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Team: St.

Aloysius College

Industry: Paper Industry

Paper Industry Name: Petal Paper Mills Ltd.

Punch line: “Feel the Difference”








• MANAGEMENT (Organization


In a constantly changing business scenario,
maintaining a niche becomes even more challenging.
In such a situation only with innovative leadership,
state-of-the-art technology and committed people
can a company steal the lead over competition
A company can lead by making quality a continuing
reality, lead by being a profit-making concern, lead
by being a committed corporate citizen, lead by
moving ahead into the future-confidently.

And that is the story of PETAL Paper Mills Limited

– which is one of the biggest, integrated pulp and
paper manufacturing plant internationally which has
now set up a plant in Andhra Pradesh.

The word ‘paper’ derives from the word ‘papyrus’ and is a substance
composed of fibres interlaced into a compact web, which can then be
macerated into pulp, dried and pressed. Today, paper includes a wide
range of products with very different applications: communication,
cultural, educational, artistic, hygienic, sanitary, as well as for storage
and transportation of all kinds of goods. It's almost impossible to
imagine a life without paper.


We depend on this paradoxical material. Little can happen in modern

life without paper or board (a particular form of paper) and millions of
tonne of it are made and used each year.

Paper is incredibly versatile: it can be permanent or transient, delicate

or strong, cheap or expensive, abundant or scarce. It can be preserved
in a museum or thrown away. It can decompose in water
and yet, when suitably treated, it can be used to make
maps that withstand the weather and even the hulls of

Paper may be impregnated, enamelled, metallised, made

to look like parchment, crêped, waterproofed, waxed,
glazed, sensitized, bent, turned, folded, twisted, crumpled,
cut, torn, dissolved, macerated, moulded or embossed. It
may be coloured, coated and printed. It can be marked
and then the mark erased. It can be laminated with itself
or with fabric, plastic or metal. It can be opaque,
translucent or transparent. It may be made to burn or be
made fire-resistant. It may be used as a carrier, a barrier
or a filter. It may be made tough enough to withstand acid or soft
enough for a baby's skin. It can be read from, laid on or worn as a
garment. It may disintegrate or it may be reused, but it is, overall,
biodegradable and comes from an infinitely renewable resource.

All around us paper has been used as part of our everyday life. The
range of possible uses for paper is almost limitless and new ways of
using it are being devised daily


Sacks, seed packets.

Wallpaper, damp-proof courses, roofing, flooring, flame resistant
papers, plasterboard, and decorative laminates for furniture.
Computer tapes, print-out sheets, advertisements, circulars,
catalogues, filing systems, sales and service manuals, brochures, shop-
till paper.

Money, Finance and Security

Money, insurance forms, cheque books, travellers' cheque, postal
orders, cash bags, papers that contain special markings which are only
visible when subjected to ultra-violet light.

Office paper

Photocopying paper, graph papers, paper twine and string, blotting

paper, carbonless paper, box files, folders.

Fascia boards, door and roof liners, filters, the Highway Code.


Writing, typing, printing, envelopes, publishing, accounts, receipts,

stamps, newspapers, magazines, greeting cards, calendars, diaries,
telephone directories.

Domestic Products

Wrapping and boxes for cleaning materials, domestic tissues, paper

plates and cups, kitchen towels, table napkins, lampshades.


Books, exercise books, instruction books, maps, wall-charts, report


Entertainment and Sport

Menu cards, paper hats, crackers, fireworks, programmes, playing

cards, board games, kites, model aircraft, football coupons, race cards.

Food Packaging
Wrapping for bread, flour, tea, sugar, butter, margarine, sweets, deep
frozen food etc., milk cartons, egg boxes, foil wrappings, tea bags,
sausage skins.


Gummed labels, identity cards, tamper-proof labels for supermarkets.


Presentation, wrapping, packaging and protection for all manufactured

goods, transfer sheets for decorating chinaware.


Special insulating boards, electrolytic condenser paper, wrapping and

identification for electrical cables, printed circuits, battery separators.


Filters for water air, coffee, medicine, beer, oil and for mechanical

Impregnated Papers

Polishing, waxing, cleaning.

Protective Papers

Grease proof and corrosion-resistant products, sleeves for compact



Packaging to keep instruments and equipment sterilised, bandages,

plasters, clothing for nurses, face masks, surgeons' caps, disposable
bed pans, sheets, pillowcases.

Facial and toilet tissue, towels, sanitary products, tableware, sheets,
disposable nappies, confetti, carrier bags, gift wrapping.

Films, photographs, enlargements, mounts, lens cleaners.

Record keeping and other documentation

Legal documents, birth, marriage and death certificates, wills, history,
scientific data.


Tickets, passports, maps, charts, luggage labels, timetables, fibre for



Based upon wood, a natural renewable resource, paper is
biodegradable and recyclable and a source of energy after use. The
pulp and paper industry is, therefore, well fitted to meet the challenge
of sustainable development, from the forest, through the production of
pulp and paper, to its use and finally through recycling.


The sun drives the pulp and paper eco-cycle: with water, nutrients and
carbon dioxide, photosynthesis transforms solar energy into wood
fibres in growing trees. This endless process means that the forest is a
renewable source of raw material that provides wood fibres to produce
timber products, pulp and paper, and energy as a biofuel. The carbon
dioxide released by burning the biofuel is essential for the growth of
wood and in this way the eco-cycle is closed and balanced.

