9-10) 12. Extr aordinary Item (net of tax expense Rs. 13. Net Profit( +)/ Loss (-) for the per iod (11-12) 14. Paid-up equity share capital )

180

(Face Value of the Shar e shal l be indicat ed) 15. Rese rve excl uding Reva luation Rese rves as per balance shee t of pre vious acco unti ng year 16. Earnings Per Shar e (EPS) a) Basic and diluted EPS before Extraordi nary items for the period, for the year to date and for the previous year (not to b) Basic and diluted EPS afte r Extraor dinary ite ms for the period, for the year to date and for the previous year (not to - No. of shar es - Per centag e of shar eholdin g 18. Promote rs and promote r gro up Shareholding ** a) Pledged/Encumber ed - Numb er of shar es - Per cent age of shar es (as a % of the total shareholding of - Per cent age of shar es (as a% of the total shar e capital of b) Non -encu mbered - Numb er of Shar es - Per cent age of shar es (as a% of the to tal shareholding of - Per cent age of shar es (as a % of the total shar e capital of

2400.00 (0.33)

2256.55 1.23

2400.00 (1.03)

2256.55 1408.63 (1.51)

(0.33) 1579698 9 65.82

1.23 1579698 9 70.01

(1.03) 1579698 9 65.82

(1.51) 1579698 9 70.01

3168600 38.63 13.20 5034411 61.37 20.98

3168600 46.81 14.04 3599911 53.19 15.95

3168600 38.63 13.20 5034411 61.37 20.98

3168600 46.81 14.04 3599911 53.19 15.95

181

Particulars 1. Net Sales a)Gross sales/income from operation Less: Excise Duty b)Other Operating Income 2. Total Operating Income 3. Total Expenditure a. (Increase)/decrease in stock in trade b.Consumptions of raw materials c. Manufacturing expenses d.Power and fuel e.Employees cost f. Depreciation g.Other expenses 4.Profit from Operations before Other Income, Interest 5. Other Income 6. Profit before Interest and Exceptional Items 7.Interest 8.Profit/(Loss) after Interest but before Exceptional 9. Exceptional Items 10.Profit/ (Loss) from Ordinary Activities before 11. Tax Expense 12. Net Profit/(Loss) from ordinary Activities after 13. Extra Ordinary Items 14. Net Profit/(Loss) for the period 15.Paid-Up equity share capital (Face value Rs.10/- each) 16.Reserves excluding revaluation reserves (as per balance sheet) 17.Earning per share 18. Public Shareholding Number of shares Percentage of shareholding

Twelve Nine months months Period ended ended Quarter ended Ended 31 .03.2008 31.12.2008 31.12.2007 31.12.2008 31.12.2007 Audited 2358.90 138.59 2220.31 128.10 2348.41 2127.65 56.93 655.62 345.67 525.17 123.83 157.42 263.01 220.76 0.00 220.76 289.67 (68.91) 0.00 (68.91) (0.60) (68.31) 0.00 (68.31) 2400.00 1207.06 123.29 1083.77 108.78 1192.55 1139.43 (254.62) 366.20 281.63 324.85 85.62 125.08 210.67 53.12 0.00 53.12 218.01 (164.89) 0.00 (164.89) 0.00 (164.89) 0.00 (164.89) 2166.55 6309.44 345.65 5963.79 396.52 6360.31 5665.66 (18.16) 1792.19 1057.81 1262.64 334.04 474.77 762.37 694.65 0.00 694.65 840.62 (145.97) 0.00 (145.97) 23.40 (169.37) 0.00 (169.37) 2400.00 4088.30 363.74 3724.56 141.37 3865.93 3845.83 (329.56) 1110.65 806.27 971.83 294.61 391.88 600.15 20.10 0.00 20.10 532.43 (512.33) 0.00 (512.33) 22.03 (534.36) 0.00 (534.36) 2166.55 5649.35 508.11 5141.24 295.10 5436.34 5187.67 (260.08) 1445.00 1033.73 1158.52 467.45 548.70 794.35 248.67 0.00 248.67 787.70 (539.03) 0.00 (539.03) (214.80) (324.23) 0.00 (324.23) 2256.55 1408.63 (0.14) 15796989 70.01%

(0.03)

(0.08)

(0.07)

(0.25)

15796989 15796989 65.82% 72.91%

15796989 15796989 65.82% 72.91%

(Rs. In Lacs) Six months Nine ended months 30.09.200 8 30.09.200 7 30.09.200 8 30.09.200 7 2198.17 1016.57 3995.56 2881.24 158.75 100.83 207.06 240.45 2039.42 915.74 3788.50 2640.79 117.06 18.22 223.40 32.59 2156.48 933.96 4011.90 2673.38 1762.17 905.13 3220.66 243 9.60 (9.82) (130.08) (75.09) (74.94) 644.09 261.47 1136.57 744.45 384.30 248.66 712.14 524.64 3 83.12 299.15 737.47 646.98 104.21 80.68 210.21 208.99 256.27 145.25 499.36 389.48 279.52 212.57 550.95 314.42 161.40 122.95 317.35 266.80 (46.6 1) (306.69) (77.06) (347.44) Quarter ended 1.50 66.40 (114.51) 2400.00 3.75 (310.44) 2166.55 3.00 21.00 (101.06) 2400.00 11.25 10.78 (369.47) 2166.55 Year ended 31.03.200 8 Audit ed 5649.3 5 508.11 5141.24 295.10 5436.34 4638.97 (260.08) 1445.00 1033.73 1158.52 467.45 794.35 787.70 548.70 (539.03) 9.50 (224.30) (324.23) 2256.55

Particulars Gross sales/income from operation Less: Excise Duty Net sales Other Income Total Income Total Expenditur e a. (Incr ease)/decrease in stock in trade b. i. Consumptions of raw materials ii. Manufacturing expenses iii. Power and fuel c. Staff cost d. Other expenses Interest Depreciat ion Profit before Tax Provision for taxation - Current Tax including FBT - Deferred Tax Net Profit after Tax Paid-Up equit y share capital (Face value Rs.10 /- each) Reser ves exclu ding revaluatio n reser ves (as per balan ce sheet) Earning per share Aggre gate of Non Promo ter Sharehold ing Numbe r of shares Perce ntage of shareholdi ng

(0.05) 15796989 65.82 %

(0.14) 15796989 72.91 %

(0.04) 15796989 65.82 %

(0.17)

1408.63 (0.14)

15796989 1,57,96,989 72.91 % 70.01 %

183

(Rs. In Lacs ) Quarter ended 30.06.2008 1792.04 48.31 1743.73 111.69 1855.42 1458.49 (65.27) 492.48 327.84 354.35 106.00 243.09 271.43 155.95 (30.45) 1.50 (45.40) 13.45 2256.55 30.06.2007 941.34 58.91 882.43 8.05 890.48 797.06 9.08 239.87 158.60 196.98 67.33 125.20 76.18 100.67 (83.43) 1.25 (84.68) 2166.55 Three Six mont hs mont hs ended 30.06.2008 30.06.2007 1792.04 1864.67 48.31 139.62 1743.73 1725.05 111.69 14.37 1855.42 1739.42 1458.49 1534.47 (65.27) 55.14 492.48 482.98 327.84 275.98 354.35 347.83 106.00 128.31 243.09 244.23 271.43 101.85 155.95 143.85 (30.45) (40.75) 1.50 (45.40) 13.45 2256.55 7.50 10. 78 (59.03) 2166.55 Year ended 31.03.2008 Audited 5649.35 508.11 5141.24 295.10 5436.34 4638.97 (260.08 ) 1445.00 1033.73 1158.52 467.45 794.35 787.70 548.70 (539.03 ) 9.50 (224.30 ) (324.23 ) 2256.55

Particulars Gro ss sales/inco me from operation Less: Excise Duty Net sale s Other Income Total Inco me Total Expe ndit ure a. (Increase) /dec rease in stoc k in trad e b. i. Cons umpt ions of raw materia ls ii. Manufactur ing expe nses iii. Powe r and fuel c. Staff cost d. Othe r expense s Int eres t Depreci atio n Profit befo re Tax Provision for taxa tion - Curr ent Tax incl uding FBT - Deferre d Tax Net Profit Paid-Up equity shar e capital (Face valu e Rs.1 0/- each) Reserves excluding revalua tion reserves (as per bala nce shee t) Ear ning per shar e Aggr egate of Non Promoter Shareholding Numb er of shar es Percent age of shar eholding

0.00

0.00

0.00

0.00

1408.63 0.00 1,57,96,98 9 70.01%

1,57,96,98 9 1,54,21,75 6 1,57,96,98 9 1,54,21,75 6 70.01% 71.18% 70.01% 71.18%

184

QUARTERLY RESULTS 2007-08
Quarter ended Particular s Twelve mont hs 31.12.2007 Unaudited 4088.30 363.74 3724.56 141.37 3865.93 3453.95 (329.56 ) 1110.65 806.27 971.83 294.61 600.15 532.43 391.88 (512.33 ) 11.25 10.78 (534.36) 2166.55 Fifteen mont hs Year ended 31.03.2008 31.12.2006 Unaudited Audited 5652.94 3412.92 510.10 319.70 5142.84 3093.22 251.68 36.20 5394.52 31 29.4 2 4576.93 2738.66 (263.67 ) 35.90 1431.68 858.34 1037.03 584.40 1152.85 462.30 422.78 239.61 796.26 558.11 837.98 566.85 (587.24 ) 11.25 (342.80 ) (255.69 ) 2256.55 51.16 160.30 179.30 56.90 12.31 110.09 2066.55 1717.50 0.53

31.03.2008 31.03.2007 1564.64 923.33 Gro ss sales/ inco me from operations 146.36 80.71 Less: Excise dut y 1418.28 842.62 Net sale s 110.31 6.32 Other inco me 1528.59 848.94 Total inco me 1122.98 737.41 Total expenditur e 65.89 46.06 a. (Increase) / decrease of stock -in -trad e 321.03 243.11 b. (i) Consump tion of raw materia ls 230.76 117.38 (ii) Manu fact uring expenses 181.02 150.85 (iii) Powe r and 128.17 60.98 c. Staff cost 196.11 119.03 d. Othe r expense s Interes t Depreci atio n Profit / (Lo ss) before tax Provision for taxa tion 0.00 6.25 - Curr ent tax including FBT (353.58 ) 10.78 - Deferred tax 278.67 25.65 Net pro fit / (Loss) 2256.55 2166.55 Paid-up equity share capital (Face valu e Rs.1 0/ - each) Reserves excluding revalua tion reserves (as per bala nce shee t) 1.23 0.12 Ear nings per shar e - basic and diluted (Rs.) [Not annuali sed] Aggr ega te of non-promoter shareholding 1,57,96,98 9 1,54,21,75 Numb er of shar es 70.01% 71.18% Percent age of shar eholding 305.55 174.97 (74.91) 25.67 43.18 42.68

0.00 1,57,96,98 9 72.91%

0.00

1,57,96,98 9 1,54,21,75 70.01% 74.63%

185

Quarter ended

Particulars

31.12.2007 31.12.2006 1207.06 866.23 Gross sales/ income from operations 123.29 84.70 Less: Excise duty 1083.77 781.53 Net sales 108.78 20.40 Other income 1192.55 801.93 Total income 1014.35 765.65 Total expenditure (254.62) (24.16) a. (Increase)/ decrease of stock-in-trade 366.20 245.39 b. (i) Consumption of raw materials 281.63 154.86 (ii) Manufacturing expenses 324.85 160.09 (iii) Power and fuel 85.62 48.50 c. Staff cost 210.67 180.97 d. Other expenses Interest Depreciation Profit / (Loss) before tax Provision for taxation 0.00 8.78 - Current tax including FBT 0.00 34.90 - Deferred tax (164.89) (61.41) Net profit / (Loss) 2166.55 2066.55 Paid-up equity share capital (Face value Rs.10/- each) Reserves excluding revaluation reserves (as per balance sheet) 0.00 0.00 Earnings per share - basic and diluted (Rs.) [Not annualised] Aggregate of non-promoter shareholding 1,57,96,989 1,54,21,756 Number of shares 72.91% 74.63% Percentage of shareholding 218.01 125.08 (164.89) 13.31 40.70 (17.73)

Rs. in lacs Nine months Twelve Year ended ended months ended 30.09.2007 31.12.2007 31.12.2006 Unaudited Unaudited Audited 2881.24 4088.30 3412.92 240.45 363.74 319.70 2640.79 3724.56 3093.22 32.59 141.37 36.20 2673.38 3865.93 3129.42 2439.60 3453.95 2738.66 (74.94) (329.56) 35.90 744.45 1110.65 858.34 524.64 806.27 584.40 646.98 971.83 462.30 208.99 294.61 239.61 389.48 600.15 558.11 314.42 266.80 (347.44) 11.25 10.78 (369.47) 2066.55 532.43 391.88 (512.33) 11.25 10.78 (534.36) 2166.55 51.16 160.30 179.30 56.90 12.31 110.09 2066.55 1717.50 0.53

0.00

0.00

1,57,96,989 1,57,96,989 72.91% 72.91%

1,54,21,756 74.63%

Quarter ended Particulars 30.09.2007 1016.57 100.83 915.74 18.22 933.96 905.13 (130.08) 261.47 248.66 299.15 80.68 145.25 212.57 122.95 (306.69) 3.75 0.00 (310.44) 2166.55 30.09.2006 922.00 92.04 829.96 3.92 833.88 743.93 15.89 211.20 149.95 119.83 81.93 165.13 9.99 40.20 39.76 Gross sales/income from operation Less: Excise Duty Net sales Other Income Total Income Total Expenditure a. (Increase)/decrease in stock in trade b. i. Consumptions of raw materials ii. Manufacturing expenses iii. Power and fuel c. Staff cost d. Other expenses

Nine months ended 30.09.2007 2881.24 240.45 2640.79 32.59 2673.38 2439.60 (74.94) 744.45 524.64 646.98 208.99 389.48 314.42 266.80 (347.44) 11.25 10.78 (369.47) 2166.55 30.09.2006 2623.23 235.00 2388.23 15.80 2404.03 2049.55 60.06 612.95 429.54 302.21 191.11 453.68 37.85 119.60 197.03 48.12 (22.59) 171.50 2066.55

Year ended 31.12.2006 Audited 3412.92 319.70 3093.22 36.20 3129.42 2738.66 35.90 858.34 584.40 462.30 239.61 558.11 51.16 160.30 179.30 56.90 12.31 110.09 2066.55

