CHAPTER - III

PROFILE OF PAPER INDUSTRY

INTRODUCTION

Paper is an integral part of everyday life. Paper is one of the important

economic indicators of a country. Today, life cannot be imagined without

paper. Paper pervades all sectors of our activity from books to bullets and

from morning news paper to nuclear technology. Paper remains the dominant

and essential vehicle of modern communications1.

Paper is a basic medium of communication and dissemination of

information. It helps all the human beings for the growth of education,

reading, writing, storing, knowledge, quality of life, culture and other sectors

of the economy. Modern man/woman starts his/her daily activities with

morning news paper and his / her activity ends with writing of diary at night.

Kids to kings (all human beings), are using paper either directly or indirectly.

It is very difficult to imagine modern life without paper. The percapita

consumption of paper is often regarded as a barometer of socio-economic

progress of a country. Paper measures the living standards and openers of a

society and its educational and intellectual attainments2.

1 http://www.mead.com /ml/does/facts/inden.html
2 Asok Goel , “Prospects of Industry in India- An Overview”, Economic Times, December 8,1993,
p.15

70
ORIGIN OF PAPER

Etymologically, ‘Paper’ is derived from Latin word ‘Papyrus’ and

French word ‘Papier’ a web composed of vegetable fibre, roughly, oriented

and matter together to form sheets. 'Paprus' is a kind of grass, a material of

Egyptian origin that was extensively used by the Greco-Roman world3. Paper

denotes a deposit of vegetable fibre, prepared from an aqueous suspension. It

consists of a sheet made by pasting together thin sections of an Egyptian reed

(Cyperus papyrus)of the sedge family, a plant which grew in abundance in the

delta of Nile river in Egypt. Paper can be defined as a sheet or continuous web

of material formed by the deposition of vegetable, mineral, animal or

synthetic fibres or mixtures with or without the addition of other substance

into liquid vapour, or gas in such way that the fibres are intermeshed together.

GLOBAL PAPER INDUSTRY

The Paper Industry has realized a linkage between production of paper

and the farming community there by infusing huge capital in agricultural

economy in the globe. The USA, Latin America, Scandinavian countries,

Australia, Japan and neighbouring countries viz., China, Indonesia etc., have

been quick to create conducive land /forestry policies to encourage large scale

production plantations and attract mega investments in Pulp and Paper /

Paper Board manufacturing and in the process, creating millions of job. The

Paper Industry is largely dominated by the United States, Canada, Sweden,

3 Ibid.p.258

71
Finland, Japan, Australia and Latin America. In addition to being one of the

dominating forces in the industry, the United States also consumes more

paper than any other country in the world.

The Global Pulp and Paper Industry is dominated by North American

(United States, Canada) Northern European (Finland, Sweden) and East Asian

countries (Japan). Australia and Latin America also have significant Pulp and

Paper Industries. Both India and China are expected to be key countries in the

industry's growth over the coming years.

TABLE 3.1

GLOBAL PAPER INDUSTRY

Country Per Capita Consumption (in kgs)

USA 354
Germany 215
UK 215
France 153
Japan 243
Sweden 257
China 30
India 06
Source: FAO, CPPRI Data Projection

The Global Paper Industry scenario has undergone more rapid changes

in the past decade than anytime earlier. The global paper industry churns out

310 million tonnes, with North America and Scandinavian countries such as

72
Finland and Norway accounting for 55% of the output. Asia accounts for

1/4 of the world production.

While the European and American output is largely based on soft pulp

and is of better quality, the Asian production is a mix of hard wood pulp, soft

wood pulp and other agri-residues. Writing and printing paper account for

33%, industrial paper for 61% and news print for around 6% of the market.

World per capita consumption of paper is 53 kg (in India, it is around 6 kg).

In the USA, it is 354 kg while in Western Europe it is 160 kg. The number of

‘big’ players is shrinking leading to a concentration of capacity in the hands

of fewer companies.

The global paper consumption during the financial year was

approximately 325 million tonnes. Writing and Printing segment accounted

for 32% of the global paper consumption for Packaging, whereas for Tissue,

Sanitary and Newsprint accounted for 50%, 6% & 12% respectively.

Geographically, Asia accounts for around 32% of the global paper

consumption while North America and Europe account for 31% & 28%

respectively. Asian countries have experienced higher growth in demand due

to high economic growth, ranging from 7% to 10% p.a. In 2000, the aggregate

global capacity of a paper and paper boards stood at 364 million tonnes p.a

resulting in excess supply to the extent of 40 million tonnes p.a. However, due

to geographical capacity, inequalities particularly capacity shortage in Asia

(which is the fastest growing region), global prices have remained steady.

73
Global paper and board demand is recovering due to revival demand in USA

and robust demand growth in China demand along other Asian economies. As

per global industry estimates, paper and paper boards demand is expected to

grow at a compound annual growth rate of 2% p.a and is expected to touch

more than 370 million tonnes per annum in future4.

