Market analysis and the buying behavior of buyers of paper industry

1

A STUDY ON

MARKET ANALYSIS AND THE BUYING BEHAVIOR OF

BUYERS

OF

THE PAPER INDUSTRY : A SPECIAL CASE OF

CENTURY PULP AND PAPER MILLS

2

TABLE OF CONTENTS

S.No. CONTENTS PAGE NO.

Chapter 1 Introduction 7-14

1.1 Introduction 7-10

1.2 Objective 11

1.3 Scope of the Study 12-13

1.4 Research Limitations 14

Chapter 2 Review of Literature 15-17

Chapter 3 Research Approach 18-21

3.1 Universe 19

3.2 Research Design 19

3.3 Sampling Size and Sampling Technique 20

3.4 Data Source 21

Chapter 4 Industry Profile 22-33

4.1 Industry Overview 23

4.2 History Of Paper Industry(Worldwide-India) 24-26

4.3 Major Players In The Indian Paper Industry 26-28

4.4 Latest Development in the Paper Industry 28-29

4.5 Contribution in Economy and Exports By Paper Industry 29-30

4.6 Future Prospects Of The Paper Industry 31-32

4.7 Paper Industry Trends 32-33

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Chapter 5 Company Profile 34-42

5.1 Historical Background 35-36

5.2 Vision,Mission and Objective of the Company 36-37

5.3 Organisational Structure 38

5.4 Product Profile 39-40

5.5 Growth Prospects of Century Pulp and Paper Mill 41

5.6 Swot Analysis 42

Chapter 6 Dealers/Satisfaction Efforts By Century Pulp And

Paper Mills

43-45

Chapter 7 Analysis and Findings 46-71

Chapter 8 Conclusion and Suggestions 72-75

Annexure 76-82

Bibliography 77

Sample Questionnaire 78-82

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CHAPTER 1

(INTRODUCTION)

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1.1 Introduction

Indian Paper Industry

India first Machine-made paper was manufactured in 1812. During this time there were 15 mills

with a total production of lakh tones. In India the Soft wood is the principal raw material used for

making paper especially newsprint and high class printing papers. With rise in population and

broadening of education the demand for paper has been constantly escalated. Owing to very

narrow forest resources wood pulp is in a shortage. As soft woods grow in temperate climate

India is in short supply of such woods. Thus, in such circumstances the Bamboo became the

major raw materials for the manufacture of paper in the country as it grows very quickly even

after cutting.

Paper industry in India is mainly plantation based and is essential that more land must be brought

under plantations of eucalyptus and other trees apposite for the making of papers. The paper

industry also requires huge amount of soft water and paper utilized for newspapers is called

newsprint. Its requirement is bound to grow noticeably. The Nepanagar Newsprint plant in

Madtiya was set up to meet these aforementioned demands. The capacity of Indian Paper

Industry has been raised to 75,000 tonnes a year. West Bengal and Maharashtra are the leading

states for the industry. The total newsprint production has now reached well over 400,000

tonnes. A large number of expansion programmes & expansion of capacities with an outlay of

Rs. 10,000 crores have been announced covering the various sectors like paper, paperboard,

newsprint, etc.

Indian paper industry is a vast industry comprising more than 157 paper-producing divisions all

over India. These 157 functional units manufacture handmade paper worth around Rs.21 cores

and provide employment to approximately 10,000 people. Sanganer village is the biggest center

in western India humming on the rhythm of the sound of paper making activities.

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

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

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

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Government has completely delicensed the paper the paper industry with effect from 17th

July,1997.The entrepreneurs are now required to file an Industrial Entrepreneur Memorandum

with the Secretariat For Industrial Assistance for setting up a newer 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 self sufficient in manufacture of most varities of paper and

paperboards. Import, however,is confined only to certain speciality papers. to meet the part of its

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

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 is increased during

2008-09 after a fall in 2006-07.About 1,40,000 tonnes of paper was exported in 2006-07 mainly

to the neighbouring countries.

India’s per capita consumption on paper is around 4 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.

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Indian Paper Industry needs the following for being globally competitive:

(1) Sustained availability of good quality raw materials(forest based) and bulk import of waste paper

to supplement the availability of raw materials.

(2) Adequate modernisation of the manufacturing assets.

(3) Improvement of the infrastructure.

Raw Materials

(1) For Wood Based Industry

Revision of forest policy so that plantation can be raised by industry/co operatives of

farmers/state government.Degraded forest land can be made available to the industry for raising

plantations.

(2) For Waste Paper Based Industry

Import of waste paper at minimum import duty. Introduction of ecolabeling system where in

products made from recycled fibre are rated higher than the products made from virgin

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

(3) For Agro Based Industry

Funds to be made available for technology upgradation for handling and processing of agro

residue fibre,in small and medium scale industries.

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1.2 Objectives of the Study

The major objective of the research is to find out the market potential of century industries

product line. This will help to know that what are the prospective of century as a whole & will

also give an idea about its credibility, customer’s point of view & stability, apart from all these it

will help me to analyze the upcoming future of the company.

To study & analyze the buying behavior of consumers, dealers, retailers towards CPP brand

as compared with similar product of some other companies, thus understanding the consumer

acceptance of the products.

To know about the demand & consumption of the products

manufactured in the Century Pulp And Paper Mills and thereby getting an idea about market

forecast. The paper market is huge & variety of product mix has been found which serve the

purpose industrial users & the ordinary customers like us as well. Through this knowledge about

the varities of products & their demand in the scenario can be identified.

To study the various promotional offers which

are offered by the Century Pulp and Paper Mills to its various dealers and industrial buyers so

that much effort towards the promotion of their product is done.

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1.3 Scope of the Study

The scope of market study of CENTURY PULP & PAPER MILLS. It has helped to provide a

knowledge about the market trend, demands & consumption patterns, future prospects in terms

of potential growth, consumer taste & buying behavior for the CPP product & other aspects

related to channel & network i.e. -distribution, at the same time some bottlenecks & loopholes in

the entire process could also be taken into consideration for the solutions as well as betterments,

Also the following few aspects could be taken care off through this research study:-

To study & adjudge the relationships & association among the dealer & company: This is

mainly related to the inter relationships on which the company has a bond with the various

buyers so that a smooth and co-ordial relationship exists between them.

Identifying those attributes on the basis of which the dealer selects the products of CPP:

This is mainly concerned with the preferences which the company offers to its buyers in terms of

discount or attractive hampers which they receive on the fulfillment of its targets that it has to

cater.

Popularity of company products among customers: This refers to the image which the

company has been able to create among its esteemed customers and buyers through its enormous

quality services that they are able to provide. Customer satisfaction is one of the most important

priorities as it is the foundation for the growth of a strong industrial unit.It also helps to build up

its brand image among its competitors that operates in the market.

To analyze the order quoted by the dealer & its fulfillment made by the company: This

refers to the features which are required by the dealers in the products which they purchase from

the company. They also see whether the requirements quoted by them to the company have

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been fulfilled or not.This helps to sort out problems that might occur later due to non fulfillment

of its requirements.

To find out the response of the dealers towards the brand: This refers to the study that is

carried out later through the findings and analysis which helps them to incorporate the changes

that are required.

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1.4 Research Limitations

1. The responses may be biased, as some of the respondents may not have revealed the true

pictures.

2. The Company officials also too tend to give biased answers, as they always want to give

a rosy picture of their company product.

3. The company workers were reluctant to give information about the product.

4. The sample was restricted to the Century Pulp And Paper Mills.

5. There were time and money constraints.

6. This project was limited to a span of two and a half months and so had to restrict it to

certain areas of Uttaranchal.