0.00 1,57,96,989 72.91%

Interest Depreciation Profit / (Loss) before Tax Provision for taxation - Current Tax including FBT 4.32 (7.92) - Deferred Tax 43.36 Net Profit / (Loss) 2066.55 Paid-Up equity share capital (Face value Rs.10/- each) Reserves excluding revaluation reserves (as per balance sheet) Earning per share - basic and diluted (Rs.) [Not annualised] 0.20 Aggregate of Non Promoter Shareholding 1,54,21,756 Number of shares 74.63% Percentage of shareholding

1717.50 0.00 1,57,96,989 72.91% 0.83 1,54,21,756 74.63% 0.53 1,54,21,756 74.63%

187

Rs. In lacs Quarter ended Particulars Gross sales/income from operation Less: Excise Duty Net sales Other Income Total Income Total Expenditure a. (Increase)/decrease in stock in trade b. i. Consumptions of raw materials ii. Manufacturing expenses iii. Power and fuel c. Staff cost d. Other expenses Interest Depreciation Profit before Tax Provision for taxation 1.25 6.80 - Current Tax including FBT (7.83) - Deferred Tax (84.68) 70.92 Net Profit 2166.55 2066.55 Paid-Up equity share capital (Face value Rs.10/- each) Reserves excluding revaluation Reserves (as per balance sheet) (0.39) 0.34 Earning per share Aggregate of Non Promoter Shareholding 1,54,21,756 1,57,20,189 Number of shares 71.18% 76.07% Percentage of shareholding ended 30.06.2007 30.06.2006 941.34 844.89 58.91 59.79 882.43 785.10 8.05 1.25 890.48 786.35 797.06 661.47 9.08 11.26 239.87 207.64 158.60 143.00 196.98 97.78 67.33 55.23 125.20 146.56 76.18 14.78 100.67 40.21 (83.43) 69.89 30.06.2007 1864.67 139.62 1725.05 14.37 1739.42 1534.47 55.14 482.98 275.98 347.83 128.31 244.23 101.85 143.85 (40.75) 7.50 10.78 (59.03) 2166.55 30.06.2006 1701.23 142.96 1558.27 11.88 1570.15 1305.62 44.17 401.75 279.59 182.38 109.18 288.55 27.86 79.40 157.27 43.80 (14.67) 128.14 2066.55 Six months ended Year ended 31.12.2006 Audited 3412.92 319.70 3093.22 36.20 3129.42 2738.66 35.90 858.34 584.40 462.30 239.61 558.11 51.16 160.30 179.30 56.90 12.31 110.09 2066.55 1717.50 0.53

(0.27)

0.62

1,54,21,756 1,57,20,189 1,54,21,756 71.18% 76.07% 74.63%

Particular s

Gro ss sales/ inco me from operations Less: excise dut y Net sale s Other inco me Total inco me Total expenditur e (a+b +c+d ) a. (Increase) / decrease of stock-in-trad e b. (i) Consump tion of raw materia ls (ii) Manufactu ring expense s (iii) Powe r and fuel c. Staff cost d. Othe r expense s Int eres t Depreci atio n Profit before tax Provision for taxa tion - Curr ent tax including FBT - Deferred tax Net pro fit Paid-up equity share capital (Face valu e Rs.1 0/ - each) Reserves excluding revalua tion reserves (as pe r bala nce shee t) Ear nings per shar e - basic and diluted (Rs.) [No t annuali sed] Aggr ega te of non-promoter shareholding Numb er of shar es Percent age of shar eholding

Quarter ended 31.03.2007 31.03.2006 Unaudited Unaudited 923.33 836.31 80.71 83.17 842.62 753.14 6.32 10.63 848.94 763.77 737.41 624.11 46.06 32.91 243.11 194.11 117.38 136.60 150.85 84.60 60.98 53.96 119.03 121.93 25.67 43.18 42 .68 6.25 10.78 25.65 2166.55 13.09 39.19 87.38 37.00 (6.84) 57.22 2066.55

Year ended 31.12.2006 Audited 3412.92 319.70 3093.22 36.20 3129.42 2738.66 35.90 858.34 584.40 462.30 239.61 558.11 51.16 160.30 179.30 56.90 12.31 110.09 2066.55

0.12

0.28

1717.50 0.53

1,54,21,75 6 71.18%

1,57,97,18 9 76.44%

1,54,21,75 6 74.63%

189

10-YEAR FINANCIAL SUMMARY
Rs. in lacs

OPERATING RESULTS
Mar-99 Operating Results Sales And Other Income Raw Material Manufacturing Expenses Power And Fuel Stores And Repairs Salaries And Wages Administrative And Selling Expenditure Interest Earning Before Tax And Depreciation Depreciation Provision For Taxation Current Tax Deferred Tax Net Profit Earnings Per Share (Rs.) Dividend % 31.08 0.81 1729.72 407.905 288.38 276.87 110.92 122.10 237.10 1905.16 449.01 339.59 227.84 102.23 148.70 296.52 2246.45 432.60 432.06 259.92 120.26 161.22 448.13 2195.19 413.14 435.24 242.44 113.67 158.25 415.48 1918.23 376.33 266.66 222.62 98.41 140.32 389.94 Mar-00 Mar-01 Mar-02 Dec-02 (Nine Month)

147.69 138.71

149.52 191.75

133.87 258.39

141.64 275.33

80.57 343.34

103.93

107.42

115.44

131.86

104.10

3.70

9.75 74.58 1.93 -

12.50 130.45 3.37 -

11.00 55.29 77.18 2.00 5.00

18.84 85.24 135.16 3.50 10.00

190

Dec-03

Dec-04

Dec-05

Dec-06

Dec-08 (15 Month)

Operating Results

Sales And Other Income Raw Material Manufacturing Expenses Power And Fuel Stores And Repairs Salaries And Wages Administrative And Selling Expenditure Interest Earning Before Tax And Depreciation Depreciation Provision For Taxation Current Tax Deferred Tax Net Profit Earnings Per Share (Rs.) Dividend %

2725.05 614.84 425.33 488.72 101.86 180.41 564.58

2932.42 705.80 441.96 353.98 150.90 187.80 609.99

2975.17 805.79 522.43 393.61 146.43 222.14 583.27

3413.21 858.34 584.40 462.30 200.76 239.61 677.03

6204.53 1445.00 1033.73 1158.52 315.15 467.45 987.30

87.90 261.61

73.09 408.90

59.71 241.79

51.16 339.61

787.71 9.67

141.64

142.84

147.72

160.31

548.70

39.55 (7.07) 87.49 2.26 10.00

95.75 11.81 158.50 4.10 12.50

52.00 (55.24) 97.31 0.90 -

56.90 12.31 110.09 0.53 -

9.50 (224.30) (324.23) (1.51) -

191

FINANCIAL SUMMARY ASSETS EMPLOYED
Mar-99 Mar-00 Mar-01 Mar-02 Dec-02 (Nine Month)

Financial Summary Assets Employed Fixed Assets (At Cost) Fixed Assets (Net) Investments Current Assets (Net) Total Assets Financed By Total Shareholders' Funds Share Capital Reserve And Surplus (Net) Deferred Tax Liability Borrowings Long Term Short Term Debt: Equity Other Information Production In MT 10980 12319 12757 12820 11188 1203.04 386.55 816.49 848.94 576.41 272.53 0.70 1284.89 386.55 898.34 910.44 600.06 310.38 0.71 1420.13 386.55 1033.58 1032.02 736.13 295.89 0.73 1537.24 386.55 787.47 363.22 914.47 677.31 237.16 0.59 1719.68 386.55 884.67 448.46 606.53 560.28 46.25 0.35 2204.25 1600.63 5.25 446.10 2051.98 2353.59 1669.53 5.31 520.48 2195.32 2691.67 1906.28 5.31 540.56 2452.15 2845.29 1949.92 1.81 499.98 2451.71 2930.64 1944.46 1.76 379.99 2326.21

192

Dec-03

Dec-04

Dec-05

Dec-06

Dec-08 (15 Month)

Financial Summary Assets Employed Fixed Assets (At Cost) Fixed Assets (Net) Investments Current Assets (Net) Total Assets Financed By Total Shareholders' Funds Share Capital Reserve And Surplus (Net) Deferred Tax Liability Borrowings Long Term Short Term Debt: Equity Other Information Production In MT 14795 14762 15063 16158 24929 1753.04 386.55 925.11 441.38 655.55 452.14 203.41 0.37 1868.72 386.55 1028.98 453.19 607.44 329.67 277.77 0.33 4096.91 2066.55 1632.41 397.95 843.37 595.50 247.87 0.21 4194.31 2066.55 1717.50 410.26 6221.57 5934.89 286.68 1.48 3874.24 2279.65 1408.63 185.96 9100.15 7838.46 1261.69 2.35 2987.38 1898.21 0.26 510.12 2408.59 3122.33 1906.86 0.06 569.24 2476.16 4200.40 2855.71 410.67 1673.90 4940.28 10631.22 9142.69 0.06 1273.13 10415.88 13423.32 11431.64 0.06 1542.69 12974.39

193

CHAPTER 6 DEMAND AND SUPPLY MANAGEMENT DISCUSSION AND ANALYSIS
 GLOBAL PAPER AND BOARD INDUSTRY
Paper touches our lives every moment. Paper products are used in education, healthcare, food, trade, communication and packaging. The global paper and board industry is considered to be a key economic activity, accounting for over 2.5 percent of the world’s industrial production (in value terms) and about two percent of its trade. The industry is sensitive to macroeconomic trends and process cyclicality, influenced by economic advancement, industrial output, global trade, consumption, promotion , population, literacy and demand-supply. Worldwide, the industry remained relatively fragmented with the top five paper manufacturers controlling between 20–40 percent of the regional markets where they operated. The estimated consumption of paper and board in 2007 across key regions of the world is indicated in the table below:

The demand for printing and writing paper grew slowly in 2007 with the global demand being one percent higher than in 2006. Growth in emerging markets such as Eastern Europe and China was strong, while demand in North America declined by three percent due to economic deceleration. In Western Europe, the demand for printing and writing paper rose by over two percent and the demand for sub-grades increased coated magazine paper demand (speciality paper) by nearly four percent. With rising internal consumption in Europe, paper exports (especially the coated magazine varieties) to other regions declined considerably in 2007.

194

The demand for carton board was stronger in 2007 vis-à-vis2006, especially in Europe and North America. Besides, China and India witnessed a significant hike in demand for this variety, driven by robust economic growth, high levels of onsumerism as well as enhanced industrial and trade activities. The global demand for newsprint moderated by one percent in 2007 as advertising spending and daily newspaper circulations declined, especially in the USA, where demand dropped by a significant 10 percent. In Europe, digital newspapers failed to make a dent over the traditional format, resulting in unchanged demand for newsprint. However, Asian demand (excluding Japan) surged by six percent with China contributing to a whopping two-thirds of this increase. Besides, growing literacy and new technology resulted in India emerging as the second largest newspaper market in the world (source: World Association of Newspapers). The study shows that the four largest newspaper markets comprise China, India, Japan and the USA with 107, 99, 68 and 51 million copies sold daily. Interestingly, 74 of the world’s 100 best-selling dailies are published in Asia. India, China and Japan together account for 62 of them. The demand for wood products was strong in the first half of 2007, but the market became heavily oversupplied in the latter half. The situation deteriorated towards the end of the year as a result of weaker seasonal demand in Europe and difficult market conditions in Japan and North America.

Outlook: The demand for paper varied considerably from region-to-region. In USA the demand for paper and paper products is likely to be modest over the short- to mediumterm. Similarly, the fast-maturing economies of Western Europe and Japan are expected to witness a slowdown in the demand and consumption of paper and paper products. However, this deceleration is expected to be more than compensated by robust growth continuing out of Eastern Europe and Asia (China and India).The world demand for paper and paperboard is forecast to grow by 2.1 percent annually in the longterm,reaching a projected 402 million tonnes by 2010 and an estimated 490 million tonnes by 2020. Consequently, the per capita paper consumption is also expected to rise from 54 kg in 2003 to 65 kg by 2020 (Pöyry's World Paper Markets 2020).

195

 INDIAN PAPER INDUSTRY
The Indian paper industry is among the fastest-growing regions in line with India’s GDP growth (second fastest at 9 percent in 2007-08). Interestingly, though it took nearly 50 odd years to reach a demand level of around seven million tonnes of paper, the country expects to add the next seven million tonnes over a mere seven years to reach 14 million tonnes by 2015 (Indian Paper Manufacturers Association).The Indian paper market, growing thrice as fast as the global average, is ranked 18th globally in production and 15th in consumption. The country accounts for 4.7 percent of the Asian and 1.5 percent of the world’s paper consumption. It provides employment to more than 1.3 million Indians and contributes around Rs 25 billion annually to the Indian exchequer by way of taxes.

Structure: Low focus on technology, scale and resource availability fragmented the
Indian paper industry. There are nearly 568 operational mills in India, out of which most are privatized , the rest government-owned. The country’s paper industry consumes a large variety of raw materials comprising agro-residues, virgin fibre and recycled fibre, among others, to produce a vast portfolio of paper products.

 READING, WRITING AND ARITHMETIC
 The global paper and paperboard products industry was about 350 million tonnes per annum, recording an annual growth of two percent.  The USA was the leading global manufacturer of paper and paperboard (around 90 million tonnes per annum) and consumer (about 100 million tonnes per year).  Europe accounted for roughly 108 million tonnes per annum of paper and pulp production, consuming 94 million tonnes per annum.

196

 Asia accounted for around 37 per cent of the global demand, up from less than 20 percent in 1980. This was primarily due to higher economic growth in China and India.  In an interesting trend, Asia intensified its production to meet the growing demand for paper and paper board and reduce its dependence on imports.

Indian paper industry billion

Indian paper industry Rs. 211 billion

Paper and paper boards Rs. 211 billion

Newspront Rs. 33 Billion

Speciality Paper Rs. 13 Billion

Writing And Printing Paper Rs. 76 Billion

Industrial Paper Rs. 89 Billion

India imports a bulk of its speciality paper requirements

Kraft Rs. 48 Billion

Duplex Rs. 25 Billion

Gray And White / MG Poster Rs. 16 Billion

197

 DEMAND/ CONSUMPTION
India’s paper and paper board demand was estimated at around eight million tonnes in 2007, the market recording a near eight percent growth. Value-added coated paper/ paper board recorded the fastest growth at around 20 per cent, driven by rising disposable ncomes, higher spending propensity and rising sophistication. It is worth noting that India imports the bulk of its Rs 13-billion worth of speciality paper requirements. Similarly, the country also imports a large percentage of its MG poster paper requirements. This provides attractive import substitution opportunities for players like Yash Papers, focused on meeting the attractively growing niche industrial paper requirements. According to fresh estimates by the Indian Paper Manufacturing Association (IPMA), the domestic demand for paper is expected to touch 15 million tonnes by 2015 on account of an emphasis on literacy, increased percapita income, increasing use of photocopiers and printers, higher export growth and demand for quality packaging.