PROFILE OF INDIAN PAPER INDUSTRY

The Indian Paper Industry is among the top 12 Global players today,

with an output of more than 13.5 Million tonnes annual with an estimated

turnover of `.35000 crores.

It provides employment to nearly 1.5 million people and contributes

`.25 billion to the government’s kitty. The government regards the paper

industry as one among the 35 high priority industries of the country5. Paper

industry is primarily dependent upon forest-based raw materials. The first

paper mill in India was setup at Sreerampur, West Bengal, in the year 1812.

It was based on grasses and jute as raw material. Large scale mechanized

technology of paper making was introduced in India in early 1905. Since then

the raw material for the paper industry underwent a number of changes and

over a period of time, besides wood and bamboo, other non-conventional raw

materials have been developed for use in the paper making . The Indian pulp

and paper industry at present is very well developed and established.

4 http://www.i/one India.com/India economy

5 http://www.ipma.co.in/paper-industry-overview.asp

74
PAPER INDUSTRY DURING POST-INDEPENDENCE PERIOD

In 1951, there were 17 paper mills, and today are about 515 units

engaged in the manufacture of paper & paperboards and news-print in India.

India is self-sufficient in the manufacture of most varieties of paper and paper

board, import is confined only to certain specialty paper. To meet part of its

raw material needs, the industry has to rely on imported wood pulp and waste

paper. Indian paper industry has been de-licensed under the industries

(Development & Regulation) Act 1951 with effect from 17thjuly, 1997. The

interested entrepreneurs are now required to file an Industrial Entrepreneurs

Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for

setting up a new paper unit or substantial expansion of the existing unit in

permissible locations. Foreign Direct Investment (FDI) up to 100% is allowed

on automatic route on all activities except those requiring industrial licenses

where prior governmental approval is required.

DEVELOPMENT OF PAPER INDUSTRIES IN THE POST

MILLENNIUM PERIOD

Growth of paper industry in India has been constrained due to high

cost of production caused by inadequate availability and high cost of raw

materials, power cost and concentration of mills in one particular area.

Government has taken several policy measures to remove the bottle necks of

availability of raw material and infrastructure development. To overcome the

75
short supply of raw materials, duty on pulp and waste paper and wood

logs/chips has 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.

India’s per capita consumption of paper is around 6 k.g, which is one

of the lowest consumption of paper in the world. The demand for upstream

market of paper products like tissue paper, tea bags filter paper, light weight

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

expected to give fillup to the industry.

The Indian paper industries accounts for about 1.6% of the worlds

production of the paper and paper board. The estimated turnover of the

industry is `.25000 crores. Most of the paper mills are in existence for a long

time and hence present technologies fall a wide spectrum ranging from oldest

to the most modern. The mills use a variety of raw materials viz, wood,

bamboo, recycled fibre, bagasse, wheat straw, rice husk etc. Approximately

35% are based on chemical pulp 44% on recycled fibre and 21% on

agro-residues. The geographical spread of the industry as well as market is

mainly responsible for regional balance of production and consumption.

With added capacity of approximately 0.8 million tonnes during

2007-08, the operating capacity of the industry stands at 9.3 million tonnes.

During this fiscal year, domestic production of paper and paper board is

estimated to be 7.6 million tonnes. As per industry estimates, over all paper

76
consumption (including news print) has now touched 8.86 million tonnes as

per capita consumption is pegged at 8.3 kg6.

Demand of paper has been hovering around 8% for some time during

the period 2002-2007 while news print registered a growth of 13% so far, the

growth in paper industry has mirrored the growth in GDP and has grown on

an average 6-7% over the last few years. India is the fastest growing market

for paper globally and it presents an exciting scenario: Paper consumption is

poised for big leap forward in sync with economic growth and is estimated to

touch 13.95 million tonnes by 2015-2016.

The futuristic view is that growth in paper consumption would be in

multiples of GDP and hence an increase in consumption by 1 k.g per capita

would lead to an increase in demand of 1 million tonnes. Paper production

will grow an estimated Compound Annual Growth Rate (CAGR) of 7-8%

and the installed capacity in the country has also started to grow 11.2 million

tonnes per annum by 2010 from current level of 9 million tonnes7. Foreign

funds interest in the Indian paper sector is growing. International Finance

Corporation (IFC), the investment arm of the world bank is already associated

with atleast three of the Indian Paper Manufacturers Association (IPMA)

member mills. The Indian paper and paper boards industry has potential and

also capabilities to serve the growing demand in domestic and international

6 http://www.oppapers.com/paper-industry
7 Gitanjali, Chaturvedi, Jain R.K Sing K., and Kulkarni A.G., “Indian Paper Industry-Growth &
Prospects”, IPPTA Journal Vol.18 No.2 Apr-June 2006 pp 73-77

77
market and also to create huge employment avenues in the rural-India through

agro/production–forestry and mills, providing the competitiveness of the

value chain as encouraged by the government.

