Chapters

Organizational Profile

Cliapter-3

Organizational Profile

The Indian paper industry is an important industry contributing

significantly toward the socio economic development of the country. The first

mechanized paper machine was set up in 1832 (Jain, Singh and Kulkami-

2005) in India. The Indian paper industry shows an unique picture, with a mix

of large and small paper mills, having capacities that range from 500 to 600

tones per year (medium sized) and average size of 11,500 tones per year (of

large size). There are more than 600 pulp and paper mills producing nearly 6.2

million tones/yr. of pqjer and board, against an installed capacity of about 8.6

million tones. The industry has turnover of more than $35 million employing

nearly 300,000 people directly and another Imillion people indirectly, hidia

can proud for Ballarpur Industries Ltd. (BILT), J.K Paper that was the

members of Million Tonners' Club. BILT entered at the position-90 of the list

of Million Tonners' Club in the year 2003 . The Hindustan Paper Corporation

(HPC) is one of the largest public sector paper indusu-ies, playing a significant

role in p^er-based economy of the country that needs a fresh preciation. In

this context, the present chapter of the study is devoted to describe the Origin

of HPC, its Competitive Positions, Production and Performance, and its

Contributions to human capital formation and development. The sources of

73

these contents/data were various published reports, in-house news journals,

unpublished records. Websites etc.

3.1. Origin of Hindustan Paper Corporation (HPC)

The Hindustan Paper Corporation (HPC), a Government of India

enterprise, owns and operates two printing and writing paper mills in Assam

State; the first, is the Nagaon Paper Mill (NPM) located at Kagajnagar,

Jagiroad (Morigaon); and the second is Cachar Paper Mill (CPM) located at

Panchgram. This is not enough to say about the birth of HPC. To recall the

history of HPC, we must be remembering the days in the end of sixties when

there had been acute shortage of paper in our country. Then paper was not

available for the textbooks, exercise books and stationary items for daily use.

Therefore, our government established Hindustan Paper Corporation Ltd. to

make available of the writing and printing papers and newsprint directly to the

consumers at a reasonable price. Thus, the Hindustan Paper Corporation came

into being 29* May 1970 in room no. 258 of Udyog Bhavan, at New Delhi.

Keeping in view, the developmental activities of the North Eastern

States of our country and to make full use of the available bamboos as raw

material, Nagaon Paper Mill (in the/then Nagoan) now in Morigaon; and

Cachar Paper Mill (in the/then Cachar) districts now Hailakandi district of

Assam were established. Both mills are identical and have installed annual

74

capacity of I Lakh M.T, writing and printing paper each, provision to produce

newsprint also exists. The government of India sanctioned both these mills on

31^ January, 1977 while the decision was formally conveyed to HPC Ltd.

Management on IS*** March, 1977. NPM started its commercial operation in

October 1985, and CPM started in April 1988. After fighting out with the

teething problems, both the mills are now in ahead on the path of progress and

bodi had operating profits during the financial year 2003-04 as appeared in the

table 3.2.

3.II.Subsidiaries of HPC

At the initial period, there were three subsidiaries of the corporation.

The government of India handed Mandiya News Print Limited to HPC after

taking over and nationalizing in a sick condition, while the other two

established by the corporation under its own supervision. The concise

description of them is as follows.

Hindustan News Print Limited: When the Govt, of India instituted HPC in

1970, Kerala News Print Project planned as one of the imits of HPC. The

same project later converted into the subsidiary of HPC and named Hindustan

News Print Limited (HNL). The foundation stone of the Mill was laid on 10*

June, 1975 by the then Honourable Industry Minister of India Sri T.A. Pai, in

presence of the chief Minister of Kerala Sri Achuta Menon. Rs. 160 cr.

75

allocated to complete the project with the capacity of 80,000 M.T. per annum.

The trial production started on 26* Feb, 1982 and commercial production

began in Nov, 1982. HNL is the biggest and unique unit of its type in Asia,

and is credited with first mill in the country to produce newsprint with

eucalyptus wood. This mill is known for the ultra modem J.M. Voith (known

as GMBH) machine, can run at the speed of 650/tainute and can produce 44 to

55 GSM p£^er on the trim of 6.8 metres. HNL is presently employing 1125 no

of persons, of which 98 (8.71%) are female employee (Annexure 11 to the

directors report, as on March 31** 2004).