PRODUCT-WISE DEMAND
FY’06 INCREASE % Creamwove 1232 3.9 FY’ 07(E) 1281 3.9 INCREASE %

(‘000 tonnes) FY’ 08(E) 1332 3.9 INCREASE %

Maplitho

601

4.7

631

4.9

661

4.7

Copier

147

15.7

170

15.6

197

15.8

Coated paper

317

8.5

346

9.1

378

9.2

Industrial paper Speciality paper

3600

6.6

3819

6.0

4051

6.1

258

7.9

277

7.4

297

7.2

198

 CAPACITY/ PRODUCTION
The aggregate paper manufacturing capacity in India is estimated at around 7.5 million tonnes per annum. The country’s incremental paper requirement (demand less production) was met through increased capacity utilisation as opposed to greenfield asset commissioning. Jaakko Poyry, a leading consultant on forestry and environment sectors, estimated India’s installed papermanufacturing capacity at a comparatively slower growth of 3.70 percent to 8.75 million tonnes per annum in 2008-09.Paper manufacturers are increasingly looking at securing raw material reserves before committing fresh investments. A strong case in point is Ballarpur’s (BILT) acquisition of Sabah Forest Industries, the largest integrated pulp and paper mill in Malaysia, which holds the concession for a massive 2.89 lakh hectares of forest land. Post this acquisition, BILT announced capacity expansions at its paper mills in India.Together with this, the country’s paper industry announced investments worth USD 2.5 billion over the next two–three years to add two million tonnes of fresh capacity, improve competitiveness and eat into imports. These new capacities are expected to be world-class not only in technology but also environmental compliances, enabling investors to enhance profitability.

 Prices
Paper prices rose across the board over two years concurrent with a visible shift in paper demand from low-quality to higher-end grades. Coupled with a strong ‘cost push’ (endpaper prices increasing on account of higher input costs), there was a respectable growth in realisations (indicated in the chart) for a number of speciality and high-end paper varieties comprising poster paper, copier paper, coated paper, creamwove and maplitho, among others. A near-doubling of paper demand to 15 million tonnes by 2015, combined with a slower and non-commensurate capacity growth, is likely to bolster average endproduct realisations.

199

 DEMAND DRIVERS

 ECONOMIC BOOM AND LIFESTYLE CHANGES

With India’s economic growth rate more than doubling over the last decade and recording an impressive 9.0 percent in 2007-08, paper demand is increasing rapidly. Growing cell phone subscribers needing bills, credit-card statements ,increased printmedia advertisements, greater number of purchases and innovative packaging, etc, are catalyzing paper demand .Growing literacy: Rising literacy (1.5 percent annual growth as per National Sample Survey Organization ) is directly proportional to paper consumption growth .India’s average literacy rate increased 200 basis points over the two years leading to 2008, attributed to an augmented investment in education. Government spending surged 12 times over the last 10-15 years in education, along with an 11-time increase in private sector spending during the same period. According to the Department of Education, the government is implementing policies to ensure a minimum eight years of education to every Indian citizen by 2010. Print media: India’s print media is the most significant economic and business category within the media sector. Almost 48 percent of the total media buying goes to print. It touches a population of around 250 million with an urban penetration of 45 percent. The country’s print media is fragmented with 2,094 registered newspapers,89 percent of which are Hindi and vernacular mastheads .The print media enjoys a massive readership of 225.3 million. Besides, an increasing number of new dailies in various vernaculars are launched annually, casting a wider readership base and strengthening the demand for newsprint and other varieties (through advertising).

 CORPORATE GROWTH: Corporate growth drives paper demand due to the necessity to maintain records and increase regulatory filings. The increasing integration of global corporates with Indian counterparts strengthened documentation needs manifold, catalysing paper 200

requirement. Besides, the expanding operations of Indian businesses is creating fresh avenues for external funding from banks and other institutions (domestic and international), necessitating significant documentation.  INDUSTRIAL TRADE: India emerged as a preferred global sourcing destination for a number of sectors, fuelling paper demand. Consider this: exports grew from around US$ 115 billion in 2006-07 to approximately US$ 155 billion in 2007-08. Moreover, the Government set an ambitious export target of US$ 200 billion in 2008-09, which will drive demand.

 WHITE GOODS AND CONSUMER DURABLES: The demand for electronic goods in India is expected to quadruple in five years with rising disposable income levels. This is expected to create a significant opportunity for packaging boards. Besides, over the next few years, the consumption of mobile phones will grow at approximately 41 percent annually, televisions at 13 percent and set-top boxes (STBs) at 43 percent. Eleven major listed FMCG companies averaged 20 percent sales growth in 2007-08, indicating a spurt in paper demand for packaging, billing and advertisements.

 COMMODITY EXPORTS: The Agricultural and Processed Food Export Development Authority of India (APEDA) envisions agricultural exports of the six major agro commodities to the extent of Rs 100 billion a year. The consumption of corrugated boxes in India is under 20 percent of all packaging material, a figure expected to improve considerably, considering bright export prospects. Incidentally, the global average for the consumption of corrugated cartons is over 35 percent of all packaging items.

201

 OUTLOOK
The Indian paper sector is witnessing a massive USD-2.5 billion capital expenditure programme, the largest in its existence, expected to enhance manufacturing capacity by 2 million tonnes per annum. Out of this, around 1.5 million tonnes will be for writing and printing paper with the rest for industrial paper varieties. The demand for industrial paper is expected to increase by around 7.5 percent on the back of a healthy growth in the manufacturing sector, whereas writing and printing paper demand is projected to grow by 7 percent (source: CRISIL). Realisations and margins of industrial paper are expected to remain robust with capacity additions matching the incremental demand over the next two three years, resulting in a stable demand-supply situation.

GRADE-WISE DEMAND FORECAST IN INDIA (‘000 tonnes)
VARIETY 2006-07 2007-08 2008-09 (E)

Writing And Printing Paper Uncoated Paper

22419 2419 32075

2555

2701

2182

2296

Coated Paper

344

373

405

Industrial Paper

3841

4100

4379

Kraft

2110

2263

2427

MG Poster

310

315

320

202

The domestic paper industry was significantly underpenetrated . Although India had the second largest population in the world at around 1.1 billion, its per capita paper consumption at around seven kg remains less than one-sixth the global average. However, this scenario will change with the demand for paper and paperboards in India, projected to grow at a CAGR of over 6.5 percent to an estimated eight million tonnes in 2008-09. Within Asia, which is growing faster than other large-scale paper-consuming continents, India is expected to report the sharpest demand surge on account of an increasing focus on literacy, corporate profitability, expanding population, higher disposable incomes and larger spending. It is indicated that a mere one kg per capita increase in consumption in the country can potentially spur incremental paper demand to the extent of a million tonnes per annum.

Total demand for various grades of paper in India up to 2020 (tonnes)
Paper grade 2010 2015 2020

Newsprint

1400

2000

2400

Printing and writing paper Carton boards

3200

4000

5200

1400

1800

2400

Container boards

1900

2500

3800

Others

400

600

800

Total

8300

10900

14600

203

INTERNAL CONTROLS
Yash Papers is adequately equipped with an extensive network of internal control procedures to safeguard assets against loss from illegal use or disposal. The commissioning of the ERP software enables quick information dissemination for prompt decision-making, enhancing integrated pan-organisation functionality. The internal control systems are also devised to ensure the reliability, transparency and accuracy of all financial records and statements. An internal audit team regularly liaises with all management tiers and statutory auditors and forwards all significant issues to the Audit Committee of the Board. All issues raised by the internal audit are being suitably addressed and rectified.

CAUTIONARY STATEMENT

Statements in the Management Discussions and Analysis describing the Company's objectives, projections, estimates , expectations may be ‘forward-looking statements’ within the meaning of the applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company's operations include economic demand/supply and price conditions in the domestic and overseas markets in which the Company operates, price of non-coking coal in the overseas market, changes in the Government regulations, tax-laws, other statutes and incidental factors.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent development, information or events.

204

 THE DECEMBER 2008 CREP DEADLINE: India’s paper manufacturers are required to comply with stringent CREP (Corporate Responsibility for Environment Protection) requirements from December 2008, eliminating chlorine use and graduating to oxygen as the bleaching agent. This entails a revamp of the entire bleaching process. This key technology change will necessitate an investment of about Rs 11,000 – 12,000 per tonne of paper.

 BUDGET REVIEW, 2008-09: The excise duty on paper, paper board and articles manufactured out of nonconventional raw materials was reduced from 12 percent to 8 percent in Budget 2008-09. Further, the excise duty on clearances up to 3,500 MT was reduced from 8 percent to nil; excise duty was also cut from 12 percent to 8 percent for most paper varieties.

 TUF FOR THE PAPER INDUSTRY: The Indian paper industry, reeling under the twin pressure of raw material crunch and technology fatigue, demanded the creation of a Technology Upgradation Fund (TUF). The FICCI survey, based on industry feedback, suggested a rationalization of custom duties on the import of plant and machinery for the paper industry, creation of TUF on the lines of the textile industry and providing interest and capital subsidy to the paper industry for technology enhancement.

205

DETAILS FOR EACH CLASS OF GOODS MANUFACTURED, SOLD AND STOCKS DURING THE PERIOD ENDED 31-03-2008 IN YASH PAPER CAPACITY

Product

Unit

Kraft, Writing Printing and MT

Licensed Capacity 50,600

Installed Capacity 39,100

other uncoated paper

MT

(50,600)

(16,000)

PRODUCTION, SALES AND STOCKS OF FINISHED GOODS

Class of Goods Kraft and Poster Paper

Unit

Opening Stock Quantity Value(Rs.) 301.6698 (515.5440) 55,47,755 (91,49,865)

Production Quantity 24,928.5821 (16,158.3152)

MT

206

Self Consumed Quantity Value(Rs.) 4.4693 64,533 (4.4101)* (44,277)*

Closing Stock Quantity Value(Rs.) 1,297.9808 300,14,319 (301.6698)* (55,47,755)*

Sales Quantity 23,927.8018 Value(Rs.) 56,49,35,367

(16,367.7793)* (34,12,91,781)*

* Denotes Previous year Quantity/Value (Rs.)
RAW MATERIAL CONSUMED Raw Material Bagasse Old Gunny / Jute Goods Corrugated Cartons Imported Waste Paper/ Pulp Total Period ended 31-03-2008 Quantity Amount (MT) (Rs.) 50,874.805 8,44,59,582 6,848.270 Nil 1,671.220 2,96,04,912 Nil 3,04,35,093 Period ended 31-12-2006 Quantity Amount (MT) (Rs.) 30,763.395 4,56,52,417 4,872.600 62.547 1,794.800 1,76,81,044 3,95,759 2,21,05,162

14,44,99,587

8,58,34,382

VALUE OF MATERIAL CONSUMED Raw Material Raw Material Stores & Spares*

Imported Value (Rs.)
3,03,58,899 (2,21,05,162) 59,818 (1,95,490)

Indigenous Value (Rs.)
11,41,40,688 (6,37,29,220) 12,13,74,669 (7,04,76,320)

%
21.01 (25.75) 0.05 (0.28)

%
78.99 (74.25) 99.95 (99.72)

*

Including chemicals grouped under manufacturing expenses.

207

CIF Value of Import
Capital Goods Raw Materials and consumables Rs. 33,717/Rs. 68,63,006/(Rs. 90,33,278/-) (Rs. 88,48,801/-)

REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND

Nil

Nil

EARNINGS IN FOREIGN EXCHANGE FOB Value of Exports Rs. 4,06,703/(Rs. 1,90,04,157/-)

EXPENDITURE IN FOREIGN CURRENCY

Travelling Interest – Others Others

Rs. 93,176/Rs. 69,61,513/Rs. 18,242/-

(Rs. 85,843/-) (Rs. 16,29,909/-) (Rs. 17,434/-)

208

OPERATIONS
Yash Company has achieved a production of 24,929 MT and sales of 23,928 MT during the period ended 31st March 2008 against a production of 16,158 MT and sales of 16,368 MT in the previous year ended 31st December 2006. The Company achieved a gross turnover of Rs.5649.35 lacs in the current period against Rs. 3412.92 lacs in the previous year. The figures for the current period are for 15 months and therefore are not comparable with the figures of the previous year. Reserves as on 31st March, 2008 stood at Rs.1408.63 lacs, compared to Rs. 1717.50 lacs of the preceding year.

EXPORT
The Company exported 3526 MT of paper during the period ended 31st March 2008 against 1891 MT during the previous year ended 31st December 2006.

INSURANCE
The properties of Company comprising buildings, plant and machinery, other assets, stocks, etc. were adequately insured against various risks. Utilisation of preferential issue proceeds The Company has allotted 40,00,000 preferential warrants against 44,00,000 preferential warrants to M/s Sargam Exim Private Limited, an associate company of promoters’ group, at Rs.11 each on March 23, 2007 after getting the approval of the members of the Company in the Extraordinary General Meeting held on February 24, 2007,to part finance the value addition and cost escalation of the project cost and working capital requirements out of the proceeds of the issue.

PROJECT
The power plant has become operational in March, 2007.The commercial production of paper machine 3 was started in June, 2007. The soda recovery plant has become operational in October, 2007.Project cost has again surged by Rs.485.42 lacs, from

209

Rs.10,900 lacs to Rs.11,385.42 lacs, excluding margin for working capital due to cost overrun and value additions made in the project, which was financed by way of issue of preferential warrants/shares, internal cash accruals and sundry creditors.

ISSUE OF SHARE WARRANTS AND CONVERSION INTO EQUITY SHARES
Members at the Extraordinary General Meeting held on 24th February, 2007 approved the allotment of 44,00,000 warrants of Rs.11 each to the associate company of the promoters, to be converted in 44,00,000 equity shares of Rs.10 each at a premium of Re.1. Accordingly, the Company issued 40,00,000 warrants (against 44,00,000 warrants) to Sargam Exim Private Limited, an associate company of the promoters group. The Company has converted 10,00,000 preferential warrants into 10,00,000 equity shares of Rs.10 each at a premium of Re.1 on March 31, 2007. The Company has again converted 9,00,000 preferential warrants into 9,00,000 equity shares of Rs.10 each at a premium of Re.1 on March 24, 2008. The said equity shares are listed on the Uttar Pradesh Stock Exchange Association Limited, Kanpur and Bombay Stock Exchange Limited, Mumbai.