STRUCTURE OF THE INDIAN PAPER INDUSTRY

The paper industry can be classified according to i) The size of the

mill, ii) The type of raw-material used and iii) The type of paper produced.

On the Basis of the Size of the Mill

On the basis of the size of the mill, the industry is classified as large

and small paper mill. In 1985-86, the Ministry of industry, department of

industrial development defines a small mill based on unconventional

raw-materials as ‘manufacturer whose installed capacity for the manufacture

of paper and paper board is not more than 24,000 tonnes per annum and also

not having a plant attached there for making bamboo or wood pulp’8. Madhu

Sehgal pointed out that plants with a capacity greater than 33,000 tonnes

per annum are classified as large paper mills and those with less than

33,000 tonnes per annum are classified as small paper mills9. At the closure of

the study period (i.e., 2011-2012) India had 515 mills, out of these 19 units

were large scale, 345 were small scales and the remaining 151 belonged to the

medium scale sector.

8 Alka Subramanian, "A Study of Paper Industry”, Economic and Political weekly, Vol.XXII,
No. 35, August, 1987, p. 87.
9 Madhu Sehgal, “Paper Industry”, PNB Monthly Review, June 1 1997, pp. 337-339.

78
On the basis of Raw-Material

On the basis of raw-material, the industry can be categorised as

wood-based, agro-based and wastepaper-based. The wood based is also called

as forest-based. This unit uses wood pulp or bamboo as the raw material.

The agro-based unit uses bagasse, rice straw, wheat straw, grasses and jute

etc. as raw materials. The waste paper segment uses waste paper, secondary

fibres etc. Most of the small and medium scale units were based on

agro-residue and waste paper10. S.S.Mehta (1996) pointed out that generally

the northern and western zones were dominated by agro and waste papers

based mills, where as Southern and Eastern zones were dominated by large

wood based mills in India11.

On the basis of the type of Paper Produced

On the basis of the type of paper produced or finished product, paper

industry is classified into two segments, namely i) Paper and paperboard, and

ii) Newsprint.

Both paper and paperboard is manufactured by using chemical pulp,

whereas Newsprint is different from the paper and paperboard as it contains

60 to 70 per cent of mechanical wood pulp12. The Indian paper industry

manufactures different varieties of paper and paperboard ranging from

10 Simantee Sen, “The Global Paper Industry-Challenges and Social Dimensions”, first edition ,
ICFAI University Press, 2008, Hyderabad.
11 S.S.Mehta, "Indian Paper Industry - Looking to a Sun beam?”, SAKET Industrial digit,
August, Vol. 5, No. 8. 1996, p.11.
12 Ahuja, S.P., “Paper Industry in India: Report and Directory”, The Institute of Economic
and Market Research, New Delhi, 1985, p.53.

79
cigarette tissues, coated boards, art paper, bond paper, cheque paper,

teleprinter paper, tracking paper and many more. There can also be different

quality levels owing to marginal variations in the input compositions.

NEWSPRINT

Indian newsprint industry has a chequered history. Though, the first

newsprint plant in India was set up in 1947 by the National Newsprint and

Paper Mills Limited, Nepanagar, production commenced at the plant in 1955

with an installed capacity of 75,000 tonnes per annum. Till 1981-82, it was

the only newsprint factory in India with 77 percent capacity utilization and

produced 58 thousand tonnes. In 1982-83 two more plants were started

namely, Mysore Paper Mills Limited and Hindustan Newsprint Mill Limited

with the installed capacity of each was 75000 tonnes p.a. Later on Tamil

Nadu Newsprint Paper Limited with an annual installed capacity of 50000

tonnes came into basis in 1985-86. It was the Newsprint factory in the world

to use more than 80% bagasse in furnishing and without any fibre support.

The Royal Seema Paper Mill was the next to follow in 1987-88 with an

installed capacity of around 50000 tonnes. In 1991, the government

selectively allowed small private entities to manufacture newsprint based on

waste paper. In 2011, there were 30 mills producing newsprint 4 in the central

public sector, 2 in the state sector, and 24 in the private sector13. The installed

13 Balasubramanian.K. "First Bagasse based Newsprint Plant", Commerce, Vol. 152, No. 3917, June
14, 1986, p.178.

80
capacity of the newsprint mills have increased from 6 lakh tonnes in 1994-95

to 12.39 lakh tonnes in 2011-12 and the production increased from 4.02 lakhs

tonnes to 6.76 lakhs tonnes during the same period.

CAPACITY, PRODUCTION AND CAPACITY UTILISATION OF

PAPER AND PAPER BOARD

Table 3.2 – explains the installed capacity production and capacity

utilisation of paper and paper board in India.