Environmentally, the industry’s sustainability assets are numerous. It is

based on truly renewable resources with recovered fibres now
representing some 46.5% of the industry’s raw materials, it relies
heavily on biofuel (about 50% of its primary energy) and it is highly
energy-efficient. Once consumed, most forest-based products start a
new life as recycled material or biofuel.

Commitments have been made for the next decade to provide for a
more sustainable use of natural resources. A key element is ‘de-
coupling’ the environmental impact caused by the consumption of
natural resources (space, soil, forests, water etc.) from economic
growth, which will place European forests at the forefront of new
environmental challenges. More generally, sustainability has moved
from being an issue purely concerned with resource management
(sustainable forest management, certification, nature-orientated
management etc.) to embracing forest utilization, as well as taking into
consideration new developments in energy production and climate
change mitigation.

Pulp and paper production is an energy-intensive activity and energy

costs can represent up to 25% of the total manufacturing cost. This has
always been a serious incentive for the industry to invest in improved
energy efficiency, as the significant progress achieved over the last
decade shows.

• The industry’s specific primary energy consumption has

decreased by 16% and the specific electricity consumption has
decreased by 11%, due to measures such as improved process
technology and investment in combined heat and power (CHP).
• Specific carbon dioxide emissions from fossil fuels decreased by
25% due to process-related measures and the increased use of
low-carbon and biomass fuels.

The pulp and paper industry is the single largest producer and user of
biomass fuels. These include wood residues, residues from forestry
operations, bark, black liquor and production residues. Pulp and paper
mills also recover energy from their waste stream by using biomass as
a primary energy source in the manufacturing process. Today about
50% of the total energy consumption of the European pulp and paper
industry comes from biomass fuels which are carbon dioxide neutral.

Co-generation, or combined heat and power (CHP), is increasingly

recognized as a key technology to save energy, thereby reducing
carbon dioxide emissions: CHP installations allow savings of some 30-
35% of primary energy compared to conventional boilers. Some 90% of
the energy produced at mills is produced through CHP technology.


At the United Nations Framework Convention on Climate Change in

Kyoto in December 1997, industrialized countries committed
themselves to a quantified reduction of their greenhouse gas emissions
(GHGs) over 2008-12 against 1990 levels. The EU committed itself to a
reduction of minus 8%.

However, the growth in greenhouse gas emissions since 1990,

especially from the transport sector, suggests that the Kyoto targets
are much more ambitious than was envisaged in 1997.


The paper industry makes a positive contribution towards
counteracting climate change. The carbon-based products
manufactured by the industry and its increased production and use of
biofuels further prove that it has the potential to become one of the
first truly sustainable industries.


Water is a key element in the production of paper. It is used in nearly

every stage of the pulping and papermaking process, and it inevitably
picks up effluents as a result.

To reduce the environmental impact, the effluents from the

papermaking process are collected and treated before being returned
to surface waters or estuaries. The volume of effluents is also reduced
by the reuse of processed water and additives. Interestingly, the water
taken from rivers or lakes often has to be purified before it can be used
at the mill and, as a result of enhanced treatment techniques and
internal changes in the manufacturing process, it will be returned in a
cleaner state than when it was taken.

Waste water effluents from pulp and paper mills contain mainly solids,
nutrients (nitrogen and phosphorus) and organic substances. The
concentration of organic substances in effluent water is expressed as
the amount of oxygen it takes to degrade these substances through
either biological processes (biological oxygen demand - BOD) or
chemical reactions (chemical oxygen demand). Since the mid-1990s
there has been a major decrease of over 70% in the discharge of BOD
per tonne and this helps to combat the problem of oxygen depletion of
surface waters.

Effluents from chemical pulp mills also contain organic chlorine

compounds (AOX). Some of these substances are naturally present in
wood and some come from the chlorine bleaching process. Chlorine
gas was once the primary bleaching agent used by the industry but
has now been abandoned in favour of more environmentally sound
bleaching techniques that use chlorine dioxide and ozone, resulting in
a massive reduction of AOX in the effluents.
Prior to this known as "PETAL Paper Mills", it was a more than
three decades old 10 MT per day plant in Russia which has vast natural
resources that provide raw materials for the country’s industrial and
commercial economy. Large mineral deposits feed energy production,
and tracts of forests supply the wood and wood products industry.
Here, a worker oversees paper production at a mill in the republic of
Komi in northwestern Russia.
The present plant is producing 300 MT per day. There are five paper
machines installed in the mill which produces paper of different M.F &
M.G varieties in the range of 21 to 250 GSM.

The new plant will help to increase the standard of living for locals of
the area. While providing direct employment to over 4000 families, the
company provides ways and means to over 10,000 families to earn
their bread and butter through indirect job opportunities.

Industry Scenario - Why Priority ?


The challenge for the Indian paper industry to meet the ever increasing
demand of paper, board and newsprint is getting crippled due to
shortage of fibres in the country. The future demand of paper is
expected to grow from 5.6 MT at present TO 9.5 MT in 2010 and 13 MT
in 2015. Demand for cream woven paper is expected to increase by 7-
8%. Demand for different kinds of coated paper has increased by 8% in
2002, duplex board has recorded increase by 6.5%, kraft paper has
registered a 6% rise in demand and newsprint an impressive 10%.

Indian paper industry can be broadly classified into paper and

paperboards and newsprint. The paper and paper board segment
constitutes of cultural paper, industrial paper, specialty paper. We will
be treating newsprint as a separate type of paper. The Indian paper
industry, reeling under liberal imports, price cuts and rising input costs
for the past three years, seems to be on a comeback trail. With the
firming-up of international pulp and paper prices, the domestic paper
market registered an upward trend.
Our mission is to be a powerful force in the world economy in paper
technology through productivity and excellence, a shared vision for
which shared responsibility lies with all stake holders.

