Professional Documents
Culture Documents
The word "paper" has its origin to "Papyrus" an aquatic plant, which grows in abundance in the delta of Egypt. The barks and leaves of this plant could be and pressed into a sheet and was used as a writing material by the ancient Egyptians. The evidence of papyrus having been used as writing material can be found even now in some of the European libraries preserving old manuscripts. Paper is a material that is basically produced from bamboo. Paper meets the basic need of the modern society by contributing to Communication, Education, Packing and Hygiene.
The West Coast Paper Mill Limited came into existence on 22nd March, 1955. This Mill is located at Dandeli in the mildest of forest area of Uttar Kannada district of Karnataka. Dandeli is 56kms from Dharwad and from Pune-Bangalore Pune highway No.4 31kms from Alnavar railway station on Miraj Bangalore Network.
In 1956, the factory started with an authorized capital of Rs.5 crores and the trial production commenced with effect from 18th November 1958. Shri Morarji Desai, Hon. Finance Minister, Union Government had inaugurated the factory on 19th May, 1959. Thereafter, regular production continued.
The availability of basic raw material like Bamboo and the wood in abundance and the availability of water in all seasons from the Kali River and the railway link to transport raw materials as well as finished products promoted the promoters to set up this huge plant in this remote forest area. It is one of the renounced and reputed companies in the paper industry. It is one of the large- scale companies in India. This project is done in West Coast Paper Mills Limited as a part of Master of Business Administration curriculum with an objective of knowing the working conditions
Objectives
y y y y To understand the working of West Coast Paper Mills Limited To understand the trend of paper industry in India. To understand the current problem of West Coast Paper Mills Limited. The study helped to see and understand how the theoretical knowledge is put into practice in an organisation. y To learn about organizational department, present status, future of West Coast Paper Mills Limited.
The Pulp and Paper Mill sector is one of the oldest Industries in India. The economy has already grown to 7.4% in the year ended 31st March 2010 from 6.7% in the previous year. Demand for paper is directly linked to the GDP growth and prosperity. The paper industry will also benefit from the growing thrust on education.
Foreign publishers today look at India as an important destination for their printing solutions. The printing industry is expanding at a rate of nearly 15% p.a. The growth of the service sector also fuels demand for paper. Thus, the paper industry is expected to grow at a compounded annual growth rate of over 8 % per annum.
There are, at present, about 515 units engaged in the manufacture of paper and paperboards and newsprint in India. The country is almost self-sufficient in manufacture of most varieties of paper and paperboards. Imports, however, is confined only to certain specialty papers. To meet part of its raw material needs the industry has to rely on imported wood pulp and waste paper. The first paper mill in India was set up at Sreerampur, West Bengal, in the year 1812. India is currently the 15th largest paper producing country. The Indian Paper Industry accounts for more than 2% of the worlds production of paper and paperboard. The industry provides employment to more than 0.12 million people directly and 0.34 million people indirectly. The paper industry is
Current scenario
Since October 2008, the demand scenario was sluggish in line with the weak economic situation and this scenario persisted till the end of calendar year 2009. The Indian paper mills bore the brunt of dampening demand situation which took a toll of their overall production and realisations. The weak demand also coincided with new
Vision
To excel in serving the growing demands of the paper and paper product worldwide and enhance the share holder value with consistence and sustained performance.
Mission
The company stands for producing the best quality of paper in writing & printing that is white paper and duplex board.
The mill is the brain child of Shri. A.D.Chowdari, when he visited Dandeli, he found that Dandeli could host a good paper mill of moderate capacity production. His conceptualization crystallized into the establishment of WEST COAST PAPER MILLS LIMITED. An incorporated company, with its registered office at first in Mumbai and later it was shifted to Dandeli. The location of the factory was opted as the most suitable and advantageous, being situated in the heart of thick forests on the banks of river Kali and the major factors that weighed in its favour were the assurance of the then State Government of Maharashtra for continued supply of forest-based raw materials,
Originally the plant was designed to manufacture 18000 MT per year of writing, printing and packaging paper. The trial production started in November 1958 and
commercial production from May, 1959. The company was granted license from the Government of India in December, 1964 for 45,000 MT/P.A.
The performance of the company is very impressive. The Andhra Pradesh Paper Mill Ltd. was promoted by the Company by taking over the Andhra Paper Mills owned by Government of Andhra Pradesh in 1964. The Company provided technical assistance to the APPM for increasing its capacity from 21,000 MT to 71,000 MT per annum. The installed capacity of APPM has since gone up to 1, 74,000 MT per annum. The Company has an impressive track record of production and productivity for which various Awards have been conferred on it by the National Productivity Council [Government of India] and other organizations. The Company also has an excellent track record in timely repayment of loans/lease rentals to financial institutions/leasing companies and maintained the same even during recession period to which this industry has been subjected many a time. This has been highly appreciated by the financial institutions and lessors. 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
First in India to install Drum Chipper (supplied by Pallmann, Germany), Disk Refiners, Rotary Limekilin to reburn limesludge, 330 TPD Sids Chemical Recovery Boiler and FBC Coal-fired Boiler.