TABLE 3.2

CAPACITY, PRODUCTION AND CAPACITY UTILISATION

OF PAPER AND PAPER BOARD
(UNIT: LAKH TONNES)
Installed Capacity
Year Production
Capacity Utilisation
1997-1998 43.5 29.22 67.17
1998-1999 45.5 31.07 68.28
1999-2000 49.0 34.58 70.57
2000-2001 51.0 30.69 60.17
2001-2002 51.0 31.62 62.00
2002-2003 64.0 34.12 53.31
2003-2004 62.0 55.60 89.67
2004-2005 74.0 58.90 79.59
2005-2006 76.0 59.60 77.63
2006-2007 78.0 55.20 70.77
2007-2008 75.0 60.35 80.47
2008-2009 77.0 64.68 84.58
2009-2010 80.5 70.29 87.32
2010-2011 85.0 73.82 86.85
Source : Centre for Monitoring Indian Economy.

81
 By the year 2014, the aggregate installed capacity of paper and paper

board industry in India is expected to raise 14.5 million tonnes as the

production of paper and paper board industry in India during the year

2010-2011 was 73.82 lakh tonnes.

DEMAND FOR PAPER

The domestic demand for paper is set to far surplus supply, with the

growing emphasis on education and alternative uses of paper. It is expected to

reach the level of 110 lakh tonnes by 201514.

TABLE 3.3

DEMAND FOR PAPER IN INDIA

Demand
Year
(In thousand tonnes)
1977-1978 9.80
1987-1988 12.25
1997-1998 34.45
2007-2008 56.78
2011-2012 68.15
Source: Annual Report of All India Paper makers Association-2010.

Table 3.3 shows that the demand for papers during the period 1997-98

was 9,80,000 tonnes and it has further increased to 68,15,000 tonnes.

Development of computer applications and information technology has no

impact on the consumption of paper and paper boards. The expected demand

and supply for paper is represented in the following table.

14 Satya sundram I., “Paper demand outstrips Supply” Fact for you, Vol. 18, No. 3, April 2009,
pp 22-24

82
 TABLE 3.4

EXPECTED DEMAND / SUPPLY FOR PAPER AND PAPER BOARD

(in million tonnes)
Year Demand Supply Short fall
1995-1996 3.28 2.41 0.87
2000-2001 4.95 3.26 1.69
2005-2006 6.70 4.16 2.54
2010-2011 8.55 4.91 3.64
2015-2016 10.88 5.81 5.07

Source: “Reverse logistics model in the paper industry productivity, Vol.44, No.3,
October- December 2003, p.444.

Paper industry in India is riding on a strong demand and on an

expanding mood to meet the projected demand. The industry will have to

undergo significant modernization and expansion processes. Existing mills

are to be renovated and modernized in order to optimize capacity utilization.

Paper Industry in India is moving up with a strong demand push and is

in expansion mode to meet the projected demand of 20 Million tonnes by

2020. Thus paper industry in India is on the growth trajectory and is expected

to touch 8.5% GDP in the coming years. Therefore, the growth of Industry

will out span the present growth rate of 6.5%.

PER CAPITA CONSUMPTION OF PAPER IN INDIA

Paper is an essential item of consumption and its increased use reflects

the living standards of the country. The developed countries consumption per

83
capita of paper is much higher as compared to the developing countries. The

per capita consumption of paper may be regarded as on index of a country’s

cultural educational and economic level.

Per capita consumption depends upon development in the industrial

production, national income, literacy and growth of population .The current

per capita consumption of paper in India is 9.30 kg compared to per capita

consumption of 310 kg in North America and 53 kg worldwide. Per capita

consumption of paper in India in different years can be seen in table 3.5.

TABLE 3.5
PER CAPITA CONSUMPTION OF PAPER IN INDIA
YEAR CONSUMPTION[in kgs]
1951 0.46
1961 0.87
1970 1.40
1975 1.39
1980 1.76
1985 1.89
1990 2.20
1995 3.40
2000 5.00
2005 6.00
2010 9.18
2011 9.30
Source: Indian Pulp of Paper Technical Association (IPPTA), Conventional
issue, December 2008, p.38.

The overall low per capita consumption in India has been an account of

the low literacy levels in the country. India has emerged as the fast growing

84
paper market in the world, registering a growth of 10% in per capita

consumption of paper over the last one year. Per capita paper consumption

increased to 9.30 kg as on March 2011 as compared to 6 kg in 2005 as per

estimates of Indian Paper Manufactures Association (IPMA).

IMPORTS AND EXPORTS OF PAPER

TABLE 3.6

IMPORTS AND EXPORTS OF PAPER

Imports Exports
Year Qty Value Qty Value
(in tonnes) (Rs. crores) (in tonnes) (Rs.crores)
1997-1998 1,18,795 629.3 60,880 181.8
1998-1999 1,04,735 683.3 59,682 200.0
1999-2000 1,12,588 761.6 1,02,194 328.8
2000-2001 1,09,069 662.8 1,57,799 559.3
2001-2002 1,09,376 684.4 1,89,280 614.6
2002-2003 1,53,590 745.6 2,36,805 812.6
2003-2004 2,35,968 1057.8 2,82,395 712.5
2004-2005 2,04,927 1082.1 2,82,395 914.6
2005-2006 2,90,996 1679.7 3,03,690 978.0
2006-2007 3,48,051 2363.5 3,39,111 1195.4
2007-2008 4,51,300 2643.0 3,25,650 1071.9
2008-2009 4,37,100 3254.4 3,33,710 1298.4
2009-2010 6,14,110 3791.6 3,68,600 1544.9
2010-2011 6,71,000 4270.2 6,15,910 2415.1
2011-2012 6,81,031 4511.1 6,30,285 2701.3

