raja ganapathi paper mills ltd

8/6/2019 Raja Ganapathi Paper Mills Ltd

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INDUSTRY PROFILE:

The Indian paper industry has been historically divided on a three dimensional matrix

identified by size, grades manufactured and raw material utilized. Generally, tariff rates have protected smaller units utilizing unconventional raw material. Over the years, the growth of

various segments, investments levels in specific segments, technological changes, industry

fragmentation and intensity of competition have been significantly influenced by the

Government tariff policy. The present Excise duty on Paper is 12 %. The Government of

India from time to time has given some benefits to small industries in order to protect them

i.e. the first 3500 tones produced by a mill is chargeable only @ 8 % and thereafter it is @ 12

%.

The three main grades of paper manufactured in India are :-

1. Newsprint

2. Writing and printing.

3. Industrial Variety ( Craft paper and Duplex Board )

Over 550 players currently populate the industry and the estimated capacity is about 7.00million Metric Tones Per Annum (MTPA). Fragmentation is severe in the industrial

(packaging) grades, which rely on unconventional raw material such as waste paper and

partly agro residues. This division generally comprises of units with an average size of about

10000 MTPA and contributes to 45% of the output of paper and paper boards in the country.

Although the other divisions in the Indian paper industry are also fragmented by international

standards, the degree of fragmentation is less severe. Newsprint till about 1995, was the

sole preserve of large public sector units and was well protected by high import tariff barriers.

Nevertheless, imports contributed to about 50% of the domestic consumption. Since then,

new domestic capacity with private investment has been allowed to be created. This growth

has relied namely on De-inked waste paper as a source of raw material. Currently import duty

on newsprint is about 5% and domestic manufacture of newsprint is exempted from excise

duty. This tariff structure for newsprint has seen Indian newsprint price closely mapping

international prices. Imports still constitute about 30% of consumption and newsprint

contributes about 10% of the total production of paper and paperboards. The number of

players in the newsprint segment is relatively limited and manufacturing capacities are larger


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than in the packaging grades segment. Historically, the bulk of the output of Cultural

grades comprising of writing, printing, office stationery paper and specialty paper has been

the preserve of large producers, who use forest based raw material in integrated pulping

facilities augmented by imported pulp. This segment has been consistently taxed at higher

rates due to its size and use of conventional forest based raw material. Investment in plant

has also been higher. With relatively smaller number of players and high import tariff

protection, prices of end products, generally perceived to be higher quality, have been high.

Import tariff levels, although much lower now, still continues a significant barrier to imports.

The high investment levels required and limited conventional fiber resources are the major

deterrents to growth in this segment for both existing players as well as new entrants. Lower end cultural grades manufactured by smaller players using unconventional raw materials in

low investment, low tech plants cater to consumers in the price sensitive sub segment of this

market. This sub segment depends significantly on the tariff differential based on size and

raw material for its viability.

The Indian Paper industry is going through substantial changes. Global demand for paper is

expected to grow by about 4% p.a. over the next 5 years. The domestic demand is expected to

grow at about 8% which will result in increase of demand by 30 Lakh tones approximatelyover the next 5 years. It is expected that customs duty on import of paper will decrease from

the current level to the level of 10% over a period of time due to WTO compulsions.

The import of raw material for paper including pulp, waste paper and news print is likely to

increase by at least 15% to 20% in 2005-06 to keep up with growing demand for paper in the

domestic market. Despite to the constraints like over crowded market and limitation in

procuring the desired quality of waste paper, there are indicators of a revival in the Indian

Paper Industry. In the current year, selling price has marginally increased and enabled the

industry to partially offset the rise in cost of inputs, fuel & labour.


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The paper industry has an important social role to play for the country. Use of paper is

considered as an index of cultural growth. Key social objectives of the Government like

eradicating illiteracy, making primary education compulsory etc. are very much related to the

paper industry. The paper industry is also contributing towards fulfillment of various

requirements of the industry as a whole like information dissemination, publicity etc. which

in turn stimulate industrial growth of the country. The paper industry has, thus, a catalytic

role to play not only for the overall growth of the industry but also for the living standards of

the people. The new millennium is going to be the millennium of the knowledge. So demand

for paper would go on increasing in times to come. Because of paper industrys strategic role

for the society and also for overall industrial growth, it is necessary that the paper industry

performs well.

COMPANY PROFILE:

The exposure to foreign packaging technology and the need to satisfy the export customershas led to a drastic change in the industrial packing sector. The corrugators have started using

high BF, high GSM paper instead of the regular grades and shifting from 7 ply and 9 ply

boxes to 5 ply and 3 ply boxes. The above change has resulted in more aesthetic and cost

effective packing solutions. There is a very good potential market developing for such grades

of paper in India. The market of high quality Kraft paper is now catered only by few

manufactures from western and northern parts of the country. With the above changes in the

industry it would be in the best interest of our company to put up a Kraft paper plant of 100

MT per day producing high B.F., higher GSM paper and exploit the emerging market

situations better. The company envisages the following advantages by going for such a plant

as follows:

l) Most of the existing paper mills in South India operate with single wire machine, which

can produce up to 24 BF only, whereas the new plant intended to be set up by SSPML is a

twin wire machine which can produce high quality Kraft paper of 24 BF to 40 BF which is

sold in the market at a premium. l By making high end paper in south India the companystands to gain a lot in terms of logistics costs when compared to the competition. l SJPML got


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the advantage of cost benefit while importing raw materials and exporting finished product. l

The possibility of exporting substantial quantity of the production to near by countries like,

Sri Lanka and eastern African countries is also bright. This may also be substantiated from

the fact that paper exports have risen at a CAGR of 14 % pa from 105000 tonnes in the year

2000 to 179000 tons in the year 2004. As a strategic measure to expand the international

operations of the company, the company has already started a new business division

International Business Unit to handle the international marketing operations of the Company.