First in India to establish and use sulphuric acid as a protective agent in conventional bleaching.
First to have well equipped Research Centre attached with a paper mill.
First to have chemical Recovery Boiler of 500 Solids per day capacity.
And increase in net profit from Rs 31.86 crores in 2001-02 to Rs 36.04 crores and the earnings per share from Rs 35.64 in 2001-02 to Rs 40.31 currently.
Installation of a 100 TPD Duplex Board Machine and 350 TPD brown stock washing equipments.
The other Board of Directors include, Mrs. Shashi Devi Bangur Mr. Raghunandan Mody Mr. C.K.Somany Mr. Premal N. Kapadia, Mr. Saurabh Bangur Lt. Gen [Retd] Utpal Bhattacharyya Mr. Krishna Kumar Karwa Mr. Sanjay Kothari Mr. K.L. Chandak Registered Office of the company:
Month
Bombay Stock Exchange (BSE) High Low 48.00 38.30 60.00 40.10 68.00 49.00 58.55 43.90 62.50 49.50 69.30 59.80 66.90 56.50 72.65 50.10 76.00 63.70 77.70 62.60 67.40 59.75 64.20 54.55
National Stock Exchange ( ) High Low 49.80 37.50 59.95 38.10 68.00 49.00 58.50 41.55 62.50 46.70 69.40 60.00 67.45 56.90 72.85 54.80 76.00 64.20 77.90 62.40 67.10 59.50 64.20 55.00
Apr.09 May.09 Jun.09 Jul.09 Aug.09 Sep.09 Oct.09 Nov.09 Dec.09 Jan.10 Feb.10 Mar.10
The market price data from April 2009 to March 2010 of Bombay Stock Exchange and National Stock Exchange is given above. According to the above data, the WCPM share performance has been quite fluctuating over the months but has been able to keep it quite satisfactory.
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Developing or optimization of the process for improving productivity and energy conservation
Substituting import.
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The industrial variety accounts for high volumes and holds the potential for above average growth, the writing/printing category provides high margins; specialized grades provide increasing volumes and high realizations.
Writing/printing paper
Classified into creamwove, maplitho (branded copier) and coated varieties.
Industrial paper
Classified into Paperboard and Kraft; Paperboard can be subdivided into Duplex Board with Grey Back, White Board and MG Poster/Board.
Speciality paper
Classified into MICR and NON MICR cheque paper, Parchment paper
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Cultural paper
Azurelaid
Stable demand arises out of the use of this kind of paper in ledgers, extensively used by the traders and bankers
Creamwove
Stable demand from the notebook, textbook and government sectors. The demand for lower gsm paper is expected to increase due to the user attempts to cut costs.
Maplitho
Increase in demand for office printouts and stationery items. The demand for better quality notebooks & textbooks are also increasing, in which this paper is used.
Copier paper
With increasing automation, this type of paper is expected to register the maximum growth.
Industrial paper
Demand for this product comes from the increasing use of board packaging for consumer items like cigarettes, crackers, pharmaceuticals, hosiery, textiles, food & beverage. It is also used for the covers of notebooks & textbooks.
Base costing
paper
for Increased demand for high quality magazines, calendars, dairies and posters, in which this variety of paper is used.
Machine-glazed paper
This kind of paper is mainly used for file covers, covers for notebooks and soap wrapping segments.
Speciality paper
MICR & Non- Cheques are regularly used as a medium through MICR Cheque which money is transacted. The increased
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ORGANISATIONAL STRUCTURE
Chairman and M.D.
Executive Director
Local Management
Administration
Technical
Accounts
Production
Sales
Operations
Maintenance
Purchases
Department Head
Stores
Marketing
Senior Supervisor Employees Personnel
Warehousing
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This is the organisational structure of West Coast Paper Mills Ltd where the hierarchy begins with Chairman who is also the Managing Director. Below him is the Executive Director who in charge of the local management in each branch. The local management is divided into Administration and Technical. Administration management is divided into seven departments, namely, Accounts, Sales, Purchases, Stores, Marketing, Personnel and Warehousing. The organisational hierarchy below each department is shown in the later chapter. The Technical management is divided into Production and Planning and Development. The Production function is mainly divided into Operations and Maintenance, both of which has a Departmental Head. The Shift-incharge comes under the Departmental Head. The Shift Engineer and Senior Supervisor come below the Shift-in-charge chronologically. And the Employees and workers come finally in the whole hierarchy.