OUTLOOK
The Company has an encouraging way ahead because of a number of reasons that will not only improve the realisations for us but also strengthen the ‘Yash Papers’ brand. Firstly, it is shifting from white paper to colour paper, which will enhance our margins; secondly, with the paper machine-3 (PM-3) coming fully on-stream in 2008- 09, our capacities will increase facilitated by the improved paper quality; finally, our investment in pulp making facility will help us minimise raw material cost as well as enhance realisations through selling pulp in the open market. All these initiatives will start fructifying from 2008-09 onwards. Accordingly, your Directors are reasonably confident of achieving much better results in 2008-09.

210

HUMAN RESOURCE AND WELFARE
The Company considers its human resource to be its asset. The Company thus continues to enhance its employees’ skills and keep them updated with industry dynamics. We endeavour that our employees remain satisfied and have the best working environment. We have the most cordial industrial relations. The Directors wish to place on record their deep appreciation for dedication of the employees and their commitment to performance.

FIXED DEPOSITS
The Company was holding an aggregate sum of Rs.189.15 lacs on account of deposits from the public, employees and shareholders as on March 31, 2008. Five depositors did not claim their deposits amounting to Rs.1.88 lacs, which matured during the previous years.

211

CHAPTER 7 TRADE PROFILE OF COMPANY

Yash paper is the global trading company, seeking for trade partners to start new business deals and keep onwards the strong relationship. Our aim is to serve you the best as holding on win-win solution. We are pleased to present you our products and services. Your inquiry towards any information required is gladly appreciated.

Yash Papers specialize in low grammage unbleached Kraft Paper made by agricultural residues such as Bagasse (sugar cane waste) and Jute bags.

 BUSINESS
 The largest manufacturer of low-grammage unbleached kraft paper through the ‘green’ route (bagasse raw material) in India.  Commenced the production of white paper (various grades of MG poster paper) through the installation of paper machine III in 2007-08.With this, we possess the largest installed capacity of poster paper in the country, producing up to 23,100 MT per year.  Commissioned an integrated infrastructure comprising a state-of-the-art 130-tpd pulping stream, chemical soda recovery plant and a 6-MW cogeneration facility.  Realigned the Company’s operating period from the calendar year to a financial year, resulting in a 15-month working period in 2007-08.  Focused on the development of customerspecific speciality paper grades.

212

 Listed on the Uttar Pradesh Stock Exchange, Kanpur and Bombay Stock Exchange, Mumbai.

 PRODUCTS
Yash Paper Ltd. are Manufacturer & Exporters Of Yash Deluxe Plain Ribbed Kraft:Generic Products:- DEP - Deluxe Plain, DER - Deluxe Ribbed, SDP - Super Deluxe Plain, SDR - Super Deluxe Ribbed. Yash Specialised Grades:- GYP - Golden Yellow Plain, GYR - Golden Yellow Ribbed, WSK - Wet Strength Craft, LAM - Lamination Grade, HIT - High Tear, KIT - Kite Grade, TIS - Unbleached Tissue, COL - Coloured Grades.  Manufacture of speciality paper, out-performing the domestic paper industry growth by a factor of two.  Product range comprising the manufacture of unbleached kraft paper including hard tissues (28–30 GSM), wrapping grades (30–60 GSM) and

packaging/stationery grades (60–80 GSM) with average GSM range of 49–64.  Commenced the production of MG poster paper (26–70 GSM), extensively used in FMCG (soaps, detergents,packaged food and health drinks, among others) and pharmaceutical (band-aid and medicine packaging) applications.  Alternative paper varieties catering to the growing downstream demand for matchboxes, bidi covers,cigarette recliners, gum tape, plywood, coated papers and tea pouches, among others.

213

YEAR EVENTS
1981 - The company was incorporated on May and obtained the Certificate of Commencement of business on 12th June. It was promoted by K.K. Jhunjhunwala. The company's object is to manufacture of kraft paper. The company set up a plant for manufacture of kraft paper with a capacity of 1940 TPA. The capacity of the unit was increased to 4000 TPA with financial assistance from PKUP and VPFC. 1991 - The company set up a Unit No.II with an installed capacity of 6000 TPA poster paper. 1994 - 12 78 000 No. of equity shares of Rs.10 each issued subscribed and paid-up. 22 50 000 No. of equity shares of Rs.10 each were issued at a prem. of Rs.10 per share of which 67 500 shares were issued to the employees on preferential basis (only 29 200 shares were taken up). Balance 12 82 500 No. of equity shares along with 38 300 shares not taken up by employees were issued to the public. Additional 3 37 500 shares were allotted to retain over-subscription (3 000 - 11% preference shares were redeemed on 10th September 1991 and 30 000 No. of equity shares of Rs.10 each were allotted in lieu there of. 1996 - Performance was affected due to adverse market conditions and vagaries of power supply. - Co-generation unit started giving problems and developed technical snags. The company has put an amount of Rs.31.07 lacs for additional balancing equipments to overcome the aforesaid snags.

214

- The company entered into a tie up with M/s. Indace Ltd. U.K. for technology and design and for executing the project. In India Indace Ltd. provided the consultancy to Nath Pulp and Paper Mills Ltd. In return for the services rendered the company was to pay the collaborators U.K. Pound Sterling 35 000. 1997 - Turnover declined marginally to Rs.16.78 crores due to sluggish market conditions. - The company undertook to set up facilities for manufacture of 30 TPD bagasse/hessian based pulp and to increase the capacity of MG paper machine No.2 from 6000 TPD to 10 000 TPA with facilities to manufacture lower grammage kraft paper to facilitate lower grammage (26 GSM to 33 GSM) kraft paper plant and machinery comprising bagasse depther conveyors digesters washers etc. were to be installed. - Company has allotted Equity Warrants of Rs.300 lakhs to promoters and their associates. 2002-Mr A R Nighoskar resigns from Directorship of Yash Papers. 2005 -Delist equity shares from the Ahemedabad Stock Exchange (ASE) with effect from January 28 2005. -Yash Papers Ltd has informed that issue of 1 68 00 000 Equity Shares of Rs 10/- each for cash at premium of Rs 4/- per equity share aggregating to Rs 2352 lacs by the Company through prospectus will open on June 30 2005 & will close on July 08 2005. 2007 - Yash Papers Ltd has appointed Mr. Basant Kumar Khaitan and Mr. Ramesh Narayan as Additional Director.

215

Report card of Company Attribute PE ratio EPS (Rs) Sales (Rs crore) Face Value (Rs) Net profit margin (%) Last dividend (%) Value Date -5.14 21/07/09 -1.03 Mar, 09 24.01 Mar, 09 10 -6.03 Mar, 08 12.5 27/01/05

Return on average equity -8.94 Mar, 08

Yash Papers Ltd.
Quarter ending : March 2009
Details of Locked-in Shares

Sl. No. Name of the Shareholder No. of Shares 2,200,000 773,100 700,000 460,000 3,334,500 7,467,600

Locked-in Shares as % of Total No. of Shares 9.17 3.22 2.92 1.92 13.89 31.12

1 Ved Krishna 2 Megha Agro Products Ltd 3 Yash Krishna 4 Manjula Jhunjhunwala 5 Sargam Exim Pvt Ltd Total

216

YASH PAPER LIMITED
Quarter March 2009 Date Begin 01 Jan 2009

Shareholding Pattern
Category of shareholder No. of shareholders Total no. of shares Total no. of shares held in Total shareholding as a dematerialized form % of total no. of shares As a % of As a % of (A+B) (A+B+C)

(A) Shareholding of Promoter and Promoter Group (1) Indian Individuals / Hindu Undivided Family Bodies Corporate Sub Total (2) Foreign Total shareholding of Promoter and Promoter Group (A) (B) Public Shareholding (1) Institutions Mutual Funds / UTI Financial Institutions / Banks Insurance Companies Sub Total (2) Non-Institutions Bodies Corporate Individuals Individual shareholders holding nominal share capital up to Rs. 1 lakh Individual shareholders holding nominal share capital in excess of Rs. 1 lakh Any Others (Specify) Any Other Clearing Members & Trusts Sub Total Total Public shareholding (B) Total (A)+(B) (C) Shares held by Custodians and against which Depository Receipts have been issued Total (A)+(B)+(C)

5 2 7 7

3899871 4303140 8203011 8203011

3883871 2868640 6752511 6752511

16.25 17.93 34.18 34.18

16.25 17.93 34.18 34.18

1 1 1 3 256

1000 100 211121 212221 990386

100 211121 211221 984885

0.88 0.88 4.13

0.88 0.88 4.13

17973

10393754

9769278

43.31

43.31

118 51 50 1 18398 18401 18408 18408

4071702 128926 126926 2000 15584768 15796989 24000000 24000000 -

4054802 128326 126326 2000 14937291 15148512 21901023 21901023 -

16.97 0.54 0.53 0.01 64.94 65.82 100

16.97 0.54 0.53 0.01 64.94 65.82 100 100

217

YASH PAPERS LIMITED
Distribution of Shareholding as on Quarter ending 31 st March 2008 as per clause 35 of Listing Agreement Total shareholding as a percentage of total No. of number of shares shares held Category Category of No. of Total no. Total in deTotal Code shareholder shareholders of shares materialize shareholdi shareholdi d form ng as a % ng as a % of of (A+B) 1 (A+B+C) Shareholding of Promoter (A) and Promoter Group 2 (1) Indian Individuals/Hi (a) 5 3899871 3883871 17.28 17.28 ndu Undivided Family Central Government/St (b) 0 0 0 0 0 ate Government(s) Bodies (c) 2 2868640 1968640 12.71 12.71 Corporate Financial (d) Institutions/Ba 0 0 0 0 0 nks Any Other (e) 0 0 0 0 0 (specify) Sub-Total 7 6768511 5852511 29.99 29.99 (A)(1) (2) Foreign Individuals (Non-Resident (a) Individuals / 0 0 0 0 0 Foreign Individuals) Bodies (b) 0 0 0 0 0 Corporate 218

(c) (d)

(B) (1) (a) (b)

Institutions Any Other (specify) Sub-Total (A)(2) Total Shareholding of Promoter and Promoter Group (A)=(A)(1)+(A )(2) Public Shareholding
3

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

7

6768511

5852511

29.99

29.99

(c)

(d) (e) (f)

(g)

(h)

Institutions Mutual Funds / UTI Financial Institutions / Banks Central Government / State Government(s) Venture Capital Funds Insurance Companies Foreign Institutional Investors Foreign Venture Capital Investors Any Other (specify) Sub-Total (B)(1)

1 1

1000 100

0 100

0 0

0 0

1

211121

211121

0.94

0.94

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0

0

0

0

0

0 3

0 212221

0 211221

0 0.94

0 0.94

219

(2) (a) (b)

(c)

(C)

Noninstitutions Bodies Corporate Individuals i. Individual shareholders holding nominal share capital up to Rs. 1 Lakh. ii. Individual shareholders holding nominal share capital in exces of Rs. 1 Lakh. Any Other (specify) Sub-Total (B)(2) Total Public Shareholding (B)=(B)(1)+(B )(2) Shares held by Custodians and against which Depository Receipts have been issued Grand Total (A)+(B)+(C)

277

1502693

1496492

6.66

6.66

17691

9755055

9120975

43.23

43.23

89

3388473

3371573

15.02

15.02

400

938547

934761 14923801

4.16 69.06

4.16 69.06

18457 15584768

18460 15796989

15135022

70.01

70.01

0

0

0

0

0

18467 22565500

20987533

0

100

220

Yash Papers Ltd.

Quarter ending : March 2009
Shareholding belonging to the category : "Promoter and Promoter Group" Sl. No. 1 Ved Krishna 2 Sargam Exim Pvt Ltd 3 Megha Agro Products Ltd 4 Yash Krishna 5 Manjula Jhunjhunwala 6 Shailja Krishna 7 K K Jhunjhunwala - HUF Total Name of the Shareholder No. of Shares 2,337,240 3,334,500 968,640 956,865 583,366 6,400 16,000 8,203,011 9.74 13.89 4.04 3.99 2.43 0.03 0.07 34.18 Shares as % of Total No. of Shares

Yash Papers Ltd. Quarter ending : March 2009 Holding of Depository Receipts (DRs), where Underlying Shares are in Excess of 1% of the Total No. of Shares Type of Outstanding Sl. Name of the DR No. Holder DR (ADRs, GDRs, SDRs, etc.) 1 Nil Total Nil 0 0 No. of Shares Underlying Outstanding DRs Shares Underlying Outstanding DRs as a % of Total No. of Shares 0.00 0.00

221

Yash Papers Ltd.
Quarter ending : March 2009
Details of Depository Receipts (DRs) Type of Sl. Outstanding DR No. (ADRs, GDRs, SDRs, etc.) 1 Nil Total No. of Outstanding DRs 0 0 No. of Shares Underlying Outstanding DRs 0 0 Shares Underlying Outstanding DRs as % of Total No. of Shares 0.00 0.00

Yash Papers Ltd.
Quarter ending : March 2009
Shareholding belonging to the category "Public" and holding more than 1% of the Total No.of Shares Sl. No. 1 Sharon Gupta 2 Hemant Kumar Gupta 3 S Sathya 4 Sangeeta S Total Name of the Shareholder No. of Shares 286,175 252,943 289,200 261,300 1,089,618 1.19 1.05 1.21 1.09 4.54 Shares as % of Total No. of Shares

222

Stock Data: Current Price (7/17/2009): 5.15 (Figures in Indian Rupees) 1 Week
4

Recent Stock Performance 4.7% 10.0% 13 Weeks
52

-6.0% -30.3%

Weeks

Weeks

Yash Papers Limited Key Data: Ticker: Exchanges: 516030 BOM Country: Major Industry: Sub Industry: Currency: Fiscal Yr Ends: Share Type: Indian Rupees March Ordinary Market Cap: Shares Outstanding: Closely Held Shares: INDIA Paper Miscellaneous Paper 123,600,000 24,000,000 6,768,511

RESEARCH AND DEVELOPEMENT
Used in a wide variety of forms, paper and paperboard are characterized by a wide range of properties. In the thousands of paper varieties available, some properties differ only slightly and others grossly. The identification and expression of these differences depend upon the application of standard test methods, generally specified by industry and engineering associations in the paper making countries of the world.