7. Due to money constraints the study was restricted to a sample of 50 dealers and buyers.

8. Transportation and viability of staying there was also a major constraint.

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CHAPTER 2

(REVIEW OF LITERATURE)

13

1) By Engel Cynthia : Taking Note Of Paper Industry : Vol 120 , 1997 :

Consumer participation in recycling , improvements in technology , increased

consumption of paper products , and liberalization of international trade together have had an

enormous influence on employment on paper related industries.This is having a great influence

on the economic prosperity of the country. With the rise of awareness among people and spread

of knowledge among the masses , this industry has been a driving force.

Demand by consumers and buyers on

buying pattern are affected by the governmental rules and regulations also.These factors have led

to an exhorbitant increase in the prices of paper products.It has thus made it costly , but

necessary investments in new equipments have led to a major change in its structure…..

2) The Assocham Paper on “ Growth Of Paper Industry” in India : June

16,@010 , said that India has emerged as the fastest growing market when it comes to

consumption posting 10.6% growth in per capita consumption of paper in 2009- 2010

Indian paper industry can be more competitive by adding improvements of key ports ,

roads and Indian railways and communication facilities , revision of forest policy is

required for wood based paper industry so that plantation can be raised by industry co

operatives of farmers and state government. This is very important as the the impact of

government policy have a direct bearing on the buying pattern of consumers.

3) Zeefer : Paper and paper based Industry : December 08 ,2010 :

This report provides by data and concise analyses ,presents a comparative analysis for the

development of other articles of paper and paper board industry in 31 provincial regions and 20

major cities in visiualised form. This report says that the investment in these sectors is growing

and hence more effort should be laid in this field.Thus keeping in mind the bright prospect of this

sector more investments have been laidd so that this contributes to the gdp of the country.

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4) Reddy Elander M , Reddy Anji M, Jayachandra K : The IUP Journal

On Environmental Science Vol IV No 3 : August 2010 :

tells about a protected forest and implementing management for the

protection of the forest because this is the base for the paper industry.This is utmost

essential for the supply of raw materials to the papere industry .This source is where one

has to be very careful for the survival of its related industries too.The forest has always

been a major source of employment for many people related to the paper industry.

5) Gourville T John And Soman Dilip : Extremes Seeking when and why

buyers or consumers prefer Extremes: May 31 2007:

When can variety be harmful and when can it be

helpful? Conventional wisdom suggests that a product provider enhances the overall

alternatives of a set o options by adding more alternatives to the mix.By contrast

,Gourville and Soman’s research indicates that in certain predictable cases , adding more

alternatives to an assortment leads buyers to choose either the most basic or the most

fully loaded product.Thus when a dealer or a buyer has to buy a bulk of paper rolls from

the industry the go on analysing on the quality and the promotional offers which they are

given by the different sellers of the paper industry.This leads to a choice for the product

which the have to buy.

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CHAPTER 3

(RESEARCH APPROACH)

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3.1 Universe

Present study is empirical in nature and based on mainly primary data collected from field survey

in certain parts of Nanital. Besides collection and analysis of primary data, secondary data and

pertinent literature has been compiled from published and documented sources. Previous studies,

surveys, reports and research work have been consulted while concerned persons have been

approached to get insights and relevant statistics on the topic of investigation. The objective of

the research is to find out the marketing potential of the century paper pulp industry and its

growth in the Indian paper industry.

3.2 Research Design

Research design has been done by carrying out surveys and filling up of questionaries by the

buyers and dealers.This was mainly an explanatory sort of a research so that the idea behind the

project can be carried out.The research was carried on by judgemental sampling and snow ball

sampling as well as the population to be studied is difficult to locate or if some members are

thought to be better (more knowledgeable, more willing, etc.) than others to interview. Relying

on the judgement of some knowledgeable experts may be far more productive in identifying

potential interviewees than trying to develop a list of the population in order to randomly select a

small number.

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3.3 Sampling Size and Sampling Technique

Sampling Size

So as to conduct the study on market & distribution network system of CPP (Century Pulp &

Paper Mills) some regions of Uttarakhand (Kashipur, Haldwani, Rudrapur) were selected, and

also sample size taken is 50(in all) (retailers+ dealers),who resided in Delhi.

Sampling technique:

Snow ball sampling has been used for the purpose of studying the dealers and retailers as it

helped in locating the dealers who were presently engaged in the sales of CPP products.

Convenient sampling method was used for dealers in distant places as accessibility emerged as a

problem in these locations.

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3.4 Data Source

Primary data:

These are the first hand information collected via some source or through observation, the

primary data may be collected through conducting any survey, interviewing sample units directly

through questioners, or conducting a telephonic or electronic survey.

Secondary data:

Secondary data is the data which is readymade i.e. data which is already available in usable

form. Such as blog reports, magazines, newspapers etc.

Various types of secondary data’s used during the study includes:

Literature of century pulp & paper.

Literature from published magazines of B.K Birla Group Of Companies.

Literature on (CPP) website.

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CHAPTER 4

(INDUSTRY PROFILE)

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4.1 Industry Overview

With the emergence of the open market economy which lead to reduce tariff barriers & the

promulgation of free trade agreement with thriving neighboring economies, the competitiveness

of the Indian paper industry has come to sharp focus on the front of costs & quality. The industry

has been in turbulent state since the company was opened & the paper import was allowed under

open general license scheme.

Face with various issue & changes like, availability of fibrous raw material, technological

obsolescence, cost, quality & environment, the industry has taken steady steps to enhance its

competitiveness by way of addressing these issues. The demand for paper, paperboard, & news

print has been rising in the recent past & the domestic market has been registering growth rate of

around 6% against the world average of about 2.8%.

The present paper highlights the status of the Indian paper industry with respect to key market

indicators. Data has been presented for production, import, export, demand, & consumption of

paper, paperboard & newsprint covering technological status of the Indian paper industry.

Discussions have been made on the basis if issues related to raw materials scenario keeping in

view the present & future demand.

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4.2 History of Paper Industry (World wide – India)

Paper manufacturing and book printing mark the beginning of the knowledge revolution. In

ancient India knowledge spread verbally but with the discovery of scripts, written records

gradually replaced the verbal transmission of thought. The mutual East-to East technological

exchanges among Asian nations were frequent. The Silk Road also have played a significant role

in the spread of early technologies. It seems that the Chinese were the first to make paper, from

where the technology went to Samarkand. From there it eventually reached India. Soon the

Indian paper was being exported to West Asia, Europe and Turkey.

In India, the available writing materials were generally of two types: hard and soft. Embossing,

painting and scratching were used for writing. Soft materials were wooden board (pati), dust

(dhuli), birch-bark (bhurja-patra) and paper.

Paper, as a writing material, was hardly known in India before the 11th century AD. Al-Biruni

writes, "it was in China that paper was first manufactured, Chinese prisoners introduced the

fabrication of paper in Samarkand, and thereupon it was made in various places, so as to meet

the existing want".

Paper In India

The Chinese prisoners of war, brought to Samarkand after the battle of Atlakh near Talas, first

introduced (AD 751) the technique of paper making from linen, flax or hemp rags based on

methods used in China.

After the paper technology reached the Arabs, the Arabians improved the technique and

supplemented linen with flax and other vegetable fibres. With the conquest of Sind by the Arabs,

Khurasani paper was first introduced in India early in the eighth century AD, and it continued to

be imported for several centuries.

In India, the first paper industry was developed in Kashmir, established by Sultan Zainul Abedin

(Shahi Khan) of Kashmir in 1417-67 AD. "During his stay at Samarkand he acquired knowledge.

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When he returned to Kashmir he brought with him a number of artisans skilled in different trades

such as paper-makers, book-binders, carpet-makers, harness-makers and well trained midwives."

Soon, because of its quality, the Kashmiri paper was much in demand in the world and the rest of

the country for writing manuscripts.

