Professional Documents
Culture Documents
INTRODUCTION TO PAPER:-
HISTORY OF PAPER:-
Paper gets its name from “papyrus”, a read that the ancient
Egyptians used for making a writing material, they cut papyrus stalks into
the steps and pressed crises crossed layers of strips into sheets.
Paper industry in India is the 15th largest paper industry in the world. It
to the government's kitty. The government regards the paper industry as one
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
Since then the raw material for the paper industry underwent a number of
changes and over a period of time, 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
In 1951, there were 17 paper mills, and today there are about 515
scale and small-scale. Those paper industries, which have capacity above
24,000 tonnes per annum, are designated as large-scale paper industries. India is
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.
(Development & Regulation) Act, 1951 with effect from 17th July, 1997. The
Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for
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
pulp and waste paper and wood logs/chips has been reduced. The industry has
to go for export with all its policy support, tax concessions, availability of
capital etc.
The paper industry has an important social role to play for the country.
compulsory etc. are very much related to the paper industry. The paper industry
industrial growth of the country. The paper industry has, thus, a catalytic role to
play not only for the overall growth of the industry but also for the living
Because of paper industry’s strategic role for the society and also for the overall
1. Newsprint
Over 550 players currently populate the industry and the estimated capacity is
about 7.00 million Metric Tones Per Annum (MTPA). Fragmentation is severe
in the “industrial” (packaging) grades, which rely on “unconventional” raw
material such as waste paper and partly agro residues. This division generally
comprises of units with an average size of about 10000 MTPA and contributes
to 45% of the output of paper and paper boards in the country. Although the
other divisions in the Indian paper industry are also fragmented by international
standards, the degree of fragmentation is less severe. “Newsprint” till about
1995, was the sole preserve of large public sector units and was well protected
by high import tariff barriers. Nevertheless, imports contributed to about 50% of
the domestic consumption. Since then, new domestic capacity with private
investment has been allowed to be created. This growth has relied namely on
De-inked waste paper as a source of raw material. Currently import duty on
newsprint is about 5% and domestic manufacture of newsprint is exempted
from excise duty. This tariff structure for newsprint has seen Indian newsprint
price closely mapping international prices. Imports still constitute about 30% of
consumption and newsprint contributes about 10% of the total production of
paper and paperboards. The number of players in the newsprint segment is
relatively limited and manufacturing capacities are larger than in the packaging
grades segment. Historically, the bulk of the output of “Cultural” grades –
comprising of writing, printing, office stationery paper and specialty paper has
been the preserve of “large” producers, who use forest based raw material in
integrated pulping facilities augmented by imported pulp. This segment has
been consistently taxed at higher rates due to its size and use of “conventional”
forest based raw material. Investment in plant has also been higher. With
relatively smaller number of players and high import tariff protection, prices of
end products, generally perceived to be higher quality, have been high.
Import tariff levels, although much lower now, still continues a significant
barrier to imports. The high investment levels required and limited
“conventional” fiber resources are the major deterrents to growth in this
segment for both existing players as well as new entrants. “Lower end cultural
grades” manufactured by smaller players using unconventional raw materials in
low investment, low tech plants cater to consumers in the price sensitive sub
segment of this market. This sub segment depends significantly on the tariff
differential based on size and raw material for its viability.
The Indian Paper industry is going through substantial changes. Global demand
for paper is expected to grow by about 4% p.a. over the next 5 years. The
domestic demand is expected to grow at about 8% which will result in increase
of demand by 30 Lakh tones approximately over the next 5 years. It is expected
that customs duty on import of paper will decrease from the current level to the
level of 10% over a period of time due to WTO compulsions.
The import of raw material for paper including pulp, waste paper and news print
is likely to increase by at least 15% to 20% in 2005-06 to keep up with growing
demand for paper in the domestic market. Despite to the constraints like over
crowded market and limitation in procuring the desired quality of waste paper,
there are indicators of a revival in the Indian Paper Industry. In the current year,
selling price has marginally increased and enabled the industry to partially
offset the rise in cost of inputs, fuel & labour.
The paper industry has an important social role to play for the country. Use of
etc. are very much related to the paper industry. The paper industry is also
industrial growth of the country. The paper industry has, thus, a catalytic role to
play not only for the overall growth of the industry but also for the living
Because of paper industry’s strategic role for the society and also for overall
FUTURE PROSPECTS:
The globalisation of Indian economy has lead to a healthy growth of 6 to 7%
industry and that is growth happening in all the sectors. Moreover the Per
Capita consumption of paper in India is going up with the advent of packaging
in the food industry. Due to environmental concerns, the use of plastics is likely
to be banned by the Government of India within a short span of time. Hence
within 2 to 3 years we will be witnessing an explosive growth of packaging in
India mainly in food, textile and export segments.