Source: Industry market size and shares, Centre for monitoring Indian economy

85
 Imports and exports of paper in India has been given in table 3.6.

During the entire study period import was more than the export. In

2011-2012, the export and import was `.2701.3 crores and `.4511.1 crores

respectively. Compared to export, the value of import was much higher

except in the year 2002-03. So the industry wants the government not to

reduce the import duty any further. The union government has progressively

reduced customs duty on paper. The imports constitute only 3% of the

production. The paper imported in India is small in quantity and their

indigenous manufacture with in the country is not economically feasible. The

exports of paper and paper board from India are rising but still small at

present. The exports are mainly to the neighbouring countries like Sri Lanka,

Africa, Australia, Singapore, Malaysia etc.

INDIAN PAPER INDUSTRY AND COMPETITIVENESS

With India’s entry into the WTO it has become important for the paper

industry to evolve a strategy to become globally competitive. During the

phase of industrialization after independence, the immediate focus of the

industry was essential on growth and expansion. In a regulated market under a

mixed economy, it developed a complacent attitude. For longer period,

standards of quality were compromised largely due to monopolistic

conditions. Indeed, for several decades, a major part of the Indian industry

86
could neither relate to nor understand the significance of market force,

economy of scale, quality and customer satisfaction.

However, with economic liberalization followed by the new economic

policy of the government in 1996, the Indian Paper Industry was confronted

with stiff international competition as it was faced with the challenge of

integrating with the global economy almost overnight. Liberalization also

affected the traditional Indian Management style resulting in re-designing

strategies for survival. Today, the concept of globalization eco-cycle

compatibility and other environmental issues are being integrated at the

planning level, not only by the major player of the Indian paper industry but

by many other mills that are planning for expansion and growth strategies for

sustainability and to be competitive at the domestic and global spheres. In

addition, the industry has traditionally faced challenges such as the sustained

availability of good quality, cellulosic raw materials, inadequate infrastructure

uneconomical scale of operation, technology obsolescence and the need to

incorporate environmental issues.

87
 SWOC ANALYSIS

Competitiveness Factors Affecting the Paper Industry

Strengths Weaknesses
Large regional markets High wood costs

Efficiency of production facilities High and increasing energy costs

Environmental performance Relatively high labour costs and rigidities in

Health & safety standards labour markets

Skilled personnel and management Over-regulation and red tape

Quality of products and customer service Fragmented structure of the industry

Management of capacities

Opportunities Challenges
Increased and better mobilisation of wood Increasing energy and transport

R&D and other know-how advancement Increasing wood costs and lower supply

Market growth in Europe, America, Asia and The promotion of renewable energy sources

Russia Increasing competition from other raw

Specialization materials

Consolidation Declining investments in R&D

Improvement of transport infrastructure Declining availability of workforce

Ability to develop new value added products

Source: jaakko poyry consulting,2005

88
CHALLENGES OF INDIAN PAPER INDUSTRY

Some of the challenges being faced by Indian pulp and paper industry

are summarized below15

 Shortage of forest raw material and use of recycled fibre.

 WTO stipulations coming into force resulting in exposure to cheap

imports.

 Growing concern for environmental issue.

 Identification, selection and implementation of state of the-art technologies.

 Mobilisation of financial resources of paper industry is a capital intensive

industry

 Improvement of product quality.

 Increasing overall efficiency.

 Implementation of effective research and development

 Human resource development

 Improving overall management and marketing practices.

15 Mathur.R.M, Thapliyal, B.P. and Singh.K. "Challenges Confronting Indian Paper Industry in
Changing Scenario", IPPTA Journal, Vol 21, No. 3, July-Sept 2009, pp.96-97.

89
PROFILE OF SELECTED UNITS

ANDHRA PRADESH PAPER MILLS LIMITED

The Company was incorporated on 29th June 1964 as "The Andhra

Pradesh Paper Mills Ltd." at Rajahmundry. Its authorized share capital is

`. 450,000,000 and its paid up capital is `. 397,700,384. Mr. Michael Amick

Jr. is the Executive Chairman of the company and Mr.Rampraveen

Swaminathan is the Managing Director and Chief Executive Officer.

Andhra Pradesh Paper Mills, which is now an International Paper

company, is one of the biggest integrated paper and pulp manufacturing

centers in India. The company produces indispensible writing, printing, Hi

Bright Maplitho, Creamwove, Colour Printing and copier papers for foreign

and domestic markets. It employs around 2,500 employees and its

headquarters is in Hyderabad.