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efficiency of this department can save more money by purchasing the right quality of items at the right time and at a right price. This department is under the charge of purchase officer and he has a staff under him to assist in carrying the various activities of the department. This department is of great importance as the company has to perform all its activities efficiently and smoothly.
The Purchase Officer has to take decisions regarding all the purchases of the company. He has to select the right suppliers, the right quality of material and the right quantity required for a particular period. The purchase officer follows the described procedure for making the purchases of the company as and when this department gets indent from the stores department or from consuming department gets indent from the stores department for procurement of the items. The department studies the indent and then it takes necessary steps to procure the items or material required. The company has two sources of supply. One is external supply and the other internal supply i.e. from its own workshop.
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Procedure followed for purchasing the items: 1. Purchase activity shall be initiated after receiving indents from stores. 2. On the basis of indents, enquiries are floated on the approved sub contractors or per decision taken by manager 3. Offers from supplies based on enquiry received either on phone or by personal approach or sometimes in writing 4. Evaluation of offers are done 5. To negotiate with suppliers for finalization of the best possible rate then the proposals are kept for approval for high value orders. 6. Placement of order: After having scrutinized the details, the same is communicated immediately to the party for immediate action. Then purchase orders are mailed.
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RECEIVING INDENT
ENQUIRY FLOATING
RECEIVING QUOTATIONS
ORDER PLACEMENT
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The foremost objective of the store is to ensure materials at right time so that there should not be any hindrance or stoppage of work due to shortage of materials.
The second objective of the stores is that the materials should be arranged in a proper fashion and well preserved.
Economy in investments.
The department has to perform various important functions which are as follows. a) Fixing code number to each material. b) Raising indents as and when needed. c) Maintaining permanent card and stock card. d) Issuing materials against issue vouchers raised by consuming departments. e) Receipt and Inspection.
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3) Inspection: Inspection should be done to know the materials brought should be accepted or rejected.
In this company the total number of items used by the different departments is approximately 28,000 items. Dealing and handling of these items in their own name is almost impossible and a difficult job. The method of coding is therefore adopted and the materials are grouped in different groups and each group is given a code number.
In the WCPM stores department is divided into following sections. 1. Machinery spares parts stores. 2. General stores 3. Chemical department 4. Stores receipt department 5. Automobile spare parts
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Senior Manager
Manager
Section Officer
Senior Accountants
Accounts Assistants
The Accounts Department deals with all financial aspects of the firm. It is the main department responsible for maintaining all accounts of the company. All receipts and expenditures relating to the company are recorded. It is the main department which prepares budgets and assists management in investment decisions.
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Preparing the Balance Sheet, P/L A/c, & other necessary A/cs at the end of the Accounting or Financial Year.
Pay slips.
The ten years highlights of the company in regard to the financial performance of the Company is given below,
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Km CKm CKm
18003 14
16787 -
22829 -
7060 165407
6303 512170
8090
6230 81971
3889 18239
4283 356048
629 7087
Km CKm CKm
17790 _ 14
16762
22836
7105
6593
7774
6319
4236
3997
648 _
2647 5470 _
_ 2848 447
Rs./lakhs
60133
56778
40616
23218
18140
16467
14930
12935
11082
10610
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100
100
150
150
150
150
100
85
65
50
Like every other company, West Coast Paper Mills Ltd. would have liked to post better numbers. However, the sluggish demand conditions, which had prevailed since October 2008 continued for several months into 2009-10, and this has impacted the Companys performance. This period also coincided with the capacity addition across the industry and increase in raw material costs. The increase in raw material, fuel, chemical cost impacted the entire industry. As competition was fierce, it was not possible for the Company to increase prices, and hence the margin remained under pressure. The Company posted gross profit of Rs. 105.24 Crores as against Rs.120.36 Crores in the previous year lower by Rs.15.12 Crores (13 per cent). The net profit also decreased from Rs. 90.54 Crores to Rs.54.70 Crores - by Rs.35.84 Crores (40 per cent) due to higher provision of depreciation and deferred tax on account of commissioning of equipments under the expansion programme, the benefits of which will be derived in the current year.
But this is a small aberration from the otherwise sustained revenue and profitable growth that the Company has maintained over last several years.
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a. ICICI b. IDBI c. EXIM Bank d. CANARA Bank e. SBM f. SYNDICATE Bank g. KARNATAKA Bank h. Bank of BARODA
The Company issues debentures only for heavy projects. The company also does not allot Preference Shares; they make use of their own reserves.