223

Expenditure on R&D
(Rs. in lacs)

Current Period (i) Capital (ii) Recurring (iii) Total (iv) Total R&D expenditure as a percentage of total turnover 0.74 3.33 4.07 0.07

Previous Year 1.03 1.52 2.55 0.08

PROPERTIES OF PAPER
 Basis Weight (GSM)  Brightness, Whiteness and Colour  Bulk  Dimensional Stability  Folding Endurance (Double Folds)  Formation  Gloss  Machine and Cross Direction  Moisture  Opacity  Porosity  Sizing / Cobb  Smoothness

224

 Stiffness  Stretch (Elongation)  Tearing Resistance  Temperature and Humidity: Conditioning of Paper  Thickness  Wax Pick No. (Surface Strength)  Wire side and Felt side

BASIS WEIGHT (GSM)
The weight or substance per unit area is obviously fundamental in paper and paper board products. The Basis weight of paper is the weight per unit area. This can be expressed as the weight in grams per square metre (GSM or g/M2), pounds per 1000 sq. ft. or weight in kgs or pounds per ream (500 sheets) of a specific size. REAM WEIGHT is a common term to signify the weight of a lot or batch of paper. Control of basis weight is important as all other properties are affected. Variations in moisture content in paper affects the grammage.

BRIGHTNESS, WHITENESS AND COLOUR
Brightness is defined as the percentage reflectance of blue light only at a wavelength of 457 nm. Whiteness refers to the extent that paper diffusely reflects light of all wave lengths throughout the visible spectrum. Whiteness is an appearance term. Colour is an aesthetic value. Colour may appear different when viewed under a different light source. Brightness is an arbitrarily defined, but carefully standardised, blue reflectance that is used throughout the pulp and paper industry for the control of mill processes and in certain types of research and development programs. Brightness is not whiteness. However, the brightness values of the pulps and pigments going into the paper provide an excellent measure of the maximum whiteness that can be achieved with proper tinting.

225

The colour of paper, like of other materials, depends in a complicated way on the characteristics of the observer and a number of physical factors such as the spectral energy distribution of the illuminant, the geometry of illuminating and viewing, the nature and extent of the surround and the optical characteristics of the paper itself.

BULK
Bulk is a term used to indicate volume or thickness in relation to weight. It is the reciprocal of density (weight per unit volume). It is calculated from caliper and basis weight. Sheet bulk relates to all other sheet properties. Decrease the bulk or in other words increase the density, and the sheet gets smoother, glossier, less opaque, darker, lower in strength etc.

DIMENSIONAL STABILITY
An important consequence of the absorption and de-absorption of moisture by paper is the change in dimension that usually accompanies changes in moisture content. Such changes in dimension may seriously affect register in printing processes and interfere with the use of such items as tabulating cards. Uneven dimensional changes cause undesirable cockling and curling. Dimensional changes in paper originate in the swelling and contraction of the individual fibres. It has been observed that cellulosic fibres swell in diameter from 15 to 20% in passing from the dry condition to the fibre saturation point. It is impossible to be precise about the degree of this swelling because papermaking fibres differ considerably in this property, and because the irregular cross-section of fibres creates difficulty in defining diameter. Change that occurs in the dimensions of paper with variation in the moisture content is an important consideration in the use of paper. All papers expand with increased moisture content and contract with decreased moisture content, but the rate and extent of changes vary with different papers.

226

FOLDING ENDURANCE (DOUBLE FOLDS)
Folding endurance is the paper's capability of withstanding multiple folds before it breaks. It is defined as the number of double folds that a strip of 15 mm wide and 100 mm length can withstand under a specified load before it breaks. It is important for printing grades where the paper is subjected to multiple folds like in books, maps, or pamphlets. Fold test is also important for carton, box boards, ammonia print paper, and cover paper etc. Folding endurance is a requirement in Bond, Ledger, Currency, Map, Blue Print and Record Papers.

FORMATION
Formation is an indicator of how the fibres and fillers are distributed in the sheet. Formation plays an important role as most of the paper properties depend on it. Paper that is poorly formed will have weak, thin spots and thick spots. These will affect properties like caliper, opacity, strength etc. Paper formation also affects the coating capabilities and printing characteristics of the paper.

GLOSS
It is the specularly and diffusely reflected light component measurement against a known standard. Gloss is important for printing such things as magazine advertisements. The level of gloss desired is very dependent on the end use of the paper. Gloss and smoothness are different properties and are not dependent on each other.

MACHINE AND CROSS DIRECTION
Paper has a definite grain direction due to greater orientation of fibres in the direction of travel of the paper machine. This grain direction is known as machine direction. The cross direction is the direction of paper at right angles to the machine direction. Some of

227

the properties vary with the MD and CD and hence the values are reported in both the directions. While sheeting the paper, machine and cross direction are to be kept in mind and the sheet cutting to be done to suit the end use requirements. Examples: 1. All printing papers are to be cut in long grain (The biggest dimension in the grain direction). 2. Book papers fold better and the book stays open better if the sheets are out so that the machine direction runs up and down the pages. 3. Wrap around labels for metal cans and bottles are to be cut with the machine direction vertical to obtain greater flexibility about the can. Long grain and Short grain : The sheet is in long grain if the larger dimension is parallel to grain (MD) direction. The sheet is said to be in short grain if the larger dimension is parallel to cross direction (CD).

MOISTURE
Most physical properties of paper undergo change as a result of variations in moisture content. Water has the effect of plasticising the cellulose fibre and of relaxing and weakening the interfibre bonding. The electrical resistance and the dielectric constant of paper both vary with moisture content. The absorption and reflectance of certain bands of infrared and microwave radiation by paper are affected by its moisture content. The amount of water present in a sheet of paper is usually expressed as a percent. The amount of water plays an important role in calendaring, printing and converting process. Moisture control is also significant to the economic aspect of paper making. Poor moisture control can adversely affect many paper properties.

OPACITY
Opacity is the measure of how much light is kept away from passing through a sheet. A perfectly opaque paper is the one that is absolutely impervious to the passage of all visible light. It is the ratio of diffused reflectance and the reflectance of single sheet backed by a black body. Opacity is important in Printing Papers, Book Papers, etc.

228

POROSITY
Because paper is composed of a randomly felted layer of fibre, it follows that the structure has a varying degree of porosity. Thus, the ability of fluids, both liquid and gaseous, to penetrate the structure of paper becomes a property that is both highly significant to the use of paper. Paper is a highly porous material and contains as such as 70% air. Porosity is a highly critical factor in Printing Papers Laminating Paper, Filter Paper, Cigarette Paper. Bag Paper, Antitarnish Paper and Label Paper. Porosity is the measurement of the total connecting air voids, both vertical and horizontal, that exists in a sheet. Porosity of sheet is an indication of absorptivity or the ability of the sheets to accept ink or water. Porosity can also be a factor in a vacuum feeding operation on a printing press.

SIZING / COBB
Because paper is composed of a randomly felted layer of fibre, it's structure has a varying degree of porosity. Thus, the ability of fluids, both liquid and gaseous, to penetrate the structure of paper becomes a property that is both highly significant to the use of paper. The need to limit the spreading of ink resulted in "sizing" the paper with gelatinous vegetable materials which had the effect of sealing or filling the surface pores. Later, the term "sizing" was applied to the treatment of paper stock prior to the formation of the sheet, with water-repellent materials such as rosin or wax. Resistance towards the penetration of aqueous solution / water is measured by Sizing or Cobb values.

SMOOTHNESS
Smoothness is concerned with the surface contour of paper. It is the flatness of the surface under testing conditions which considers roughness, liveliness, and

compressibility. In most of the uses of paper, the character of the surface is of great importance. It is common to say that paper has a "smooth" or a "rough" texture. The terms "finish" and "pattern" are frequently used in describing the contour or appearance 229

of paper surfaces. Smoothness in important for writing, where it affects the ease of travel of the pen over the paper surface. Finish is important in bag paper as it is related to the tendency of the bag to slide when stacked. Smoothness of the paper will often determine whether or not it can be successfully printed. Smoothness also gives eye appeal as a rough paper is unattractive.

STIFFNESS
Stiffness is the measure of force required to bend a paper through a specified angle. Stiffness is an important property for box boards, corrugating medium and to certain extent for printing papers also. A limpy and flimsy paper can cause feeding and delivery problems in larger sheet presses. A sheet that is too stiff will cause problems in copier machines where it must traverse over, under, and around feed rollers. Bond papers also require certain stiffness to be flat in typewriters etc.

STRETCH (ELONGATION)
Stretch is the amount of distortion which paper undergoes under tensile stress. Stretchlelongation is usually expressed, as percent stretch to rupture. Stretch can be related to the paper's ability to conform and maintain conformance to a particular contour, e.g. Copier paper, multicolor offset printing papers, liquids packing cartons base papers etc. It is an important property in sack kraft papers which are used for cement bags etc. Stretch is higher in cross direction than machine direction.

TEARING RESISTANCE
Tearing resistance indicates the behaviour of paper in various end use situations; such as evaluating web runnability, controlling the quality of newsprint and characterising the toughness of packaging papers where the ability to absorb shocks is essential. fibre length and interfibre bonding are both important factors in tearing strength. The fact that longer fibres improve tear strength is well recognised. The explanation is straight forward;

230

longer fibres tend to distribute the stress over a greater area, over more fibres and more bonds, while short fibres allow the stress to be concentrated in a smaller area.

TEMPERATURE AND HUMIDITY: CONDITIONING OF PAPER
Conditioning of paper is also of importance in many printing and converting operations. In addition to the effect of moisture content on physical properties, it also determines the build up of static of the paper sheet subjected to pressure and to friction. The tendency for paper to develop static becomes greater with increasing dryness. Cellulosic fibres are hygroscopic i.e. they are capable of absorbing water from the surrounding atmosphere. The amount of absorbed water depends on the humidity and the temperature of the air in contact with the paper. Hence, changes in temperature and humidity, even slight changes, can often affect the test results. So, it is necessary to maintain standard conditions of humidity and temperature for conditioning.

THICKNESS
Thickness or Caliper of paper is measured with a micrometer as the perpendicular distance between two circular, plane, parallel surfaces under a pressure of 1 kg./ CM2 . Caliper is a critical measurement of uniformity. Variations in caliper, can affect several basic properties including strength, optical and roll quality. Thickness is important in filling cards, printing papers, condenser paper, saturating papers etc.

WAX PICK NO. (SURFACE STRENGTH)
This indicates the surface strength of the paper. This test is important for all uncoated printing papers.

231

WIRE SIDE AND FELT SIDE
Also referred as wire side and top side. The side which is in contact with the paper machine wire during paper manufacture is called the wire side. The other side is top side. Certain properties differ between wire and felt side and it is customary to measure these properties on both the sides. In case of paper to be printed on one side only, best results are obtained by printing on felt side. Postage stamps are printed on wire side and then gummed on felt side, where the smoothness is helpful for attaining an even application.

PAPER TESTS
 Important Parameters for Paper & Paperboard  Physical Properties o Grammage o Moisture Content o Surface Strength (Wax Pick) o Thickness (Calliper) o Water Absorption (COBB) o Water Absorption (WICK)  Strength Properties o Bending Resistance (L&W) o Bursting Strength o Compressibility o Elongation o Hardness o Ply Bond/ Scott Bond o Resiliency

232

o Stiffness (Taber) o Tearing Resistance o Tensile Strength  Optical Properties

o Brightness o Colour o Gloss o Opacity o Whiteness  Printing Properties o Printability

o Print Quality

IMPORTANT PARAMETERS FOR PAPER & PAPERBOARD
All tests are carried out at 23°C + 1°C and 50 + 2% relative humidity which is a TAPPI standard.

GRAMMAGE
Weight per unit area expressed in g/m2. The standard procedure is laid out in ISO 536, Tappi T 410.

MOISTURE CONTENT
The absolute moisture content, expressed as a % of the paper/paperboard weight. The sample is generally not conditioned while doing this test. The standard procedures are laid out in Tappi T 412 and ISO 287.

233

SURFACE STRENGTH (WAX PICK)
A measure of the surface strength of the sample or surface resistance to picking. Pick occurs due to poor internal bonding strength, making it susceptible to adherance to grade wax sticks (Dennison). This test is valid only for uncoated board or paper. For Coated stock IGT pick test is applicable.

THICKNESS (CALLIPER)
The perpendicular distance between the two surface of the board / paper, expressed in mm or µm, measured with a micrometer.

WATER ABSORPTION (COBB)
The surface water absorption over 60 seconds, expressed in g/m2, measured by Cobb Test. The procedural Standards are explained in Tappi T 441.

WATER ABSORPTION (WICK)
Water absorption at the edge, expressed in kg/m2, using Wick Test. Board surface is sealed with waterproof tape on both sides, weighed, placed in water @ 80°F for 20 minutes and weighed again to measure the water absorbed by wicking. It is an important test for measuring the water absorption capacity of cupstock grade, which is used for the manufacture of soft drink cups.

BENDING RESISTANCE/ STIFFNESS
It is a measure of the resistance offered to a bending force by a rectangular sample, expressed in mN (milli newtons).

234

The instruments used are: (i) Taber Stiffness tester (ii) L & W tester The standards are as per Tappi T 556.

BURSTING STRENGTH
The maximum hydrostatic pressure required to rupture the sample by constantly increasing the pressure applied through a rubber diaphragm on 1.20 - inch diameter sample. The standards are as per Tappi T 403

COMPRESSIBILITY
The reduction in thickness under compressive forces or pressure. It influences the ability of paper to change its surface contour and to conform to and make contact with the printing plate or blanket during printing impression. This is highly relevant in gravure and letterpress printing. Compressibility is measured as a ratio of roughness under to different standard pressures in a Parker Print Surf tester

ELONGATION
The tensile strain developed in a test sample at maximum tensile strength before rupture, measure as the % increase in the length of the sample to the original length.

HARDNESS
The degree to which paper will resist indentation by some other material such as a stylus, pen or printing plate. Hardness is measured with the help of bendtsen smoothness tester with load on the measuring head.

235

PLY BOND/ SCOTT BOND
The interlayer strength of the paperboard, measured on Scott Bond Tester, expressed in J/m2. The standard procedures are explained in Tappi T 403. In paper, it is a measure of the internal strength of the sheet.

RESILIENCY
The ability of paper to recover its original thickness and surface contour after release of the compressive forces of printing nips.

STIFFNESS (TABER)
A measure of flexural rigidity, Stiffness is the bending moment (g-cm or mNm) required to deflect the free and of a 1.5 in wide vertically clamped sample 15° from its center line when load is applied 50 mm away from the clamp; measured in MD & CD. The procedural standards are explained in Tappi T 489 and ISO 2491.

TEARING RESISTANCE
Tearing resistance/ strengths is the ability of the paper to withstand any tearing force when it is subjected to. It is measure in both MD & CD, expressed in mN (millinewtons). The procedural standards are explained in Tappi T 414.