With the rapid demand of writing materials the paper making centers were established in

different parts of the country like in Sialkot (Punjab); Zafarabad in district Jaunpur (Oudh); Bihar

Sharif in district Azimabad (Patna) and Arwal in district Gaya (Bihar); Murshidabad and

Hooghly (Bengal) ; Ahmedabad, Khambat and Patan (Gujarat) ; and Aurangabad and Mysore in

the south.

Out of these, the Punjab was the leading center. Sialkot paper was white in colour and very stout.

It was used throughout Punjab. In Uttar Pradesh, Zafarabad is a famous town of district Jaunpur.

It was known as Kaghdi Shahar (paper city) in olden times. It produced a very fine, glossy and

strong variety of bamboo paper.

Bihar had two major papermaking centers in medieval times. Arwal town in district Gaya, and

second was Bihar Sharif in district Azimabad (Patna). In Bengal, Murshidabad and Hooghly

were the major papermaking centers in the medieval times. After some time, Gujarat developed

as the largest producer of paper. It supplied paper to rest of India and also exported to the West,

other Asian countries and Turkey also. In Gujarat, Ahmedabad was the largest papermaking

center, it produced white and glossy paper.

During the Mughal period, Daulatabad, with Aurangabad as its capital, emerged as an important

papermaking center. The most remarkable feature of Daulatabadi paper was its durability and

glossiness. Daulatabad was the chief supply center of paper to south India.

Other big paper making centers of medieval India were: Sanganer (in Jaipur, Rajasthan), Kotah

(Rajasthan), Tijarah (in Alwar, Rajasthan), Kannauj (in Farrukhabad, Uttar Pradesh), Kalpi and

Pukharayan in Kanpur (Uttar Pradesh), Maler-Kotlal (Punjab), Dharangaon and Erandel town (in

district East Khandesh, Maharashtra) and Poona.

According to Bansal and Kumar (2001), "the handmade paper industry was in full bloom until

the early part of the 19th century and enjoyed a very special status under state patronage. The

British who were now ruling India completely banned the use of hand-made paper in all

government offices and they started the import of machine-made paper from Britain. A few

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paper mills were established in India by the end of the 19th century, as a result of which a lot of

cheap machine made paper appeared in the market for public use. This further caused a severe

blow to the industry and made it difficult to survive. Many people engaged in it lost their jobs.

This was a rough time for the Indian hand-made paper industry. Swadeshi movement under the

leadership of Mahatma Gandhi played a positive role in reviving the handmade paper industry.

Hand-made paper was also included in the list of village industries, which needed financial

support and patronage for its products. Since there was a competitive market of cheap machine

made paper of almost all varieties, it was imperative to improve the quality of indigenous

products. In 1924, more and more paper mills of India began to use bamboo as main raw

material.

In 1925, Bamboo Paper Industry (Protection) Act and in 1931, Indian Finance (Supplementary

and Extending) Act came into existence which provided the protection, and some more mills

appeared on the scene. Rohtas Industries Ltd., Dalmianagar; Orient Paper Mills, Brajraj Nagar;

Mysore Paper Mills Ltd., Bhadravati; Star Paper Mills Ltd., Saharanpur; and Sirpur Paper Mills,

Kagajnagar, Sirpur; were set up just before the outbreak of the Second World War. Indian paper

Industry made remarkable progress during the war period.

In 1925, Punjab Paper Mills was started with an annual capacity of 6000 tons. By 1930-1931, the

total capacity of paper production in India was increased to 45,600 tons as against 33,000 tons in

1925. The share of indigenous production in national consumption was now 71 % as against 54%

in 1925.

4.3 Major Players In The Paper Industry(India)

The Andhra Pradesh Paper Mill Ltd: - Incorporated in 1964, the company has two

manufacturing units and an off-site conversion center with a total capacity of 153, 500 TPA.

There are five paper machines installed in the mill, which produces paper of different M.F &

M.G varieties in the range of 21 to 250 GSM. The mill is manufacturing largest range of papers

and boards. Annual sales volume is around USD 82 million.

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Ballarpur Industries Ltd – BILT: - BILT is India's largest paper company and the only Indian

company to rank amongst top 100 paper companies in the world. BILT is India's largest

manufacturer and exporter of paper, with a strong presence in all segments of the usage spectrum

that includes Writing & Printing Paper, Industrial Paper and Specialty Paper.

ITC Limited: - ITC is one of the world's most modern and contemporary manufacturers of

packaging and graphic series of boards. ITC's Paperboards business has a manufacturing

capacity of over 360,000 tons per year and is India's market leader across all carton-consuming

segments including cigarettes, foods, beverages, pharma, personal care & toiletries, durables and

match shells.

JK Paper Ltd.: - JK Paper Ltd., India’s largest producer of branded papers is a leading player in

the Printing and Writing segment. The company operates two plants in India, one in the East –

JK Paper Mills (JKPM) in Rayagada, Orissa with a capacity of 125,000 tons per year, and the

other in the West – Central

Pulp Mills (CPM): - Located in Songadh, Gujarat with a production capacity of 55,000 tons per

year. The aggregate annual output is over 180,000 tons per year of Paper and Pulp, using

contemporary technology.

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. Starting with a capacity of 6,000 MT of paper per annum in

1968, PUDUMJEE has now reached a capacity of 38,500 MT per annum of Specialty Papers.

Seshasayee Paper and Boards Limited (SPB): - Incorporated in 1960, the company was

promoted by Seshasayee Brothers Pvt. Ltd., in collaboration with Parsons and Whittemore, USA.

The plant capacity was expanded to 35,000 tpa in 1967-68, and in 1976 to 55,000 tpa. The

current installed capacity of the company stands at 1,15,000 tons per year.

Tamil Nadu Newsprint and Papers Ltd.(TNPL): - Promoted by the Government of Tamil

Nadu in 1979, and with an installed capacity of 2,30,000 TPA. TNPL is the largest producer of

bagasse based paper.

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The West Coast Paper Mills Ltd.:- Promoted by Shree Digvijay Cement Company Limited,

Sikka, Gujarat in 1955 and located at Dandeli in Karnataka, the mill manufactures writing,

printing and wrapping papers. Annual Production capacity is 157,750 TPA.

4.4 Latest developments in paper industry

The US government’s recent move to clamp anti-dumping duty against the paper imports from

China and Indonesia has affected the Indian paper manufacturers.The Indian Paper

Manufacturers Association (IPMA) has urged the Centre to raise tariff walls or at least retain the

10% current level of import duties.

Indian paper and newsprint industry has a huge potentials and prospects in coming future. In our,

country, demand for paper and newspaper is rapidly increasing. There are vast demands in the

area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated

paper, etc.

Indian paper industry is one of the underestimated industries for quite some time because India's

per capita consumption of paper is just about 5 kg. Whereas it is 337 kg in North America, 110

kg in Europe and 30 kg in China. Compared to this scenario, India' par capita consumption is one

of the lowest in the World.

The Rs. 22000-crore paper industry in India, rated 15th largest in world engages about 1.5

million people with the help of Rs. 2500 crore Government subsidy. Government has given

paper industry as one of the 35 high-priority lists.

There are about 515 manufacturing units of processing and production of paper. Newsprint and

paperboards in India which have the annual capacity of 8.3 million tonnes, is likely to be 16

million tonnes by 2014. There are few state owned and private players in the emerging paper

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industry like Hindustan Newsprint Ltd (HNL), Tamil Nadu Newsprint and Papers Ltd (TNPL),

Ballarpur Industries Ltd (BUILT), Seshasayee Paper & Board Ltd. (SPBL), ITC Paper.

