the indian paper industry has been historically divided on a three dimensional matrix identified by...

8/8/2019 The Indian Paper Industry Has Been Historically Divided on a Three Dimensional Matrix Identified by Size

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AN ASSIGNMENT ON SMALL SCALE INDUSTRY MODULE

ESTABLISHMENT OF PAPERBOARD COMPANY

(STUDENTMATES Pvt. Ltd)

SUBMITTED TO: SUBMITTED BY:

Dr. D.K Garg Dilip Kumar

Chairman ENR No. 15043IIMT, Greater Noida. Batch: 15th PGDBM

ISHAN INSTITUTE OF MANAGEMENT &TECHNOLOGY

2, KNOWLEDGE PARK - I, Greater Noida, Distt. G.B. Nagar (U.P)

Website www.ishanfamily.com, E-Mail : [email protected]


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ESTABLISHMENT OF PAPERBOARD COMPANY

(STUDENTMATES Pvt. Ltd)

INTRODUCTION OF PAPER INDUSTRY

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

would go on increasing in times to come. In view of paper industry's strategic role for the

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

well.

Government has completely delicensed the paper industry with effect from17th July, 1997. The

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

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

the existing mill in permissible locations.

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

upto 100% receives automatic approval by Reserve Bank of India. Several fiscal incentives have

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

conventional raw material.

Capacity, Production, Raw material and Import

There are, at present, about 515 units engaged in the manufacture of paper and paperboards and

newsprint in India. The country is almost self-sufficient in manufacture of most varieties of

paper and paperboards. Import, however, is confined only to certain specialty papers. To meet

part of its raw material needs the industry has to rely on imported wood pulp and waste paper.

Production of paper & paperboard during the year 2002-03(upto December, 2002) is 24.52 lakhs

tonnes. At present about 60.8 per cent of the total production is based on non-wood raw material

and 39.2 per cent based on wood.


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Performance of the industry has been constrained due to high cost of production caused by

inadequate availability and high cost of raw materials, power cost and concentration of mills in

one particular area.

Several policy measures have been initiated in recent years to remove the bottlenecks of

availability of raw materials and infrastructure development. To bridge the gap of short supply of

raw materials, duty on pulp and waste paper and wood logs/chips have been reduced. The

capacity utilization of the industry is low at 60%. About 194 paper mills, particularly small mills,

are sick and /or lying closed. Several policy measures have been initiated in recent years.

Imports of paper and paper products was growing over the years. However, it has increased

during 2001-02 after a fall in 2000-01. About 1,40,000 tonnes of paper was exported in 2000-01

mainly to the neighboring countries.

India's per capita consumption of paper is around 4.00 kg, which is one of the lowest in the

world. With the expected increase in literacy rate and growth of the economy, an increase in the

per capita consumption of paper is expected.

The demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light

weight online coated paper, medical grade coated paper, etc., is growing up. These developments

are expected to give fillip to the industry.

Indian paper industry needs the following for being globally more competitive.

i. Sustained availability of good quality of raw materials (forest based) and bulk import ofwaste paper to supplement the availability of raw materials.

ii. Adequate modernization of the manufacturing assets.iii. Improvement of the infrastructure.iv. Quality improvements and reduction in cost of productionv. Import policy conducive for import of material, equipment, instruments, raw materials &

technologies which are bearing of the quality and environment.


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Based on the recommendations made in the Report and in consultant with the industry

Associations, action plans are being finalized in consultation with other Ministries/Departments

concerned. The Main Action Points proposed are as under:

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 7.00 million

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


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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 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 approximately over

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.


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In the current year, selling price has marginally increased and enabled the industry to partially

offset the rise in cost of inputs, fuel & labor.

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

well.

FUTURE PROSPECTS

The globalization of Indian economy has lead to a healthy growth of 6 to 7% industry and that is

growth happening in all the sectors. Moreover the Per Capita consumption of paper in India is

going up with the advent of packaging in the food industry. Due to environmental concerns, theuse of plastics is likely to be banned by the Government of India within a short span of time.

Hence within 2 to 3 years we will be witnessing an explosive growth of packaging in India

mainly in food, textile and export segments.

The exposure to foreign packaging technology and the need to satisfy the export customers has

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


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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 company stands to gain a lot

in terms of logistics costs when compared to the competition. l SJPML got 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. The

arrangement 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


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3. Reduces Cost of Production.

The company will be able to derive the synergies of the existing plants and position itself as a

largest 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

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


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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 at62% as about 194 paper mills,

particularly small mills, are sick and/or lying closed. Several policy measures have been initiated

in recent years.