APPM’s production facilities are comprised of two mills in

Rajahmundry and Kadiam with a total production capacity of 240,000 tonnes

per annum. The company is becoming a driving force in sustainability in the

paper manufacturing arena through focused social and community programs,

including pioneering work in raw material generation through social farm

forestry. International Paper owns a majority interest in APPM, and the

remaining shares are publicly traded on the Bombay and National Stock

Exchanges in India

90
J K PAPER MILLS LIMITED

JK Paper (JKPL) was incorporated in 1960, under the ownership of

Hari Shankar Singhania group. JK Paper is India’s largest producer of

branded papers and it is a leading player in the printing and writing segment.

Thiru.Hari Shankar Singhania is the Chairman and Thiru. Suresh Chander

Gupta is the Secretary of the company. Its authorized share capital is

`.5,000,000,000 and its paid up capital is `.1,366,206,210.

The company operates two manufacturing units located at Rayagada

(Orissa) and Songadh (Gujarat). The production capacities of these units are

125,000 tonnes per annum and 55,000 tonnes per annum respectively.

Annually, the aggregate output of the company is over 180,000 tonnes per

year of paper and pulp.

40% of paper produced by the company is sold under various brand

names viz. JK Copier, JK Excel Bond, JK Bond, JK Savannah, JK Copier

Plus and JK Easy Copier. The other major product is JK Maplitho, a superior

uncoated writing and printing paper. It is the only company having a wide

portfolio of branded products. JK Copier is the flagship brand of company

which is largest selling copier brand in Sri Lanka.

JKPL has a sales network of over 120 distributors and 2,500 dealers. It

also runs in-house research programme, under which the company is

conducting plantation on more than 45,000 hectares of land. The plantation

with its superior quality plants provides high quality raw materials.

91
 The company exports its products to international markets located at

Sri Lanka, Bangladesh, Middle East, Africa, Australia, Singapore and

Malaysia.

MYSORE PAPER MILLS LIMITED

The Mysore Paper Mills Limited was incorporated on 20th May 1936

under the Mysore Companies Regulation, VIII of 1917. It became a

Government Company in 1977 under Section 617 of the Companies Act,

1956. The Company has its Registered Office at Bangalore and its plant

located at Bhadravati, Shimoga District, Karnataka State. The company is

managed by eminent Board of Directors. Sri. Araga Jnanendra is the

Chairman of the company and Sri. Padam Kumar Garg, IPS, its Managing

Director. Its authorized share capital is `. 1,500,000,000 and its paid up

capital is `. 1,188,934,270. The company’s plant in Bhadravati (Karnataka)

has a total installed capacity to manufacture 75000 metric tonnes (MT) of

newsprints and 30000 MT of writing and printing paper per annum.

The shares of the company are listed in the Bombay Stock Exchange

and there are about 17,000 shareholders. While Government of Karnataka

holds 65% of the shareholding of the company, IDBI and other

Financial Institutions hold 18% of the shares and shareholding by the General

Public is 17%.

92
 The Major Varieties manufactured include Cream wove, Maplitho,

Azurelaid, Duplicating and Craft Paper. New Product Development - Test

marketing of SS Maplitho is in progress.

The company with 5000 employees has its own township. About

15000 families of the cane growers who supply sugarcane to the company are

directly dependent on this company and many more depend indirectly The

direct and indirect contribution by MPM to the local economy is about

`.200 crores per annum.

PUDUMJEE PULP & PAPER MILLS LIMITED

Pudumjee Pulp & Paper Mills Limited (PUDUMJEE), a Pune

(Maharashtra, India) based Company engaged in the manufacture and sale of

Specialty Papers is a flagship Company of the M.P.Jatia Group of Companies.

Its authorized share capital is `.500,000.

This Paper Industry was incorporated in November 1964 and

commenced production in January 1968 at its plant and registered office at

Thergaon Pune India. The Company is managed by Board of Directors

comprising eminent personalities from various fields and discipline headed by

the two Whole-Time Directors. Mr.Ved P. Leekha is the Director-Technical

and Mr. S.K. Bansal is the Director-Finance & Administration and Secretary.

The company`s equity shares are listed at Pune, Mumbai and National Stock

Exchanges. The manufacturing capacity of the company is 6,000 MT of paper

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per annum in 1968, and has now reached a capacity of 42,500 MT per annum

of Specialty Papers.

The company is engaged in manufacturing of specialty of paper such

as MICR Paper, Sensitized Paper, Postal Stamp, Impressed Stamp, Passport

and Excise Banderoll, Laminating Base, Silicone base paper, Wax Match

paper, Packaging Papers of various kinds and types, Tissue Papers, etc.

catering to wide range of industrial applications specially manufactured to

meet customers specific requirements.

SESHASAYEE PAPER AND BOARDS LIMITED

Seshasayee Paper and Boards Limited (SPB), the flagship company

belonging to 'ESVIN GROUP', operates an integrated pulp, paper and paper

board Mill at Erode, Tamilnadu, India. Its authorized share capital is

`.700,000,000 and its paid up capital is `.126,136,280.