Virtually paper industry is decontrolled and there is no price control on finished product. As a

result entire cost has shifted upon the end-users. Newsprint prices increase sharply by 24% in a

short span of three months to touch a high of $760 per ton, an increase of $145 since December

2009. India also, imports bulk of newsprint from foreign countries. From North America we

have imported 18.9 lakh tonnes in 2007 to 26.45 lakh tonnes in 2009, a CAGR of 11.9%.

Domestic consumption move up by 6.40 lakh tonnes to 9.70 lakh tonnes, a CAGR 14.9%, while

import went up by 12.50 lakh tonnes to 16.75 lakh tonnes, a CAGR of 10.3%.

Indian handmade paper industry is a vast industry comprising more than 157 handmade paper-

producing divisions all over India. These 157 functional units together manufacture paper worth

around Rs. 21 crores and provide employment to 10,000 people.

4.5 Contribution in Economy and Exports by Paper Industry

The Indian Paper Industry accounts for about 1.6% of the world production of paper and

paperboard. The estimated turnover of the industry is Rs 25,000 crore (USD 5.95 billion)

approximately and its contribution to the exchequer is around Rs. 2918 crore (USD 0.69

billion). The industry provides employment to more than 0.12 million people directly and 0.34

million people indirectly. The industry was delicenced effective from July, 1997 by the

Government of India; foreign participation is permissible. Most of the paper mills are in

existence for a long time and hence present technologies fall in a wide spectrum ranging from

oldest to the most modern.

The mills use a variety of raw material viz. wood, bamboo, recycled fibre, bagasse, wheat straw,

rice husk, etc.; approximately 35% are based on chemical pulp, 44% on recycled fibre and 21%

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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 tons during 2007-08 the operating capacity of

the industry currently stands at 9.3 million tons. During this fiscal year, domestic production of

paper and paperboard is estimated to be 7.6 million tons. As per industry guesstimates, over all

paper consumption (including newsprint) has now touched 8.86 million tons and per capita

consumption is pegged at 8.3 kg.

Demand of paper has been hovering around 8% for some time. During the period 2004-09while

newsprint registered a growth of 13%, Writing & Printing, Containerboard, Cartonboard and

others registered growth of 5%, 11%, 9% and 1% respectively. So far, the growth in paper

industry has mirrored the growth in GDP and has grown on an average 6-7 per cent 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 a big leap forward in sync with the economic growth

and is estimated to touch 13.95 million tons by 2015-16. The futuristic view is that growth in

paper consumption would be in multiples of GDP and hence an increase in consumption by one

kg per capita would lead to an increase in demand of 1 million tons. As per industry estimates,

paper production is likely to grow at a CAGR of 8.4% while paper consumption will grow at a

CAGR of 9% till 2012-13. The import of pulp & paper products is likely to show a growing

trend.

Foreign funds interest in the Indian paper sector is growing. IFC, the investment arm of the

World Bank is already associated with at least three of the IPMA member mills.

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4.6 Future prospects of paper industry

Indian paper and newsprint industry has a huge potentials and prospects in coming future. In our,

country, demand for paper and newspaper is rapidly increasing. There are vast demands in the

area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated

paper, etc. Indian paper industry is one of the underestimated industries, because India’s per

capita consumption of paper is just about 5 kg. whereas it is 337 kg in North America, 110 kg. in

Europe and 30 kg. in China. Compare to this scenario India’ par capita consumption is one of the

lowest in the World.

The Rs. 22000-crore paper industry in India, rated 15th

largest in world engaged about 1.5

million people with the help of Rs. 2500 crore Government subsidy. Government has given

paper industry as one of the 35 high-priority lists.

There are about 515 manufacturing units engaged in production of paper, newsprint and

paperboards in India with have the annual capacity of 8.3 million tones, which likely to be 16

million tonnes by 2014. There are few state owned and private players in the emerging paper

industry like Hindustan Newsprint Ltd(HNL), Tamil Nadu Newsprint and Papers Ltd(TNPL),

Ballarpur Industries Ltd (BUILT), Seshasayee Paper & Board Ltd. (SPBL), ITC Paper.

Indian Government has completely delicensed the paper industry under the Industries

(Development & Regulation) Act. The interested entrepreneurs or existing players now require

to file an Industrial Entrepreneur’ Memorandum (IEM) with the Secretariat for Industrial

Assistance(SIA) for setting up a new paper mill or substantial expansion of the existing mill in

permissible locations. The foreign direct investment is allowed upto 100% in paper industry

except those who require industrial license with prior approval from Reserve Bank of India.

The future outlook of the domestic paper industry remains bright. An annual growth of newsprint

papers, printing grades and carton boards by 13%, 6% and 11%, respectively offers a

competitive advantage to the Indian paper industry. It is anticipated that the industry will witness

a CAGR growth of 7-8% over the next decade. This growth will be spurred by two major factors

namely growth industrial output and increased spending on education.

Further the Indian print and packaging industry, which is one of the most developed in the world,

is one of the biggest consumers of paper in the country. Low labour charges and establishment of

29

several engineering institutes producing qualified personnel to run the machines will also propel

the growth of the industry.

In order to remain globally competitive, the Indian paper industry will require a continuous

supply of good quality raw material, both forest-based and recycled fibre which can be achieved

through higher plantations and better fibre recovery. The industry also needs to upgrade its

infrastructure in order to compete with its global counterparts.

To tread on growth path our paper industry needs to identify factors (both macro and micro

economic), which will have a solid impact on the economy and help it to sustain growth over a

long period of time.

4.7 Paper Industry Trends:

Paper Industry trends show that the paper manufacturing companies are adopting a strategy

which is directed towards globalization. These companies will benefit immensely in the next few

years to come. In an era of the World Wide Web, e-filing, email, pod cast etc., and several

options to choose from the electronic saga pose a big threat to the paper industry. According to

the law of natural selection, the strongest will survive and lead. However, as per paper industry

trends increase, the consumption of paper related articles is expected to escalate.

There are several companies in the paper market industry aiming at a particular group of people,

having a particular type of lifestyle. As particular segments of people are being targeted at, this

trend has led to the atomization in the market of consumers. Great stress is being laid on the

believability and companies with healthy brand reputation in the paper market. Much importance

is being given to retailing and the different policies adopted in the multinational consumer goods

30

market. The paper industry trends also show that the companies which were able to adapt

themselves promptly to the need of any situation thrived in the long run.

There are several points which one ponders over and those which determine the paper industry

trends. Environment friendly articles are given more importance these days. The use of recycled

paper is on the rise. Better facilities of customer support and other value added services is

gaining importance. Efforts to render better quality service to the customers and enhanced

interaction between suppliers and consumers are on the rise.

Paper industry trends also show that several strategies are being adopted to improve the paper

industry. In this context, efforts are being made to improve the paper industry by adopting some

measures. Stress is being laid on excelling in operation related spheres and also from the

business point of view. The paper industry ought to rethink, re plan, rework on the strategies

depending on the needs of the time. Policies should be adopted to handle competition and

changes required from the commercial point of view.

The Indian Paper Industry is a booming industry and is expected to grow in the years to come.

The usage of paper cannot be ignored and this awareness is bound to bring about changes in the

paper industry for the better. It is a well known fact that the use of plastic is being objected to

these days. The reason being, there are few plastics which do not possess the property of being

degradable, as such, use of plastic is being discouraged. Excessive use of non degradable plastics

upsets the ecological equilibrium.