Employee Empowerment for commitment to total quality: team efforts
and increased productivity; Ethical Management Practices for esteem ,
life and public Image

Guiding Principles
Integrity of management, union, staff, workers and all people
associated with us.
Ecofriendly Process, Innovative Value Engineering, Human Engineering,
Technology for better Quality and cost effectiveness,
Customer satisfaction for untainted growth and business.
Consistently increased Profitability for prosperity and growth of the
and industry. Corporate citizenship for meeting societal objectives.
We have introduced a simple set off values, coined into one phrase –
‘Quest for change’. Quest is defined as:
Q - Quality – “We will succeed in our role only by being so passionate
about our service that it becomes a differentiating factor in every
industry we operate. We will establish consistently high standards
across the whole group and constantly seek new opportunities to
enhance our customer service”
U - Urgency – “We will approach our work with a great sense of
urgency, ensuring that we respond quickly to the market place, in a
well thought manner.”
E - Excellence – “We will stretch ourselves to be truly excellent in
whatever we do. This excellence will permeate every aspect of our
working life, whether it is the letters we write, the strategy we
formulate or the manner in which we deliver supplies to our
S - Strength Of Character – “Honesty, integrity and respect will be
underlining personal qualities in all our transactions.”
T- Teamwork – “We will have a culture that shares knowledge and
experience: that communicates face to face, regularly discusses
strategy and key issues within the group and solicits contribution and
buy-in at all levels.

The finest papers were made with cotton. Cotton rags were
chopped up, typically by women, and sent to the pulper where
the cotton fibers would be further broken down.
Pulp is purchased in dried sheets, otherwise is would be too
costly and heavy to ship. Dry sheets are 10% moisture. The
Beater men put the sheets in the beater to create slurry. Slurry
is lumpy; the pulp beater can only smooth out the slurry to a
certain point. Then slurry is sent through a "Jordan" refinery
machine to "de-lump" or "Jordan" the mixture, dispersing fibers
evenly and breaking up longer fibers

It is necessary to cook wood fiber to turn it into pulp. High

temperatures, pressure and chemicals are used. The man in
this painting is controlling the pressure with steam. The
cookers are round and have internal agitators to keep the pulp
The mixing tank is where additives such as dye, wet strength
chemicals, moisture retention chemicals and other substances
are combined with the stock. From here the stock goes to the
Machine Chest and then to the Head Box.

This painting illustrates the forerunner of the head box where

stock is sprayed onto the wire. This man is adjusting valves in
order to adjust the amount of stock sprayed. In the background
a couch roll can be seen (where the sheet is "picked" off the
wire and transferred to the felt.)
These men are putting on a dandy roll to help create evenness
and place watermarks in the sheet. The sheet is moving left to
right. A pressure stream of water, called a "pisser," cuts off the
edge of the sheet as it passes, creating a nice straight edge.

The dry end of the paper machine is the end where the finished
sheet comes off. The man is checking the feel and
transparency of the sheet for its thickness and formation. The
paper has moved from right to left in this painting, passing
through the dryers, calendar stack and reel.
The rewinder shaft (with the lighter colored paper core) rides
between two rolls to even out the sheet using tension, pressure
and speed. Edges of the paper are trimmed and then recycled.

This illustration shows the wind-up at the dry end of the sheet
coming off the paper machine. The foreman and machine
tender are shown.

The reels of paper are being "calendered ." This is a process

that smooths out surfaces and "densifies" the sheet so that a
sheet is thinner but just as heavy per ream.
The quality control testing laboratory is usually built into or
adjacent to the actual paper mill. The lab technicians test the
paper and pulp to make sure it remains consistent with the
specs of a particular product line. The man looking into the box
is using a microbalance and is testing paper weight to 1000th
of a gram; the balance is in a box to keep the paper free from
air movements, temperature and humidity changes. The woman
in the back is a tear tester, testing the strength of the sheet,
fiber length and its wood source. Various distillation columns
and other devices are shown .


Although the essential procedures of papermaking by machine are

identical with those of hand papermaking, machine papermaking is
considerably more complex. The first step in machine papermaking is
the preparation of the raw material. The materials chiefly used in
modern papermaking are cotton or linen rags and wood pulp. Today
more than 95 percent of paper is made from wood cellulose. For the
cheapest grades of paper, such as newsprint, groundwood
(mechanically processed) pulp alone is used; for better grades,
chemical wood (pulp in which undesirable materials are chemically
removed), pulp, or a mixture of pulp and rag fiber is employed; and for
the finest papers, such as the highest grades of writing papers, rag
fiber alone is used.

Rags used in papermaking are first cleaned mechanically to remove

dust and foreign matter. Following this cleaning, the rags are cooked in
a large rotary boiler. This process involves boiling the rags with lime
under steam pressure for a period of several hours. The lime combines
with greases and other impurities in the rags to form nonsoluble soaps,
which can be washed away in a later process, and at the same time
reduces any colored dyes present to colorless compounds. The rags
are then transferred to a machine called a beater, or Hollander, which
is a long tub divided longitudinally so as to form a continuous channel
around the tub. In one half of the tub, a horizontal cylinder carrying a
series of knives revolves rapidly close to a curved bedplate, which is
also provided with knives. The mixture of rags and water passes
between the cylinder and the bedplate, and the rags are reduced to
fibers. In the other half of the tub, a hollow washing cylinder covered
with fine mesh screening is arranged so that it scoops water from the
tub, leaving the rags and fibers behind. As the mixture of rags and
water flows around the beater, the dirt is removed and the rags are
gradually softened until they are finally resolved into individual fibers.
The half stuff is then passed through one or more secondary beaters to
break up the fibers still further. At this point are added coloring matter,
sizing material such as rosin or glue, and fillers such as sulfate of lime
or kaolin, which give added weight and body to the finished paper. In
many American paper mills the second beater is of the type known as
a Jordan engine. This machine consists of a stationary cone fitted with
knives mounted outside a revolving cone also equipped with knives.
The fiber material flows between these two sets of knives, and the
cones can be adjusted relative to each other with great accuracy to
regulate the fineness of the fibers.