2) The company intends to manufacture the paper by using Twin Wire Technology and also

plans to incorporate all latest equipments to have a cost effective production. The twin wire

technology employs two wires drawing pulp stock from two separate head boxes. Thearrangement is in such a way that the wet webs come into contact before going to the press.

3) At present the Company is employing single wire technology wherein the pulp stock flows

from the head box and gets distributed uniformly for further dewatering, pressing and drying

to form a sheet of paper.

The twin wire technology is superior than the single wire technology due to the following

factors:

1. Improves formation of paper.

2. Improves strength properties of paper namely, Burst factor, Tear

factor, Tensile strength and Ring crush test values.

3. Reduces Cost of Production.

The company will be able to derive the synergies of the existing plants and position itself as alargest Kraft paper manufacturer in south India by the installation of the plant. The market

expectation for the increased production

CAPACITY, PRODUCTION, RAW MATERIAL AND IMPORT:

Government has completely de-licensed the paper industry w.e.f. 17th July, 1997. The

entrepreneurs are now required to file an Industrial Entrepreneur Memorandum with the


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Secretariat for Industrial Assistance for setting up a new paper mill or substantial expansion

of the existing mill in permissible locations.

The industry is a priority industry for foreign collaboration and foreign equity participation

up to 51% receives automatic approval by Reserve Bank of India. Foreign investment even

up to 100% is approved by FIPB on case to case basis. Several fiscal incentives have also

been provided to the paper industry, particularly to those mills which are based on non-

conventional raw material.

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. The production of paper and paper board during the year 2001-02 is 31.62 lakh tonnes.

The proportion of non-wood raw material based paper is increasing over the years. At present

about 60.8 per cent of the total production is based on non-wood raw material and 39.2 per

cent based on wood.

The 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 due to short supply of raw materials, duty on pulp and waste paper and wood

logs/chips have been reduced. The capacity utilization of the industry is low at 62% as about

194 paper mills, particularly small mills, are sick and/or lying closed. Several policy

measures have been initiated in recent years.


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Imports of paper and paper products were growing over the years. However, it has decreased

during 2000-2001.

Demand and Supply gap in Paper Industry

Indian paper industry is the 15th largest in the world and provides employment to 1.3mn

people in the country contributing Rs.25bn to the Government. The industry has recorded a

volume growth of CAGR of 5.47% over the last 3 years. In 2003-04, it recorded a volume

growth of 6%, in line with the GDP growth. Indian paper industry has a 1:1 correlation with

the economy. The demand for paper is linked to the GDP Growth. The government is

planning to target a GDP Growth of about 10% in 2-3 years. With this increase in the GDPgrowth the paper sector is expected to record a similar growth rate.

The Indian paper industry has an installed capacity of 6.7mn tons while, the effective

capacity is estimated to be lower at 6.15mn tons. The industry produced 5.26mn tons of paper

in 2003-04. Newsprint capacity in India is estimated at 1.12mn tons however, domestic

production is only 0.59mn tons, while consumption of newsprint is 1.1mn tons. Favorable

demand - supply scenario to keep prices firm

The demand for paper is influenced by various macro-economic factors like national

economic growth, industrial production, promotional expenditure, population growth and the

Governments allocation for the educational sector. Domestic demand for paper is expected

to grow at a CAGR of 6-7%. Indias paper demand is expected to touch 8mn t.p.a by 2010. A

leading global paper industry consultant projects a shortage of about 0.7mn tpa by 2010.

Proposed capacity expansions:

Capacity expansions (which cost 50% less than new capacities) have been announced by

most players, but would take 1-2 years to be operational. Capacity expansions of over

600,000 tons have been announced by the 7 large players in the sector

GOVERNMENT REGULATIONS, PERMISSIONS & TAXES

1. Central Excise:


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Central Excise is levied @8% for the first 3500 MT production and thereafter @12% on the

value of the invoice. The Company is availing permitted Modvat benefits as per Central

Excise regulations. For import duty paid on waste paper procured from overseas the

Company is entitled to adjust the entire duty paid component as that of Modvat credits.

2. VAT (Value Added Tax):

VAT replaces the existing multipoint taxes levied by various states with effect from April

05. As that of other industries, the paper trade is also covered under VAT for domestic sales

done in the state of Kerala. However for interstate sales CST is continued to be levied as per

existing Government regulations.

3. Service Tax:

Being classified as a manufacturing industry, the industry even for Job Work on conversion

basis will not be subjected to Service Tax requirements. A recent notification from Central

Government also confirms such a stand.

