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Chapter No. Chapter Name Page No.

1 Preamble 3
2 Purpose Of Study 3-4
3 The Business 4-5
4 Location 5
5 Manpower Requriment 5-6
6 Machinery Requirement 6-7
7 Technical Knowledge 7-23
8 Plant Layout 24-25
9 Demand For Product 25-26
10 Supply Of Raw Materials 27
11 Source Of Raw Materials 27-28
12 Major Competitor 28
13 Fund Flow Statement 28-29
14 Brack Even Anaiysis 30
15 Why I Am Interested In This Business 31
16 Legal Aspect 32-36
17 Tax Applicable 36-37
18 Conciusion 37-39


We are setup a customer-facing organization. This means that all initiatives are taken
understanding the customers mind. The management structure is flat. Decision-making
decentralized. Doors open. Direct Communication. Complete Trust. Such a management
philosophy helps us cater to the stated and unstated needs of our Customers in the shortest
possible time. The manufacturer of low-grammage unbleached kraft paper and poster paper
through the bagasse as raw material.
Our vision for the millennium remains manufacturing of best quality products at
optimum cost in consistence with the physical and psychological environment best suitable
for customers . We 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. While discharging commercial functions, the company had not forgotten
its responsibilities towards society and environment.

The real value of creating a business plan is not in having the finished product in
hand; rather, the value lies in the process of researching and thinking about your
business in a systematic way. The act of planning helps you to think things
through thoroughly, study and research if you are not sure of the facts, and look
at your ideas critically. It takes time now, but avoids costly, perhaps disastrous,
mistakes later.

It typically takes several weeks to complete a good plan. Most of that time is
spent in research and re thinking your ideas and assumptions. But then, that’s the
value of the process. So make time to do the job properly. Those who do never
regret the effort. And finally, be sure to keep detailed notes on our sources of
information and on the assumptions underlying our financial data.

Shine paper is the global paper manufacturer company, seeking for trade partners to start
new business deals and keep onwards the strong relationship. Our aim is to serve our
customer the best as holding on win-win solution. We are pleased to present you our
products and services. Our business in divided into various departments.
i-Production –Basic work of this department will be purchasing of raw material,
manufacturing of various grade of paper.
ii-Finance department
iii-Marketing –making the client for the company,
v-Human resource
vi-R & D department
Basic information
Our business-we manufacture two types of paper craft paper and poster paper, these two we
classified in different variety of paper likewise of different grade.
1. DEP - Deluxe Plain
2. DER - Deluxe Ribbed
3. DOR - Deluxe Orange Ribbed
4. GDP - Golden Deluxe Plain
5. GDR - Golden Deluxe Ribbed
6. KEP - Kraft Envelop Plain
7. KFR - Kraft Fire Work Ribbed
8. LSR - Light Shade Ribbed
9. SDP - Super Deluxe Plain

10. SDR - Super Deluxe Ribbed
11. NSP - Natural Shade Poster
12.PFB - Poster Foil Base

For any business location plays a vital role. The success and the future of the company
depends on that place from where selling of the product and availability the required raw
material is feasible and in least possible cost.
Location-our preferred location is Faizabad.
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
Shine paper Mill has 5 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

Our company is a paper manufacturer company so we required management ,technical staff
and labors we required different manpower por different department like wise-
1-Top management-5
2-Human recourse department-4
3-Finance department-6
4-Production department
a-Technical staff-
i-mechanical engineer-3
ii-Electrical engineer-3
b-Machines operator-3
5-Marketing department-5

6-Sales department-5
8-R&D department-3


• Heavy duty rewinder suitable for board, kraft-paper and writing & printing paper.
• Maximum operating speed 600 pm
• Rider roll is pneumatically controlled
• Reel pushing roll is preamatically operated
• M. S. Fabricated frame with CI rail for rider roll sliding arrangement.


• Suitable for consistency of 3% tp 5%

• Can be operated continuously or batch proces
• Pulper is available in 3m3, 15m3
• Belt conveyor from 650 mm to 1000 mm can also be supplied for feeding
depending on pulper capacity.