TENSILE STRENGTH
The tensile force required to produce a rupture in a strip of paperboard, measured in MD & CD, expressed in kN/m. The procedural standards are explained in Tappi T 404.

236

BRIGHTNESS
It is the percentage of blue light reflected of a sample measured at an effective wavelength of 457nm. Measured with to different standards - Tappi/GE and ISO. Though there is no direct correlation, ISO brightness of a sample is usually lower by 1-1.5 units over GE brightness. The standards are as per Tappi T 452.

COLOUR
Related to perception and therefore measured or specified in terms of colour space. A commonly used system is the CIE L,a,b system. This is based on the idea of colour opposites. L - measure of illuminance and varies from 100 for perfect white to 0 for perfect black. a - redness to greenness. b - yellowness to blueness.

GLOSS
It is the specular reflection of light, which is reflected at an equal and opposite angle. Normally measured at 75° or 20°. Generally, gloss of unprinted sheet/ board is measured at 75° (except for cast coated papers). Printed and varnished surfaces are measured at 60° angle. The standard procedures are laid out in Tappi T 480.

OPACITY
The property of a substrate to resist passage of light. It is measured as the percentage of light absorbed by a sheet of paper. Important in book printing where both sides of paper are printed. The procedural standards are explained in ISO 2471.

237

WHITENESS
The extent that paper diffusely reflects light of all wavelengths throughout the visible spectrum i.e the magnitude & uniformity of spectral reflectance measured as the percent light reflectance for the whole wavelength range. The procedural standards are explained in ISO 11475.

PRINTABILITY
The extent to which properties of paper lends them to the true reproduction of the original artwork. This is influenced by the printing process and can be evaluated in terms of - dot reproduction, dot gain, print gloss, hue shift and print uniformity.

PRINT QUALITY
The degree to which the appearance and other properties of a print approach a desired result. Lot of parameters in paper surface like roughness, gloss, ink absorption, whiteness, brightness affect this.

SUBSTANCE AND QUANTITY MEASUREMENT
Weight or substance per unit area, called basis weight, is a fundamental property of paper and paperboard products. From the first uses of paper in the printing trades, it has been measured in reams, originally 480 sheets (20 quires) but now more commonly 500 sheets (long reams). The term ream weight commonly signifies the weight of a lot or batch of paper. Since the printing trades use a variety of sheet sizes, there can be numerous ream weights for paper having the same basis weight. To determine basis weight, the sample is brought to equilibrium under standard conditions (24º C or 75º F; 50 percent relative humidity). The paper specimens must consist of at least 10 sheets with a total area of not less than about 600 square centimeters

238

(100 square inches). Since the properties of paper change with moisture content, all tests are conducted under standard conditions. The caliper (thickness) of paper or paperboard in fractions of a millimeter or inch is measured by placing a single sheet under a steady pressure of 0.49 to 0.63 kilogram per square centimeter (seven to nine pounds per square inch) between two circular and parallel plane surfaces, the smaller of which has an area of 1.6 square centimeters (0.25 square inch). The density or specific gravity of paper is calculated from the basis weight and caliper and may vary over wide limits. Glassine, for example, may be 1.4 grams per cubic centimeter and creped wadding, used for packaging breakables, only 0.1 gram per cubic centimeter. Most common papers are in the range of 0.5 to 0.7 gram per cubic centimeter.

 Consumption per unit of production of paper
Electricity Furnace oil Coal Paddy husk Bagasse pith UOM Units Litre MT MT MT Current Period 879.22 Nil Nil 1.50 3.00 Previous Yar 1084 Nil Nil 1.50 3.00

239

 Power and fuel consumption

Current Period

Previous Year

(a) Electricity
(i) Purchased unit (lacs) Total amount (Rs.in lacs) Rate/unit (Rs.) (ii) Own generation Through diesel generator Unit (lacs) Unit per litre of diesel oil Cost/unit (Rs.) Through steam turbine Unit (lacs) Unit per MT of fuel (paddy husk) Cost/unit (Rs.) Nil Nil Nil Nil Nil Nil

3.53 3.35 8.35 215.65 8.43 2.01 Nil Nil

1.32 3.65 7.97 173.82 906 1.11 Nil Nil

(b) Coal quantity (MT) (c) Furnace oil quantity (kilo litre) (d) Others
(i) Paddy husk quantity (MT) Total cost (Rs.in lacs) Average rate (Rs.) (ii) Bagasse/ pith quantity (MT) Total cost (Rs.in lacs) Average rate (Rs.)

58531.00 991.28 1694.00 8911.00 52.41 588.00

41065.00 412.75 1005.00 4703.00 19.99 425.00

240

 Technology absorption (A) Specific areas in which R&D carried out by the Company
R&D centre is doing research in non-wood fibers under guidance of consultants.

(B) Benefits derived as a result of the above R&D
Enhancement in quality and reduction in cost.

(C) Future plan of action
To strengthen and continue improvement in quality through improvement of process control systems to reduce process time & wastage. To develop new grades of paper.

(D) Expenditure on R&D
Current Period (i) Capital 0.74 (ii) Recurring 3.33 (iii) Total 4.07 (iv) Total R&D expenditure as a percentage of total turnover 0.07

(Rs. in lacs) Previous Year

1.03 1.52 2.55 0.08

241

 Balance Sheet
Amount in Rupees As at 31st March, 2008 Schedule Current Period ended 31.03.2008 Previous Year ended 31.12.2006

1-03-2008 ended 31-12-2006 I. SOURCES OF FUNDS 1. Shareholders' Funds a. Capital b. Preferential Warrant Money c. Reserves and Surplus 2. Loan Funds a. Secured Loans b. Unsecured Loans 3. Deferred Tax Liability Total II. APPLICATION OF FUNDS 1. Fixed Assets a. Gross Block b. Less: Depreciation c. Net Block d. Capital Work in Progress 2. Investments 3. Current Assets, Loans and Advances a. Inventories b. Sundry Debtors c. Cash and Bank Balances d. Loans and Advances Total’A’ Less: Current Liabilities and Provisions a. Liabilities b. Provisions Total 'B' Net Current Assets (A-B) Total Significant Accounting Policies and Notes on Accounts

1

225655000 2310000 140863286 887788388 22226545 368828286

206655000

2 3 4

171750204 601269841 20886800 41026000 1041587845

910014933 18596000 1297439219

5 1335217184 199167471 1136049713 7114524 6 324703718 148852811 175850907 738417985 914268892 5935

1143164237 5935

7 8 9 10

154923799 49021518 8136354 78037205 290118876

54488859 23210085 60329646 67536125 205564715

11 12

135819091 30738 135849829 154269047 1297439219

77576263 675434 78251697 127313018 1041587845

17 242

 Profit and Loss Account
Foe the year ended 31st March,2008 1. INCOME a. Sales Less: Excise Duty b. Other Income c. Increase/(Decrease) in Stocks Total 'A' 2. EXPENDITURE a. Raw Material Consumed b. Manufacturing, Administrative, Selling and Distribution Expenses c. Depreciation on Fixed Assets Total 'B' 3. Profit Before Tax (A-B) Provision for Taxation Current Tax (including FBT) Deferred Tax 4. Profit After Tax Income Tax relating to earlier year Credit/(Debit) Balance of Profit Balance brought forward from Previous Year 5. Profit Available For Appropriation Appropriations Transfer to General Reserve Balance carried to Balance Sheet 6. EARNING PER SHARE (EPS) Net Profit (A) Weighted average no. of equity shares (B) Basic and Diluted Earning per share (A/B) (Nominal value of Rs. 10 per share) 13 14 Schedule

( Amount in Rupees)
Current Period ended 31.03.2008 Previous Year ended 31.12.2006 341291781 31969966 309321815 3619750 (3590205 309351360 85834382 189555895

564935367 50811217

514124150 29509763 26008480 569642393 144499587 424175028

15 16

54870552 623545167 (53902774) 950000 (22430000) (32422774) (364144) (32786918) 36675176 3888258

16030892 291421169 17930191 5690000 1231292 11008899 11008899 30666277 41675176

3888258

5000000 36675176

(32422774) 21486114 (1.51)

11008899 20665500 0.53

243

Significant Accounting Policies and Notes on Accounts

 Schedules forming part of the annual accounts
Amount in Rupees As at 31st March Schedule 1 SHARE CAPITAL Authorised 2,60,00,000 Equity Shares of Rs. 10/- each 4,00,000 Preference Shares of Rs.100/- each Total Issued, Subscribed and Paid up 2,25,65,500 (2,06,65,500) Equity Shares of Rs. 10/- each fully paid up Of the above 5,68,000 Equity Shares have been allotted as fully paid up Bonus Shares by capitalisation of reserves Total 225,655,000 225,655,000 225,655,000 206,655,000 260,000,000 40000000 300,000,000 260,000,000 40000000 300,000,000 Current Period ended 31.03.2008 Previous year ended 31.12.2006

244

Schedule 22 RESERVES AND SURPLUS A. Capital Reserve Balance as per last Account B. Securities Premium Balance as per last Account Add: Received during the year 73987528 1900000 75887528 Less: Share Issue Expenses C. General Reserve Balance as per last Account 55000000 55000000 55000000 75887528 6087500 6087500 73987528 76487528 76487528 2500000 55000000 50000000 5000000

Add: Transferred from Profit and Loss Account D. Profit And Loss Account As per Account annexed Total

3888258 140863286

36675176 171750204

245

Schedules forming part of the accounts
Amount in Rupees
st

As at 31 March Schedule 33 SECURED LOANS A. Term Loans From Banks a) United Bank of India b) Oriental Bank of Commerce c) Union Bank of India d) UCO Bank From Financial Institutions e) Industrial Development Bank of India Ltd. B. Working Capital Loans a) State Bank of India b) b) Canara Bank Total

Current Period ended 31.03.2008

Previous year ended 31.12.2006

268797339 201547986 157218066 134056032

200000000 149750588 116764818 100085969

-

6000000

126168965 887788388

23163728 5504738 601269841

246

Amount in Rupees As at 31 March Schedule 4 UNSECURED LOANS A. Fixed Deposits [Repayable within one year Rs. 37,44,343/- (Rs. 74,19,378/-)] B. Other Loans From a Company From a Director Total 3500000 22226545 3200000 20886800 18726545 17686800
st

Current Period ended 31.03.2008

Previous year ended 31.12.2006

Amount in Rupees As at 31st March Schedule 53 INVESTMENT (Non trade) - Quoted Long Term Investments Pudumjee Pulp & Paper Mills Ltd. 100 Equity Shares of Rs.10/- each fully paid up Rana Mohindra Papers Ltd. 100 Equity Shares of Rs.10/- each fully paid up Mukerian Papers Ltd. 100 Equity Shares of Rs.10/- each fully paid up Rama Newsprint & Papers Ltd. 100 Equity Shares of Rs.10/- each fully paid up Total Total cost of quoted investments Aggregate Market value of quoted investments 4400 4400 Current Period Previous year ended 31.03.2008 ended 31.12.2006

380

380

600

600

555

555

5935 5935 11387

5935 5935 15920

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Schedule 63 INVENTORIES A. Stores and Spares (at cost) B. Loose Tools (at cost) C. Finished Goods (At lower of cost or net realisable value) D. Raw Material (at cost) E. Work in Process (at estimated cost) F. Scrap (At estimated realisable value) G. Import Entitlements/licence (DEPB) (At estimated realisable value) Total 67739767 711575 30014319 29124381 196511 5547755

53289784 2069375 1000000 98979

18472684 527459 400000 220069

154923799

54488859

As at 31st March Schedule 73 SUNDRY DEBTORS Unsecured - considered good) Over six months Other debts Total

Current Period ended 31.03.2008

Previous year ended 31.12.2006

686971.00 48334547.00 49021518.00

2698319 20511766 23210085

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Schedule 83 CASH AND BANK BALANCES A. Cash Balances i. Cash in hand ii. Stamps/Cheque in hand B. Balance With Scheduled Bank on i. Current Accounts ii. Fixed Deposit Accounts iii. Unpaid Dividend Accounts [Including amount kept in Fixed Deposit account Rs. 1,49,545/(Rs. 1,65,169/-)] 1062961 3,088,043 1107820 2580655 36027 2616682 1679521 1673026 6495 58650125 42943032 14271568 1050609

iv. Share Application Money Refund Account Total

260848

5519672

384916

8136354

60329646

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As at 31st March Schedule 93 LOANS AND ADVANCES (Unsecured - considered good) A. Advances recoverable in cash or in kind or for value to be received

Current Period Previous year ended 31.03.2008 ended 31.12.2006

65482174

75936447 B. Security Deposits C. Advance Income Tax less provisions Advance Tax Less: Provision for tax Total 13638135 11655000 1983135 78037205 117623 1287810 766141 19656141 18890000 67536125

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CHAPTER 8 BUSINESS STRATEGY  COMPANY POLICY
We at Yash Paper are committed to strengthen our position as market leader in manufacturing of writing and printing paper and rayon grade pulp by developing a company wide culture that promotes :  Customer delight  Quality, Environment, Safety and Information Security initiatives  Environment friendly, Safe and Energy efficient operation  Protecting Information of all Stakeholders

We will continuously pursue for :  Continual improvement in our products, processes & services in all areas.  Protecting information assets and customer information from all threats through the implementation of suitable information security management systems.  Remain incompliance with applicable legislations.  Communicate and reinforce this policy through out the company.  This policy is made available to employees and on request to interested parties.

 MARKETING POLICIES  CUSTOMER-DRIVEN
Our customers needs drive our business. We continuously seek to understand these needs better, adapt our research, offer innovative products and emerge as integral to their existence. At Yash Papers, this approach is driven by process discipline, robust methodology, passionate customer service ,mindset flexibility, timely delivery and cost effectiveness. Because the objective is not only to meet client expectations, but also to

251

exceed them. Because the focus is not the one-time transaction, but the ongoing relationship.

 PEOPLE-CENTRIC
Even as we made the most significant tangible investment in our production assets in 2007-08, we continued to make intangible business-critical investments in our people. Through continuous training ,alignment with the best practices, knowledge sharing. With the objective to create an invigorating workplace. Where people possess the freedom to develop. Where people are empowered to achieve. Where people are encouraged to excel.

 INNOVATIVE
We recognise that customer interests can be consistently served only through a continuous investment in process and product innovation. To make this a reality, we invested in cutting-edge technology. Resulting in superior service of client needs, evolving markets and consumer expectations.

 A COMBINATION OF GLOBAL EXPERTISE AND LOCAL KNOWLEDGE
We learn from everything we see. We learn from local business environments and practices. We learn from the tightening standards of governance. We learn from passionate, customer-driven companies. We learn from rising customer expectations. We learn from local, regional and international trends.