4. Factory Licenses:

All the licenses required under Municipality Act, Factories Act are obtained and dulyrenewed.

5. Pollution Control:

Necessary permission under effluent discharge Act is obtained and the facilities required to

maintain the permission are in place.

AVAILABILITY OF DOMESTIC WASTE PAPER

Waste paper recovery system in India is very unorganized and unplanned . As a result, large

quantities of waste paper get diverted for cheaper packaging and other uses or get destroyed

as rubbish. Bulk of waste paper collected by street collectors in metropolitan cities goes to

household paper bag manufacturers. Due to lack of any grading/ classification system in

context of waste paper, no sorting or segregation is done at source and so most of the waste

paper varieties are collected in commingled form. The probable sources of waste paper collection are as under:


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Waste Paper Source ExamplesDomestic refuse Newspaper, magazines, board cartons.

Industrial refuse Corrugated boards, duplex & other packaging board, paper sacks

etc.Office refuse Ledger files and papers from Govt. offices,

Universities & large business organizations.Trade refuse Boards trimmings from converters & packaging manufactures,

paper savings from printersRoad Sweeping Newspapers and magazines are usually recycled directly as

wrapping and packaging papers by the grocers and pretty traders and

therefore they are not available for mills in their first rejection. Other fibrous domestic refuse probably find their way as road sweepings.

In India, collection of office refuse has not been very high mainly due to unavailability of a

viable collection system. In practice, more than 80% of the paper consumed in India is being

collected, of which only 20% is being made available to paper industry and the rest 60% is

usually diverted for other diversified / secondary uses such as wrapping, packing etc.

The developed countries, which are the major players in paper recycling business, have a well

defined and planned waste paper grading system in place, which facilitates the collection of

recovered paper sorted in grades with a limited mixture of fiber types. Due to limited

capacities of landfill sites and (municipal) incineration plants, increasing waste disposal costs

and environmental awareness a wide range of legislation / directives in various countries

have been imposed which has promoted material recycling and reduced further , the

generation of waste that requires disposal in appropriate facilities. These regulations set

responsibilities for taking back used paper products and packaging material independent of

the public disposal system and recycling them.

In India, however, no such regulations / law / directives are in force to promote use of

recyclable resources, as a result of which the recovery of used paper is also low. As per the

statistics available , the Indian paper industry is using more than 70% of imported waste

paper in its total waste paper consumption . The general issues related with use of

imported waste paper in Indian Paper Industry are:

Inconsistency in quality and varieties of waste paper grades.


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High level of contamination i.e. prohibitive & out throws.

Price fluctuation in the international market.

High price for good quality waste paper i.e. low to negligible contamination level.

High ash content in paper leading to low fiber yield / t paper and generation of inorganic

sludge.

ISSUES RELATED TO WASTE PAPER BASED MILLS

In spite of the fact that waste paper processing for paper making is considered to be an eco

friendly process , there are certain technological & environmental issues still associated

with waste paper based mills which needs to be addressed to improve its environmental

compatibility.

Technological Issues :

The main objective of recycled fiber processing is the removal of contaminants and

elimination of their effects as much as necessary to meet quality requirements. Removal of

contaminants makes recycled fiber processing systems significantly more complex than

systems for virgin fibers. There are several unit operations / stages viz. slushing, screening,

cleaning, flotation, disperger etc. to remove the contaminants from recycled fiber stock. The

technology is well established to produce newsprint, packaging grades and fine papers and

most of the mills in USA, Europe have state-of-art technology for processing of recycled

fiber. In India, however, most of the recycled fiber based mills do not have appropriate

system configuration for efficient processing, as a result the quality of finished paper is low.

The level of technology in majority of mills is obsolete. The operational efficiency of

equipments and machines are also considerably below the optimum level . Due to lack of appropriate configurations, the amount of rejects generated are also high and is a major

source of solid waste generated in such mills .

Environmental Issues :

Among the environmental issues associated with recycled fiber mills , solid waste disposal

and management is the subject of main concern. Deinkined sludge generated from

deinking plants in mills using printed waste paper for producing writing & printing gradeof paper , consists of mainly fillers and coating pigments, fibers, fiber fines, printing inks and


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adhesive components. A characteristic feature of the deinking sludge is its high ash content

in the range of 40% - 70%. Traces of heavy metals may also be present in some cases. In

most of the cases the heavy metal content is insignificant and sometimes even below the

detection limit. The another important issue reported recently is the clandestine import of

other waste like plastics, metal and cloth / rags etc (technically defined as prohibitive and out

throws) along with waste paper.

OBESRVATION & REMARKS :

Generally the waste paper being imported in the country are recovered in segregated form as

per the request of the importer. However, some cases have been reported wherein municipal

solid waste constituting of plastics, metal cans and cloth / rags etc (technically defined as

prohibitive and out throws) have been illegally imported in grab of imported waste paper

This has led to the need of defining / formulating the permissible limits for the

contaminants like plastics, metal cans and cloth / rags etc. in the imported paper . At present,

no data /guideline is available on this issue Therefore; it is recommended to undertake an

indepth study on this issue so as to evolve permissible limits for prohibitive and outthrows in

the imported waste paper consignments entering into the country.