Method of Accounting
The financial statements are prepared under the historical cost convention in
accordance with the generally accepted accounting principles in India and the provisions of the companies act, 1956 using the accrual basis except unascertained insurance claims comply with the accounting standards issued by institute referred to in section 211(3c) of companies act, 1956.
2.)
taxes and incidental expenses related thereto. In respect of assets scrapped or discarded during the year, the book value of such assets is written off as Obsolete Assets. Assets
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3.)
Depreciation
On the fixed assets, is provided at the rates and in the manner specified in schedule XIV to the companies act, 1956 on the written down value method, other than on plant and machinery, effluent treatment plant, roads and drainage on which depreciation is provided on Straight Line Method.
4.)
Investments
The long term investments are valued at cost. However, provision for diminution
in value is made to recognize a decline other than temporary in the value of long term investments.
5.)
Valuation of Inventories
Inventories are valued as under: a. Stores, spares, machinery/machinery parts, building materials, loose tools etc. (At weighted average cost)
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Revenue expenditure on research & development is charged to profit & loss account and capital expenditure is added to the cost of fixed assets in the year in which it is incurred.
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Taxation
a) Provision for taxation is made on the basis of the Taxable profits computed for the current accounting period in accordance with the Income Tax Act, 1961.
b) Deferred Income Tax on accounting of timing differences between taxable income and accounting income for the year is accounted by applying the prevailing tax rates under Income Tax Act/Rules in force.
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When the material is received, stores inward receipt is prepared by the stores department, checks the material and after approval, it is recorded in the stock cards. Chemicals are tested in the laboratory for its quality. Valuation is done by the stores account department. The indenting departments draw the materials through the issue vouchers. A monthly statement of consumption is prepared accordingly. Detailed records for production and consumption of water, steam and power are maintained. Also production and service cost centre wise classification of salaries and wages are prepared.
The works overhead have been absorbed on the conversion cost basis in different processes and service centres. The administration and selling and distribution overheads are apportioned or absorbed to final products on pre-determined basis i.e. machine hours, tonnes etc.
As such system followed can be considered as adequate to determine correctly the cost of the products.
c. Production Report
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g. Chemical Recovery
h. Duplex Board
The above are the different reports prepared in their respective departments daily and are later forwarded to costing department. There are also some departments which send their reports on monthly basis. For example, finishing house will take all the reports into consideration. Daily production report is made in this department which helps the managers to take decisions for the future production.
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Production Department
Production Organisational structure
Senior Manager
Manager
Asst. Manager
Shift in-charge
Supervisor
Workers
The main source of raw material in production required is wood i.e., Eucalyptus, Casuarina, Subabul & other Hard wood. Bamboo, which was earlier the main source of raw material, has now become scarce and is not used. Small quantity of Pine wood pulp is also imported basically for special specialty papers. The company's raw material procurement is basically from private cultivators within the state and from Andhra
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The West Coast Paper Mill Limited Manufacturing Process: RAW MATERIAL 5. (WOOD) CHIPPING PULP
X
WATER ADDITION
STOCK PULP
MACHINE
HEAD BOX
WIRE/SCREEN
PRESSING PART
DRYING SECTION
STEAM
CALANDER
POPEREEL L
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Chipping: Bamboo, Eucalyptus & hardwood are used for manufacture of paper pulp. Multi knife chippers chip bamboo and hardwood. Bamboo & Hardwood chips are then screened & conveyed by Bert conveyer or blown by blowers into chip silos for shortage of different wood pieces.
Pulping: From chip silo the chip and blown over the digester where they are cooked by sulphate process. The resultant pulp is blown under steam pressure into blow tank, heat from blown off steam is recovered in high efficiency heat exchange. The unbleached pulp free knot is washed over multistage vacuum washing plant. After washing the pulp is screened and cleaned to remove uncooked material, sand and other foreign material. Finally bleached pulp is taken thickened and stored in storage chests or high-density tower for manufacturing bleached variety of paper.
Chemical Recovery: It is indirectly a profit making unit. Because it recovers 92% of the chemicals used. Thereby reducing the chemical cost to the least.