Nagaland Pulp & Paper Company Limited (NPPC Ltd.): The NPPC Ltd

was registered on 14 Sept. 1971 with an initial authorized capital of Rs. 8 cr.

of which Rs. 7 cr. was contributed by the government of India through HFC

and Rs. I crore was by the govt of Nagaland. The capital contribution ratio

was maintained in the same ratio later on also. The prime objective of the mill

was overall and complete development of state and established in the

Mukoksang District of Nagaland. The Mill was ready by September 1981 and

the production of the paper started soon. The installed capacity of the mill is

33,000 M.T per armum, and produced strength, durable, bright quality of

papers in this mill was comparatively better, than the production of other

mills, which is completely based on bamboo. Though the present section of

76

the chapter-3 has covered the subsidiaries but the central focus of the study is

on the Paper Mills located in Assam, i.e. NPM and CPH the remaining part

of the chapter would concentrate on NPM, CPM, and as a whole HPC.

3.111. Competitive environment for paper industries in India

It would be worthwhile to view the global and national paper scenarios

to understand the competitive environment Paper demand and consumption

depends on the level of the economic growth and standards of living of the

people, a well-established correlates. India as paper consumer, consumes

lowest per capita paper in the world. The table -3.1

indicates the per c^ita and total consumption of

paper and paperboard for Asian countries. As a

comparison, the world average consumption is 55

kg/person. United States consumption is 301

kg/persoa It is important to consider the paper

production in ASEAN countries, as India has expressed intention to form

closer ties with this group of countries. Of 10 ASEAN countries, only

Indonesia, Thailand, Malaysia, Philippines, and Vietnam have significant

paper production capacity. A brief descriptive snapshot of the paper industries

of these countries are in following section.

TaMcs}.!

Consumption in Asia Paper and Paper Board

Country Japan

Taiwan Korea

Malaysia Thailand

China Indonesia

Philippines Vietnam

kg/person 250 229 156 101 34 28 19 11 7

77

Indonesia: Indonesia is among the ASEAN countries, having highest paper

production capacity with total paper and board production of 7.75 million

tones in the year 2003. Of this production, 2.63 million tones (i.e. 1/3 '*) were

exported. Printing and writing paper produced 3.05 million tones in the year

2003, of which 1.58 tonnes being exported. 385300 tonnes were exported out

of 592,100 tonnes of total production of Newsprints. Indonesia is significant

exporter of paper in the region and has the cq)acity for large volume-low cost,

high quality production. It will not be possible for Indian paper industry to

export Indonesia unless it able to match with Indonesian producer on low cost

production and quality.

Thailand: Among the ASEAN countries Thailand bearing 2° highest

production capacity of paper and board, produced 3.6 million tonnes in the

year 2003. Of this production, 22% (715,000 tonnes) was exported. Printing

and writing paper production was 921,000 tonnes in the year 2003, and

358,000 tonnes being exported. News print production was 120,000 tonnes in

the year 2003, represents half of domestic consumption. Expansions and

Greenfield investments in the 1990s tripled the Thailand's pulping capacity.

Growing condition of hardwood, especially availability of eucalyptus enabled

to think Thailand as the exporter of pulp ^om the hard wood. Thailand

expected to remain an exporter of hardwood pulp in the near future.

78

Malaysia: Malaysia bears the third highest production capacity of Paper

among the ASEAN countries. It produced paper and board 1.32 million tonnes

in total in 2003. It produced 165, 000 tonnes of printing and writing paper,

and 253,000 tonnes of newsprint in the year 2003. Malaysia imported 410,000

tonnes of printing and writing paper and 203,000 tonnes of newsprint in the

year 2003.

Philippines: Philippines had a total paper and board production of 0.93

million tonnes in 2003. Of this production, 14% (134,000 tonnes) was

exported. Printing and paper production was 103,000 tonnes. Newsprint

produced 299,000 tonnes, of which 133,000 tonnes had been exported.

Vietnam: Vietnam produced 642,000 tonnes of paper and board and imported

80,000 tonnes of pulp and 87,000 tonnes of wastepaper in the year 2003. This

imbalance of demand and supply conditions is strategically showing

opportunity to Indian paper industry for trading of paper with Vietoam.