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CORPORATE PROFILE

M/s Shree Jagdambe Paper Mills Limited(SJPML), incorporated in July, 1980 as a

private limited Company, commenced its commercial production of Semi Kraft Paper on

single production line in March, 1982 with an installed capacity of 1950 M.T. per annum

based on agro residue. In the year 1985-86 the capacity was increased to 3000 M.T. per

annum & later in 1987-88 to 5000 M.T. per annum by adding certain balancing equipments.

In 1990, SJPML added another production

Line and increased the capacity to 10000 M.T. per annum. In 1993-94 the plant has been

operated at 95% capacity utilization to give a production of 9587 M.T. SJPML has

been promoted by Shri Man Mohan Kumar Goyal, Shri Ramesh Kumar Goyal, Shri

Surender Kumar Goyal, Shri Anil Kumar Goyal and Shri Parveen Kumar Goyal who

have professional background. SJPML has been converted into a Limited Company on

28.12.94 and also enhanced its production capacity from 10000 M.T. At present to 20000

M.T. per annum through Modernization- cum-Expansion Scheme.

During the year 1994-95 an other sister unit of SJPML

for manufacture of Kraft Paper was incorporated as Shree Sita Ram Paper Mills Ltd., at

Village Nanasanja Taluka Jagadia, Distt Bharuch (Gujarat) with installed capacity of 20000

MT per annum. As product of the company is well accepted in open market, but due to

Government policies of liberalising international trade, Import duty on Kraft Paper was

reduced resulting dumping of Paper in India by multinational Companies and same also

became a reason for down in production for the year 2001 to 2003. Similarly Excise Duty

was also increased between 1994-95 to 2000-2001 from 0% to 5% and then to 8% and 16 %

( 2002-2003).


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BRIEF PARTICULARS OF THE COMPANY

The Company was incorporated under the name & style of M/s Jagdambe Paper

Industries(P)Ltd., vide certificate of incorporation No.H-10725 dated 31.07.1980, with

Registrar of Companies, Delhi & Haryana, (New Delhi). The name of the Company was

changed to Shree Jagdambe Paper Mills (P) Ltd., on 10.02.1994. Now Companys

constitution has been changed to that of a Limited

Company on 28.12.94. The Company has registered itself with Directorate General of

Technical Development, Delhi, Ministry of Industry, Government of India for

manufacturing of Paper & Paper Board vide Registration No.1020(89)DLR dated

17.11.1989 for 10000 M.T. And memorandum for expansion of capacity to 20000 M.T.

Has been filed with SIA as per acknowledgement dated 23.08.94.

BRIEF PARTICULARS ABOUT PROMOTERS OF THE COMPANY

The Project was promoted by Shri Murli Dhar Jhuthran and Shri Ramesh Kumar Goyal. Shri

Murli Dhar Jhuthran retired as Director in 1982. After then promoters were Shri Man Mohan

Kumar Goyal, the Chairman of the Board of Directors, Sh Ramesh Kumar Goyal,

Managing Director, Sh Surender Kumar Goyal, Director(Sales), Sh Anil Kumar Goyal,

Director(Production), Sh Parveen Kumar Goyal, Director (Personnel).

Shri Man Mohan Kumar Goyal started his career at the age of 17 years

by joining his father's Brick Kiln business. Being the eldest son of late Sh Ram Saran Dass

Goyal, he was involved in planning and managing all business activities of the family. He

has hands-on experience in running brick kilns,

Manufacturing of steel utensils, ice, managing agency, business of cement & match boxes,

petrol filling station and all properties. In 1980, he came into the manufacturing of paper

and now he is an established Industrialist with a 14 years of experience in paper


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manufacturing. Sh Man Mohan Kumar Goyal resigned from director ship of the company

w.e.f. 15.12.2001 & shifted to Gujarat to look after day to day affairs of sister company

Shree Sita Ram Paper Mills Ltd.,

Shri Surender Kumar Goyal, B.A., started his career by joining family business. Later he

was instrumental in setting up of M/s Aggarwal Ice Factory. In 1982, he joined the

captioned company as Director (Sales). He has been instrumental in developing network

of dealers/agents and monitoring sales.

Shri Anil Kumar Goyal, Chartered Accountant started his career by

joining SJPML in the year 1984. Being an Accountant by profession he could read, analyze

and plan the business to make the operations cost effective.

Shri Parveen Kumar Goyal, B.A.started his career in 1981 at the

age of 18 years and joined SJPML. Due to his strong human relation trits he was also given

the responsibility of handling personnel functions and inducted as Director, in 1984. Sh

Parveen Kumar Goyal resigned from director ship of the company w.e.f. 15.12.2001

& shifted to Gujarat to look after the day to day affairs of sister company M/s Shree Sita

Ram Paper Mills Ltd., Bharuch

LOCATION OF MANUFACTURING PLANT AND ITS BRANCHES

SJPML has free hold land measuring 126 kanal 13 marla, situated at Begu Road, Sirsa.

Site is on metalled road about 2 K.M. from Sirsa. City in the municipal limits nearest

railway station is 3 K.M. at Sirsa.