 ESSENTIALLY PROFITABILITY-ORIENTED
We recognise that we are in business to enhance value. This needs to be reflected in excellent financials and market capitalisation. This superior profitability is derived from a

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differentiated strategic direction and a number of differentiated decisions in everyday working. We review and refine these decisions continually. We do so to provide investors with a fair return on the financial resources entrusted to us.

 EXPANSION PLAN
The company plans to embark on further growth in specialty grades of paper once it consolidates its recent expansions. The project team is currently exploring the following.:  Converting old bagasse line for bamboo pulping.  Searching paper machine to produce grease proof and parchment grades.  Searching for locations with raw material availability.

 SALES NETWORK
Yash Papers is located proximately to its customers in the fast-growing states of North India comprising Haryana, Punjab and Delhi, among others. Nearly 40 per cent of the total output is sold in North India The products are marketed through a pan-Indian network of 35 dealers. We also export to the markets of Australia, Bangladesh, Sri Lanka, Egypt, Saudi Arabia, Iran, Ghana, Lebanon, UAE, South Africa and Ecuador. We derive nearly 15 per cent of our revenues from exports.

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SALES NETWORK PARTNERS
OUR DEALER LIST STD Off Phone Res Ph. Fax. No. Mobile No. Ahmedabad 079 32917880, 32917947 25733688 "9377732830 "Mahendra 9327004958 9824167594" Gupta Sunil Goyal Purnesh Shah" Fakirsons Papchem Pvt Ltd. 207,Vraj Avenue, above US Pizza restaurent, Swastik Char Rasta, Navrangpura Allahabad 0532 2400479, 2400401 2405844 9415253911 Manish Agarwal Saraswati Paper House. 46B,Chahchand, Zero Road Bangalore 080 25286805, 25215289 25286805 25215289 25214984 9845019766 Amit Jajodia. Amit Papers 423, Krishna 9th Main, 1st Croos, H.A.L.2nd Stage Indira Nagar. Chennai 044 28471644 24959644 28471644 9841192514 Me FDA81 Sayeed Amit Papers 6/1, Petho Street, Near P& T Quarters, Prop. Firm Address/E-mail

254

Royapettah Bareilly 0581 2578470 2540174 -9837038177 Dilip Khandelwal Lucky Traders Shop No. 05-06, Ganpati Market, Near Nandan Musical, Bara Bazar Bhagalpur 0641 2421861, 2402897 "2422169 2402658" 2402658 "9334165268 "Ram Gopal, 9334233872" Pawan Agarwal" Cuttack 0671 2619889, 2618539 2619518 2619360 Delhi 011 23916652, 23963862 22301849 22844764 9871042393 9818202890 Shiv Kumar Bansal Trading Pradeep Bansal Company. 4034/ 5, Haryana Paper Market, Chawri Bazar. Faizabad 05278 221087 9415183054 Anil Rastogi Natraj Paper Ag. Firozabad 05612 9837043235 9412265894 9219406954, 9219938968 Shyam Gupta. Shri Ram Traders Mr. Shyam Gupta, 38 Gunjan Enclave, Kotha Parcha, Chowk 2620127 Prakash Babu. Rameswar Lal Shyam Sunder Banka Bazar. Madhu Paper Industries D.N. Singh Road, Bhagalpur

255

Near Shiv Mandir, Mathura Nagar Gorakhpur 0551 2293248 2337897 9415314081 Kamal Masheshwari. Guwahati 0361 2544180, 2546314 2547641 D.K.Singh. P.R.Mundhra Shankar Trading Company Seotia Market, S.R.C.B. Road Guwahati-781 001 Hyderabad 040 24611122, 24611133 "23298633 23298634 " 24741144 "9848015001 9347011144 9347011144" "Monoj Malpani. Pawan Sushiljii" Indore 0731 2430680 2349392 2433491 9826389392 Pradeep Pushpendra Dhan Jabalpur 0761 2623416, 5005899 2450858 5012052 5005899 9826122978 Pradeep Biyani. Allied Agencies. 54, Methodist Centre, Napier Town Jaipur 0141 2317062 2306370 565905 9314505340 Dwarika Motilal Dhamani Street, Quality Paper Mart. 361(Old 284) Jawahar Marg. Sri Sant Kripa Paper Pvt. Ltd. 15-09-238 /A,1st Floor, Gowliguda K.K.Trading Company. Khoonipur

256

2322747

2306912

9829067062

Prasad Ashish Goyal

Nathmal & Sons.

S.M.S.Highway.

Jalandhar 0181 2457996, 5007403 2293370 258858.P.P 9814079867 Om Prakash Sharma. Rama Krishna Khanna

Papers Agency. Market,Chowk, Adda Tanda.

Jammu 0191 2573584 2461572 Vinod Gupta. Jay Kay Paper Rajinder Bazar. Co. Jaysinghpur 02322 225473, 225683 225736 225473 02332623373 9422581273 Sampat Bhai. Harikishan 58/B, Aruna

B.Biyani.(Regd) Road, 3rd Lane, Jaysingpur (Distt. Kolhapur) Jhansi

0517

2452796

2320538

9415194265

Dinesh Agarwal

Bhavna Products

41, Jawahar Chowk

Kanpur 0512 2361570 2361570 2311627 9415050804 Sanjeev Maheshwari. Kolkata 033 22597321, 22597429 24763816 22597397 9830012701 Saurabh Jalan B.D. Packaging 12/2, Sovaram and Allied Industries Pvt.Ltd Bysack Street, Ist Floor Maheswari Papers House. 32/7,Chawal Mandi, Chowk.

257

Lucknow 0522 2625542, 2620887 2626887 9335813879 Sanjay Kabra. d Abha Enterprises 177/62, Pul Jhaulal, Gwynne Road, Aminaba Ludhiana 0161 3919006, 4615369, 2708314 2442520 2448671 2708606 2708314 9815000369 1612076085 Varun Khemka Anand Khemka Mathura 0565 2520393 2520250 2520326 2403978 9412281212 Pankaj Mittal 9837293089 Ashok Mittal Moradabad 0591 2494813 2490016 2496176 9837026401 9837064012 9359712895 Amit Agarwal Abhishek K. K. Agarwal Mumbai 022 28690327 28670204 0229820130489 Jugal Kishor. Jyoti Papers. 13/1035, 4th Floor, Old M.H.B.Colony, Gorai Road, Borivli (W), Mumbai Amit Paper Products. H-53, Lajpat Nagar. S.S.Mittal & Sons. 18, Shri Jamuna Dham Maman Chand Syam Sunder Lal Bazar Kharadian

28690327 9820184167 Raj Kumawat

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Mumbai 022 22065824, 9820557576 22091964 9881223303 Shrivardhan 22091964 Mohta Abhijeet Shah Jainarain Marketing Pvt Ltd. " "Kalyan Bhawan, 2nd Floor, 354, Kalkadevi Road, Mumbai. Mumbai 022 23441646, 23455020 25062351 25060790 9869340897 Ramnik Bhai M/s Shriji Paper Devang Mart T-10, Nutan Sandesh, CWing, Plot 19/20, V.B.E.L., Ghatkopar (E) Nagpur 0712 5613472, 2584322 2545905 2550431 2584322 9822239590 Rajeev Shukul A.V.Marketing 3rd ,Mezanine Floor, N.M.C. Complex, Mangalwari, Sadar Patna 0612 2672028, 2027392, 3957023 Pune 020 24472276, 24477079 26456610 24475224 9822032996 Tarak M. Parikh Jupiter Paper Mart 387, Raviwar Peth, Shroff Bazar, Pune 411002 2671632 2670754 3114293 Budhmal Ji. New Bihar Dealers Naya Tola.

259

Raipur 0771 2535947, 2234183 2535030 9827158686 Bal Krishna Dani. Muktesh Paper Agencies. R.S.Shukla Road, Gole Bazar. Ranchi 0651 2201060, 2203038 2203279 2200166 9431101261 Arjun Jalan. Hiralal Bhagwati Prasad. Saharanpur 0132 2644159, 2660141 2711745 2727971 725556 9837492625 3107984 9412232562 Vijay Chanana Ajay Chanana Varanasi 0542 2353166 "2413166 3091770" 353166 9415224260 K.K.Kabra Achuyat Kabra Vedant Traders 16 Nagar Mahapalika Katra, Nichi Bagh Chanana Papers Pansari Bazar, Purana Lalta Bazar. Upper Bazar.

260

 SOCIAL COMMITMENT
At Yash Papers, we are responsible through our actions and intent to stakeholders at various levels to employees, their families, the government, investors and society at large. At the Company, this commitment is reflected in the following ways:  EMPLOYEES We help build careers through long-term growth, ongoing training, appraisal transparency, delegation and a no-bureaucracy management structure. We also provide accommodation to workers and officers with recreational facilities.  GOVERNMENT We paid Rs. 5.7 mn current tax and Rs.31.9 mn as excise duty.  INVESTORS We have invested significantly in an expansion that will translate into enhanced shareholder value across the foreseeable future.  COMMUNITY We run two schools in the plant vicinity – Yash Technical Institute and Yash Vidya Mandir (under the aegis of Jingle Bell Nursery School Society), which impart education to 350 students from nursery to Class X. We also have two schools in Faizabad City. As part of our community responsibility, we reinforced rural infrastructure – roads, wells, lighting arrangements and medical camps.

261

We are now initiating large-scale plantation programmes to promote farm forestry, which would result in a win-win situation for future pulp needs of the Company and income for the local farmers.

 INVESTORS
Yash Papers is a profit making Company. Yash Company has achieved a production of 24,929 MT and sales of 23,928 MT during the period ended 31st March 2008 against a production of 16,158 MT and sales of 16,368 MT in the previous year ended 31st December 2006. The Company achieved a gross turnover of Rs.5649.35 lacs in the current period against Rs. 3412.92 lacs in the previous year. The figures for the current period are for 15 months and therefore are not comparable with the figures of the previous year. Reserves as on 31st March, 2008 stood at Rs.1408.63 lacs, compared to Rs. 1717.50 lacs of the preceding year. We reported a turnover of Rs 258.4 million in 2004-05 and Rs 274.9 million in 2005-06. Our net worth grew from Rs 102.9 mn to Rs 369.9 mn while capital employed by the Company strengthened from Rs 247.6 mn to Rs 494.0 mn across this period.

 R & D INITIATIVS
At Yash Papers, the objective is to manufacture specialized paper varieties and grades customised around diverse buyer requirements. Since this requires varied manufacture, we have invested attractively in product research and development through the following initiatives:  We employ an efficient research team comprising professionals with adequate qualifications and experience.  We possess a well-equipped laboratory capable of developing various paper grades in-house.

262

 The lab-scale plant is complemented with adequate equipment (digester, beater, disc refiner, sheet pressing machine and sheet-making machine among others)  We focus not only on the development of newer paper grades based on their required properties but also assists quality control through a regular analysis of production samples. Over the recent years, the key R&D achievements have comprised:  Development of new grades  Improvement in properties existing grades  Process optimization  Development of pulping systems with new libero  Reduction in water consumption

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CHAPTER 9 JOB PROFILE/ ASSIGNMENT PROFILE  WORK ASSIGN PAPER BAG MANUFACTURE OF NORTH INDIA ( How much beneficial for Yash Paper Limited )
Now a days paper bag’s are used in our daily life. Paper bags have always been around. We get them at the grocery stores, we use them to pack our lunch , and we have hundreds of them laying around your house. Paper bags are made to be strong so that they can hold much heavier objects. Two of the best features of a paper bag are that they are environmentally safe and they are reusable. Yash papers is a paper manufacturing company so my guide assigned me to visit different paper bag manufacturers & dealers for survey of the consumption in a month. What are their demands and how much order of paper they place to Yash papers limited?

FINDINGS
This project given to me by my guide Mr. sailash singh I tried my best to get up with the project. My work was to find how much paper bag manufacturers are benefited for yash paper limited, Before starting my job I collect all information regarding paper industry and paper bag. so I have to need to know about the various features of the paper like

 GSM(gram per square meter)  Tear factor  Cobb factor

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 I found out that the services provided by yash paper limited are better and cheaper
to there competitors.

 Demand of paper bag increases day by day. Paper bag’s use mostly in urban area
.Manufacturing of paper bag is very profitable business.

 Mostaly 80-100 gsm paper use for paper bag. so it is important for yash paper
limited to increase manufacturing of high gsm paper.

 Mostly paper bags manufacturer by using wood pulp but yash paper use
bagas,bora,soft wood pulp so it is very costly. Also I find some other point that given below

EFFECTS
Reusable bags are an alternative to paper or plastic. Paper bags are made out of kraft paper. Kraft paper, in turn, is made by heating wood chips in a chemical solution at high temperatures. If you have ever driven by a paper mill, you have probably smelled the stench that emanates from it because of these chemicals. Not only are the chemicals harmful, the wood chips contribute to deforestation as well, since trees are cut down to produce these wood chips. In addition, the use of such chemicals has been proven to contribute to water pollution, air pollution and acid rain. After the paper-making process in complete, the chemicals filter down into the waterways. The chemicals' toxicity settles into the waterways' sediments, where it can remain for a long time.

MISCONCEPTIONS
It is often thought that because paper bags are somewhat biodegradable, they must be safer than plastic bags. The reality is that paper bags take more energy to recycle than plastic bags do. Also, studies in landfills have shown that because of lack of light and moisture, paper doesn't break down any faster than today's plastic bags. In addition, recycling rates for both paper and plastic bags have been very low.

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POTENTIAL
While neither paper nor plastic bags are safe, there is an alternative to both. Reusable cloth bags are becoming increasingly popular at grocery and chain stores. They can be purchased for a small amount, usually $1 per bag, and can be used repeatedly. Paper bags remain an option in grocery stores and are preferred by many consumers for convenience; some people assume they are less damaging to the environment than plastic bags. The production of paper bags is, however, harmful to the environment in several ways. There are many identifiable pros and cons for the consumption, production and disposal of paper bags.  Email  Send to Phone  Print Article  Add to Favorites  Flag Article

PAPER BAG CONSUMPTION
Ten billion paper bags are used annually in the United States alone. It takes 14 million trees to meet this demand. Many consumers prefer paper bags because they hold more than plastic bags and are sturdier, but stores mostly prefer to give out plastic bags because they are cheaper than paper.

PAPER BAG PRODUCTION
Paper bags are mostly made from virgin tree pulp because recycled pulp is not as strong, so their production inevitably begins with chopping down trees. Paper bag production is damaging to the environment in two ways: chopping down trees reduces the absorption of greenhouse gases, and the manufacture of the bags requires use of toxic chemicals that 266

contribute to air and water pollution. Additionally, the transportation of paper bags, which are relatively bulky and heavy, requires the consumption of petroleum, a non-renewable fossil fuel that causes further air pollution.