31

CHAPTER 5

(COMPANY PROFILE)

5.1 Historical Background

32

Century pulp & paper industries ,a unit of top Indian corporate conglomerate-B.K Birla group of

companies is one of the leading integrated pulp & paper plants .Established in the year 1984 at

Lalkuan, a township near the foothills of Himalayas in Distt. Nainital (Uttarakhand), the

company after expansion & modernization, presently operates four fiber lines at the following

installed capacities:

Rayon grade pulp : 31320 TPA

Writing & printing papers(wood) : 37250 TPA

Writing & printing papers(bagasse) : 84600 TPA

Writing & printing papers(DIP) : 75960 TPA

MANAGEMENT AND SR. EXECUTIVE OF THE COMPANY AT LALKUAN:

Mr. Deepak Tandon DIRECTOR

Mr. A.K Bisarya JT. PRESIDENT (Works)

Mr. A.C Mittal SR.VICE PRESIDENT (production)

Mr. R.K Sharma CHIEF ENGINEER.

Mr. S.K Aggarwal SR.VICE PRESIDENT (Commercial)

Mr. A.K Sharma VICE PRESIDENT (P&A).

Nearly 2700 peoples are working as a team to achieve the objective of the organization. There is

an excellent harmony between the employees union & the management.

The company has established a strong brand image in the domestic & oversees market with

excellent quality of its products & services & caters to diversified sectors like note books &

diaries, continuous stationary, copier, envelopes, offset printing, security papers, industrial

papers & viscose filament yarn & cellophane paper.

33

The company has been awarded golden status by DGFT. Govt. of India as golden star trading

house at the corporate level. The bagasse based papers are eco labeled. Company’s main raw

materials are Eucalyptus, poplar, bamboo, Bagasse & waste paper. Company’s marketing policy

is targeted to meet customers’ need & satisfaction. Presently the company is also exporting its

paper to various countries. The head office of the company is at Kolkata.

5.2 Vision, Mission and Objectives of the Company

Commitment to Quality & Service:

At century, quality is an all-pervasive commitment. We strive to continually improve the quality

of our products & services, which have been, affirmed in the form of ISO 9001:2008

certifications to the company for its quality management system. The company has been

responsive to the changing market requirement & has developed new quality products to care to

the varying end uses.

Care for Environment:

Preserving & protecting the environment is a top priority at century. We are always sensitive to

our bio-diversity of the soil, water & air around us.

CPP’S power plant maintains an efficient system for reducing air emissions. Electrostatic

precipitators have been installed to remove particulates from recovery boilers, coal fired boilers

& lime kiln fuel gases.

In strict adherence to the standards & guidelines, the effluents are treated in a modern ETP,

which is recognized as a model plant for its efficiency & performance.

Company’s adoption of a systematic approach to the environment matters including waste

minimization, water recycling & re-use programs of by products has facilitated the company in

getting the ISO-14001:2004 certification for its environment management system.

34

Company’s friendship with Environment has also reflected in its bagasse based paper being

licensed for eco labeling, a distinct honor to be attained.

Towards Sustainable Development:

Caring for the Community:

Century cares for the community at large & strives to be a good corporate & social citizen. We

actively contribute to the community development of the areas in our surroundings & regularly

conduct medical camps, undertake construction work of schools, drinking water facilities, self-

employment schemes etc.

Marching Ahead:

The company has embarked on a prestigious expansion program to install a modern 450TDP

fiber line (ECF) & 500TDP multilayered board plant along with 44 MW turbine & chemical

recovery boiler.

5.3 Organisational Structure

35

ORGANIZATION –STRUCTURE

(CENTURY PULP & PAPER INDUSTRY)

CHAIRMAN

SR.PRESIDENT

JOINT PRESIDENT

VICE PRESIDENT

SENIOR GENERAL MANAGER

GENRAL MANAGER

DY.GENRAL MANAGER

MANAGER

SR.SUPREINTENDENT

OFFICER

ASSISTANT.OFFICER

GRADED STAFF

5.4 Product Profile:

36

CPP range of products includes finest varieties of writing & printing paper, industrial papers,

specialty papers, security papers & copier papers from diversified range of raw materials.

Century parchment, NCR base, Overlay tissue, wax match tissue, century index, MICR cheque

paper, buff pulp board, Railway bond, Azure-laid (ivory),MF book cover(UV Fiber), ss

maplitho, super white map litho, super shine printing ,base paper for coating, sticker Base paper,

Copier paper 75 gsm (ECO-MARK) are some of the varieties that have wide range of

applications.

CPP also manufactures high quality dissolving rayon grade pulp, raw material for viscose

filament yarn/staple fiber & bleached hardwood paper grade pulp.

Rayon Grade Pulp/Paper Grade Pulp:

This fiber line manufacturers wood pulp with eucalyptus & popular furnish for dissolving grade

as well as paper grade application.

Century is one of the leading suppliers to rayon industry for viscose filament yarn manufacture.

The pulp also finds application as filler in melamine formaldehyde /urea formaldehyde for

making melmo ware/ electrical switches.

Writing & Printing Papers (Wood based):

The integrated plant incorporates eucalyptus & bamboo furnish to produce papers ranging from

40 to 210 gsm .The plant is equipped with two paper machines with a total capacity of 110 TDP

& manufactures some of the finest qualities of specialty papers.

Baggase-based papers:

The plant incorporates modern, state of art machinery & technology & is based on a completely

environment-friendly concept. The salient features are a unique bleaching sequence with

chlorine–dioxide, oxygen enriched extraction stage along with enzyme pre-bleaching,

biotechnology application that the company has pioneered to implement; & a comprehensive

computer-aided control system. The high speed paper machine is equipped with film press for

37

on-line coating applications. The product range includes fine varieties of writing & printing

papers of 53-130 gsm including copier.

Recycled Fiber Based Paper:

A secondary fiber based plant manufacturing writing printing paper, DIP plant is equipped with

two stage flotation & two-stage bleaching. Latest technology incorporated in this plant facilitates

production of finest paper quality in this category. The product range includes writing & printing

papers of 52-130 GSM.

Tissue Plant:

Prime grade tissue plant of 100 TDP with hi-speed machine (2000 mpm) supplied by Metso is

equipped with latest technology to produce finest quality in this category. The product range will

include Facial, Napkin, Toilet, C-fold, & kitchen Towel etc, in the range 13-40 gsm.

5.5 Growth prospects of the Century Pulp And Paper Mills

38

The future outlook of the Century Pulp And Paper Mills remains bright. An annual growth of

newsprint papers, printing grades and carton boards by 13%, 6% and 11%, respectively offers a

competitive advantage in the Indian paper industry. It is anticipated that the company will

witness a growth of 7-8% over the next decade. This growth will be spurred by two major factors

namely growth industrial output and increased spending on education.

Further the Indian print and packaging industry, which is one of the most developed in the world,

is one of the biggest consumers of paper in the country. Low labour charges and establishment of

several engineering institutes producing qualified personnel to run the machines will also propel

the growth of the industry.Thus the (CPP) has a bright future ahead to grow.

In order to remain globally competitive, the Century Pulp And Paper Mills will require a

continuous supply of good quality raw material, both forest-based and recycled fibre which can

be achieved through higher plantations and better fibre recovery. The industry also needs to

upgrade its infrastructure in order to compete with its global counterparts.

To tread on growth path the company needs to identify factors (both macro and micro

economic), which will have a solid impact on the economy and help it to sustain growth over a

long period of time.

5.6 SWOT Analysis: Century Pulp and Paper Mill

39

Strengths:

o Large, diversified and potential market.

o Cheap labor rates that result to competitive price.

o Need low capital investment.

o There is flexible production flexibility.

o Low barriers of new entry.

o It has strong, diversified and supportive retail infrastructure.

Weaknesses:

o Inadequate information of new technology.

o Inadequate information of current market trends.

o Less interest of young people in craft industry.

o Lack of skilled labor.

o Lack of promotion of products.

Opportunities:

o Rising demand for paper products in developed countries such as USA, Canada, Britain,

France, Germany, Italy etc.

o Developing newspaper industry requires paper products.

o Development of domestic and international journalism and news agency sector.