Imports of paper and paper products 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 GDP growth 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 only0.59mn 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


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WTO Impact

WTO as discussed the implication of Indian Paper and Newsprint Industry as part of its

negotiations and implications. The Indian Paper Industry has important place in the industrial

landscape. The paper industry has a strong backward linkage with forests and environment on

one hand and consumers of a variety of products on the other hand. The manufacture of paper

through pulp of wood or of other fibrous cellulosic material has been discussed at length.

However, recovery of waste or scrap for paper and paperboard manufacture has been looked at

from different angle in the classification of products of Indian Paper Industry. In fact the paper

industry which are eco friendly imports lot of waste paper into the country in the manufacturingof paper and paper board. Generally WTO implication is applicable to all the industries. How

ever, in respect of paper industry where waste paper is the raw material and which is eco

friendly, the impact is not harsh. SSPML is into manufacturing of paper out of the waste paper

and is an eco friendly project.

GOVERNMENT REGULATIONS, PERMISSIONS & TAXES

1. Central Excise:

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.


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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 duly renewed.

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 areas under:

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


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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:

y Inconsistency in quality and varieties of waste paper grades.y High level of contamination i.e. prohibitive & out throws.y Price fluctuation in the international market.y High price for good quality waste paper i.e. low to negligibley contamination level.y High ash content in paper leading to low fiber yield / tpaper and generation ofy 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


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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 grade of paper , consists of mainly fillers and coating pigments,

fibers, fiber fines, printing inks and 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 importof 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


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entering into the country 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.

PROCUREMENT OF RAW MATERIALS

Raw Material

(i) For Wood Based materialRevision of forest policy so that plantation can be raised by industry/Cooperatives of

farmers/State Government. Degraded forest land to be made available to the industry

for raising plantations.

(ii) For Waste Paper based materialImport of waste paper at minimum import duty. Introduction of ecolabeling system

where in products made from recycled fiber are rated higher than the products made

form virgin fibre. Introduction of modern and effective collection and grading system.

(iii) For Agro Based materialFunds to be made available for technology upgradation for handling & processing of

agro residue fibre, in small & medium scale industries.

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.


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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

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 forwardedto 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/- ,


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MANUFACTURING PROCESS ;


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

The manufacturing process can be bifurcated in to four stages.

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 apparatus 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

centricleanerswhich 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 thepulp stock which goes over travelling wire the fiber is separated from water & sheets of

paper is formed. The wet sheetis 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 output

of a paper machine is determined by the trimmed width of paper, the speed of machine and

grammage of paper.


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D)FINISHING OF PAPER :

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, Ujjain

e) Patel Paper Box, Udaipur

f) Perfect Pack Ltd., Faridabad


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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 5

8. Officer Staff 5

9. Security 5

REMMUNERATION OF WHOLE TIME DIRECTOR

Sri Surinder Kumar

Sri Surinder Kumar a Post Graduate in Commerce and has been in the services of the Company

as Director (Sales) since the incorporation of the Company. He will be entitled to the following

remuneration as fixed at the Board meeting Committee and as approved at the Annual General

Meeting of the Shareholders of the Company , in accordance with the provisions of Section 311,

198, 269 and 309 read with Schedule XIII and all other applicable provisions if any of the

Companies Act, 1956 or any statutory modifications or re-enactment thereof.

1. Salary Rs. 30000/- per month

2. Commission : N.a.


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3. Perquisites House rent allowance at the rate of 50% (fiftypercentage) of the Salary

Medical expenses:-Medical expenses for the Director and his Family subject to a ceiling of one

months salary in a year or three months salary over a period of three years Personal Accident

insurance an amount of the annual premium of which does not exceed Rs. 12000/-

Gratuity payable Not to exceed half a months salary for each completed year of service.

Provision of Car for use on Companys business and Telephone at residence Perquisites shall be

evaluated as per Income tax rules, 1962 wherever applicable.

Sri Rakesh Kumar

Sri Rakesh Kumar a Graduate in Commerce and has been in the services of the Company as

Director since 1996 in other paper comany. He will be entitled to the following remuneration as

fixed at the Board meeting Committee and as approved at the Annual General Meeting of the

Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and

309 read with Schedule XIII and all other applicable provisions if any of the Companies Act,

1956 or any statutory modifications or re-enactment thereof.

1. Salary Rs. 25000/- per month

2. Commission : N.a.

3. Perquisites House rent allowance at the rate of 30% (fifty percentage) of the Salary


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the indian paper industry has been historically divided on a three dimensional matrix identified by...

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