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1 9.4 Inter-producer comparison: Financials Inter-producer comparison: Costs Inter-producer comparison: Operational parameters Inter-producer comparison: Marketing and distribution 2 4 6 10 Inter-producer comparison 2 CRIS INFAC PAPER ANNUAL REVIEW: INTER-PRODUCER COMPARISON.3 9. 11 PAGES i .2 9.0 Tables 9. SEPTEMBER 2001.Contents IX Inter-producer comparison Section 9.

0 This chapter compares the large paper companies. ITC BPL and APPM. have also benefitted due to their focus on speciality paper. availability of raw material and power. Companies. TNPL . CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON. such as Pudumjee. its distribution network and product portfolio. such as BILT. JK.Inter-producer comparison Chapter 9. and marketing and distibution related parameters. 11 PAGES 1 . Operational parameters have been further divided into costs. SEPTEMBER 2001. plant location. based on their operational and financial parameters. Small companies. have an advantage with respect to most of these parameters. The operating efficiency of a company depends on its capacity.

190 2.139 79 877 3.001 3.Inter-producer comparison 9.536 5.564 229 382 133 249 89 159 31 128 2.089 739 524 496 5.492 16.725 463 976 562 2 20.417 3.761 2.434 10.830 1.711 104 108 152 2.055 1.175 1.152 15.091 743 348 3 345 847 769 78 400 (321) -321 603 1.213 1.878 486 1.954 1.695) 2.368 268 119 1.868 44 191 3 2.165 569 596 596 3.335 23.079 1.857 6 1.853 914 532 (102) 7.346 1. etc.990 987 2.487 14.989 4.633 193 769 1.881 4.926 1.181 1..146 2.450 37 12 5.434 182 66 37 1.1 I T C J K Corp Mysore Orient Mar-99 Mar-00 Mar-00 12 12 3.236 460 531 191 47 21. 11 PAGES .464 230 28 93 5. 2 CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON.077) 618 (1.888 648 930 9.278 2.300 251 APPM Mar-00 12 BILT Century Jun-00 12 12 Mar-00 Mar-00 12 Table 9.400 3.628 2.052 323 374 335 310 14.790 2. stores.322 1.502 6.681 (1.346 461 870 61 576 199 85 115 98 17 17 6.360 360 767 28 597 8.674 447 8.936 18.485 248 410 516 51 (224) 1.453 19 Continued.056 618 933 711 1.041 359 659 (299) 236 (535) 0 -535 6.171 6.011 2.512 1.0 Inter-producer comparison: Financials (Rs million) Year Months Income and expenditure Sales Other income Non-recurring income Change in stock Raw materials.528 1.058 256 148 339 3.216 1.008 1.728 143 3.695) (1.087 8.479 1.166 367 29.343 1. Wages & salaries Energy (power & fuel) Excise duties Other expenditure Non-recurring expenses PBDIT Interest PBDT Depreciation PBT Tax provision PAT Assets Gross fixed assets Net fixed assets Investments Inventories Receivables Sundry debtors Cash and bank balance Liabilities Equity capital Net worth Total borrowings Current liabilities Provisions 113 1..702 62 15 (27) 1.814 832 1.516 80 2. SEPTEMBER 2001.405 2.

027 94 688 4. SEPTEMBER 2001.340 60 316 213 27 82 1.200 5.continued (Rs million) Year Months Income and expenditure Sales Other income Non-recurring income Change in stock Raw materials.634 939 253 528 436 40 89 825 494 731 - Average1 Mar-00 Mar-00 Mar-00 Mar-00 Mar-00 2.651 34 4 (75) 628 184 290 208 456 (12) 152 (163) 49 (211) (211) 2.307 3..425 4. JK Corp and Orient due to other businesses Compiled by CRIS INFAC CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON.142 1.958 6.934 11 1.709 0 383 158 23 1.652 23 187 Star 12 1.864 1.682 403 500 432 363 454 168 285 97 188 36 152 1..569 65 54 (16) 562 305 267 190 33 238 88 151 40 111 8 103 3. etc.352 518 17 243 29 83 651 338 271 17 12 1. 11 PAGES 3 .907 1.855 32 1 23 565 236 460 135 201 266 95 171 113 58 6 52 2.106 164 585 339 53 525 1.253 372 1.135 1.496 1.058 267 465 201 337 408 247 161 156 5 11 (6) 4. stores.111 1.743 194 217 103 62 156 596 875 343 122 TNPL Westcoast Mar-00 12 4.871 1. Wages & salaries Energy (power & fuel) Excise duties Other expenditure Non-recurring expenses PBDIT Interest PBDT Depreciation PBT Tax provision PAT Assets Gross fixed assets Net fixed assets Investments Inventories Receivables Sundry debtors Cash and bank balance Liabilities Equity capital Net worth Total borrowings Current liabilities Provisions 1 Pudumjee 12 1.254 597 657 473 184 22 163 10.758 34 20 (61) 1. Century.783 932 153 Mar-00 12 3.019 945 7 12 1.310 50 25 4 531 106 168 137 80 309 142 167 79 87 3 84 1.303 1.694 69 30 (3) 1.923 167 206 192 93 113 728 1.638 1..609 3.972 121 0 (40) 1.814 688 95 Exclude Bilt.127 898 181 45 Rama Seshasayee Sirpur 12 983 4 6 (32) 474 36 200 2 158 144 241 (98) 124 (222) (222) 6.