China: Historically, China is a self-sufficient producer as well as consumer of

paper and board. Presently rapidly increasing consimiption of paper products

is being outpacing the internal production capacity. The consumption of paper

products in china reached 42.6 million tonnes in 2003, which is making tlie

2nd largest paper market in the world. In April 2005, India and China

announced strategic partnership for the bilateral trade and commerce between

79

the countries to $20 billion by 2008 and $13 billion in the 2004. With this new

partnership, paper market of both the country will/is being effecting. But, for

India, China will continue as the net importer of p^er. Because of

geographical proximity between the two countries, India could potentially

become and important supplier of paper to China.

Here lies the competition of Indian paper industries. The Indian paper

industry which is the 15th largest in the world consist of approximately 515

pulp and paper productions scattered throughout the country employing 1.3

million of people (the draft report of Sandwell- 114546/1, May 2005)7. The

total installed capacity is approximately 6.7 Million tones with an effective

capacity of 6.2 million tones. The paper production has had growth rate of 5.5

percent over the last 2000-01, 2001-02, and 2002-03 respectively. In the year,

2003-04 paper industry in India recorded the production of 6 percent growth

rate, which was in die line of expected growth rate of Indian GDP. However,

in the wake of economic liberalization, triggered by the new economic policy

of the government of India- 1991, the Indian paper industry found itself

confronted with intemational competition. Almost overnight, the industry was

exposed to the difficult of integrating into the global economy.

80

Table-3.2 Capacity Expansions in the Indian Paper Industry

Mills I. Ballarpur Industries Limited. (BILT)

2.J.K.Paper

3. Tamilnadu NewsPrint and Paper Limited 4. Hindustan Paper corporation. Sub- HNL S. Hindustan Paper Coiporatioo (CPM+NPM) 6. Siipur Paper Mills Limited 7. Khanna Paper Mills Ltd 8. West Coast Paper Mills Ltd. 9. Rama Newsprints and Paper Limited. 10. Andhra Pradesh Paper Mills Ltd. n.rrc

Source: Jain. Stngh and Kulkami-March 2005

Capacity Expansion (tones/year) 200,000 (Bhigwan Unit) 40.000 (Sewa unit) 300,000 (in the next three years) 50,000 (Coated paper plant) 100.000 100,000 60,000 for both mills combined

54,000 50,000 100,000 100,000 45,000 75,000 (Coimbatore)

Coping with competition the paper industries in India had to expand their

capacity as appeared in table 3.2. In the work of Jain, Singh and Kulkami

(March 2005), they opined that the forest based pulp and paper industry is

moving toward competitiveness through adequate modernization. So, is also

realized by the HPC. In the recent MTUP plan, it was mentioned that the

"overall cost of labor at NPM and CPM mills is very high relative to similar

mills and mills making similar products in Asia and Western countries. This is

due to the large number of woricers, and in part to the 25 years of old

technology and equipments, and control systems used in mills". Now the HPC

is procuring and inviting base the equipments on 'the best practices in global

manpower utilization in the pulp and p^er industry'. This signifies the

importance given to the best practices and updated human and technology mix

SI

at HPC to match the modem technology and know how followed by paper

industries of other part of the country and world.

3.IV. Efforts of HPC for Modernizations

Realizing the need to modernize the paper industry with an aim to

match with stiff competition, the govt, of India showed commitment to

strengthen the competitiveness of high performing Public Sector Enterprises

(PSEs) and increased the investment in this paper sector of North-East India.

As a signal of govt's commitment, Hon'ble Chief Minister Shri Tarun Gogoi,

Hon'ble Union Minister of State (independent charge). Heavy Industries and

Public Enterprises, Shri Santosh Mohan Dev, unfolded the Modernization and

Technological Up gradation Plans (MTUP) of HPC, NPM at Jagiroad on

January 19, 2005 and at CPM on 20'*' January 2005. The management

community of HPC expressed their expectation that successfiil

implementation of MTUP program within the four years, and after completion

of implementation, HPC would be able to attain the numero-uno position in

the paper industry. While unfolding the MTUP plan in CPM Hon'ble Minister

Sri Santosh Mohan Dev stated - "In spite of various constraints CPM has

shown significant achievement in the areas of Energy Conservation,

Elimination of wastage. Efficient use of Resources, production improvement

and environment management". Also, the minister complimented on the

82

workers of and HPC management team for their excellent performance and

record of accomplishment of the mill. Later on, the hon'ble minister

inaugurated the Enterprise Resource Plaiming in HPC-CPM centre. On March

31, 2005, HPC signed Memorandum of Understanding (MoU) for the

financial year 2005-06 in the Udyog Bhavan, New Delhi. HPC targeted to

achieve sales target of Rs. 1050 crores. Beside the corporation in ensures

optimum utilization of existing assets for maximizing generation of internal

resources for funding modernization and expansion of installed capacity. HPC

plans to implement technological up gradation of the existing plant, and

equipment for deriving maximum benefits in terms of increased volume of

production and improved quality for achieving overall cost effectiveness and

competitiveness, hi addition to above, HPC is also putting due emphasis on

the following dynamic parameters to attain sustained growth and

improvement:

* Quality-Surveillance Audit for 180-9001:2000 Certification;

•Customer Satisfaction-Customer Orientation(Strategic Bus.

Unit/Product wise);

* HRD (Training & Motivation)

* R&D for Sustained and Continuous Innovation;

* Project hnplementation and Capital Investment for de-bottlenecking

ofresources;

* Control on Consumption of Coal, Grid Power, and Water;

83

* Production of Value Added Paper and Increase of Open Market Sale;

* Setting up of Sheet Making Facility by Local Entrepreneurs from the

residuals.

3.V. Performance Overview of HPC

Logically, while describing the organizational profile a brief snapshot

on performance of the organization were incorporated. The following sections

are being devoted to briefly describe the performance under the following

sub-heads-

* Performance overview- Financial Performance, Contribution to

National Exchequer;

* Operational Overview, Production Trend (CPM & NPM),

* Contribution toward the human capital development and formation;

* Contributions of human capital toward HPC.

(a) Financial Performance: From the table-Bra)^ reveals that during the

Financial Perfonnance

Saks Turn Over operating profit (bcfcH e interest on govt loans, Dep". and Misc. exps. written off) (aterestcmGovL loans

Depreciation Profit before prior period adjustment. Profit after prior period adjustment.

Profit before tax . Accumulated Loss

Table-3X3) (Fig. Rs. tnCtDte)

1997. t998

363.51 39.30

13.67

15.35 11.93

11.51

NA 614.92

199»' 1999

413.36 24.34

13.67

12.57 3.8H

9.32

NA 605.60

1999-aooo

438.47 31.67

13.67

12.83 5.17

10.63

KA 595.00

2000-2001

529.45 NA

NA

NA NA NA

32.80 562.19

2001-

594.01 60.99

5.49

13.72 41.78

41.26

63.75 126.20

2002-2003

639.50 67.17

4.99

19.62 42.56

39.77

40.60 108.65

2003-2004

633 29 85.26

4.19

18.33 62 74

59.69

4094 67.70

84

period 1997-98 to 2003-04, sales turn over of HPC increased gradually up to

the year 2002-03, but in the year 2003-04 sales turnovers has shown slight

Fig-3.2(a)-Sales Turnover

mmsM

declining trend. By ignoring, the not available data for the year 2000-01, the

operating profits of corporation is showing increasing trend, as recorded

highest in the 85.26 crore in the year 2003-04. The sales turnover is increasing

year by year, that is all right, and by looking the picture-accumulated loss, it

Figure- 3.2 (b) Accumulated Loss (Rs. In Lakhs)

90000

sofxn 40JDOO

30j000

lOJXtO

lOjOOO

—

"TTTn ,

Acconialated Loss I t

1997-1998

1998- 1999- 2000-1999 2000 2001

5001 2002-2001- 2003 JSSim

2003-2004

would be able draw the conclusion on the trend of real positive financial

performance. In the fig 3.1(b) the accumulated loss of the corporation are

declining gradually at steady pace up to the year 2000-01, and in the year

85

financial year 2003-04 it had come down to the lowest, which is showing a

real positive perfonnance trend from the financial angle.

(b) Review of Operational Performance of HPC; To describe operational

performance of the corporation the data has been collected for the year 1998-

99 to 2004-05. By compiling data for productions of both unit/year, and

capacity utilization a comparative picture of the units was depicted which

unfolded a picture of performance of the corporation.

Production Trend (NPM & CPM): The two operating mills viz. CPM and

NPM had/have been recording the production output in an increasing trend up

to the year 2003-04. hi the year 2004- 05 the output declined. The major

reasons of decline of output of both the mills were for the affect of

unprecedented torrential rains, which lashed the state of Assam in July 2004,

flooded 26 out of 27 districts. Rail and road links were snapped due to

frequent landslides and fioodwater.