SPB, incorporated in June 1960, was promoted by Seshasayee Brothers

(Pvt) Limited in association with a foreign collaborator M/s Parsons and

Whittemore, South East Asia Inc., USA. After commencement of commercial

production, having fulfilled their performance guarantee obligations, the

foreign collaborators withdrew in 1969. The main promoters of the Company

as on date are a group of companies belonging to the ESVIN group headed by

Mr. N Gopalaratnam. He is the Chairman and Managing Director of the

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company. Sri K .S. Kasi Viswanathan is the Deputy Managing Director and

Sri V. Pichai is the Director (Finance) & Secretary

SPB commenced commercial production in December 1962, on

commissioning a 20000 tonnes per annum integrated facility, comprising a

Pulp Mill and two Paper Machines (PM-1 and PM-2), capable of producing,

writing, printing, kraft and poster varieties of paper.

The Company embarked on an Expansion / Modernisation Project to

enhance its production capacity from 60,000 tonnes per annum, to 1,15,000

tonnes per annum and to upgrade some of the existing facilities, at an

estimated cost of Rs.1,890 millions.

SPB produces a wide range of products such as printing and writing

papers, packing and wrapping papers and speciality papers. SPB also has

branded products namely, SPrint, Colour SPrint, Index, SPrint Plus, Success

etc.

SPB undertook various equipment balancing and modernisation

programmes, since then, for improving its operating efficiency, captive power

generation capacity, etc.

SPB's exports are nearly 20% of its production and is a significant

exporter in the Indian Paper Industry. Due to its excellent export performance,

SPB has been awarded 'Golden Export House' status.

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SIRPUR PAPER MILLS LIMITED

Sirpur Paper was incorporated in 1938, The Sirpur Paper Mills Ltd. is

one of the largest manufacturers of variety and colour paper in India. The

Company’s registered office is in Hyderabad and its corporate office is in

Gurgaon. Its production commenced in 1942-43 with a capacity of 5000 TPA

(under the management of M/s Hyderabad Construction Company Limited).

Its authorized share capital is `.350,000,000 and its paid up capital is

`.169,850,000.

Eventually, the management was taken over in 1994 by Shri Ranjan

Kumar Poddar and Shri Devashish Poddar. Ranjan Kumar Poddar is the

Chairman, Devashish Poddar is the Vice-Chairman and Managing Director

and Rameshwar Lall Lakhotia is the Executive Director of the company.

The Company has embarked on capacity expansion and modernisation;

installed capacity will now increase from 83,550 tonnes per annum (paper and

paperboard) to 1,38,300 tonnes per annum following the completion of an

on-going expansion program.

The vast product portfolio of the Sirpur Paper Mills Ltd. includes

writing, printing, typewriting, duplicating, cream wove, maplitho, ledger,

bank account book paper, bond, parchment, fancy wrapping, pastel paper,

industrial kraft, base paper for coated paper, duplex board and triplex board. It

also manufactures papers from rags.

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 The Company’s wide range of products are marketed in India and

internationally in Sri Lanka, Malaysia, Bangladesh, Nepal, UAE, South

Africa, Singapore, Nigeria and Mauritius.

STAR PAPER MILLS LIMITED

Star Paper is an ISO 9001:2000 & ISO 14001:2004 company,

established in 1938, an integrated Pulp and Paper Mill with a production

capacity of 6000 MT/annum and located at Saharanpur, Uttar Pradesh. The

company, Star Paper Mills, controlled by the Bajorias, became a sick unit and

came under the purview of BIFR (Board of Industrial and Financial

Reconstruction) in 1986-87. As per the rehabilitation package, the company

was taken over by the Duncan Goenka group. The Mill has 4 Paper Machines

producing a wide range of products catering to different segments and

meeting varied requirements of the customers. It expanded the production

capacity of 72000 MT/annum. It produces a wide range of industrial,

packaging and cultural papers catering to almost all segments of the

consumers. Star has a distribution network throughout the country.

Its authorized share capital is `.400,000,000 and its paid up capital is

`.156,083,504.

The company's product mix consists of writing and printing paper,

paper boards and MG kraft paper. The products are marketed under the brand

name Star. In 1994, the company expanded and diversified by increasing

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capacity at its plant in Saharanpur, Uttar Pradesh, besides incorporating a

pulping plant.

During the year 1999-2000, the company has produced a special

variety of document paper for printing the Constitution of India and has

started commercial production of photocopier paper for marketing under its

own `Star Copier' brand.

Company has In-House R&D Unit recognised by Ministry of Science

and Technology - Government of India. Star has won several awards in the

fields of Energy conservation, Safety and Environment Management.