515 7.886 76.430 - 257.927 40 20.185 26.576 456.019 8.157 4.685 192 - 184.444 1.014 2.924 2.157 149 184.965 28.706 92 488 193.922 1.357 469 1.197 7.040 27.559 27.155 5.351 266 1.2 I T C J K Corp Mar-00 Mar-99 Mysore Mar-00 Orient Pudumjee Mar-00 Mar-00 Rama Seshasayee Mar-00 Mar-00 Sirpur Mar-00 Star Mar-00 TNPL Westcoast Mar-00 Mar-00 Average 4 CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON.205 32.272 561.297 192 1.368 491 2.962 342 21.383 500 1.656 2.297 7.282 28.217 99.709 4.186 26.391 3.784 23.976 1.976 221 24.Inter-producer comparison : Costs APPM Year Raw material Wood/Bamboo Quantity Value Rs per tonne Pulp Quantitty Value Rs per tonne Waste paper Quantitty Value Rs per tonne Bagasse Quantitty Value Rs per tonne Other agri-wastes Quantitty Value Rs per tonne Realisation Excise duty Net realisation Wood Pulp Waste paper 1 Table 9.559 1.399 342 Rs per tonnes of paper/newsprint .546 16 10.627 1.006 440 1..915 1.071 2.071 80 345 126.053 184 2.601 6.950 1.457 3.839 21..489 1.621 4.339 224 7.425 217 5 22.282 626 20.789 174.714 89.636 36 1.359 3.856 29 4.281 Continued.872 54 9.018 29.179 14.234 23.588 20.939 24.210 2.302 396 2. SEPTEMBER 2001.065 9.851 3.805 4.942 137 - 15.874 481 11 23.434 3.040 23.970 328 1.411 3.968 26.120 1.417 3.096 13.662 584 1. 1.965 77 160.560 3.970 428 1.472 115.678 3.195 203 5 26.686 9.584 557 5.970 26.722 419 2.667 31.730 18 1.737 267 2.245 27.707 312 10 31.103 - 181.791 435 18.599 495 9 17.741 3.771 48.520 647 - 185.190 559 3.854 10 693 52.901 132 1. 11 PAGES BILT Jun-00 Century Mar-00 Mar-00 240.769 15.163 599 9 14.838 22.379 2.945 1.090 27.413 5.650 6.382 21 14.152 5.978 81.477 1.613 29.512 28.077 37.554 23.441 16.361 21 20.797 167 19.524 26.256 3.368 191 29.135 277 2.101.856 301 17.485 5.804 23.765 8.914 2.554 24.

967 Higher use of imported waste paper.767 25 3.239 Higher on imported waste paper.286 23 2.536 Increased Superior paper. Inefficient Lowest wood.079 30 2.CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON.519 32 12.110 40 4. 6.629 47 1.489 16.338 29 3.780 Higher 5.362 8..100 7.696 21 5.430 11. quality of cost of of purchased per unit use of Compiled by CRIS INFAC 5 .305 31 3.453 157 11.844 17.398 22 2. 11 PAGES .844 28 6.389 16.924 17.877 19 3.217 23 5. BILT Century 138 8.226 10 7.558 11 16.. SEPTEMBER 2001.265 6.991 12 8.077 11 9.416 Lower Efficient use of raw material.189 Higher Sirpur 5.910 Higher Superior quality of paper.170 Higher TNPL Westcoast Average 3.776 31.244 13.819 13.294 Higher Higher power. Star 7.875 15. Rama Seshasayee 8.511 15. Orient Pudumjee 7.715 Lower landed cost of wood and bagasse.537 14 10.620 9 10.273 Average 4.190 Higher Higher cost of wood.200 5.821 16 11.598 Lower Lowest cost of pulp.704 21. 2. 785 23 7.continued APPM Bagasse Other agri-waste RM RM/Sales (per cent) Power and fuel Power/Sales (per cent) Operating cost Contribution Operating cost 5.646 Lower Lowest cost of power.300 6 9. J K Corp Mysore 5.537 14.944 34 1.113 Higher Higher cost of wood.827 12 9.537 11 8.802 7 13. 285 11.126 12. Dependence Higher cost power.793 21 11.991 25 13.304 29 2.282 28 2.458 10 9. ITC 7.

