70 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 communications 1 . 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 attainments 2 . 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
Transcript
70
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
71
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
72
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
73
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.
74
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.
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
76
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
77
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
78
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.
79
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.
80
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.
81
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
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
Year Demand (In thousand tonnes)
1977-1978 1987-1988 1997-1998 2007-2008 2011-2012
9.80 12.25 34.45 56.78 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
83
TABLE 3.4
EXPECTED DEMAND / SUPPLY FOR PAPER AND PAPER BOARD
(in million tonnes)
Year Demand Supply Short fall
1995-1996
2000-2001
2005-2006
2010-2011
2015-2016
3.28
4.95
6.70
8.55
10.88
2.41
3.26
4.16
4.91
5.81
0.87
1.69
2.54
3.64
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
84
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.
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
85
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
Year Imports Exports
Qty (in tonnes)
Value (Rs. crores)
Qty (in tonnes)
Value (Rs.crores)
1997-1998
1998-1999
1999-2000
2000-2001
2001-2002
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
1,18,795
1,04,735
1,12,588
1,09,069
1,09,376
1,53,590
2,35,968
2,04,927
2,90,996
3,48,051
4,51,300
4,37,100
6,14,110
6,71,000
6,81,031
629.3
683.3
761.6
662.8
684.4
745.6
1057.8
1082.1
1679.7
2363.5
2643.0
3254.4
3791.6
4270.2
4511.1
60,880
59,682
1,02,194
1,57,799
1,89,280
2,36,805
2,82,395
2,82,395
3,03,690
3,39,111
3,25,650
3,33,710
3,68,600
6,15,910
6,30,285
181.8
200.0
328.8
559.3
614.6
812.6
712.5
914.6
978.0
1195.4
1071.9
1298.4
1544.9
2415.1
2701.3
Source: Industry market size and shares, Centre for monitoring Indian economy
86
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
87
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.
88
SWOC ANALYSIS
Competitiveness Factors Affecting the Paper Industry
Strengths Weaknesses Large regional markets
Efficiency of production facilities
Environmental performance
Health & safety standards
Skilled personnel and management
Quality of products and customer service
High wood costs
High and increasing energy costs
Relatively high labour costs and rigidities in
labour markets
Over-regulation and red tape
Fragmented structure of the industry
Management of capacities
Opportunities Challenges Increased and better mobilisation of wood
R&D and other know-how advancement
Market growth in Europe, America, Asia and
Russia
Specialization
Consolidation
Improvement of transport infrastructure
Ability to develop new value added products
Increasing energy and transport
Increasing wood costs and lower supply
The promotion of renewable energy sources
Increasing competition from other raw
materials
Declining investments in R&D
Declining availability of workforce
Source: jaakko poyry consulting,2005
89
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.
90
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
91
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.
92
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%.
93
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
94
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
95
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