TAMIL NADU NEWSPRINT AND PAPERS LIMITED

Tamil Nadu Newsprint and Papers Limited (TNPL) was established by

the Government of Tami Nadu located at Karur, Tamilnadu, India. It was

established during early eighties to produce Newsprint and Printing & Writing

Paper using bagasse, a sugarcane residue, as primary raw material.

Thiru. N. S. Palaniappan, I.A.S is the Chairman & Managing Director

and Thiru. A. Velliangiri is the Deputy Managing Director. The Company

commenced production in the year 1984 with a initial capacity of

90,000 tonnes per annum. Over the years, the production capacity has been

increased to 2,45,000 tonnes per annum and the company has emerged as the

largest bagasse based Paper Mill in the world consuming about one million

tonnes of bagasse every year. The company completed a Mill Expansion

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Plan during December 2010 to increase the mill capacity to 4,00,000 tonnes

per annum. Its authorized share capital is `. 1,350,000,000 and its paid up

capital is `. 692,105,980.

TNPL exports about 1/5th of its production to more than 50 countries.

Manufacturing of quality paper for the past two and half decades from

bagasse is an index of the company’s technological competence. A strong

record in adopting minimum impact best process technology, responsible

waste management, reduced pollution load and commitment to the corporate

social responsibility make the company one of the most environmentally

paper mills in the world.

The paper produced by TNPL is eco-friendly as the pulp is

manufactured out of renewable raw material and is subjected to Elemental

Chlorine Free (ECF) bleaching. As the paper is acid free, it has a longer

colour stability and enhanced permanency in terms of strength characteristics.

TNPL manufactures Printing and Writing Papers in substances ranging from

50 GSM to 110 GSM.

Products manufactured by the company includes TNPL Ultra White

Maplitho / Print Vista, TNPL Pigment Paper, Copy Crown, TNPL Copier,

Students' Favourites, Super Print Maplitho, Perfect Copier, etc.

Research & Development and Quality Control activities are aimed

towards achieving company’s corporate goals.

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WEST COAST PAPER MILLS LIMITED

West Coast Paper Mill Limited was incorporated in 1955 at Mumbai.

As an ISO 9001:2008 company, WCPM has been consistently striving to

improve its quality benchmarks. The main promoters of this

company are belonging to SKB group headed by Mr.S.K. Bangur. He is

the Chairman & Managing Director of the company. Mr.Saurabh Bangur is

the Vice-Chairman and Mr.K.L.Chandak is the Executive Director. Its

authorized share capital is `.950,000,000 and its paid up capital is

`.132,097,816.

The company operates six versatile machines with an installed capacity

of 3,20,000 TPA. With the latest addition of 500 TPD State of Art, Voith Paper

Machine, the quality standards have risen to international standards.

The product-line features, well-established brands of commercial to

premium grades of paper and boards ranging from 54 to 600 GSM catered to

across six different product segment namely; Writing, Printing, Business

stationery, specialty, industrial and packaging.

With the installation of world’s most renowned “Bielomatik” online

cut-pack converting line, the quality standards of copier papers have been

elevated to international standards. The overwhelming success is Copier

grades namely B2B, Copy Gold and Copy Plus have created a revolution in

the market for cut size papers in a record short time.

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 At the heart of WCPM’s success is its strong customer focused

research initiative backed by a sophisticated research centre and a team of

qualified professionals who have translated into a high degree of customer

satisfaction.

As a responsible corporate, WCPM recognizes the importance of

aligning its business interests with that of the world’s critical need for a

cleaner environment. The company is committed towards green production,

resource conservation, and responsible waste management. This commitment

from West Coast Paper Mills has reflected in its ‘minimum impact-best

process’ technology: green production, resource conservation, responsible

waste management and a reduced pollution load. Evident record in each of

these areas makes the company one of the most environmentally - compliant

paper mills in the country.

CONCLUSION

There is ample scope for growth in many segments of the paper

industry. At the top of the pile is the writing and printing segment that is

expected to register a comfortable growth. The present trend of increasing

quality consciousness and international business opportunities few of the

varieties in the writing and printing grades of paper like branded copier,

stationery and in the industrial grade paper like duplex board and craft paper

are poised for higher growth.

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 With increasing literacy rate of the population and the growth in the

use of computers a sustained demand for paper in the future is assured. The

government has also levied a 2% cess on the value of all imports coming into

India. The funds thus generated has been earmarked for use in the educational

sector particularly for primary education in rural India. This factor will

contribute significantly in generating demand in the writing and printing

sector. The growth of the paper industry is assured by the phenomenal

upsurge in the printing sector in India. Indian printing industry is undergoing

rapid modernization and is using advanced machines that demand consistent

and high quality of paper. There is a ready market of substitution of imported

paper being used in the printing industry by indigenously manufactured paper

for high quality jobs. Another factor that goes in favour of the Indian Paper

Industry is relatively low personnel costs. Qualified man power is available in

India at fair lower cost as compared to Europe, Scandinavia and America.

With the competitive financial market offering funds at very competitive

interest rates, the Indian Paper Industry seems poised for recovery.

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