The preparation of wood for papermaking is accomplished in two

different ways. In various chemical-solvent processes, wood chips are
treated with solvents that remove resinous material and lignin from the
wood, leaving pure fibers of cellulose. The oldest of the chemical-
solvent processes, the soda process, introduced in 1851, employs a
solution of caustic soda (sodium hydroxide) as a solvent. The wood is
cooked or “digested” in this solution under steam pressure. The fibers
produced by this process do not have great strength but are used in
mixtures with other wood fibers. The process most generally employed
in the United States is the sulfate process, which is named for the
solvent used either sodium sulfate or magnesium sulfate.

In the ground wood process, blocks of wood are held against a rapidly
revolving grindstone that shreds off short wood fibers from the block.
The fibers produced by this process are used only in the production of
cheap newsprint and for admixture with other types of wood fiber in
the making of high-quality paper. To produce white paper from this
pulp, paper mills have historically bleached the pulp with chemicals
such as chlorine. Chlorine removes lignin, which gives paper an often
undesired brown color. However, because bleaching paper with
chlorine produces a carcinogen (cancer-causing compound) called
dioxin; in 1998 the United States Environmental Protection Agency
(EPA) published the pulp and paper industry Cluster Rule which will
require U.S. paper companies to eliminate chlorine from the bleaching
process by 2001. Instead, the mandate will require the companies to
switch to safer compounds such as chlorine dioxide or sodium

Most paper today is made on Fourdrinier machines, which are

patterned after the first successful papermaking machine, developed in
1803 by the British brothers Henry Fourdrinier and Sealy Fourdrinier.
The heart of the Fourdrinier machine is an endless belt of wire mesh
that moves horizontally. A flow of watery pulp is spread on the level
belt, which passes over a number of rolls. A shallow wooden box
beneath the belt catches much of the water that drains off during this
stage. This water is remixed with the pulp to salvage the fiber
contained in it. Spreading of the sheet of wet pulp on the wire belt is
limited by rubber deckle straps moving at the sides of the belt. Air
suction pumps beneath the belt hasten drying of the paper, and the
belt itself is moved from side to side to aid the felting of the fibers. As
the paper travels along the belt it passes under a turning cylinder
called a dandy roll. The surface of this cylinder is covered with wire
mesh or single wires to impart a wove or laid surface to the paper. In
addition, the surface carries words or patterns worked in wire; these
are impressed on the paper and appear as watermarks that identify
the grade of paper and the maker. In handmade papers, the
watermark patterns are fixed to the surface of the mold.
Near the far end of the machine, the belt passes through two felt-
covered couching rolls. These rolls press still more water out of the
web of paper and consolidate the fiber, giving the paper enough
strength to continue through the machine without the support of the
belt. The function of these rolls is the same as that of the felts used in
couching handmade paper. From the couching rolls, the paper is
carried on a belt of cloth through two sets of smooth metal press rolls.
These rolls impart a smooth finish to the upper and lower surfaces of
the paper.

After pressing, the paper is fully formed. It is then carried through a

series of heated rolls, which complete the drying. The next step is
calendering, pressing between smooth chilled rolls to produce the
smooth finish known as machine finish. At the end of the Fourdrinier
machine, the paper is slit by revolving cutters and wound on reels. The
manufacture of the paper is completed by cutting into sheets, unless
the paper is to be used on a continuous press that employs rolls of
paper. Special papers are given additional treatment. Supercalendered
paper is subjected to a further calendering process under great
pressure between metal and paper-covered rolls. Coated paper, such
as is used for fine halftone reproduction, is sized with clay or glue and
calendered. Paper is also made on cylinder machines. Much of the
tissue paper manufactured is made on Yankee machines, which have a
single steam-heated cylinder for drying. Equipment used in pulp
making and papermaking is constantly being improved and
modernized. For example, the Inverform machine, which was invented
in England in the 1940s, is a high-speed machine that produces a
range of box board used by the food packaging industry.
Paper is usually sold by the ream in sheets of standard sizes. A ream of
paper usually contains 480 sheets, but reams of drawing paper and
handmade paper contain 472 sheets. Book paper and newsprint for
flat-plate printing are sold in reams of 500 sheets and in perfect reams
of 516 sheets. The most common book-paper size is octavo (112 by
168 cm/44 by 66 in). Newsprint for rotary-press printing comes in rolls
of varying sizes; a typical roll of newsprint, as used by large
metropolitan newspapers in the United States, is 168 cm (66 in) wide
and 7,925 m (26,000 ft) long, and weighs about 725 kg (1,600 lb).