Threats:

o Competition in domestic market.

o Balance between high demand and supply.

o Quality products produced by competing competitors.

o Increased and better technological support and RandD facility of the competitors.

40

CHAPTER 6

(DEALERS/SATISFACTION

EFFORTS BY CENTURY PULP

AND PAPER MILLS)

The Century Pulp and Paper Mill is a well established company. They have a good network of

chains through which they sell their products to dealers and other clients of their business. The

41

Century papers have been in the market for a long time and as because of their quality and

standards they require very less promotion of their products.

They adopt certain marketing strategies in order to promote their product among customers –

The basic product strategy adopted by Century Pulp and Paper Mills is the suitable product

bundling within which it divides its products into different sizes and packets. These packaging

includes A2, A4, B2, B4 and even rolls. This approach of product bundling helps the company to

achieve its price performance. The company also focuses on effective product segmentation so as

to cater different markets with different prospective buyers.

The Company also tries to be a first mover all the time. Any new approach or idea is instantly

gained by the company in order to achieve the advantage of being a first mover.

The Company takes the market segmentation approach dividing broad markets such as kraft line

board, into customer groups based on common needs that a company can profitably meet, then

developing and executing segment specific plans for sales, marketing and services. Broadly

speaking the company entails niche marketing in order to gain market share.

The company takes two major things in consideration while evaluating different market

segments viz.

a) The overall attractiveness of the segments and

b) The company’s objectives and resources.

The company has realized that the Indian market is price sensitive, hence take approaches to gain

price advantage by providing products at reasonable and affordable prices taking in consideration

the different segments too. In order to gain price advantage the company takes the market

penetration strategy to set prices. This strategy makes the company to stay in the market for a

longer period gaining small profits for a large period. Nominal prices are set and much focus is

given to match prices or to give better prices than the competitors.

42

Company has started investing in business applications like SAP type technology to better

develop and follow client profiles, process control systems are also activated such as PLC and

DCS which focuses on the production side which will in future reduce cost and thus will make

the company able to set more effective prices.

The company has taken considerable steps in promotion part. Channel development gains the

advantage. Direct channel marketing is done where the company effectively handles the

distribution, maintains records and level check of channel partners. Appropriate training is also

provided to the executives of the channel. Brand recognition is also taken into consideration but

much focus is on distribution channel. The company monitors the requirements of channel

partners and coordinates with stores. The company takes steps to settle area of concerns such as

incentive claims of channel partners. There are steps to call customers and generate leads. The

company handles corporate accounts and also forecasts sales. Mapping of accounts takes place

and feedbacks are given to the marketing department regarding requirements of the market.

Selective and intensive distribution approaches are considerably encapsulated in the activities of

the company to promote its product and generate sales.

.

43

CHAPTER 7

(FINDINGS AND ANALYSIS)

Data Analysis and the Findings

44

RETAILERS.

DEALERS.

A sample size of 50 respondents were taken which includes both retailers and dealers in the

nearby cities such as Haldwani, Kashipur, Rudrapur, Moradabad, and certain areas of Delhi. For

the purpose of analysis graphs and tables has been used so that a conclusion can be drawn from

the following inferences.

o Data of respondents based on their type.

Whether the respondent is a retailer, dealer or both?

Table 1.1

Type Retailer Dealer Both

Respondents 23 18 9

Chart 1.1

45

Interpretation:

Most of the respondents were found to be retailers though as compared to retailers the number of

dealers were also not much less. However some of them were in both the businesses.

o Data of respondents based upon their term in the business.

Respondents, Retailer, 23

Respondents, Dealer, 18

Respondents, Both, 9

Respondent Type

Retailer

Dealer

Both

46

Responses are based on the number of years the respondents are in paper business.

Table 1.2

Years 4 years 8 years 12 years 16 years

Respondents 10 14 16 10

Chart 1.2

Interpretation:

Most of the respondents were in business for a long time, this shows that the quality that the

company maintains with its business clients is very healthy hence makes the clients to retain in

the market for a longer period.

o Data of respondents according to the number of go-downs they possess.

Respondents, 4 years, 10, 20%

Respondents, 8 years, 14, 28%

Respondents, 12 years, 16,

32%

Respondents, 16 years, 10,

20%

Years in Business

4 years

8 years

12 years

16 years

47

How many go-downs do the respondent have?

Table 1.3

No. of Go-downs Respondents

1 19

2 10

3 9

4 7

More than 4 5

Chart 1.3

Interpretation:

As there were large numbers of retailers hence the numbers of go-downs used by them were less

nearly about 1 or 2. Again dealers also had go-downs but were having large number of go-downs

compared to retailers.

o Data of respondents based on the type of go-downs they used:

Respondents, 1, 19, 38%




Respondents, More than 4, 5,

10%

Number of Godowns

1

2

3

4

More than 4

48

Are the go-downs personally owned by the respondent or is a hired one?

Table 1.4

Type of Godown Respondents

Personal 21

Hired 29

Chart 1.4

Interpretation:

This shows that approximately half of the respondents owned their own go-downs and the other

half were using hired ones. Retailers were found to be using hired go-downs when compared

with the dealers who were basically using their personal go-downs.

o Data of respondents based on products they offer to the customers.

Respondents, Personal, 21,

42% Respondents, Hired, 29, 58%

Type of Go-down

Personal

Hired

49

Whether the respondents deal exclusively with paper products or in stationery also?

Table 1.5

Products Offered Respondents

Paper Products 18

Stationery 24

Books and stationery 8

Chart 1.5

Interpretation:

This shows that most of the products offered by the respondents deal with stationery products out

of which paper products also hold a good proportion.

Respondents, Paper Products,

18

Respondents, Stationery, 24

Respondents, Books and

stationery, 8

Products Offered

Paper Products

Stationery

Books and stationery

50

o Data of respondents based on the type of market they approach.

Whether they operate in local market only or have spread their business in outside markets as

well.

Table 1.6

Markets Used Respondents

Local Market 18

Local and Outside Market 32

Chart 1.6

Interpretation:

This above data shows that they mostly cater to both the local and outside markets, but to a some

extent they also operate solely in local markets in some areas.

Respondents, Local Market,

18

Respondents, Local and Outside

Market, 32

Markets Approached

Local Market

Local and Outside Market

51

o Data of respondents on the basis of the number of staffs they have at their

store.

The number of staff kept in the store for operations.

Table 1.7

Number of Staff Respondents

1 15

2 18

3 9

More 8

Chart 1.7

Interpretation:

This shows that most of the respondents have a 2 staff member to assist them in their work.

However there are instances where they have more or less than 2.




Respondents, More, 8, 16%

Number of Staff

1

2

3

More

52

o Data of respondents based on the quality preferred in papers.

What quality preference do they require in papers provided by the company?

Table 1.8

Preferred Quality Smoothness Brightness Bulk Opacity


Chart 1.8

Interpretation:

This analysis shows that most of the respondents do prefer for brighter quality papers. A certain

percentage of which do prefer for smoothness also. A very less percentage do prefer for opacity.

Respondents, Smoothness, 15

Respondents, Brightness, 18

Respondents, Bulk, 11

Respondents, Opacity, 6

Preferred Quality

Smoothness

Brightness

Bulk

Opacity

53

o Data of respondents based on their problems faced in paper quality.

What problems do the respondents face in the quality of papers provided by the company?

Table 1.9

Problems Faced Thoroughness Poor Ink Absorbency Creasing Other


Chart 1.9

Interpretation:

The above analysis shows that most respondents do have problems with the poor ink absorbency.

While a certain percentage do get problems with thoroughness also. Creasing is also a problem

faced by a certain percentage.