The maximum recovery of chemicals and heat in the Sulphate process renders the manufacture of pulp more economical. The spent liquor which consists of non-cellulose material from bamboo and hard wood and the cooking chemicals are collected in sealed tanks, while the pulp is being washed on brown stock vacuum drum washers. The spent liquor usually known as weak black liquor is then evaporated in the multi stage evaporation plant to remove the excess amount of water mixed during the washing of pulp. The thick or concentrated black liquor is burnt just like furnace oil in recovery furnace. Non cellulose substance from bamboo and hard wood is burnt as fuel in the
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The steam generated in the recovery boiler is diverted into the steam turbine in powerhouse for generating power as a by product and the extracted steam is utilized for process performance. The smelt from the recovery furnace is dissolved into water or weak white liquor solution. The resultant slurry is called as green liquor lime is mixed with green liquor. The resulted slurry is clarified to remove white liquor on over flow. The white liquor i.e. a mixture of caustic soda and sodium sulphide is sent to the digester for cooking of bamboo and hard wood. The under flow sludge mud from clarifier is washed in multistage mud washers. This sludge combined with sea shell/ limestone is burnt using fuel oil in a rotary lime kiln to produce burnt lime.
Paper-making:
Pulp stock is usually beaten and prepared in stock preparation, section ahead of paper machine. Disc and conical refiners are used for refining of stock for each paper machine. When the pulp is refined/ bleached to a sufficient degree, sizing chemicals such as Rosaline, alum colours, filters and bleaching material such as soapstone powder are added to the pulp. The main function of the filter is to improve the capacity and finish of the paper. The stock thus prepared is taken into the paper machine where the final sheet formation taken place accompanied by a large quantity of water which subsequently has to be removed through the mesh of endless wire by vacuum and then by passing and drying over steam heated drying cylinder. The dry web of the paper is then glazed in cylinder rolls. The resultant paper of required quality is wound as a reel. From these reels, the paper is cut into sheets and packed into the reams.
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First the paper is being wounded up in reel then as per the customer specifications, goods are packed in the reams or rolls. If the customers order concerned with the package is rolled then, the reels are being unloaded from the production department. Quality of paper is checked by the quality control department. Then in the finishing house department these papers are being weighed, counted & packed in wrapping and are transmitted to the paper warehousing department. In the paper godown or ware housing department, the reams are packed into bundles, which should contain less than 70kg of weight. These reels are packed with plastic gunny bags manually. Now a day, this bundle packaging is even done by the machine. This results in low cost, time saving etc.
After getting the finished goods packed into bundles, the paper warehouse department stores in the respective storage section by marking numbers and codes on the packed goods for its easy identification. Then they are duly entered in the stock register, being maintained by the paper warehouse department manually.
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Date & Shift Lot No. Quality Size Weight GSM Sheets Total bundles Reams Per Bundle Total Reams Total Weight
Once the goods are stored in paper warehouse department, the invoice procedure starts in the department itself, wherein the quality, transport line medium, insurance charges, freight charges are being mentioned in the excise invoice copy. Three copies of invoice are made. One is retained with the department, other to the transporter and another is transmitted to the sales accounts department.
Following are Registers maintained by the Paper Warehousing Department: Bundling Register. Packing Register.
This keeps the records of the reams bundled & packed in the paper godown department.
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Paper godown daily report of reams packed into bundles. Program sheet for dispatch of paper. Allotment report. Loading list. Reconciliation. Pending order report
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The confirmation orders contain all the details about the party such as partys name and address, terms and conditions, final destination of goods, quantity and size required etc. After receiving the confirmation, sales department will send a copy of it to the production department and they will manufacture the paper according to the size and quantity required by the party. As per the demand of the party, sales department will give dispatch order to the paper godown and then it is dispatched from the godown after the completion of formalities.
The sales department will produce the final bill by deducting the required deductions and adding some expenses like the excise duty, freight charges (if any), insurance charges etc. A copy of such bill will be sent to the party and concerned branches after recording the transactions in the sales ledger.
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The pay will be given 30 days period for the payment without interest
If the party makes the payment in 15 days then the company will give 3% cash discount
If the party makes payment in between 16-21 days then the company will give 1.5% cash discount
If the party makes the payment within 21-30 days then there is no cash discount and even the interest will not be charged.
If the party makes the payment within 30 days then the company will provide 15 days grace period for the payment by charging 21% of interest
If the party does not make the payment in 45 days then the company will charge interest for the whole 45 days at the rate of 21%
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After deducting all discounts, on the remaining amount excise duty of 16% basic excise and 0.125% cess is charged. In case the goods are being transmitted outside Karnataka then CST is also charged.
In case the goods are exported, then the invoice is being prepared in the same manner but there will be some exemptions provided on the excise duty. Finally, after providing for all adjustments, the commercial invoice is prepared and is sent to the concerned party or distributor for the payment of goods sold to them.