The exposure to foreign packaging technology and the need to satisfy the export
customers has led to a drastic change in the industrial packing sector. The
corrugators have started using high BF, high GSM paper instead of the regular
grades and shifting from 7 ply and 9 ply boxes to 5 ply and 3 ply boxes. The
above change has resulted in more aesthetic and cost effective packing
solutions. There is a very good potential market developing for such grades of
paper in India. The market of high quality Kraft paper is now catered only by
few manufactures from western and northern parts of the country. With the
above changes in the industry it would be in the best interest of our company to
put up a Kraft paper plant of 100 MT per day producing high B.F., higher GSM
paper and exploit the emerging market situations better. The company envisages
the following advantages by going for such a plant as follows:
l) Most of the existing paper mills in South India operate with single wire
machine, which can produce up to 24 BF only, whereas the new plant intended
to be set up by SSPML is a twin wire machine which can produce high quality
Kraft paper of 24 BF to 40 BF which is sold in the market at a premium. l By
making high end paper in south India the company stands to gain a lot in terms
of logistics costs when compared to the competition. l GVG paper mill ltd got
the advantage of cost benefit while importing raw materials and exporting
finished product. l The possibility of exporting substantial quantity of the
production to near by countries like, Sri Lanka and eastern African countries is
also bright. This may also be substantiated from the fact that paper exports have
risen at a CAGR of 14 % pa from 105000 tonnes in the year 2000 to 179000
tons in the year 2004. As a strategic measure to expand the international
operations of the company, the company has already started a new business
division – International Business Unit to handle the international marketing
operations of the Company.
The twin wire technology is superior than the single wire technology due to the
following factors:
Government has completely de-licensed the paper industry w.e.f. 17th July,
Memorandum with the Secretariat for Industrial Assistance for setting up a new
The industry is a priority industry for foreign collaboration and foreign equity
Several fiscal incentives have also been provided to the paper industry,
There are, at present, about 515 units engaged in the manufacture of paper and
confined only to certain specialty papers. To meet part of its raw material needs,
the industry has to rely on imported wood pulp and waste paper. The production
of paper and paper board during the year 2001-02 is 31.62 lakh tonnes.
The proportion of non-wood raw material based paper is increasing over the
years. At present about 60.8 per cent of the total production is based on non-
The performance of the industry has been constrained due to high cost of
power cost and concentration of mills in one particular area. Several policy
due to short supply of raw materials, duty on pulp and waste paper and wood
logs/chips have been reduced. The capacity utilization of the industry is low at
62% as about 194 paper mills, particularly small mills, are sick and/or lying
Imports of paper and paper products were growing over the years. However, it
Indian paper industry is the 15th largest in the world and provides employment
to 1.3mn people in the country contributing Rs.25bn to the Government. The
industry has recorded a volume growth of CAGR of 5.47% over the last 3 years.
In 2003-04, it recorded a volume growth of 6%, in line with the GDP growth.
Indian paper industry has a 1:1 correlation with the economy. The demand for
paper is linked to the GDP Growth. The government is planning to target a GDP
Growth of about 10% in 2-3 years. With this increase in the GDP growth the
paper sector is expected to record a similar growth rate.
The Indian paper industry has an installed capacity of 6.7mn tons while, the
effective capacity is estimated to be lower at 6.15mn tons. The industry
produced 5.26mn tons of paper in 2003-04. Newsprint capacity in India is
estimated at 1.12mn tons however, domestic production is only 0.59mn tons,
while consumption of newsprint is 1.1mn tons. Favorable demand - supply
scenario to keep prices firm
Capacity expansions (which cost 50% less than new capacities) have been
announced by most players, but would take 1-2 years to be operational.
Capacity expansions of over 600,000 tons have been announced by the 7 large
players in the sector
WTO Impact:
1. Central Excise:
Central Excise is levied @8% for the first 3500 MT production and thereafter
@12% on the value of the invoice. The Company is availing permitted Modvat
benefits as per Central Excise regulations. For import duty paid on waste paper
procured from overseas the Company is entitled to adjust the entire duty paid
component as that of Modvat credits.
2. VAT (Value Added Tax):
VAT replaces the existing multipoint taxes levied by various states with effect
from April ‘05. As that of other industries, the paper trade is also covered under
VAT for domestic sales done in the state of Kerala. However for interstate sales
CST is continued to be levied as per existing Government regulations.