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Works sector: Begu Road, Sirsa (Haryana) : Sector:

Medium Scale Industry

Registered Office : 161, Deepali, Pitampura, Punjabi

Bagh, Delhi

Branch : Shree Jagdambe Paper Mills Ltd.,

11, Jeet Building, Phase Ist,

Ashok Vihar,

Delhi

NAME OF THE SISTER COMPANIES/CONCERNS

a) Shree Sita Ram Paper Mills Ltd.,

Taluka Jagadia, Village NanaSanjha,

Distt. Bharuch (Gujarat)

Shree Sita Ram Paper Mills Ltd., incorporated in the year 1995 is sister company of Shree

Jagdambe Paper Mills Ltd., involved in manufacturing of Multi Liner Craft Paper having

production capacity of 20000 MT per annum.

b) Shree Amba Paper (P) Ltd.,

73/4, Village Ghavera,

Delhi

c) Ahmedabad Chemical Trading (P) Ltd.,

44, Ekjot Apartments,

Maduban Chowk,

New Delhi

Both of two companies are the sister companies of Shree Jagdambe Paper Mills Ltd, based at

Delhi, involved in trading for various types of paper and paper board.

OUR CUSTOMER

A loyal customer base is SJPML biggest quality endorsement. The institutional customers

comprise brand-enhancing names like Action Shoes, Micro Teck, Lakhani Shoes Ltd., amongothers.


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CUSTOMER SERVICE

The SJPML takes a holistic approach in the business of making paper and customer

relationship enjoys a priority in this. The SJPML customer service stands for dependable

quality, every possible choice and anytime product availability.

Convenience : We provide customers the benefit of staggered delivery so that they do not

need to keep a large inventory at their end; this maximises working capital efficiency

Customer service : We weave the marketing and manufacturing functions together. Quick

and punctual delivery has added to customer convenience

PROCUREMENT OF RAW MATERIALS

Main raw material for the company is corrugated boxes/waste paper which is purchased

through local suppliers. Company has adopted inventory control system for purchase Raw

material. Decision for making purchase is taken by the Executive Director (Purchase) after

considering the indents for requirement of raw materials, received from the production

department. Director (Purchase) is assisted by team of purchasers, who calls quotations from

different suppliers of raw materials.

RAW MATERIAL MANAGEMENT

Director (Purchase) after considering lowest quotations along with sample of raw material,

place order for supply of raw material.

TESTING/CHECKING OF RAW MATERIAL

After receipt, consignment of raw material is weighted at companys own weighing bridge.

Weight as per companys weighing bridge is tallied with the weighing slip as produced by the

supplier of raw material. Bill of the material is also collected by the gate office for their necessary inward material entries. Weight of the raw material is tallied with the weighing


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slip/bill of the supplier. If the weight is not tallied with the weighing slip/bill due to shortage,

it is immediately informed to supplier/driver. A written consent on the back side of bill is

taken for information of shortage to supplier. Vehicle is then allowed to go to raw material

godown for unloading with prior intimation to quality checking supervisors.

Raw Material Quality Supervisor got unloaded the material in his presence. Sample from

different bundles of raw material is taken for checking of quality/moisture etc. If, moisture is

found in any bundle, sample of same is handed over to laboratory technician, who tested the

percentage of moisture in the material. A report is being prepared by Lab. Technician for

moisture and other prohibited contents like plastic strips, kaccha material, reel core material

etc. present in the lot of raw material. Report is also signed by Lab. Incharge as well as

supplier of material. Weight of moisture/other prohibited contents present in the material is

deducted from the total weight of material. Lab. Report so prepared, is forwarded to Director

(Purchase) for his information and signature purpose. Copy of the report is then given to

supplier of raw material. If, supplier does not accept weight of moisture/prohibited contents

he is allowed to take his material back.

Copy of the report, is attached with bill of supplier and handed over to gate department for

entries in their inward receipt register. Rates of different type of raw materials are as under :-

1. Corrugated Cartoons (Fresh) Rs.8000/- PMT

2. Corrugated Cartoons (used) Rs.7000/- ,,

3. Corrugated Cuttings (Fresh) Rs.6800/- ,,

4. Corrugated Cuttings (Old) Rs.6500/- ,,

5. Media (Kaccha Material) Rs.5500/- ,,6. Media (Core Pipes) Rs.5000/- ,,

MANUFACTURING PROCESS ;

Paper is manufactured using corrugated cartoons/waste paper, Chemicals and water. The

manufacturing process can be bifurcated in to four stages.


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A) PULPING :

Corrugated Boxes/Waste Paper after cutting and dusting feed in to the pulpers for pulping.

The waste paper can directly be beaten and washed in the beaters for pulping.

B) PREPARATORY TREATMENT OF STOCK :

Pulp, as it, is not fit for being converted in to paper and must undergo some preparatory

treatment depending on the end product. Before going to the paper machine, the stock must

be prepaid uniformly with a fixed thickness and be screened and refined by crushing so that

it may be reduce in to fixed thickness with uniform properties in a uniform speed. The

treatment is carried out in appratus called refiner and sizing agents like alum, dyes, loading

materials are added in the process to develop its strength. The main flow of pulp which

is freed from tailings in the vibrating screen and fine pulp sieved out from the tailings are

put together and sent to the centricleaners which work quite efficiently in removing fine dust.