Production of NPM (Production ) CPM (Production)

Total (Production) Sales (MT) (NPM+CPM) Capacity Utilization

Table- 3 J Production Trend

199S-99 90174 60009

150183 NA NA

1999-00 98783 65823

164606 162681 82.3%

2000 )1 100841 76722

177563 176486 88.78%

in Tonnes) 2001-02 100946 92065

193011 196158 96.51%

2002-03 106091 94702

200793 203241

100.40%

2003-04 112639 97976

210015 204405

105.01%

2004-05 106300* 91012*

197312* 196820* 98.66%*

Sources: Data 99-00 to 03-04 are from the Five YearDiggest, Annual Report- 2004 *Figure source- Hindustan Paper, Sandesh (Hindi) Oct 04-Mar, 2005, and Papyrus {A bimonthly News Bulletin ofHPO VoWV, No. 6. March-April, 2005.

86

Fig-3J(a) Production Trends (NPM & CPM)

( i.it

i^

-f-

• ^ ^ i ~ - l NPM (Production) —»— CPU (Production)

1 0 9 9 ^ 200(M)1 2001-02 2002-03 2003-04 2004-05

Thus vital inputs could not reached to mills and production had to be

suspended during the period resulting lower output, and low capacity

utilization as compared to the financial year 2003-04. The table- 3.3 is

showing a snapshot on operational performance of both mills of HPC. The

figure- 3.3(a) is showing the production trend of both units located in Assam.

In the fig-3.3(b) in the next page are drawn from the table 3.1 showing the

total production and capacity utilization of HPC (NPM+CPM) and showing

trend. In the year 2004-05 both production and capacity utilization declined,

the reasons for which is stated above. But one notable point was (as appeared

in April 22, 2002 of website of HPC) that HPC and its wholly owned

subsidiary, HNL together accounted for a sales turnover of Rs. 821 cr.,

emerging as the second largest corporate enterprise in the Indian Pulp & Paper

Industry, after the Ballarpur Industries Limited.

87

Fig- 3.3 (b)Total Production and Capacity Utilization of HPC

a Total (Production of HPC) — Capacity VOtMOon of HPC

Serics-1. 1999-0) 4. 20024» i 200(Wn 5.2D(B-0* 3.2001-02 6.200*-05

Contributions to Exchequer: HPCs contributions to national exchequer are

shown in the table 3.4 below. During the period 1997-98 to 2003-04 total

contribution of corporation to the national exchequer recorded highest in the

consecutive year 2000-01 and 2001-02 with a very slight but positive

variation. The figure prepared from the table-3.4 showing a best description of

the contributions made by the corporation to the national exchequer by the

TabIe-3.4 Contribution to National

Conti&butioa to

Excise Duty

Sales tax tacluding turnover tax Custom Duty

Other Rates and Taxes

Loan Repayment to GOI

Int. on GOI Loan

Corporate Taxes

Total

1997-98

41.86

12.51 2.89

0.46

NA

NA

NA

•«*

199g^

42 18

7.56 2.30

0.21

0.00

6.34

0.00

S»JS9

Exchequer 1999-

00

40.93

3.53 3.80

0.13

0.00

13.67

0.00

62M

2000-01

57. J 3

9.46 4.30

0.16

50.12

12.10

0.00

133J7

2001-02

59.03

13.53 8.81

0.34

22.78

7.56

21.41

133.46

Rs. In CTOTC

2002-03

62.91

26.11 3.76

1.26

10.64

2.44

3.21

110.33

2005-04

57.07

26.17 5.18

0.63

0.32

0.07

12.68

102.12

88

Figure-3.4: Total Contribution to National Exchequer

140

120

100

80 -I

60

40 -j

20

0->

pTotal

1.1998-99 2. 1999-00 3 2000-01 4. 2001-02 5. 2002-03 6.2003-04

corporation. HPC paid maiden dividends of Rs. 15.20 cr. to Government of

India (GOI) for the financial year 2005-06 on Aug02, 2006 (Official Diary,

2007).

<0 Other Performances (as a Corporate Citizen of N.E and the Country):

The following certifications to HPC are the hallmark, and showing how the

HPC is crossing the milestones in different arena of organizational

performance. Recognition of the different certifying agencies is the certificate

of commitment as a responsible and responsive corporate citizen in ensuring a

healthy and safe environment and by proactively contributing to minimizing

environmental pollution. These are as follows-

> NPM has received the prestigious OHSAS-I800l:l999 Certification from M/s.