Respondents, Thoroughness,

10, 20%

Respondents, Poor Ink

Absorbency, 21, 42%

Respondents, Creasing, 7,

14%

Respondents, Other, 12, 24%

Problems Faced

Thoroughness

Poor Ink Absorbency

Creasing

Other

54

o Data of respondents based on their frequency of orders.

How often do the respondents place orders?

Table 1.10

Frequency of Orders Respondents

Weekly 18

Fortnight 14

Monthly 12

Once in a Year 6

Chart 1.10

Interpretation:

The analysis shows that respondents with weekly orders have the highest frequency. However

fortnight orders also have a high range.

Respondents, Weekly, 18

Respondents, Fortnight, 14

Respondents, Monthly, 12

Respondents, Once in a Year, 6

Frequency of Orders

Weekly

Fortnight

Monthly

Once in a Year

55

o Data of respondents based on where from they buy paper products.

Do they buy from the supply channel or directly from the paper mill?

Table 1.11

Place of Purchase Channel Direct from the mill

Respondents 30 20

Chart 1.11

Interpretation:

The analysis shows that respondents do prefer from mills as the number of respondents were

more indulged in retailing. This also shows that the channel of paper and pulp industries is

strong.

Respondents, Channel, 30, 60%

Respondents, Direct from the

mill, 20, 40%

Purchase Place

Channel

Direct from the mill

56

o Data of respondents based on the numbers using advertisements.

Whether the respondent take the use of advertisement or not?

Table 1.12

Use of Advertisements Yes No

Respondents 12 38

Chart 1.12

Interpretation:

This analysis shows that there is very less of advertising strategy and the industry stresses more

on channel.

Respondents, Yes, 12

Respondents, No, 38

Use of Advertisements

Yes

No

57

o Data of respondents based on preference of brand ambassador.

Whether they prefer a brand ambassador or not?

Table 1.13

Preference of Brand Ambassador Respondents

Yes 18

No 32

Chart 1.13

Interpretation:

This analysis shows that respondents were less interested in appointing a brand ambassador. This

was obvious as ther was very less advertising in this industry. Hence no brand ambassador was

preffered.

Respondents, Yes, 18, 36%

Respondents, No, 32, 64%

Preference of Brand Ambassador

Yes

No

58

o Data of respondents based upon type of customers served.

What type of customers do the respondents serve?

Table 1.14

Frequent Consumers Corporate Professionals Govt. Officers School

Institutions Students


Chart 1.14

Interpretation:

This analysis shows that major requirements of paper comes from the school institutions.

Moreover government offices and corporate also require a considerable amount of paper.

Respondents, Corporate

Professionals, 8, 16%

Respondents, Govt. Officers,

14, 28% Respondents, School

Institutions, 18, 36%

Respondents, Students, 10,

20%

Customers

Corporate Professionals

Govt. Officers

School Institutions

Students

59

o Data of respondents based on their satisfaction with packaging.

Whether the respondent is satisfied with the packaging provided by the company?

Table 1.15

Satisfied with Packaging Respondents

Yes 32

No 18

Chart 1.15

Interpretation:

This analysis shows that most of the respondents were satisfied with the packaging of the

product. This is because the industry focuses much on packaging as a marketing strategy.


Respondents, No, 18

packaging satisfaction

Yes

No

60

o Data of respondents based on the responses of customers.

What response do the respondents get from their customers?

Table 1.16

Customer Responses Highly Positive Positive Moderate Negative


Chart 1.16

Interpretation:

This analysis shows that the respondents were satisfied with the product. But there were a part of

them who suggested certain feedbacks regarding the product.

Respondents, Highly Positive,

16, 32%

Respondents, Positive, 22,

44%

Respondents, Moderate, 8,

16%

Respondents, Negative, 4, 8%

Customer Responses

Highly Positive

Positive

Moderate

Negative

61

o Data of respondents based on their method of sales.

What methods do respondents employ to sell their products?

Table 1.17

Method of Sales Respondents

Phone 16

E-commerce 6

Direct Sales 28

Chart 1.17

Interpretation:

This analysis shows that the respondents preferred for direct sales as they were mostly retailers.

However certain percentage of sales was done through telephonic calls also.

Respondents, Phone, 16

Respondents, E-commerce, 6

Respondents, Direct Sales, 28

Method of sales

Phone

E-commerce

Direct Sales

62

o Data of respondents based on period of maximum sales.

Which period according to the respondent is the peak period of maximum sales?

Table 1.18

Period of Max. Sales Respondents

1st Quarter 16

2nd Quarter 18

3rd Quarter 9

4th Quarter 7

Chart 1.18

Interpretation:

This analysis shows that maximum amount of sales is done in the second quarter of the year as

most closing, audits and financial works are done during that period of the year.

Respondents, 1st Quarter, 16

Respondents, 2nd Quarter, 18

Respondents, 3rd Quarter, 9

Respondents, 4th Quarter, 7

Period of Max Sales

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

63

o Data of respondents based on their expectations from the company.

What does the respondent expect from the company?

Table 1.19

Expectations from Company Respondents

Incentives 14

Discounts 18

Credits 11

Others 7

Chart 1.19

Interpretation:

This analysis shows that most respondents claim for discounts and incentives rather than credits

or other benefits. This is because the business is a price sensitive one and discounts would help

them.

Respondents, Incentives, 14,

28%

Respondents, Discounts, 18,

36%

Respondents, Credits, 11, 22%

Respondents, Others, 7, 14%

Expectation from Company

Incentives

Discounts

Credits

Others

64

o Data of respondents based on the possible threats.

What are the possible threats to the respondents?

Table 1.20

Possible Threats Respondents

New entrants 16

Sales & Distribution network 24

Price 7

Other 3

Chart 1.20

Interpretation:

This analysis shows the the main possible threats are due from sales and distribution network.

However new entrants also pose a threat for the company.

Threats

New entrants

Sales & Distributionnetwork

Price

Other

65

o Data of respondents based on the means of shipment.

What means of shipment do the respondents use?

Table 1.21

Means of Shipment Respondents

Train 16

Road transport 24

Other 10

Chart 1.21

Interpretation:

This analysis shows that the most means of shipment is done through road transport because they

find it more safe and reliable as compared to others.

Respondents, Train, 16, 32%

Respondents, Road transport,

24, 48%


Means of Shipment

Train

Road transport

Other

66

o Data of respondents based on motivational schemes provided.

Does the company provide any motivational schemes to the respondents?

Table 1.22

Motivational Schemes Provided Respondents

Yes 12

No 38

Chart 1.22

Interpretation:

The analysis shows that the company was not providing any motivational schemes to customers

but even then the customers are satisfied with the company’s product and sales techniques.


Respondents, No, 38

Motivationa Schemes

Yes

No

67

o Data of respondents based on the mode of contact with the company.

How the company does contacts the respondent?

Table 1.23

Mode of Contact Respondents

Via Telephone 18

Direct Visit 22

Other 10

Chart 1.23

Interpretation:

This analysis shows that the mode of contact with the company is through direct visits. This is

because the company prefers to visit its clients directly rather than taking feedbacks on phones

and mails.

Respondents, Via Telephone,

18

Respondents, Direct Visit, 22

Respondents, Other, 10

Mode of contact

Via Telephone

Direct Visit

Other

68

o Data of respondents based on the paper preference.

What paper do the respondents mostly prefer?

Table 1.24

Paper Preference Respondents

JK Paper 15

Andhra Paper 12

Orient 11

Ballipur 4

Other 8

Chart 1.24

Interpretation:

This analysis shows that respondents do prefer JK paper in comparision to others. Hence it

would pose a more serious threat to the company.