C) PAPER MAKING :

Prior to going in to the paper making machine the stock which has gone through necessary

treatments, is diluted in the mixing box, down to the required consistency with the use of

back water generated in the paper making process. Similarly speaking, the paper making

machine performs its function in this way :-In the pulp stock which goes over travelling wire the fiber is separated from water & sheets

of paper is formed. The wet sheet is pressed dried and smoothened by going through several

sets of roll machines. To get M.G.Kraft Paper, the sheet is then passed through M.G.Dryer

which imparts glaze to the paper. Paper is finally wound up by means of pop-reel machines.

The out put of a paper machine is determined by the trimmed width of paper, the speed of

machine and grammage of paper.

D)FINISHING OF PAPER :


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Paper and board intended for sale in reels and cut sheets is rewound & cut to certain fixed

measurements. Defective paper and board sheets are removed . The rejected produce is

returned to pulping section and mixed into the main flow of pulp stocks.

DISPATCHES

Reels so prepared, is then wrapped by plastic cloth and clipped with the help of plastic strips.

Supervisor on duty mark a serial number, size and grammage on each reel for the purpose of

identification. Wrapped reels are then weighted through electronic weighing scale. Weight

as shown on the display is written in the reel by the supervisor. Supervisor also maintained a

register in which he entered weight of each reel along with serial number of the reel. Reel is

then shifted in finished goods godown from where it is dispatched as per orders received.

Complete record of reels manufactured and reels dispatched are forwarded to account office.

QUALITY CONTROL :

SJPML has got a well equipped laboratory with all the latest equipments for test cobb

value, Tear Factor, Burst Factor, Consistency, Degree SR and Grammage etc.

NET WORK OF SALES

SJPML has a wide range of net work of dealers spread all over the India, which covers

mostly all the states of India.

CLIENTS

SJPML keeps stringent control over quality for consistent quality which has helped it have

clients like :-

a) Micro Tek, Parwanoo

b) Action Shoes, Delhi

c) H.P.Cotton Textiles Mills Limited, Hissar

d) Baldeo Mange Lal, Ujjaine) Patel Paper Box, Udaipur


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f) Perfect Pack Ltd., Faridabad

g) Lakhani Group of Industries, Faridabad

h) Ravi Sons, Chandigarh

i) Kamal Boxes, Jalandhar

j) Jay Ambe Overseas, Surat

k) Industrial Packers, Daman

l) Meiyappa Paper, Chennai

EMPLOYEES CAPACITY

Details of employees are as under :-

1. Repair & Maintenance Staff 15

2. Engineering & Manufacturing Staff 18

3. Clerk 10

4. Supervisors Connected with Process 5

5. Supervisors Connected with Production 5

6. Supervisor Connected with Despatches 5

7. Supervisor Quality Checking 58. Officer Staff 5

9. Security 5


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SHREE JAGDAMBE PAPER MILLS LTD., SIRSA

PROCESS FLOW DIAGRAM

Waste Paper

Along with 12% Normal Moisture,

Stapple Pins & Adhesives)


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Solid Waste to Boiler/ETP

DETAILOF DIFFERENT DEPARTMENTS

Finance/Administration DepartmentMr. Anil Goyal is a Chartered Accountant, has a distinguished career in the area of

Corporate Finance and brings with him a unique combination of skills from

Accounting, Costing, Secretarial Services and Financial Management. He started his

career in 1985 and added to his profile significant skills in the areas of Taxation,

Costing, Insurance, Working Capital Management, Project funding by way of debt

from multinational agencies, raising equity etc. Ever since he joined SJPML he has

been instrumental in bringing in the financial discipline and analysis that helped the

Management to take various cost effective decisions. He has made significant

CONVEYOR

PULPER

SAND TRAP

DUMPING

CHEST

HIGH

DENSITY

CLEANER

TURBO

THICKNER

VACCUM

BOXES

WIRE PART

HEAD BOX

CENTI

CLEANER

FLOW BOX

MACHINE

CHESTMIXING CHEST

NO.2

ALUM

ROSIN

PRESS NO.1

PRESS NO.2

DRYER

M.G.DRUM

REELER

REWINDER

FINISH

PRODUCTREFINER


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contributions in identifying the financial institutions for sourcing the funds for the

Mill Development Plan.

Accounts Department

Accounts Department has also been supervised by Sh Anil Goyal, Director Finance

under assistance of Accounts Manager & Accounts Assistances. Under his

supervision and new ideas company has a modern and high-tech accounting software

and a well established computer lab.

Purchase Department

Purchase of raw material is supervised by Sh Manoj Goyal, Director Purchase.

Director Purchase is assisted by Purchase Manager and Raw Material Quality

Managers.

Production Department

Production is supervised by Sh Rakesh Goyal, Director Production. He is assisted by

the Production Manager and Plant Supervisors. He is the key contributor to the

process of developing the Quality Assurance and R&D Functions in the organization.