Name Metric Imperial

Classic Series
large post 419 × 533 mm 16 1/2 × 21 in
demy 444 × 572 mm 17 1/2 × 22 1/2 in
medium 457 × 584 mm 18 × 23 in
royal 508 × 635 mm 20 × 25 in
double crown 508 × 762 mm 20 × 30 in
A Series (Books, Magazines, Stationery)
A0 841 × 1,189 mm 33 1/8 × 46 3/4 in
A1 594 × 841 mm 23 3/8 × 33 1/8 in
A2 420 × 594 mm 16 1/2 × 23 3/8 in
A3 297 × 420 mm 11 3/4 × 16 1/2 in
A4 210 × 297 mm 8 1/4 × 11 3/4 in
A5 148 × 210 mm 5 7/8 × 8 1/4 in
B Series (Posters, etc.)
B0 1,414 × 1,000 mm 55 5/8 × 39 3/8 in
B1 1,000 × 707 mm 39 3/8 × 27 7/8 in
B2 707 × 500 mm 27 7/8 ×19 5/8 in
B3 500 × 353 mm 19 5/8 × 13 7/8 in
B4 353 × 250 mm 13 7/8 × 9 7/8 in
B5 250 × 176 mm 9 7/8 × 7 in
C Series (Envelopes)
C4 324 × 229 mm 12 3/4 × 9 in
C5 229 × 162 mm 9 × 6 3/8 in
C6 162 × 114 mm 6 3/8 × 4 1/2 in
DL 220 × 110 mm 8 5/8 × 4 3/8 in


• Wood free Writing & Printing

• Drawing catridge
• S.S.Color Cards
• Copier
• MG White Poster
• MG Color Poster
• MG White & Color Cover Papers
• MG Ribbed Kraft
• MG Plain Kraft
• Plain Paper (White Writing)


• MG White Poster 48-90 gsm.

• MG Ribbed kraft 48 to 90 gsm.
• MG TD Poster 50 gsm.
• MG Poster (Coating Base) 60 & 70 gsm.
• MG White Poster (NS) 50-70 gsm.
• MG pink Manilla 50, 58 & 80 gsm.

Paper Machine – II

• MG White Cover 100 to 230 gsm

• MG Color Cover Paper 100 / 230 gsm (Pink, Yellow, Blue & Green)
• MG Coating Base (Natural & Tinted White Shade) 100-200
• MG White Cover Paper (Full Lamination) 200 & 230 gsm.
• MG Plain Kraft (NS) 100 / 240 gsm.
• MG Plain Kraft (Regular Shade) 100 / 240 gsm.
• MG Plain Kraft (Textile tubes & Cones) 180-240 gsm.
• MG Plain Kraft (Battery Jackets) 100-150 gsm

Paper Machine – III

• S.S Graphics Paper 60 gsm. (Varnishable Grade)

• S.S Maplitho Paper 70-140 gsm (Varnishable & Non-Varnishable grades)
• S.S Pulp Board 175-250 gsm.
• S.S Coating Base (Cast Coating Shade) 60-200 gsm.
• S.S Copier 70/75/80 gsm.
• Andhra Copier 75 gsm.(Cut Size, Brand item)
• Azure Laid 70,80,90,95 gsm.
• S.S Envelope Paper 70,80,90,120 gsm.
• Carbon less Paper 45 / 47 gsm.

Paper Machine – IV

• MG Delux White Poster 28/32/38/45 gsm.

• MG Color Poster 28/38/40 gsm.
• MG Violet Poster 32 gsm.

Paper Machine – V

• Cream Wove 47,52,54,58,60 gsm.

• Publication Paper 52,54,58,60 gsm.
• Coating Base (NS & Cartridge Shade) 58 to 175 gsm.
• Deluxe Maplitho (Primary) 58,64,70,80,90,100 gsm.
• S.S Multi Print (Varnishable) 60/70/80/90/120 gsm
• Eco Copier 75 gsm (Cut Size - Brand Item)

Printing & Writing Paper

• MF Cream Wove 50-60 gsm.

• MF White Pulp Board 110-180 gsm.
• MF Azure Wove 52-60 gsm.
• MF Azure Laid 70-90 gsm.
• MF Duplicating > 60 gsm.
• MF Colour Printing 45-56 gsm.
• DLX Cream Wove 50-60 gsm.
• Eco Cycle Office Paper 75 gsm.

News Print

• DLX News Print (R) 45-48 gsm.

• DLX News Print (S) 45-48 gsm.

Industrial Packaging Grades

• MG Plain Kraft 16BF to 24BF 90-180 gsm.

• MG Core Liner 15BF 280-300 gsm.
Estimated Cost Sheet of Petal Paper Ltd
for the period from 1-01-2005 to 1-07-
Cost Per
Particulars Quantity Total Cost
Direct Materials 80,000 5,62,40,000 703.00
Direct Wages (Productive
Wages) 2,81,60,000 352.00
Direct Expenses (Chargeable
Exp) 1,12,80,000 141.00
Prime Cost 9,56,80,000 1196.00
Factory Overheads 11,24,80,000 1406.00
Gross Works Cost 20,81,60,000 2602.00
Less Closing Work in Progress
(10% on Gross works cost) 2,08,00,000 260.00
Works Cost 0 2342.00
Add Administration
Overheads 3,76,00,000 470.00
Cost Of Production 80,000 0 2812.00
Less Closing stock of Finishes
Goods (20% on Cost of
Production) 4500 1,26,54,000 2812.00
Production Cost Of Good Sold 75,500 21,23,06,000 2812.00
Add Selling Overheads 25,20,19,000 3338.00
Total Cost 0 6150.00
Profit To The Manufacturer
(9.14%) 1,39,67,500 185.00
Total Cost Before Excise Duty 47,82,92,500 6335.00
Add Excise Duty 13,43,90,000 1780.00
Selling Price Of Manufacturer 61,26,82,500 8115.00
Add Profit Of The Distribution 1,43,45,000 190.00
Selling Price Of Distributors 62,70,27,500 8305.00
Add Profit Of The Retailers 2,80,86,000 372.00
Selling Price Of The Retailers 65,51,13,500 8677.00
Add Sales Tax 2,43,86,500 323.00
Price To The Consumers 75,500 0 9000.00
Projected Balance Sheet Of Petal Paper
Mills Ltd for period 1-01-2005 to 1-07-