Marketing Department:
With the winds of Liberalization and opening up of Indian economy since 1991 the era of control regime started to give way to market oriented economy. Liberalization and the move to integrate Indian economy with global economies had its consecutive effect on Indian paper industry as well. The effect of change by Liberalization was less pronounced in the initial years of 1990s i.e. up to 1995. The systematic lowering of custom duty on import of paper and paperboard during the period of 1994 1996 had a profound effect on marketing of paper and paperboard in India. The custom duties on import, which were as high as 85 %, were brought down to 20 % during this period. This lowering of custom duty tariff made imported paper cheaper in domestic market and thus gave the Indian paper industry a serious challenge on the price front. The domestic industry did not have a choice but to respond to this international challenge by give quality products at international price levels as any price above international level would lead to flooding of imported paper in the market.
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The orders are received from dealers who procure them and are forwarded to the Central marketing office where they are processed for their acceptance. The marketing
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After production, the paper is dispatched to the individual dealer or customer as per his instruction to their respective destinations. Paper is marketed both in the reel and sheet form. Paper converters generally purchase reels / whole sellers to sell printers for onward processing where as sheets retail and hence to consumers.
The marketing system (aspects) of West Coast Paper Mills Ltd. Dandeli is handled by the Corporate Office at Bangalore. This marketing dept procures orders from different zones, to distribute the maximum tonnage to customers in the shortest time, W.C.P.M. works with 124 dealers of long-lasting reputation and experience as opposed to direct retail across the country. These distributors are spread across 21 Indian states. In turn these dealers recruit a marketing team to service their immediate geography, service retailers and direct consumers (publishers, MNCs & Industrial users)
Prices are revised at periodic intervals in line with the following considerations: the landed price of imported paper, the demand for & supply of specific paper segments within the country & the delivered cost of paper to various points within the country.
The company does not find any difficulty in marketing its products due to a well establish network of dealers and is also confident that the additional production due to installation of a new machine and modernization of existing machines will also be absorbed in the market. A glimpse of the Client List is given below,
Indian Aluminium Co. Ltd. PG Foils Limited Godfrey Philips India Ltd. Kores (India) Ltd. Paper Products Ltd.
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The Company has out a specific programme to harness and improve the knowledge, skill and efficiency of each employee for their career development. The senior management is actively involved in boosting employee morale through continuous dialogue in structured communication meetings. The Company employed 2551 people as on 31st March 2009 as against 2526 people as on 31st March 2008. The personnel dept. performs all the functions right from the recruitment to right from an employee. The development of a just & reasonable promotion & transfer policy, the placement of employees according to their qualifications, & plans which aim at
increasing efficiency, promotions job satisfaction, motivating employees, & finally the administration & adoption of wage & other incentive plans, all these are looked after by the personnel dept. The establishment of this paper in Dandeli has attracted many technical & non technical personnel from all over the country for taking up the employment .The mill has given a new avenue for socio-economic development not only of Dandeli but also of Uttar Kannada District in a big way.
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Employment Procedure
The procedure for the selection of candidate is as follows: a. Recruitment b. Call letter c. Interview d. Selection e. Offer of Appointment f. Training
Methods of Training
The training is conducted usually on the class room training and in addition to it on the job training is a must. From various departments training nominations are received. The training provided by WCPM is
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Time office department maintains various files and records. Register of leave with wages, leave book, pay sheet or salary sheet, register of O.T., Register of absenteeism, Register of late arrivals, Office order files, office circular files, accidents record files,
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The West Coast Paper Mill Limited Welfare Facilities to the Employees
Statutory Welfare Facilities to the employees: y y y y y y y y Drinking water. Canteen. Rainy wear, uniforms & shoes. Shelter room & lunch room. Welfare office. Safety office. Fire office. ESI, Gratuity, P.F, Bonus facilities.
Non-Statutory Welfare Facilities to the employees: y y y y y y y y y y y y y y y y Housing facilities Education Training and development. Medical check up. Sports, game, cultural activities. Employees club & reading room Co-operative societies. Shopping complex Transportation facilities. Banking facilities. Post office. Companys own social security. Ranganath auditorium. Bangurnagar officers club. T.V. VCR channels cables. Multi gym.
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Employees/Officers Club
A reading room has been provided in the employees club and an average 150 persons are availing this facility daily. Dailies, weeklies, fortnightly, monthly newspapers and magazines in various languages are made available in the club. Indoor games like table tennis, chess, playing card etc., are played on regular basis in this club. No membership fee is there.
Auditorium
This Auditorium has more than 1000 seating capacity and this auditorium is utilized for multi-purpose like screening 35 mm films, conducting cultural programmes etc., Lately, this auditorium has been equipped with latest audio and lightning system so that the entertainment programmes conducted in this auditorium could become more attractive and enjoyable. In this auditorium, company has provided a 35 mm projector to screen feature films on regular basis for which entry is totally free to employees and to their family members.