His contribution in customer development and customized product development has

been unparalleled. Later on with his abilities in technical and administrative skills,

took over the role of managing the Production Operations. He is specialized in the

areas of Technical Sales, Customer service, and Product development. He is the

critical In-house Resource for various Learning Events being conducted in various

technical areas.

Dispatch Department

Dispatch Department has also been supervised by Sh Rakesh Goyal. He is assisted by

supervisors and dispatch clerks.

HR. Department

SJPMLs Human Resource Processes are rooted in business priorities, market realities

and long term oriented. Inherent in them are the qualities like innovation, continuouslearning and improvement in the work processes, talent identification and nurturing.


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SJPML through its concerted efforts aims at becoming the most preferred employer in

the Industry and create one of the best places to work in the manufacturing sector.

Our HR processes stem from the faith in Human Potential and its Creative Power. Our

work culture that enable its Human Resources enjoy professional freedom. Our

Learning Center is a forum where unique learning events take place as a part of the

process of institutionalization of continuous learning.

The compensation package of the SJPML matches with the Industry Standards with

qualities of flexibility, valuing talent and encouraging career growth.

Our Performance Management System encourages its Human Resources to add value

and increase their contribution to the growth of the organization on a continuous basis

thereby guarantees timely reward and recognition.

Maintenance Department

Extensive monitoring, analysis, and control would optimize mechanical/electrical

systems, manage energy usage, pinpoint problem sources, and avoid unnecessary

downtime.

For electrical maintenance SJPML has flexible solution with comprehensive energy

consumption logs and immediate access to a range of electrical parameters, presenting

information remotely via the company's existing computer network. Power

Measurement offered the right set of capabilities with its energy management

software, installed on distributed workstations, and a network of intelligent power

meters. The system proved to be a valuable aid in the design and operation of

electrical installations. Further operational savings are being realized, especially

related to fast alarm response, and the system's modular architecture facilitates

affordable growth of all energy management applications.


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SAFETY & ACCIDENT PREVENTION

1. The Safety and Accident Prevention activities at SJPML are monitored by a

participative safety committee with equal number of members from Management and

Workmen. This committee is in existence since 1976. There are 3 department level

safety sub-committees, which look in to local level safety and accident prevention

activities in collaboration with the Safety Committee and Safety Department. The

Safety Department is manned by qualified safety officers and other administrative

assistance.

1. Accident Reporting and Investigation :

All the accidents and near miss accidents are reported and investigated and reviewed

by the Safety Committee. The accident data is analyzed and Safety Performance is

measured monthly, quarterly and yearly and communicated to concerned depts. and

higher authorities.

2. Identification of Hazards :

Frequent inspections are being carried out by using checklists. The Safety Committee

and Sub-committees also inspect the plants regularly.

3. Safety Systems :

Safety Work Permit System and Danger Tag System are in use for carrying out repair

and maintenance works, hot works in fire prone areas, entry in to confined space,

work on roof, excavation, etc.

4. Safety Training :

General and need based training is given regularly to all employees including cont.

workmen

5. Motivation :

National Safety Day is celebrated every year. Many competitions like slogans, stories,

posters, essays, etc. are organized on the occasion of National Safety DayCelebrations every year. An accident reduction contest is organized.


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.

6. Publicity :

Posters, Slogans, Bulletins, etc. are displayed through out plant Safety Magazine is

published

7. Personal Protective Equipment :

Shoes are provided once in a year to all employees including contract workmen

Helmets are provided to all employees All other Personal Protective Equipment is

issued based on the need Some equipment like Self Contained Breathing Apparatus;

Canister Masks, PVC suits etc. are kept in the depts. for use whenever and wherever

those are needed

8. Emergency Planning & Preparedness & Response

Emergency Plan is made and copies distributed to all concerned personnel. Periodic

mock drills are being organized

Emergency control centers established. Active role is being played in preparation of

Off Site Emergency Plan being made by District Emergency Authority.

9. Occupational Health :

Occupational Health Centre is established. One doctors and 2 nurses are working in

Occupational Health Centre. It is operated round the clock Periodical medical exams

are being carried out for the identified personnel. This includes X-rays, Clinical

examination; Blood exam; Lung function test; audio metric, stool exam; eye exam as

per the requirement under Factories Act 1948

ENVIRONMENT CELL AT SJPML

SJPML has established a separate, dedicated ENVIRONMENT CELL for Water and Air

pollution abatement, which indicates the commitment of the Industry in controlling the

pollution.


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ENVIRONMENT LABORATORY:

Environment Cell is having an exclusive Environment Laboratory equipped with modern

monitoring/testing facilities. Testing facilities available at Environment Laboratory.

Water and Waste Water Testing

AOX Testing

Stack Monitoring Facilities

Ambient Air Quality Monitoring

Meteorological Station with automatic data logger

The Environmental issues are reviewed in the daily coordination meeting chaired by Vice

President (Operations).

WATER POLLUTANTS AND TREATMENT MEASURES WASTE

WATER TREATMENT:

The main pollutants in the effluent discharged are Suspended Solids, B.O.D, and C.O.D etc.

The wastewater from the mills is treated in Effluent Treatment Plant consisting of Primary

Treatment to remove the suspended solids and Secondary Treatment (Activated Sludge

Process) to remove B.O.D and C.O.D and then treated by Land Treatment process to remove

even the Colour of the effluents. SJPML is the only mill discharging effluents upstream and

drawing water from down stream.