Liabilities Amount Asset Amount

Authorised Capital Fixed Assets
5,00,000 Shares @ Rs100 Land & Buildings
each 5,00,00,000 75000000
Less Depreciation
7500000 6,75,00,000
Plant & Machinery
Subscribed & Paid Up 60000000
5,00,000 Shares @ Rs100 Less Depreciation
each 5,00,00,000 12500000 4,75,00,000
Electrical Installation
Less Depreciation
Reserves & Surplus 3000000 2,70,00,000
P & L Account 3,07,10,625

Secured Loan 25000000
Less Depreciation
Term Loan 4,00,00,000 2500000 2,25,00,000
Short Term Loan 4,00,00,000 2,00,00,000
Less Fall in market value
1,20,00,000 80,000
Debentures 1,50,00,000 Current Assets
Finished Goods 1,73,00,000
Unsecured Loan 1,00,00,000 Raw Materials 89,00,000
Work In Progress 2,08,00,000
Current Liablilities &
Provisions Sundry Debtors 45,00,000
Current Liabilities 50,00,000 Cash In Hand & At Bank 50,00,000
Provision for Tax 1,47,25,375
Proposed Dividend 50,00,000 Loans & Advances 2,70,00,000

Outstanding Liabilities
Taxes 2,18,38,500
Salaries 1,92,25,500

25,15,00,0 25,15,00,0
00 00


Particulars Amount
Profit To Manufacture 1,39,67,500 x 2 2,79,35,000
Less: Interest On Term Loan,
Add: Interest on short term loan
Interest On Debentures 21,37,500

Less: Provision For Tax @ 35% 1,47,25,375

Less Proposed Dividend 50,00,000

Funds from Operators

Profit before Tax & Dividend 4,20,72,500
Add Depreciation 3,75,00,000

Funds Flow Statement

Sources Of Funds:
Share Capital Issued, Subscribed & Paid
Up 5,00,00,000
Term Loan 4,00,00,000
Short Term Loan 4,00,00,000
Debentures 1,50,00,000
Unsecured Loans 1,00,00,000
Funds From Operations 7,95,72,500


2005 TO 1-07-2005
Installed Capacity (Tonnes) 98,500
Production 75,500
Utilisation (%) 76.65%

Turnover 67,95,00,000
Profit before Depreciation and Tax 4,20,72,500
Depreciation 3,75,00,000
Provision for Tax @35% 1,47,25,375
Profit after Tax (-)
Share Capital - Equity 5,00,00,000
Reserves & Surplus 3,07,10,625
Shareholders Funds Nil
Borrowings 9,50,00,000
Deferred Credits (Unsecured) 1,00,00,000
Total 18,57,10,625

Net Fixed Assets 19,00,00,000
Investments 2,00,00,000
Working Capital 19,00,00,000
Loans & Advances 2,70,00,000
Total 28,40,00,000


ENDED 30-06-2005
Sl. Half Year
No Ended

1. Sales 67,95,00,000
2. Other Income

3. Total Expenditure 46,43,25,000

4 Other Expenses 15,95,51,500

5 Interest 1,41,37,500
6 Depreciation 3,75,00,000
7 Profit before Tax but after depreciation 45,72,500

8. Net Profit (-) 1,01,52,875

9.. Paid-up Equity Capital 5,00,00,000
(Face Value - Rs.100/- per share)

Category No. of shares held Percentage
A) Promoter’s holding
1. Promoters

- Indian Promoters Nil 0.00%

- Foreign Promoters
3,43,100 68.62%
-Petal Paper Co Ltd
2. Persons acting in Concert Nil 0.00%
Sub- 3,43,100 68.62
B) Non-Promoters Holding Nil 0.00%
3. Institutional Investors Nil 0.00%
a. Mutual Funds and UTI 0.20%
b. Banks, Financial Institutions, 46,800 9.36%
Insurance Companies
(Central/ State Govt.
Institutions/ Non-government
c. FIIS 2100 0.42%
Sub- 49,900 9.98%
4. Others
a. Private Corporate Bodies 34,650 6.93%
b. Indian Public 72,150 14.43%
c. NRIs/ OCBs 150 0.03%
d. Any other (Please specify) - 50 0.01%
Sub- 1,07,000 21.40%
GRAND TOTAL 5,00,000 100.00%


Fixed Cost Statement

Factory Overheads: -
Depreciation On Plant 1,25,00,000
Consumable Stores 66,18,000
Welfare Expenses (E.S.I, P.F) 1,29,32,000
Wages Of Works Manager, Foreman 73,79,000
Research & Development 7,24,84,000
Depreciation On Factory Furniture 2,28,000
Depreciation On Electrical Fittings 3,39,000 0
Administrative Overheads: -
Legal charges 72,88,000
Depreciation On Land & Building 75,00,000
Depreciation On Furniture 25,00,000
Depreciation On Electrical Fittings 30,00,000
Salary to Administrative Staff 1,20,26,000
Office Rent 52,86,000 3,76,00,000
Selling & Distribution Overheads: -
Advertisement 5
Traveling Expenses 2,86,000
Warehouse 1,31,00,000
Samples 68,000 5
Total Fixed Cost 5