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Co-operative Society
The WCPM Employees Co-operative Society is considered to be one of the best societies in the region. There are 1250 members in the society. This society has long term and short term loan facilities. Medium term loan facility available helps the members to buy house hold articles and also two wheelers etc., in instalment basis. The society also runs a fair price shop, cloth and general stores etc., for the benefit of the members.
Transport Facilities
The Management runs an Omnibus for the benefit of employees and their family members to visit nearby cities like Hubli, Belgaum and Karwar. Daily trips are conducted and very nominal charges are collected from the employees. In addition to the facility of Omnibus, the Company also runs school buses for the benefit of children going to different schools in Dandeli. Company also provides conveyance to employees at nominal charges to Alnavar railway station.
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Industrial Safety
The West Coast Paper Mills Limited considers safety as the main function of their productivity. The Executive Director of the company is considered as occupier of the company. Apart from that the factory manager is considered as representing occupier. The Industrial Safety department works under president technical, which is the top most authority of the production. The safety officer has been appointed as per the factorys Act, 1948 Sec 40 B. The qualifications of the Safety Officer are as per Karnataka Factories Rules 1969 Rule No 88A.
The company is very much interested to eliminate hazards in the work environment. The following are the tools which are being utilized to eliminate hazards.
1. Safety Survey
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Accidents
The company deals with accidents very seriously. To control the accident safety department insists for investigation of every accident. If any accident occurs, the respective shift in-charge or supervisor has to go to the spot and access the situation without getting biased by the statement of the surrounding people. The statements of other people are to be judged without any influence and he has to segregate which is the immediate cause and basic cause for the accident and the copy of the report is to be forwarded to the safety department. The department then decides necessary action so that no such incident will occur in future.
If any accident occurs, the affected person should be hospitalized and the patient is investigated. Investigation report is to be forwarded to welfare and safety department. The company is maintaining 30 bed hospitals with qualified doctors.
The company is very much interested to maintain good working environment. For this, there is fully fledged industrial pollution control department. Each working area of the mill has been checked frequently for rise in temperature, rise in noise or presence of harmful chemicals in the working environment. If any deviations are found, it will be taken care along with the concerned department so that the health of workers remains unaffected. The company provides safety gadgets like helmets, shoes, goggles, rubber hand gloves, PVC hand gloves and apron. Apart from this, protection from chemicals is also provided by the following personal protective equipments.
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Above equipments and its qualities are regularly monitored by the safety department. To train the workers to wear the protective equipments in case of emergencies, once in three months workers who are exposed to hazardous areas are trained in mock drills.
Promotion of Safety
The safety promotion activities are directly handled by the safety department. The Company celebrates NATIONAL SAFETY WEEK from 4th of March to 10th of March every year. During this week company involves all workers including contractors for participation in celebration activities.
y y y y
Slogan writing competition Painting competition Essay competition Safety drama competition
The selected posters, painting and essays will be displayed along with the safety gadgets, fire fighting equipments for celebrations. The company believes in educating local public. During this several competitions for the school children are also conducted and rewarded. Even the children are also provided training.
The West Coast Paper Mills Ltd won the SURAKSHA PURASKAR 2005 by the National Safety Council, Karnataka chapter. .
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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.
y 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.
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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. y 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 Companys Board of Directors and the Board of Directors declines to pursue such opportunity.
y 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.
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Any information concerning the Companys 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 Companys 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.
y 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 attract serious consequences.
y 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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West Coast has embarked on an ERP solution to enhance informed decision making
To enable the company to know what inventory is lying where for timely allocation
Thus having an integrated system for the company will eliminate the following problems:a) Wastage of time and effort in re-entry of data at various points. b) Chances of mistakes are more as the data is entered multiple times. c) Data may look different in different programmes depending on how it is entered.
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The West Coast Paper Mill Limited Corporate Social Responsibility Activities
WCPM supports the community of its presence through initiatives that go beyond direct indirect employment and has invested significantly in Dandelis upkeep.
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, and 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 and paper technology.
The West Coast Paper Mills Ltd., although dependent heavily on trees for supply of raw materials, remains one of the foremost ecology conscious concerns 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.
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 recombination 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
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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.
Supply genetically high quality planting stock. Improve land productivity and yields from pulpwood plantation Provide fuel wood etc. for local use Encourage overall tree forming practices. Improve the economic
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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.
Expansion programme
In the present era of globalization along with projected and sustainable growth of the Industry, development-cum-induction of energy efficient technology is the need of the day. The development that meets the needs of the present without compromising ability, needs and expectations of future generation shall become the viable bench mark for a sustained growth. Constant efforts are to be made with efficient fibre and energy management system to further strengthen and usher in the realm of sustainable operations of the industry.