PRIMARY TREATMENT:

Wastewater is passed through bar screens and perforated screens to remove any foreign

material and pumped to primary clarifiers (2 Nos.). of each 7500 M 3. The settleable solids are

removed from the bottom and clarified effluent from the top of the clarifier is taken to

Secondary Treatment.

SECONDARY TREATMENT (ACTIVATED SLUDGE PROCESS):

The effluent from the Primary Treatment is taken to an aeration tank of 25000 M 3 volume.

There are 11 Nos. of mechanical surface aerators, each of 75 HP. Nutrients like Urea and SSP


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(Single Super Phosphate), are dosed in to the aeration tank as food to the bacteria. From the

aeration tank the effluent is taken to the secondary clarifiers (2 Nos.) of 6000 M 3 each. The

effluent after Secondary Treatment is pumped to Land Treatment.

LAND TREATMENT:

It is a well recognized fact that top layer of the soil maintains a Micro Environment within

which soil Flora and Fauna decompose varieties of organic matter. Thus, top layer of soil can

be utilized for the treatment of Biodegradable Organic Waste water. Several conventional

(natural, physical and biological) treatment processes occur in Land Treatment. Considering

such capability of land for treating wastewater, land treatment is well recognized as Living

Filter all over the World. As wastewater is discharged on land for treatment, part of it

infiltrates down wards and part evaporates and part gets transpired by Plants. The remaining

portion gets utilized under the influence of Land as Living Filter.

The removal of constituents from wastewater by filtering and straining action of soil are

excellent in this RI system. B.O.D, T.S.S & Faecal Coliform are almost completely removed.

It is also observed that the effluents after percolation through land is void of colour. The soil

seems to be working as colour removal media which is otherwise prohibitively expensive

treatment. This is an additional benefit achieved through Land Treatment.

AIR POLLUTION CONTROL MEASURES:

In Paper Manufacturing Process steam is required at various stages. For generating the steam

the Mills has installed five Coal Fired Boilers and three Recovery Boilers, where in the black

liquor is fired in the furnace to recover and reuse the valuable chemical in the process. The

Mill also installed one Rotary Lime Kiln where the lime sludge (CaCO 3) is burnt to get burntlime (CaO) to reuse in the Causticizing Process.

ELECTROSTATIC PRECIPITATORS:

The emissions from the boilers contain dust particles (Suspended Particulate Matter, SPM)

and contain gases like Sulphur dioxide and Hydrogen sulphide etc,. In order to control the

dust particles and gases from the boilers the Mills has installed most modern sophisticated

Electro Static Precipitators as Pollution Control Equipments to all the nine stacks.


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INCINERATION SYSTEM:

The Company has taken an altogether different approach to eliminate odour completely and

installed Non-Condensable Gases Handling System consisting of Collection,

Transportation and Incineration of NCG. The system is first of its kind in Pulp and Paper

Industry in India to control Odour problem.

Thus the Mill is fully conscious of its social obligations towards the abatement of air

pollution and had spent quite a lot of money towards pollution control measures and striving

hard and putting all its sincere efforts for minimizing the pollution from the mills.

RECOMMENDATIONS OR SUGGESTIONS

During my training in SJPML, I have got exposure of so many things related to this field.

I am very grateful to SJPML to offer me such an opportunity. I feel that it is my

responsibility to recommend some suggestions these will ultimately for the benefit of the

company. Some important recommendation or suggestions are as under:-

1. SJPML should check its supply & distribution channels. Presently company is selling

their product through commission agents network. If company, sell its products

through agencies/dealer network, company could get better realisation.

2. SJPML mostly deals in cash payment/advance payment transactions. If the company

allows some credit period to the consignor, sales realisation & marketing position of

the will automatically improve.

3. Paper manufactured by the company is mainly used by the corrugated units for

manufacture of corrugated boxed used for packaging. Presently improved global

market demands corrugation in different colours & different patterns. If the company


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install such equipments through which they can manufacture packing paper in

different colours, market position of the company will improve globally.

4. Presently company does not accept any order which is less than 10 M.T. There are

many consumers with small-corrugated units in surroundings areas. But due to policy

of company they are not able to purchase product of the company. So, it is necessary

company should change its policy to enhance its infrastructure.

5. Presently Company does not have any sales in south region. Company should

advertise its product in south region to achieve better orders.

6. Companies Officer should held regular visits to their clients, end user with this they

are able to find out any problem prevailing in market.

7. Company should improve its packing section. Presently reels of paper manufactured

are packed in Hession cloth(Jute). It is better for the company if they start using

plastic cloth for packing of reels which is much cheaper & strong than hession cloth

LIMITATIONS:

The extent to which study is reliable, it is important to note the limitations under which the

study has been conducted. These limitations are as follows:-

10. Due to shortage of time it was not possible to cover all the network of the Company.

11. It being my first attempt to undertake such a study, thus inexperience is also a

obstacle to accomplish the project in proper way.

12. It is also difficult for me to get information about some other confidential clients of

the company.

raja ganapathi paper mills ltd

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