Variable Cost Statement

Direct Materials 5,62,40,000
Direct Wages 2,81,60,000
Direct Expenses 1,12,80,000 9,56,80,000
Selling & Distribution Overheads: -
Packaging Charges 3,69,45,985 3,69,45,985
Total Variable Cost 13,26,25,985


Sales 67,95,00,000
Less: Variable Cost 13,26,25,985
Contribution 54,68,74,015
Contribution Per Unit = Contribution
Number Of Tonnes
= 7243.36

Break Even Tonnes = Fixed Cost

Contribution Per Tonne
= 50,412.10 tonnes
Total Cost & Total Revenue

Level Of Output (Sales Volume)

M = 50,412.10 tonnes

Break Even Sales = 45,37,08,900

B.E.P = M = [TR = TC]



= 33.23 %

1. Define the target buyer, demographically and by

Lifestyle, if appropriate
2. Translate the company mission into a measurable
Annual objective
3. Tell how the goals will be accomplished in terms of:

– Marketing spending vs. competition in the category

– Brand positioning
– Pricing actions
– Product quality
Today the complicated wheels of industry are moved and propelled
because of the external motive power of satisfying needs. The process
of production sets in motion an action to serve one’s ultimate
objective, which is to satisfy the countless needs and desires of the
human race. It is here that marketing strategies play a quintessential
role in deciding the fate of a product.


Selling products or services directly to the consumer via

television and the Internet is a cost effective and exponentially growing
sales medium. In order to take full advantage of this powerful and
cutting edge vehicle, you need the expertise of professionals who are
up to date on the latest electronic and direct marketing opportunities.
Whether you are an experienced marketer or an entrepreneur looking
to finally unlock the full potential of your product, the 1st Approach
team has the knowledge, skills, talent, experience, and track record to
make your success a reality.


Petal Paper Mills Ltd has launched a local web site, which will provide
users as well as the customers the provision of getting quick hand
information on its product – lines. This will help our company to get the
necessary feedback and build up the goodwill of our company.
People learn through their senses. The combined power of sight,
sound, motion and emotion creates a synergistic effect that is more
effective than when individual senses are stimulated. In order to create
marketing and merchandising support, Petal Paper Mills advertises on
TV, radio and print media, distributors, stationery, .


Television provides the ability to communicate sight, sound, motion

and emotion. If a picture is worth a thousand words, a moving picture
is worth ten thousand words.
The viewer can instantly see the product, view it in a variety of
situations, determine how it can be of benefit to their application and
leave them with a lasting impression of the business.
Television gives a product a "larger than life" image and by virtue of
being on television it is sometimes enough to set a business apart from
its competitors.
Television reaches virtually every home in India. It is set apart from
competing media by its ability to offer sight, sound and motion to
generate an emotional response.

1) Advertisements broadcasted by means of jingles.

2) Promoting Petal through print media such as newspaper and
magazines. This gives a chance for Petal Paper to prove its
difference compared to other papers.
3) Hoardings will be put up in important areas located around the
4) Word of a mouth is the most common strategy, which will help
Petal Paper attain a great reputation.

Key Strengths of Television Advertising

Television has the highest daily and weekly reach of any medium
in India.
Television has an aura of importance. It is a prestigious medium,
enhancing the advertisers' image by its use.
Television appeals to more of the consumers' senses than any
other medium. With television, a powerful, emotional impact can
be created.
Television can create high impact with viewers by offering
dynamic and visual messages. Moods and images can be created
for brands.

Brand Image
Advertisers can generate trust, emotion and excitement that cannot be
created as well through any other medium. This can help to create a
long lasting and memorable brand and corporate image.

Consumers' Perceptions
Indians enjoy television. The average Indian adult spends almost 24
hours per week watching television. This study also shows that 62%
agree television commercials provide useful information about
products and services.

Some advertisers believe that TV commercial production costs prohibit
their use of the medium. A big idea, wit, focus and clarity of message
can make the advertiser a winner in consumers' minds despite a very
small production budget.

Our Marketing Strategy:

Petal wants to place specific attention to ensure that the Petal

Paper brands have been positioned in the correct outlets and
that promotional support is in line with the outlets image and
identity in the market. In addition the provision of relevant
branded materials to the outlets in order to ensure that an
outlet can serve our products in the correct branded
environment has also been a focus of the Petal sales team.
The main marketing campaign is Petal wants to make
something unique which will stand out and which nobody has
ever done before. So it is going to make the largest paper boat
and enter into the world famous Guinness Book of world
Concern for the end consumer has been the core of the marketing
philosophy of the company. A nation wide presence of the company
through a network of strong dealers encompasses all the markets.
Giant strides have also been made and will be made in exports to Sri
Lanka, Australia, U.K., Middle East, Malaysia and many other parts of
the world. The company has made a strategic shift from retailing to
industrial consuming base in a short span of time. This has resulted in
a tremendous confidence in the markets that "the Petal Paper Mills
Limited is the reliable supplier." This reliability comes through:

Order Servicing
Tailor Made Products
After Sales Service
Customer Service Cell
Dealer Conference
By making a series of folds in a sheet of colored paper, origami artists
can create a wide variety of shapes, from animals and insects to
abstract forms. Japanese origami master Akira Yoshizawa, who created
the models shown here, invented a method for indicating the various
folds in written diagrams. His origami instruction books helped origami
gain worldwide popularity. So Petal will promote itself through Origami.