Respondents, JK Paper, 15, 30%

Respondents, Andhra Paper,

12, 24%

Respondents, Orient, 11, 22%

Respondents, Ballipur, 4, 8%


Paper Preference

JK Paper

Andhra Paper

Orient

Ballipur

Other

69

CHAPTER 8

(CONCLUSION

&

SUGGESTIONS)

70

CONCLUSION:

During the research process it was found that an amazing world of big machineries & their

process which were in continuous operation to deliver the final product.

It can never be thought that developing a small sheet of paper would require such immense &

arduous tasks of both men & machinery.

Also, apart from processes some major findings on behalf of the data collected from in and

outside the paper industry helped in drawing a certain conclusion. It can cited as follows:

The new era of upcoming generation is going to be knowledge based, so demand for paper

would go on increasing in upcoming years. In view of paper industry’s strategic role for the

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

well.

The demand for upstream market of paper products like: TISSUE PAPER, FILTER PAPERS,

LIGHT WEIGHT ONLINE COATED PAPER, MEDICAL GRADE QUOTED PAPER, etc, is

growing due to increase in population & more & more facilitation. These developments are

expected to give fill up to the industry.

Due to industrialization & globalization there is huge demand & potential of paper & allied

products.

Corporate sector, computerization in banks, financial & other institutions has opened a great

market opportunity for a new sector that is COPIER PAPER.

As per the information collected through the sales & marketing department of the company, a

major consumption & demand is seen in Delhi & NCR region, where therefore are maximum

number of dealers that too with very high allocated size.

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Paper industry is very risky & tough growth business as the raw material consists of hazardous

chemicals like cl 2,so2,hcl,clo2 etc & therefore performance is the only key to success.

Transportation to these high consumption areas is quick, and authentic. It was found that the

availability of contingency plans is not that strong ,as far as the planned transportation is

required.

Talking to the dealers it was observed that relationships among dealers & consumers of CPP

industries reflects the company’s policy of relationship building, but it could be further increased

by providing some sale or motivational schemes & policies.

It was also found that Century Pulp & Paper industries is very prompt in providing product

variety at a time ,most of the orders of CPP are full filled in time and as per specific

requirements.

Company emphasizes lot on packaging methods undertaken, so as to ensure safety of product

during transit.

Century could be thought of a market leader at the present scenario as it is the only industry

which has variety of processing plants for different raw materials via which the paper is

manufactured it includes- paper manufacturing through baggase, wood, R.G.P.

As the production in the unit goes on 24*7, so the employees work on basis of shifts. The

maintenance of the heavy machineries is a compulsion in this case,& thus company has

qualified engineers & technical staff which is well trained, they all work hard & their endeavors

have lead the company to the no.1 position in the paper industry.

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SUGGESTIONS:

Thus, here by on the basis of my understanding & observation, I would like to put forward few

suggestions & recommendations to the company as well as on the entire topic as well.

The company should sustain the availability of good quality of raw material (forest based) &

bulk import of waste paper to supplement the availability of raw material. Also with respect to

above statement I would like to recommend the company to encourage afforestation, in the

nearby locations such as Rampur from where the major source of raw material is supplied i.e.

eucalyptus & popular trees, for w.p.p (wood based paper plant) (major paper manufacturing

plant).

R&D technological absorption should be emphasized upon to enhance the productivity by

maintaining the quality of copier/writing/printing paper.

The company should make good profile investments in advertisements which are directly linked

with customers.

I would also like to recommend the company to hire a brand ambassador for the advertisement

purpose, it may be any celebrity.

However if the company feels like that this investment would be a cost burden they

can look for some socially renowned face who has a premium image & is available at cheaper

rates

The company should take new measures for the promotion of the products. It should make use of more

effective marketing techniques in order to sustain its clients.

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ANNEXURE

74

BIBLIOGRAPHY

Books:

C.R Kothari “Reseach Methodologies”

V. S. Ramaswamy, et al: “Marketing Management”, 4th

Edition, 2009, P.No.- 246-295,

Macmillan Publishers India Ltd.

Web Sources:

www.ipma.co.in/paper_industry_overview.asp

http://www.indianmirror.com/indian-industries/paper.html

http://researchwikis.com/Paper_-india_Marketing_Research

www.fao.org

www.centurytentind.com

www.acmesurplus.com

www.google.co.in

www.wikipedia.org

www.century paperindia.co.in

News Papers:

Times of India

Hindustan Times

The Hindu

75

SAMPLE QUESTIONAIRE

Dear Respondents,

I am working on the project of “A Study on the market analysis and the buying behavior of the

buyers of the paper industry(A Special Case of Century Pulp and Paper Mills)”. You are

requested to fill the questionnaire to enable me to undertake the study on this project.

NAME:

SECTION I: GENERAL PROFILE OF THE RESPONDENTS

Q1) Age Group:

A)20 - 30 yrs B) 31 – 40 yrs

C) 41 – 50 yrs D) above 50 yrs

Q2) Sex:

A) Male B) Female

Q3) Marital Status:

A) Married B) Unmarried

Q4) Educational Qualification:

A) School Level B) Graduate

C) Post Graduate D) Others

Q5) Occupation:

A) Business B) Service

C) Students D) Home Maker

E) Others

Q6) Monthly income:

A) Below ` 10,000 B) ` 10,000 – 20,000

C) ` 20,000 – 30,000 D) above ` 30,000

7) Type of function you are performing?

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A) Retailer B) Dealer C) Both

8) Since how long are you associated with the dealers of CPP Industries?

A) >4 Years B) >8 Years C) >12 Years D) >16 Years.

9) How many go-downs do you have?

A) 1 B) 2 C) 3 D) 4 E) More than 4

10) Whether the go-downs are?

A) Hired B) Personal.

11) What type of products do you deal in ?

A) Paper Products B)Stationery C) Books and Stationery

12) What market do you operate in?

A)Local Market B) Local and Outside Market

13) What number of staff do you have in your store?

A)1 B)2 C)3 D)More than 3

14) Which of the quality attributes for writing & printing paper you prefer most in terms of

customer preferences?

A) Smoothness B) Brightness C) Bulk D) Opacity.

15) Which problem have you generally faced with CPP papers?

77

A) See thoroughness B) Poor Ink Absorbency C) Creasing D) Other.

16) How do you place the order and how frequently?

A) Weekly B) fortnightly C) monthly D) once (in a whole year)

17) From where do you purchase the paper?

A) Supply Channel B) Directly from the mill.

18) Are advertisements required to serve the purpose better?

A) Yes B) No

19) Do you feel like that hiring a brand Ambassador & then advertising for the paper products

would be helpful in generating more volume of sales for the Company?

A)Yes B) No

20) Who are your frequent consumers?

A) Corporate Professionals B) Govt. officers C) Schools institutions D) Students.

21) Is the current packaging of CPP products attractive & safe?

A) Yes B) No

22) Which type of consumer responses forwards the products of CPP?

A) Highly positive B) Positive C) Moderate D) Negative.

23) What method of sales do you approach?

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A) Phone B)E-Commerce C)Direct Sales

24) During which period of year you register maximum sales?

A) 1st qtr. B) 2nd qtr. C) 3rd qtr D) 4th qtr.

25) What is your expectation from CPP?

A) Incentive B) Discounts C) Credit D) Others.

26) What according to you are the possible threats to CPP from competitors?

A) New entrants B) sales & distribution network C) Price D) Others

27) What is your means of shipment?

A)Train B)Road transport C)Others

28) Do you receive motivational sales scheme from CPP dealers?

A) Yes B) No

29) What is the mode of company solving your queries & receiving feedback?

A) Via-telephone B) Direct visit C) Others.

30) Which paper you prefer most?

A) CPP B) JK PAPER C) ANDHRA PAPERS D) ORIENT

E) BALLIPUR F) OTHERS.

79

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