3. Service Tax:
Being classified as a manufacturing industry, the industry even for Job Work on
conversion basis will not be subjected to Service Tax requirements. A recent
notification from Central Government also confirms such a stand.
4. Factory Licenses:
All the licenses required under Municipality Act, Factories Act are obtained and
duly renewed.
5. Pollution Control:
Necessary permission under effluent discharge Act is obtained and the facilities
required to maintain the permission are in place.
Industrial refuse Corrugated boards, duplex & other packaging board, paper
sacks etc.
Office refuse Ledger files and papers from Govt. offices,
In India, collection of office refuse has not been very high mainly due to
unavailability of a viable collection system. In practice, more than 80% of the
paper consumed in India is being collected, of which only 20% is being made
available to paper industry and the rest 60% is usually diverted for other
diversified / secondary uses such as wrapping, packing etc.
PROFILE OF THE COMPANY :
1)Shri M Soundararajan
2)Shri M Velusamy
3)Shri M Amarnath
The following constitute the present Board of Directors of the company.
Smt A Padma
Shri V Vivek
Nallur,Pushpathur Village
Palani TK.
Tamil Nadu
India.
E-mail : gvgpmudt@gmail.com,
gvgpmudt@dataone.in
COMPETITORS:-
Finance/Administration Department:
Accounts Department:
Purchase Department:
Production Department:
Dispatch Department
HR. Department
GVG paper mill Ltd’s Human Resource Processes are rooted in business
priorities, market realities and long term oriented. Inherent in them are the
qualities like innovation, continuous learning and improvement in the work
processes, talent identification and nurturing. GVG Paper Mill Ltd through
its concerted efforts aims at becoming the most preferred employer in the
Industry and create one of the best places to work in the manufacturing
sector.
Our HR processes stem from the faith in Human Potential and its Creative
Power. Our work culture that enable its Human Resources enjoy
professional freedom. Our Learning Center is a forum where unique
learning events take place as a part of the process of institutionalization of
continuous learning.
The compensation package of the Gvg Paper Mill Ltd matches with the
Industry Standards with qualities of flexibility, valuing talent and
encouraging career growth.
Maintenance Department:
For electrical maintenance GVG Paper Mill Ltd has flexible solution with
comprehensive energy consumption logs and immediate access to a
range of electrical parameters, presenting information remotely via the
company's existing computer network. Power Measurement offered the
right set of capabilities with its energy management software, installed on
distributed workstations, and a network of intelligent power meters. The
system proved to be a valuable aid in the design and operation of
electrical installations. Further operational savings are being realized,
especially related to fast alarm response, and the system's modular
architecture facilitates affordable growth of all energy management
applications.
2. Newsprint
H).Colour printing.
b). Magazines
c). Journals
d). Gazette
f). Tabloids
g). Documents
h). Certificates
MD
GM(operation)
Sales All
Personal DGM Purchase
officer
Technical
Factory Sales
Securit Time Canteen Dept.Head Manager
y Offic
e
DGM
Shift
Watchman Supervisor All
Coop
A/c’s
Stores
Maistery
All
Workers
Workers
RAW MATERIALS ANALYSIS:-
LIME
SOAP STONE POWDER
ALUM
DYES
SODIUM SULTHATE
H2O2
SULPHURIC ACID
SODIUM HYDROXIDE
HYDROCLORIC ACID
NITRIC ACID
STARCH.
CUSTOMER SERVICE:
Main raw material for the company is corrugated boxes/waste paper which is
purchased through local suppliers and global suppliers. Company has adopted
inventory control system for purchase Raw material. Decision for making
purchase is taken by the Executive Director (Purchase) after considering the
indents for requirement of raw materials, received from the production
department. Director (Purchase) is assisted by team of purchasers, who calls
quotations from different suppliers of raw materials.
Copy of the report, is attached with bill of supplier and handed over to gate
department for entries in their inward receipt register. Rates of different type of
raw materials are as under :-
A) PULPING :
Pulp, as it, is not fit for being converted in to paper and must undergo some
preparatory treatment depending on the end product. Before going to the
paper machine, the stock must be prepaid uniformly with a fixed thickness
and be screened and refined by crushing so that it may be reduce in to fixed
thickness with uniform properties in a uniform speed. The treatment is carried
out in appratus called refiner and sizing agents like alum, dyes, loading
materials are added in the process to develop its strength. The main flow of
pulp which is freed from tailings in the vibrating screen and fine pulp sieved
out from the tailings are put together and sent to the centricleaners which work
quite efficiently in removing fine dust.
C) PAPER MAKING :
Prior to going in to the paper making machine the stock which has gone through
necessary treatments, is diluted in the mixing box, down to the required
consistency with the use of back water generated in the paper making process.