4 Self-sufficient Higher usage of power per tonne of paper.715 99 4.251 Better utilisation at around 90 per cent 2.848 95 1.149 68.82 1.3 102.568 258. Orr 171.309 Higher utilisation at around 100 per cent 1 AP 182.8 Self-sufficient 1.553 Better utilisation at around 90 per cent 1 UP 121.Mah.185 Lower utilisation due to closure of Brajrajnagar paper plant in 1999-00 0 MP.910 92.628 78.895 33 1.165 94.8 95.84 1.678 64.921 76 However.526 95. 1.18 1.734 99.334 95.702 Higher utilisation at more than 100 per cent 5 Har.307 Better utilisation at around 90 per cent 1 Kar 105.03 2. 3.281 100 2.8 261.675 Lower utilisation due to closure of plant for part of year Power and fuel Unit cost (Rs/kwh) Per unit consumption Capitve power (per cent) Captive power 1. cost of purchased power is very high.500 36.1 62.000 96.8 179.99 1.4 70.727 41. .632 102.908 100.41 2.000 70.42 1. 1.3 Self-sufficient Higher usage of power per tonne of paper.850 112.310 88.12 1.480 59 8.0 Self-sufficient Inefficient usage of power.8 Self-sufficient Inefficient usage of power.500 183. SEPTEMBER 2001.662 64 2. Continued.0 23.945 BILT Century ITC J K Corp Mysore Orient Table 9..000 57.1 Self-sufficient 1 Orr 90. 1.7 Self-sufficient Self-sufficient Higher usage of power per tonne of paper.436 89. 1..2 115.083 37 2.342 92.Inter-producer comparison: Operational parameters APPM Operational parameters Plant details Number of factories Plant location states Capacity Production Utilisation Sales quantity Share of paper sales Sales Capacity utilisation Better utilisation at around 90 per cent 1 AP 98. 11 PAGES 1 Mah 38.851 14 3.500 94. Orr 251.194 94.3 Pudumjee 6 CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON.

continued APPM Future plan Expansion/Modernisation plans Plans to undertake mill development for improving operating efficiency.. Century - ITC - J K Corp - Mysore - Orient - Pudumjee Commence captive power plant to reduce dependence on purchased power. Now plans to convert that facility to manufacture paper grade pulp. Merged group company Andhra Pradesh Rayon which manufactured RWGP. 11 PAGES ...CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON. Backward integration Undertaking afforestation program through farmers to reduce dependence on purchased BILT Increase existing capacity by debottlenecking.. - Undertaking afforestation program through farmers to reduce dependence on purchased - - - - continued. SEPTEMBER 2001. 7 .

927 Full capacity utilisation Better utilisation at around 90 per cent 1 Kar 119.641 1 TN 180..339 77 2.1 57.915 3.000 70.8 59. 1.5 Self-sufficient 1 Guj 132.. .0 116.65 1.100 58.750 112.000 60..5 48.580 86.2 Self-sufficient Higher usage of power due to production of newsprint.829 36. 2.9 Self-sufficient 1.000 178..91 1.5 Self-sufficient Most efficient power consumption among wood based mills.9 102.521 94.368 70.200 58.263 100 983 Seshasayee Sirpur Star TNPL Westcoast Average 1 TN 60.610 84.11 1.224 100 1.530 93 1.continued 8 CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON.650 82.281 92. 2.764 99 4.24 1. SEPTEMBER 2001. Higher usage of power per tonne of paper. 11 PAGES Rama Operational parameters Plant details Number of factories Plant location states Capacity Production Utilisation Sales quantity Share of paper sales Sales Capacity utilisation Lower capacity utilisation at around 54 per cent Power and fuel Unit cost (Rs/kwh) Per unit consumption Capitve power (per cent) Captive power 3.98 1.83 1.1 Self-sufficient Higher usage of power per tonne of paper.042 100.2 Dependent on purchased power..563 Higher utilisation at 127 per cent 1 UP 46.115 99 1.839 82.871 99. 1.035 81 3.547 126.5 continued.17 1.7 61.4 178.722 Full capacity utilisation Stable capacity utilisation 1 AP 71.798 99.570 53.348 82.047 1 119.141 103.