PAPER BAG DISPOSAL
A paper bag that ends up as litter will degrade in 10 months; however, in a landfill, it will not degrade for hundreds of years. Paper bags that are printed with vegetable-based dyes can be composted to provide a useful garden fertilizer. Paper bags can be reused as trash bags in the household and reused for groceries several times.

PAPER BAG RECYCLING
Less than 15 percent of paper bags in the India are recycled. Paper can only be recycled four to six times, and recycled paper is usually mixed with virgin tree pulp for strength, so recycled paper bags are rarely made from 100 percent recycled materials.

 PAPER BAG USE ON THE RISE
In almost any country where there are retail stores, whether accessories, clothing, groceries or even gift shops, we will find shopping bags, both plastic and paper. Plastic bags have been very popular because they are durable, attractive and can be used later in a variety of ways even around the house. But paper bags have also been increasing in usage. While stores do offer the option for the customer to carry out their newly purchased merchandise using either plastic bags or paper bags. Plastic bags, while ideal, can pose a danger to small children. There have been numerous documented cases of death cases by suffocation when a child (and even adults in some cases) have pulled a plastic bag over their heads by accident and have been unable to free themselves in time. With that in mind, families who have small children tend to avoid plastic bags when shopping and opt instead to go for paper bags.

267

Paper bags have been hailed as being very cost effective for both the consumer and the retailer. This is because for the consumer, they are free with each purchase. On the other hand for the retailer, purchasing paper bags is cheap because they take advantage of economies of scale (by buying in bulk). There are different types of paper bags for shopping. There are those that are single-use and those that are recyclable. Many homes are now trying to avoid trash and so tend to lean more towards recyclable paper bags. These are usually very durable in comparison to other bags of their class and can endure a weight that is much more than their actual weight. Recyclable paper bags can also be used again and again. In many parts of the United States, there are recycling centers where people can throw their single-use paper bags for recycling. This greatly saves the environment and can even reduce fires especially in the summer. By using authorized recycling center for paper bags rather than attempting to dispose of the bags themselves which is a common cause of many summer fires, the environment is preserved. There are many paper bag manufacturers in the world. Many of these are also the same plants that produce other paper products. Environmentalists sometimes contend that the use of paper bags contributes to the destruction of the world’s forests and by extension the environment. While there may be some truth to the fact that paper products have accelerated the rate at which trees are cut down, the use of paper bags has not necessarily resulted in more trees being exterminated. This is because in every paper factory, there are waste products that are not actually used for the end product. These waste products are the ones that are recycled to produce paper bags. Environmentalists should therefore rest in the knowledge that paper bags are safe environmentally. While competition from plastic bags is stiff and a reality to face, paper bags are not going anywhere and are still a top choice for many shoppers.

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 SWOT ANALYSIS OF YASH PAPERS LIMITED  STRENGTHS
 Large and growing domestic market.  Availability of personnel across all levels.  Well-developed printing industry.  Migration towards high environmental compliance through increased investments.  Rich know-how in non-wood pulping and applications.

 CHALLENGES
 Small and fragmented industry structure.  Low economies-of-scale across most units.  Non-availability of key input resources.  Environmental hazards.  Technology fatigue resulting in sub- optimal capacity utilization.

 OPPORTUNITIES
 Enormous domestic market potential.  Strong forest plantation potential.  Cost arbitrage.  Import substitution across some paper varieties.  Potential for industry development based on FDI inflow.

 THREATS
 Mills lacking international standards.  Delay in plantation growth and deficit of wood fibre.  Rising pulp costs.  Increasing energy costs.  Significantly high water consumption levels in paper manufacture.  High capital costs deterring investments.

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LEARNING DURING SUMMER TRAINING
I did my summer training from Yash paper limited. Yash paper limited is reputed paper manufacturer. I got a great experience under my summer training. I learnt a lot more about paper manufacturing, paper grade testing, and working of the selling department. I am describing my knowledge which I experienced during my summer training under following departments

1:- Production Department 2:- Research & development Department 3:- Sales & Marketing Department

During my summer training I know about 5’S.yash paper fallow these 5’S that are1. Shorting out 2. Systematic arrangement 3. Spic and span 4. Standardize 5. Self Discipline

In morning working is start with prayer of lord Hanuman. it is compulsory for every Employer to join the prayer session. mobile phone is ban in office, fallow rule and regulation of organization is compulsory.

1:-PRODUCTION DEPARTMENT
In production department I learnt process of manufacturing of paper & how the paper is produce from raw material . They provide information about different papers .Yash papers limited manufactures two types of paper viz. craft paper, and poster paper. There

270

are two types of craft paper viz. ribbed paper & plane paper, There are three machines for the manufacturing of different papers. First machine is used for manufacturing only craft papers, second machine is used for manufacturing all type of papers and the third machine is used for manufacturing the poster papers.

These papers are manufactured by straw, sack, & bagas. They make 32 grade of papers. All paper grades with there corresponding code is given on separate paper attached.

2:- RESEARCH & DEVELOPMENT DEPARTMENT
In research & development department I learn about the testing of different type of papers . In research & Development department all the 32 grades are tested. There are following types of testing: (i):- Gram Square per Meter(GSM) (ii):- Tear Factor (iii):- Cabb-60 (iv):- Tensile (v):- Thickness (vi):- Bulk (vii):- Brightness (viii):- Porosity

3:- SALES & MARKETING DEPARTMENTIn this department I learnt how the order is taken from the customers & how to visit the market. Details of customers requirement is provided to the Production department for manufacturing the paper & finished products for delivery to the customer .One of the most important function of this department is to develop good relationship with dealers and customers .The Machines works continuously day and night to complete the orders in 271

time. After manufacturing and testing of papers, the product become available for distribution and sent to stores department which supply the orders of every customer.

MY WORKING EXPERIENCE-

It was a great pleasure to be the part of Yash papers. During my summer training I learnt how can we work in an organization. What difficulties arise during working in any organization. Now while working I came to know that how much theory is different from practical experience. I learnt more about paper industries. I learnt that patience is an important ingredient to be a successful corporate player because of the questions of the customer. How can we work in a group and what problems arise inside & outside of the organization. It was a great experience for me a to be a marketer one must have the convincing skill. Visit in market was a new experience for me. I learnt much more during my work in Yash papers limited. The staff members behave very friendly and they share their experience from time to time. They also gave the information about work.

 SUGGESTION
 Marketing is back bone of any industry.  Better marketing better business.  Superior products may also flop due to poor marketing management.  Marketing management helps in strengthening the relationship among factory, dealers and customer.  Marketing helps in forecasting the future demands of the product in the market.

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 Marketing organization must be trained before launching the new products.  Marketing personnel must be aware of the merit and demerit of the products.  Supply of orders in time increases the reliability of the organization in the market.  Marketing organization should helps in solving the problems of their dealers and customers.  Marketing personnel should try to understand the problems of their dealers and customers.  Increases machine production,  Perfect testing of papers are done by machines to know the quality.

This conclusion shows that marketing organization in any industry or organization is the main component of the distribution channel for the marketing of their products.

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CHAPTER 10
CONCLUSION
Due to tough economic times, most major food stuff manufacturers are becoming particular how they package their products. A casual glance at the isles at the supermarket will tell you that most food is packaged in plastic or paper bags. While plastic bags have been very widely used, there has been a recent shift to paper bag products because of their cost and the fact that they are environmentally-friendly. For decades, plastic bags have competed toe-to-toe with paper bags, from the manufacturing plants to the retail supermarkets. In many countries now especially the United States, shoppers at local super markets and retail chains offer their customers the option to have their products bagged in plastic or paper. While many customer still value plastic because of its durability, water-resistant nature and also the fact that it is extremely reusable, paper bags are also wildly popular. One of the reasons why paper bags are popular is because of safety. Plastic bags have been responsible for many deaths especially for small children. This is because children are fond of playing with plastic bags and one of the ways in which they do this is to place the bags over their heads. In the event that the child is unable to free themselves fast enough, death by suffocation can occur. This is one major reason why shoppers prefer paper bags to plastic bags. Another reason why shoppers prefer paper bags is because they are easily disposable. While plastic bags have obvious advantages, they tend to litter the house because most people reuse them. This can cause an environmental issue especially it there are wrong disposal. If disposed of wrongly especially in areas with farm animals, these animals can swallow these bags and suffer health repercussions. One major disposal issue that environmental proponents fight about in regards to plastic bags is the way recycling

274

plants handle them. While recycling has been welcomed by many as a safe way of getting rid of plastics that have outlived their use, it has since been discovered that they are incinerated thereby releasing harmful toxins into the atmosphere. Paper bags are light, safe and can be easily discarded after they are used. They therefore pose no threat to small children or to the environment. Although the chances of paper bags causing a fire exist, the chances are slim compared to dry grass during summer. When children play with paper bags, they end up shredding them and therefore they pose no imminent threat. Paper bags are also extremely cost effective for the retailer and in most supermarkets, they are free with any purchase. This may not necessarily be the case with plastic bags where in countries such as Ireland, pose such an environmental hazard that an additional charge is passed on to shoppers who want to carry their grocery purchases using plastic bags.

BENEFITS OF THE PAPER BAG
“ The manufacturing process for a paper bag requires four times as much energy as the manufacturing process for a plastic bag. The production of paper bags creates 50 times more water pollutants than the production of plastic bags and 70 percent more air pollutants. Additionally, it requires 98 percent more energy to recycle paper bags than it does to recycle plastic bags, but the recycling rate for paper is higher. “  100% reusable, recyclable and biodegradable.  Easier to carry than plastic bags.  Holds more items than plastic bags = fewer bags to handle.  Environmentally preferred.  Contains 40% post-consumer recycled material.  A renewable resource - comes from trees.  High profit margin

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 PAPER BAGS ARE BETTER THAN PLASTIC ISSUE 1: ENERGY AND NATURAL RESOURCES
It takes more than four times as much energy to manufacture a paper bag as it does to manufacture a plastic bag.

ENERGY TO PRODUCE BAG ORIGINALLY (BTUs) Safeway Plastic Bags: 594 BTUs Safeway Paper Bags: 2511 BTUs

Of course, most paper comes from tree pulp, so the impact of paper bag production on forests is enormous. In 1999, 14 million trees were cut to produce the 10 billion paper grocery bags used by Americans that year alone. Paper bag production delivers a global warming double-whammy forests (major absorbers of greenhouse gases) have to be cut down, and then the subsequent manufacturing of bags produces greenhouse gases.

ISSUE 2: POLLUTION
The majority of kraft paper is made by heating wood chips under pressure at high temperatures in a chemical solution. As evidenced by the unmistakable stench commonly associated with paper mills, the use of these toxic chemicals contributes to both air pollution, such as acid rain, and water pollution. Millions of gallons of these chemicals pour into our waterways each year; the toxicity of the chemicals is long-term and settles into the sediments, working its way through the food chain. Further toxicity is generated as both plastic and paper bags degrade.

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POLLUTANTS PAPER V.S. PLASTIC

Paper sacks generate 70% more air and 50 times more water pollutants than plastic bags.

ISSUE 3: RECYCLING
It takes 91% less energy to recycle a pound of plastic than it takes to recycle a pound of paper. But recycling rates of either type of disposable bag are extremely low, with only 10 to 15% of paper bags and 1 to 3% of plastic bags being recycled .

ENERGY TO RECYCLE PACKAGE ONCE (BTUs)

Safeway Plastic Bags: 17 BTUs Safeway Paper Bags: 1444 BTUs

Although paper bags have a higher recycling rate than plastic, each new paper grocery bag you use is made from mostly virgin pulp for better strength and elasticity.

ISSUE 4: DEGRADABILITY
Current research demonstrates that paper in today's landfills does not degrade or break down at a substantially faster rate than plastic does. In fact, nothing completely degrades in modern landfills because of the lack of water, light, oxygen and other important elements that are necessary for the degradation process to be completed. A paper bags takes up more space than a plastic bag in a landfill, but because paper is recycled at a higher rate, saving space in landfills is less of an issue. With the advent of supermarkets and other retail chains in the world’s major cities, there has been an increase in demand for paper bags and plastic bags. After all, these are

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indispensable in packing the items that the shopper has purchased. In most supermarkets, retail chains and grocery stores, there is choice to have your items bagged using plastic or paper. There are many retail outlets that still use plastic but in the United States, there is always the choice to use either. This has raised the question as to which is ideal, the plastic bag or the shopping bag. As we shall see, both have their pros and cons. The plastic bag has been a top choice for many retailers for some time owing to the fact that it is strong and durable. This means that the plastic bag can bear considerable weight and rather than go home with a series of bags, the shopper can carry multiple items in one plastic bag and be assured that everything will be safe. While there are brands paper used to make the paper bag that are very durable and strong, there is always the danger that when using the paper bag, it might spill its contents if stretched too far. The plastic bag is also water-resistant. This can come especially handy when buying groceries or items that might leak such as lotion. When it comes to the paper bag, there can be some concerns especially if you are carrying something that may tend to leak or was wet (fruits). Paper bags can soak water and become soggy thereby tearing and spilling their contents in a most unceremonial manner. Paper bags, although popular, may not be reused too many times. This is not the case with plastic bags which can be reused around the house multiple times. This renders them extremely economical. Paper bags because of their overall lack of durability, cannot be used too many times and may only ensure for the duration of the original purpose for which they were issued. Plastic bags have become an environmental issue. This is because they can be unsightly especially if disposed of the wrong way. In some instances, especially in farmland areas, cattle can swallow these plastic bags and this can become a health hazard for them. Both plastic bags and paper bags can also cause fires especially if disposed wrongly. In countries whose summers tend to get very hot, this can easily be an area of major concern. 278

CHAPTER 11

BIBLIOGRAPHY

http://www.economywatch.com/business-and-economy/paperindustry.html (20-JUNE-2009)

http://stationery.indiabizclub.com/info/properties_of_paper/types_of_ paper http://www.ipma.co.in/ http://yash-papers.com/ http://www.centurypaper.com/ http://www.jkpaper.com/ http://www.orientpaperindia.com/ http://www.ramapaper.com/ http://www.westcoastpaper.com/ http://www.biltpaper.com/atoz3.asp (21-JUNE-2009) (23-JUNE-2009) (25-JUNE-2009) (26-JUNE-2009) (27-JUNE-2009) (29-JUNE-2009) (30-JUNE-2009) (2-JULY-2009) (4-JULY-2009)

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