Similarly speaking, the paper making machine performs its function in this
way :-
In the pulp stock which goes over travelling wire the fiber is separated from
water & sheets of paper is formed. The wet sheet is pressed dried and
smoothened by going through several sets of roll machines. To get M.G.Kraft
Paper, the sheet is then passed through M.G.Dryer which imparts glaze to the
paper. Paper is finally wound up by means of pop-reel machines. The out put
of a paper machine is determined by the trimmed width of paper, the speed of
machine and grammage of paper.
D)FINISHING OF PAPER :
Paper and board intended for sale in reels and cut sheets is rewound & cut to
certain fixed measurements. Defective paper and board sheets are removed .
The rejected produce is returned to pulping section and mixed into the main
flow of pulp stocks.
E) DISPATCHES:
Reels so prepared, is then wrapped by plastic cloth and clipped with the help of
plastic strips. Supervisor on duty mark a serial number, size and grammage on
each reel for the purpose of identification. Wrapped reels are then weighted
through electronic weighing scale. Weight as shown on the display is written in
the reel by the supervisor. Supervisor also maintained a register in which he
entered weight of each reel along with serial number of the reel. Reel is then
shifted in finished goods godown from where it is dispatched as per orders
received. Complete record of reels manufactured and reels dispatched are
forwarded to account office.
QUALITY CONTROL:
GVG keeps stringent control over quality for consistent quality which has
helped it have clients like :-
EMPLOYEES CAPACITY
Waste Paper
HEAD BOX
SAND TRAP DRYER
CENTI CLEANER
DUMPING M.G.DRUM
CHEST
FLOW BOX
HIGH DENSITY
MACHINE CHEST
CLEANER REELER
2. Identification of Hazards :
Frequent inspections are being carried out by using checklists. The Safety
Committee and Sub-committees also inspect the plants regularly.
3. Safety Systems :
Safety Work Permit System and Danger Tag System are in use for
carrying out repair and maintenance works, hot works in fire prone areas,
entry in to confined space, work on roof, excavation, etc.
4. Safety Training :
General and need based training is given regularly to all employees
including cont. workmen
5. Motivation :
National Safety Day is celebrated every year. Many competitions like
slogans, stories, posters, essays, etc. are organized on the occasion of
National Safety Day Celebrations every year. An accident reduction
contest is organized.
.
6. Publicity :
Posters, Slogans, Bulletins, etc. are displayed through out plant Safety
Magazine is published
9. Occupational Health :
Occupational Health Centre is established. One doctors and 2 nurses are
working in Occupational Health Centre. It is operated round the clock
Periodical medical exams are being carried out for the identified
personnel. This includes X-rays, Clinical examination; Blood exam; Lung
function test; audio metric, stool exam; eye exam as per the requirement
under Factories Act 1948
ENVIRONMENT LABORATORY:
The main pollutants in the effluent discharged are Suspended Solids, B.O.D,
and C.O.D etc. The wastewater from the mills is treated in Effluent Treatment
Plant consisting of Primary Treatment to remove the suspended solids and
Secondary Treatment (Activated Sludge Process) to remove B.O.D and C.O.D
and then treated by Land Treatment process to remove even the Colour of the
effluents. GVG paper mill ltd is the only mill discharging effluents upstream
and drawing water from down stream.
PRIMARY TREATMENT:
Wastewater is passed through bar screens and perforated screens to remove any
The effluent from the Primary Treatment is taken to an aeration tank of 25000
LAND TREATMENT:
It is a well recognized fact that top layer of the soil maintains a Micro
Environment within which soil Flora and Fauna decompose varieties of organic
matter. Thus, top layer of soil can be utilized for the treatment of Biodegradable
Organic Waste water. Several conventional (natural, physical and biological)
treatment processes occur in Land Treatment. Considering such capability of
land for treating wastewater, land treatment is well recognized as Living Filter
all over the World. As wastewater is discharged on land for treatment, part of it
infiltrates down wards and part evaporates and part gets transpired by Plants.
The remaining portion gets utilized under the influence of Land as Living Filter.
CONCLUSION:
policy for its products. The analysis made regarding customer satisfaction
and the findings thereof reveal that GVG is performing well on all fronts.
mills should perform still better in terms of quality, prices and credit
of the economies of scale, the company should expand its business and
production thereof by investing some more capital. Besides the mills should
dealers will come under the fold of the company. It should also target the
international markets with its multi type of products through its export
business.
If the above measures are taken up by the government, the paper industry
will grow gradually, and the mills producing different paper products, will
become quality oriented, cost conscious, customer oriented so that they can