3-Paper Manufacturing Machine

They produce the plant & machinery required for Business, And they supply the machinery
within one month from the the date of order placed.

Address of delar-
D.S.Engineers (Pulp, Paper, Cement plant machinery.)
Plot.No 5314, Phase 4, G.I.D.C. Vatva, Ramol Cross Road,
Ahmedabad - 380026 (Gujarat-India)


Manufactures paper of various qualities using Bagasse as raw material. The production
process is as follows:

Paper Manufacturing Process

Wood Chipping Digester Washing Screening

Causticing Boilers Evaporator

Bagasse Fiber Digester Washing Bleaching,Screeing &

Preparation Cleaning

Waste Paper Waste Paper Processing

External Pulp Slushing Stock Preparation

Paper Machine &


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

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.

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



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.


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
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.


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:.


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 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


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


After the paper web is produced, the water must be removed from it by pressing and

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.


The paper may then undergo sizing to alter its physical properties for use in various

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

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.



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
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

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

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

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

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 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


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 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

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.

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
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.

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.


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
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

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

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, chromium-
plated 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.

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 single-
face 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.


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
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

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

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.

For setup the organization we required plant .we have five acre(53800 sq.feet) plot. we deal
in paper manufacturing in that various department we required an administrative building
which divided into different block.
Administrative block which established in 110*180 sq.feet area
Human resource block
Finance block
Marketing block
Sales block
R & D block
Also we required a Production unit which established in 350*450 sq. feet area which
Mechanical block
Electrical block
Manufacturing unit
Raw material store
Palpar unit
For refreshment of employees we also setup a canteen which required 50*50 sq feet area






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.

Indian paper industry billion

Indian paper industry
Rs. 211 billion

Paper and paper boards Newspront Speciality Paper

Rs. 211 billion Rs. 33 Billion Rs. 13 Billion

Writing And Printing Paper Industrial Paper India imports a bulk of its
Rs. 76 Billion Rs. 89 Billion speciality paper

Kraft Duplex Gray And White / MG

Rs. 48 Billion Rs. 25 Billion Poster Rs. 16 Billion

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
These are Our raw materials supplier-
1-Balrampur chinni mill Balarampur
2-k.m sugar mill Faizabad
3-mizora sugar mill ambedkar nager


The profitable manufacture of paper will be increasingly influenced by the availability of
raw material. In this raw material-sensitive business, Shine Papers is attractively placed for
the following reasons:
Bagasse as our principal raw material. This will protect it from the raw material under-
supply and price increase affecting wood-based paper
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

The raw material used at Shin Papers :

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.

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
stored so that the production is not affected due to the shortage of bagasse
2- Old gunny/ jute mesta goods
3- Imported waste paper


1-Century Pulp And Paper
2-Jk Paper Limited
3-Rama Paper Mills Limited
4-West Coast Paper Mills Limited
5-Orient Paper & Industries Limited



Rs. 100, 00,000 is enough as working capital for this company.

Data :

Capacity of the plant = 4800 tone /annum.

Bagasse = 20.80 T. x Rs. 100/T.

Lime = 0.5.T x Rs. 1200T.

Chemical (chlorine etc ) = 25litetr. x Rs.150/liter

Project Cost

Land & site development = Rs. 15.50 Lakhs

Buildings = Rs. 17.50 Lakhs

Plant and Machinery = Rs. 23.50 Lakhs

Total Project Cost = Rs. 56.00 Lakhs

Cost of Raw Materials for 1 day Production (16 tonne) :

Bagasse = 20.80 T. x Rs. 100/T. = 2080.00

Lime = .5 T x Rs. 1200T. = 600.00

Chemical (chlorine etc) = 25liter. x Rs.150/liter = 3750.00

Other = 3500

Total = 9930

Cost of raw materials for 300 working days/per annum = 9930.00 x 300

(4800 tonne of paper) = Rs 29,79,000

Cost of Production at 80% Capacity :