000 tpa. Backward integration - Seshasayee Installed an imported old machine with a capacity of 55. - Sirpur Plans to increase capacity by installing a new machine with a capacity of 20.. Star TNPL Plans to increase capacity by 20.000 tpa.continued Rama Future plan Expansion/Modernisation plans Plans to manufacture writing and printing paper. Westcoast Plans to install a new duplex board machine with a capacity of around 45. - Compiled by CRIS INFAC 9 . Average - - Undertaking afforestation program through farmers for reducing dependence on purchased wood.. - Undertaking afforestation program through farmers to reduce dependence on purchased wood.000 tpa to manufacture writing and printing paper. and LWC on machine with a capacity of 70.000 tpa. Plans to set up a captive power plant.CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON. SEPTEMBER 2001. 11 PAGES .000 tpa through modernisation.

06 100. For writing and printing paper. Product portfolio (1999-2000 E) Creamwove Maplitho Coated paper/board MG Varieties Duplex. for future growth.) Marketing strategy Well placed in maplitho and MG board.88 48. Market leader in segments.12 6. SEPTEMBER 2001. such as tissue.67 1. 11 PAGES .73 100. through dealers and direct sales.01 15. segment Focus on higher margin varieties. such as bond.23 11.54 0. Major player in lower maplitho and creamwove paper.97 17.98 35. Plans to improve the quality of coated paper/board in the near future. Major player in continuous computer stationery. For industrial paper.89 100.15 1.00 15.21 0.06 34.74 7. such as tetra packs for future growth. non-exclusive distribiution non-exclusive through non-exclusive wholesalers.00 0.32 2.03 20. Plans to improve its quality. rather than compete for increasing its market share.21 3.00 64.09 0.14 12. Mainly focus on the eastern and northern regions. Product portfolio highly well diversified. Product quality is perceived as premium grade in the market.00 19.45 100.. other board Kraft Specialty Total 27.29 0.86 10. BILT Century ITC J K Corp Mysore Table 9. and command a premium in the market. superior maplitho paper and sack kraft paper.47 0. Distributed through authorised (Nearly 70-80 authorised wholesalers in India. quality 44.31 17. Likely to face competition in the copier paper segment due to the entry of many new players. 10 CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON. Distributed through wholesalers. Leader in duplex board. Distributed through wholesalers. Has entered into higher growth segments.21 0.00 Major player in the creamwove segment.10 19.Inter-producer comparison : Marketing and distribution APPM Marketing Distribution Distributed thorugh nearly 70 dealers.4 Orient Distribute products agents.09 25. Distributed through authorised wholesalers.00 66.58 67. Second largest player in the maplitho segment.34 100.26 2.31 10. Plans to enter into value added segments.55 100.16 2..88 51. such as copier and coated duplex board. thorough non-exclusive dealers.86 8.23 100.00 27.00 Continued. Market leader in copier paper.

51 31.67 100.00 21. Leader in Plans to Plans to install new machines for duplex board.continued Pudumjee Marketing Distribution Distribute kraft and MG varities through dealers.29 7. focus on speciality grades.76 2. printing paper non-exlusive non-exclusivenon-exlusive paper New capacity for pigmented paper. TNPL Writing and printing distributed through non-exlusive dealers.35 45. Speciality variety is manufactured as per orders.00 11. paper on in the quality of order to paper segment Increasing new machines. other board Kraft Specialty Total E: Estimate Compiled by CRIS INFAC 32.71 2.00 100.65 18. Rama Distribute writing and through distributors.71 0. which is used an Increase the prices of paper with an improvement coated paper.49 100. 11 PAGES 11 . In 2000-01.00 100.00 100.87 41.00 60. paper Product portfolio (1999-2000 E) Creamwove Maplitho Coated paper/ board MG Varieties Duplex.83 29. market share in the copier with the installation of cuttting facilities. Concentrate on art paper and art board market to replace imported paper.46 40. plans to to LWC manufacture LWC paper. Plans to manufacture writing and printing Seshasayee Distributed through dealers. Sinar Mas Distributed through authorised wholesalers.37 27. alternative Also.02 46.94 41. Sirpur Distributed through dealers.00 18.66 3. with a market share of over 50 per cent.00 1.00 41.76 100. Newsprint is marketed directly to publishers.77 1. grade segment.00 0.91 35. SEPTEMBER 2001. Newsprint is directly marketed to Westcoast Distributed exclusively through 100 authorised dealers. wood based increase kraft paper..00 36. Major sales from the southern region.22 100.17 100.14 22. Plans to market stationery products in increase realisations. Star Distributed through dealers.42 54.00 22...80 0.30 100. nearly 90 per cent of the production would be of the coated variety. Leader in computer stationery.21 - CRIS INFAC PAPER ANNUAL REVIEW: INTER PRODUCER COMPARISON. Marketing strategy Plans to increase its presence in the speciality Plans to export kraft paper to Kimberly Clark.