We at Petal Industries have conducted a survey and based on

information collected in various ways like questionnaires and
interviews conducted in various segments of the society we found that
the paper industry in India The present domestic paper demand is 5.6
million tpa . Indian per capita consumption of paper is 5 Kgs with an
expected growth rate of 6-7% per annum over the next 5 years. Paper
consumption in India is expected to reach 9.5 million tonnes by the
year 2010 and 13 MT by 2015.

The industry is characterised with a closed or dead capacity of 1.1

million. In the last few years, imports have increased substantially from
102,000 ton in 1996-97 to 450,000 ton in 2000-2001, leading to
increased pressure on domestic production margins.
We believe that consumers are the kings and it is the consumer who
determines what a business is. Our business is based on understanding
the consumer and providing the kind of products that the consumer
wants. We place enormous emphasis on our product development area
and our marketing area, and on our people knowing the consumers

A consumer buys a particular product because he is influenced by

certain motives. Motive is a strong feeling, urge, desire or emotion that
makes the buyer to react in the form of a decision to buy

Criteria for successful segmentation

1) Substantiality (it refers to the size of the segmented market)
2) Measurability
3) Accessibility
4) Represent ability
5) Nature of demand
6) Response rates.

The bases for our company’s segmentation are based on demographic

factors. Under this method, the consumers are grouped into
homogenous groups in terms of demographic similarities such as age,
sex, educational standard, income level etc… It ultimately rests on the

The new Millennium will be dominated by the tremendous progress

that has been made in computer science, thus triggering a complete
change in our commercial and private communication and information

Does this mean that the paper era will come to an end? The answer is
most definitely "No".

Clearly there will be a huge amount of data being generated

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

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

• Strong Financial Background
• Research & Development
• Eco Friendly
• Stringent Quality control
• Huge paper market potential

• Utilization capacity is
• Coalition Government at the center

• Future Market Expansion
• Paper consumption in India is expected to reach 9.5
million tonnes by the year 2010 and 13 MT by 2015.

• Cut throat competition to tap the local market.
• Electricity, Power failures a constant hindrance.

Petal Paper Mill Ltd has set up in Rajahmundry where most of the
national and state highways pass through. A railway station is located
in the vicinity and it has a direct link to the main railway station in
Hyderabad. Petal Paper Mill will export its reams of paper by sending it
by rail to Kakinada which is situated on the coast and is prominent for
its port. All storage cost and transportation cost will be borne by Petal
Paper Mills.

Rājahmundry, city in southern India, in eastern Andhra Pradesh, state located at the head of
the Godāvari River delta. Rājahmundry is a commercial center; rice, cashews, salt, and lumber
are traded here. Manufacturing activities include the production of cotton textiles and paper.
Bamboo is used as a raw material in the paper mills; it grows extensively in the Godāvari
Delta. Rājahmundry is also a transportation hub. It is served by a major rail line and is
connected by national and state highways to Chennai (formerly Madras), Cuttack, Vijayawāda,
and Vishākhapatnam, where the nearest airport is located. Population in (2001) 408,341.
Petal Paper Mills
Organizational Chart:
Keeping abreast of the management potential within a firm can be
done by the use of an inventory chart, which is simply an organization
chart of a unit with managerial positions indicated and keyed as to the
promo ability of each incumbent. Petal Paper Industries has an
organization chart, which is depicted as under: -

Sr. Vice Jr. Vice

President President

Engineer Purchase In Charge In Charge
Production Assistant Production Quality Stores

Stores Inspector
Assistant Quality

In the above organization chart it can be seen that both

presidents manage the working of the firm. There is one office
assistant to assist the partners in the clerical job involved in the firm.
The Production engineer, Purchase engineer, Production-in charge
and Quality and Stores-in charge are all directly answerable to the
presidents. The Production-in charge has a Production Supervisor
under him and operators themselves. The Quality and Stores-in
charge has Stores assistant and a Quality Inspector under him.

Responsibility Matrix:

Without authority – the powers to exercise discretion in making

decisions – properly placed – in managers, various departments
cannot become smoothly working units harmonized for the
accomplishment of enterprise objectives. Authority relationships,
whether vertical or horizontal, are the factors that make organization
possible, facilitate department activities, and bring co-ordination to an
enterprise. The responsibilities chart of both the presidents
individually can be explained.






At the Petal Paper Mills Limited, excellence begins with the raw
materials. For the major raw material, the company will switch over
from forest based wood and bamboo to the self cultivated subabul and
other mixed hard woods. This has eliminated dependence on natural
forests. As the source of raw material is now through the social and
farm forestry, raw material is no more a problem. Thousands of
hectares of farmers own lands situated with in close proximity to the
Mill, have been put to make under farm forestry to ensure
uninterrupted supply of raw material while providing excellent
opportunity in rural employment. With the use of biotechnology and
clonal propagation of wood species, the company ensures excellent
quality of fiber, which produces quality paper, on a sustained basis.

Regarding Farm Forestry, the

main plank for companys raw material requirment

In all the projects, the farmers and the tribals of the area play a key
role. Every year the Petal Paper Mills Limited will distribute millions of
polypot and naked seedlings of casuarina and subabul seeds virtually
free of cost to the farming community, stretching from Ongole to
Srikakulam in the coastal Andhra Pradesh. This helps in increasing the
availability of raw material year after year. The R & D team ensures
that only the best seeds reach the farmers. Because the Petal Paper
Mills Limited believes that for every tree felled, two should rise.

And it is being done........