Raw Materials = 29,79,000 x 0.80 = 23,83,200

Power = 250 x 300 x 3.50 = 2,62,500

Salary & Wages = = 6,00,000

Interest on Rs. 50 Lakhs at 15% = 7,50,000

Repair and maintenance = 50,000

Depreciation for Plant & Machinery (10%) = 2,35,000

Depreciation for buildings 2% = 35,000

Rs. 43,15,700


Land & site development = Rs. 15.50 Lakhs

Buildings = Rs. 17.50 Lakhs

Plant and Machinery = Rs. 23.50 Lakhs

Total Project Cost = Rs. 56.00 Lakhs

Bagasse = 20.80 T. x Rs. 100/T. = 2080.00

Lime = .5 T x Rs. 1200T. = 600.00

Chemical (chlorine etc) = 25liter. x Rs.150/liter = 3750.00

Other = 3500

Total = 9930


B.E.P. = ------------------------------
HERE FIXED COST=56, 00,000


VARIBLE UNIT COST=9930/16=620.625



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'
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, 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, agro-based 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 large-scale 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.
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.



A sales tax is a consumption tax charged at the point of purchase for certain goods and
services. The tax is usually set as a percentage by the government charging the tax. There is
usually a list of exemptions. The tax can be included in the price (tax-inclusive) added at
the point of sale (tax-exclusive).
Most sales taxes are collected by the seller, who pays the tax over to the government which
charges the tax. The economic burden of the tax usually falls on the purchaser, but in some
circumstances may fall on the seller. Sales taxes are commonly charged on sales
of goods, but many sales taxes are also charged on sales of services. In a highly idealized
case, a sales tax would have a high compliance rate, be difficult to avoid, and be simple to
calculate and simple to collect

Service Tax in India.

Constitutional Validity

Article 265 of the Constitution lays down that no tax shall be levied or collected
except by the authority of law. Schedule VII divides this subject into three categories-

a) Union list (only Central Government has power of legislation)

b) State list (only State Government has power of legislation)

c) Concurrent list (both Central and State Government can pass legislation).

To enable parliament to formulate by law principles for determining the modelities of

levying the Service Tax by the Central Govt. & collection of the proceeds there of by the
Central Govt. & the State, the amendment vide constitution (95th amendment) Act, 2003
has been made. Consequently, new article 268 A has been inserted for Service Tax levy by

Union Govt., collected and appropriated by the Union Govt., and amendment of seventh
schedule to the constitution, in list I-Union list after entry 92B, entry 92C has been inserted
for taxes on services as well as in article 270 of the constitution the clause (1) article 268A
has been included.


Article 356. General Provisions

The transport tax (hereinafter in the present Chapter referred to as the tax) is established by
the present Code and by the laws of the subjects of the Russian Federation on the tax, is put
into force in conformity with the present Code by the laws of the subjects of the Russian
Federation and is obligatory for payment on the territory of the corresponding subject of
the Russian Federation.
In introducing the tax, the legislative (representative) bodies of the subject of the Russian
Federation shall define the rate of the tax within the limits, set down by the present Code,
the procedure and the time terms for its payment, and the form for reports on the given tax.
When establishing the tax, the laws of the subjects of the Russian Federation may also
envisage tax privileges and the grounds for their use by the tax payer.

An income tax is a tax levied on the income of individuals or business (corporations or
other legal entities). Various income tax systems exist, with varying degrees of tax
incidence. Income taxation can be progressive, proportional, or regressive. When the tax is
levied on the income of companies, it is often called a corporate tax, corporate income tax,
or profit tax. Individual income taxes often tax the total income of the individual (with
some deductions permitted), while corporate income taxes often tax net income (the
difference between gross receipts, expenses, and additional write-offs). Various systems
define income differently, and often allow notional reductions of income (such as a
reduction based on number of children supported.