The survival and healthy growth of the Indian paper industry solely depends on matching with the global capacities, operational efficiency and stringent quality standards. The robustness and optimal size of the production processes shall be a primary determinant for modernization and expansion programme. The growth in paper and paperboard companies is more or less directly proportional to the countrys GDP even with the advent of modern world of electronic communication.
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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, mechanized handling of paper in converting, finishing and godown stages.
Chemical recovery boiler of 1100 TPD black liquor solids firing capacity.
Causticizing section comprising liquor clarification equipments, mud washing and thickening etc.
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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 up to 3, 20,000 TPA after completion of the said investment program as against 1, 80,000 TPA at present.
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y y y y
y y y y y y
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Strengths
y y
The mill has an overall experience of almost 45 years. The company maintains a strong dealership network across the country which makes its sales processes much easier.
There are large tracks of wasteland in India which are proven to be of rich natural resource which the company can exploit.
There is availability of cheap factors of production for the company i.e. labour, materials etc.
There has been a change in focus from a forest based industry to a farm based industry through technology-led farming initiatives.
The company has positioned very strong entry barriers for other companies to enter the paper industry.
The company has a quick decision making process which makes the company avail of all the potential opportunities that the company comes across.
Weaknesses
y y The paper industry is an extremely capital intensive industry. The company has a long gestation or development period which proves that the company takes time for it to implement its expansion programs into action. y The company employs a water intensive manufacturing process which utilizes the water for the manufacturing process of paper. y y There are high energy costs which impacts the overall cost of production. There is an immediate need for empowerment of the employees in the organisation.
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Opportunities
There is a strong economic growth forecasted both in the paper industry as well as the Indian economy.
There is a thrust on education which would enforce the usage of paper and paper products more extensively.
There is a tremendous growth potential in copier business segment through services sector which would again escalate the need of paper broadly.
There can be more emphasis to produce international grade quality by the paper mill to make foreign market demand more realistic.
The modernization plans and technological up gradation are completed or likely to be completed in near future by the company.
The Online ordering process is a great approach to open the way to getting in orders from the clients almost instantaneously.
There should a performance based evaluation, promotion, and increments in the salary of the employees and workers working in the organisation.
There can be a foreign market expansion which provides the company with export opportunities resulting in the shifting of capacities to developing nations.
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The company has adopted Enterprise Resource Planning system through which it is able to run its activities smoothly and efficiently.
As far as Expansion programme is concerned the company is very professional and it has appointed external as well as internal experts to check the feasibility of the project.
Raw material is the biggest challenge for the industry. Governing laws do not permit the leasing of land, further a wood-based industry is expected to raise raw material outside the forest, and there is a ceiling on land holding restricted to 54 acres per person.
The Company is infected with technical obsolescence which impacts efficiency and quality
Current status of WCPM paper quality is good in the market but there is much opportunity to improve status and brand in market and some of the dealers are unhappy with quality of paper like thickness variation and brightness variation.
Wastage of raw materials used and residues for the process of production should be reduced.
The salaries and promotions are not given on the basis on performance but on seniority.
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Regarding technological obsolescence, the Company should take more initiatives than the already implemented projects and measures like usage of renewable resources,
The salaries of the workers and employees should be increased in such a manner that the employees and workers remain loyal and sincere to the Company and increased on the basis of performance and not on seniority criteria by providing performance appraisals, Effective and strict supervision should be maintained in order to minimize the wastage of finished goods.
The company should provide training facility to senior employees for working on ERP systems.
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CONCLUSION:
The forthcoming years will be a crucial. The Company is confident about posting robust performance. So, whether it is capacity, technology, additional raw material supply, water, power, storage, dealership network, overall efficiency with environmental focus the Company has infused strengths in each and every area of business. The Company has an excellent product range and the best quality to offer the customers. By virtue of the Companys diverse product range, it services institutional and retail segments.
The Company has shown excellent financial acumen by raising long-term debt at low rates. The entire expansion has been carried out at the existing location ensuring zero additional land cost. The modern technology across each and every process will provide the Company significant margin improvement.
Assuming the economic conditions remain favourable, the Company and its team have a strong outlook to the future and further success of the West Coast Paper Mills Ltd.
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BIBLIOGRAPHY
BOOKS:
Aswathappa. K. (2008) Human Resource Management, Tata Mc Graw Hill publishing company Ltd.pp 116,117,286. Philip Kotler,(2008)12th edition Marketing Management, Published by Indian Branch 48.F.I.E Patraparganji Delhi,pp 68,130,430. B.S.Raman, (2007) Financial Management, United Publishers Mangalore, pp 304,398.
WEBSITES:
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