Value added tax (VAT), or goods and services tax (GST) is a consumption tax levied on
any value that is added to a product. In contrast to sales tax, VAT is neutral with respect to
the number of passages that there are between the producer and the final consumer; where
sales tax is levied on total value at each stage (though in US and many other countries sales
tax is only charged at final sale to the final consumer and use tax final user, thus there are
no sales taxes paid at wholesale or production level), the result is a cascade (downstream
taxes levied on upstream taxes). A VAT is an indirect tax, in that the tax is collected from
someone who does not bear the entire cost of the tax.

Maurice Lauré, Joint Director of the French Tax Authority, the Direction générale des
impôts, was first to introduce VAT on April 10, 1954. Initially directed at large businesses,
it was extended over time to include all business sectors. In France, it is the most important
source of state finance, accounting for 52% of state revenues.[1]

Personal end-consumers of products and services cannot recover VAT on purchases, but
businesses are able to recover VAT on the materials and services that they buy to make
further supplies or services directly or indirectly sold to end-users. In this way, the total tax
levied at each stage in the economic chain of supply is a constant fraction of the value
added by a business to its products, and most of the cost of collecting the tax is borne by
business, rather than by the state. VAT was invented because very high sales taxes and
tariffs encourage cheating and smuggling. Critics point out that it disproportionately raises
taxes on middle- and low-income homes.

In India, VAT replaced sales tax on 1 April 2005. Of the 28 Indian states, eight did not
introduce VAT. Haryana had already adopted it on 1 April 2004. Due to the federal nature
of the Indian constitution, the states do have the power to set their own VAT rate.

OECD (2008, 112-13) approvingly cites Chanchal Kumar Sharma (2005) to answer why it
has proved so difficult to implement a federal VAT in India. The book says:

"Although the implementation of broad-base federal VAT system has been considered as
the most desirable consumption tax for India since the early 1990s, such a reform would
involve serious problems for the finances of regional governments. In addition,
implementing VAT in India in context of current economic reforms would have
paradoxical dimensions for Indian federalism. On one hand economic reforms have led to
decentralization of expenditure responsibilities, which in turn demands more
decentralization of revenue raising power if fiscal accountability is to be maintained. On
the other hand, implementing VAT (to make India a single integrated market) would lead
to revenue losses for the States and reduce their autonomy indicating greater centralization"
(Sharma, 2005, as quoted in OECD, 2008, 112-13) [1]

Chanchal Kumar Sharma (2005:929) asserts: "political compulsions have led the
government to propose an imperfect model of VAT" '
Indian VAT system is imperfect'to
the extent it '
goes against the basic premise of VAT'
. India seems to have an '
VAT'because the very reasons for which VAT receives academic support have been
disregarded by the VAT-Indian Style, namely: removal of the distortions in movement of
goods across states; Uniformity in tax structure. Chanchal Kumar Sharma (2005:929)
clearly states, "Local or state level taxes like octroi, entry tax, lease tax, workers contract
tax, entertainment tax and luxury tax are not integrated into the new regime which goes
against the basic premise of VAT which is to have uniformity in the tax structure. The fact
that no tax credit will be allowed for inter-state trade seriously undermines the basic benefit
of enforcing a vat system, namely the removal of the distortions in movement of goods
across the states."

"Even the most essential prerequisite for success of VAT i.e. elimination of [Central sales
tax (CST)] has been deferred. CST is levied on basis of origin and collected by the
exporting state; the consumers of the importing state bear its incidence. CST creates tax
barriers to integrate the Indian market and leads to cascading impact on cost of production.
Further, the denial of input tax credit on inter-state sales and inter state transfers would
affect free flow of goods." (Sharma,2005:922)

The greatest challenge in India, asserts Sharma (2005) is to design a sales tax system that
will provide autonomy to subnational levels to fix tax rate, without compromising
efficiency or creating enforcement problems.


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.

• 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
• Import duty on waste paper should be reduced.

Duty free imports of new & second hand machinery/equipment should be allowed for
technology up gradation
On the coming into effect of the legislation, the following labour laws shall also be
(i) Factories Act, 1948.

(ii) Contract Labour (Regulation and Abolition) Act, 1970.
(iii) Inter-State migrant workmen (Regulation of Employment and Conditions of Service)
Act, 1979.
(iv) Payment of Gratuity Act, 1972.
(v) Employee’s Provident Funds and Miscellaneous Provisions Act, 1952.
(vi) Employees’ State Insurance Act, 1948.
(vii) Payment of Bonus Act, 1965.
(viii) Maternity Benefit Act, 1961.
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
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.

Paper is an essential commodity. Its per capita consumption is currently 7 kg, one of the
lowest in the region. World paper demand growth is subdued and is between 2-3 per cent,
against India’s 8 per cent. This high growth rate has been possible by a strong emphasis on
literacy, increase in per-capita income, increasing use of photocopiers and printers, higher
export growth and demand for high quality packaging. India’s total annual production and
consumption of paper and paper board is around 8 million tonnes — barely 2 per cent of
global production. It is projected that India’s paper demand would reach 17 million tonnes
by year 2015.

The Indian paper industry started facing heat from the reforms initiated by the Government
in the 1990s. Till then the protection provided by the Government was helping the sector
record inflated profits and giving it a false feeling of competitive strength. And the industry
did not seem interested in taking timely initiatives to face the challenges emerging from

globalisation. The government is on record in bringing import tariff to the levels prevailing
among Asean members, putting the industry in a real tight corner.

The small scale of production and outdated technology have been the main features of
Indian paper units, and are still so. On an average, to produce 100,000 tonnes in a year, an
Indian mill manages five paper machines in one or more location, while abroad, paper-
making machines of 500,000 tonnes per annum, or more, are the norm.

Economies of scale, after considering the impact of higher capital cost, are 3-5 per cent of
total conversion cost. In addition, large modern machines produce internationally accepted
paper, difficult with smaller machines. Thus India loses out on both counts — quality and

Apart from the high cost of manufacturing paper in India, employing environment-friendly
technology with outdated machines and pulp mills is also not easy. The Government is
forcing paper mills to upgrade the effluent plants and follow the strict norms being notified
from time to time. But the impact of such steps is still not visible. The investment needed
for such activities generally yields much lower returns and impacts the bottom-line.

The industry must become transparent and adopt a sharing mindset. Apart from a
company’s unique strategy of how differently it serves its customers, it should be able to
initiate synergies with others in the sector, be it in sourcing, logistics or distribution.

There are, at present, about 515 units engaged in the manufacture of paper and paperboards
and newsprint in India. The country is almost self-sufficient in manufacture of most
varieties of paper and paperboards. Import, however, is confined only to certain specialty
papers. To meet part of its raw material needs the industry has to rely on imported wood
pulp and waste paper. Production of paper & paperboard during the year 2002-03(upto
December, 2002) is 24.52 lakhs tonnes. At present about 60.8 per cent of the total
production is based on non-wood raw material and 39.2 per cent based on wood.

Performance of the industry has been constrained due to high cost of production caused by
inadequate availability and high cost of raw materials, power cost and concentration of

mills in one particular area.

Several policy measures have been initiated in recent years to remove the bottlenecks of
availability of raw materials and infrastructure development. To bridge the gap of 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 60%. About 194 paper mills,
particularly small mills, are sick and /or lying closed. Several policy measures have been
initiated in recent years.

Imports of paper and paper products was growing over the years. However, it has increased
during 2001-02 after a fall in 2000-01. About 1,40,000 tonnes of paper was exported in
2000-01 mainly to the neighboring countries.

s per capita consumption of paper is around 4.00 kg, which is one of the lowest in the
world. With the expected increase in literacy rate and growth of the economy, an increase
in the per capita consumption of paper is expected.

The demand for upstream market of paper products, like, tissue paper, tea bags, filter paper,
light weight online coated paper, medical grade coated paper, etc., is growing up. These
developments are expected to give fillip to the industry.

So, I think starting a paper manufacturing company a beneficial business for an