DET NORSKE VERITAS (DNV), a first in the Indian Pulp & Paper Industry.

> NPM also received recommendation for ISO-14001 certification in respect of its

Environmental Management System (EMS) on 28.02.2002.

89

> CPM got ISO 14001 Certification for its Environmental Management System

(EMS) in January 2003, HPC group thus becomes the first corporate entity in the

Indian Pulp and Paper Industry to have attained both ISO 9001 and ISO 14001

Certification for its 3 operating mills.

> Salt Lake Housing Complex of HPC had been awarded the ISO: 14001: 1996,

Environmental Management Certification by Det Norkse Veritas (DNV),

Netherland.

> Received Environment Aw^rd 2003-04, conferred by Indian Paper Manufacturer

Association (IPMA) in appreciation and recognition for disj^aying sincere

commitment for environmental protection activities under very demanding and

trying circumstances by NPM

3.VL Manpower Position of HPC

Regarding the manpower position of the corporation, at first data appeared

from the annual report are taken into consideration. The

was compiled from the data available in Annual

Reports- 2003-04, 2002-03. The figure as appeared from

the table depicted a declining trend of manpower

deployment, recorded a sharp decline of manpower from the 2000-2001 to

2001-2001. This is the result of cost-cutting exercises, and awareness toward

the competition, efficiency, and profitability through manpower reduction and

optimum utilization of human resources of the organizatioa It is appeared that

HPC employed VRS- Golden Handshake scheme for downsizing manpower.

For the present study data regarding the down-sizing of HPC was not

Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

Manpower 3443 3413 3386 3146 3053 2957 2536

90

collected but the existing data on manpower revealing the downsizing trend

pleasingly.

Fig. 33

Manpower Position (Declining Trend ) Manpower

400(h

3000

2000

1000

OJ ig9&-99 1999-00 2000-01 2001-02 2002-03 2 0 0 3 ^ 2004-05

D Manpower

3.VII. Contribution toward Human Capita] Development

Along with the performance, HPC's contribution to the human front is

also a considerable aspect and is worth noting in the context of performance.

From the initial state of establishment of CPM and NPM in Assam,

undoubtedly, both the mill is contributing toward the Human Capital

Development, Formation and Human Sustenance of the region, as well as to

the nation. Henceforth, the ^propriate line of researches and academic

activities should appreciate it by reviewing and highlighting the role played by

the corporation for human c£q)ital development, and formation in the region.

In a limited space and scope, the present section is devoted in highlighting the

contributions toward the human capital development and formation. Without

delving into the conceptual part of the human capital formation and

91

development, it is better to simplify the meaning that HPC as a socially

responsive organization, contributing towards skill formation of upcoming

generation of human/work-force. HPC is facilitating to a large number of

students from technical and non-technical institutes in getting In-Plant

training. At the same time, HPC is developing their own Human Capitals

through the human resource development (HRD) programmes to match with

the demanding situation of the organization. The follovraig section under the

two subheads, first, Human Capital Development, and secondly. Human

Capital Formation would appreciate this valuable contributions of the

corporation.

Human Capital Development (Through Training and Development): The

basic method of human capital development is the training and development

(T&D). T&D activities are looked alter by the T&D section under the control

of Human Resources and Employment Services (HR&ES) department of both

mills-i.e. NPM and CPM. Realizing the need for Human Resources

development for production, productivity, and competitiveness, HPC has/had

been conducting a large number of training and development programmes

every year. The T&D division of both mills is organizing the programmes

under the three broad heads. First one is the In-Company Programmes-

covered the programs which are managed within the company, and organized

92

for officers, supervisors, workmen. The second category of In-Company

Programs -In-House Programmes- were organized and managed within the

units solely depending on the internal arrangement of trained manpower

resources. These programmes were conducted for the officers, supervisors,

workmen, contract workers of the corporation, and for others. The table-3.6

showing a comparative picture of In-house T&D activities of both the mills

based on the official data collected from the T&D divisions for the financial

TabIe-3.6: Statement of Training (Performance Related Training Only)

In ComfKUiy Prognun*

Officets attended

SuperviROts

Woribnen

Etapioytt Teamed (total)

Coat. Labor attended Otheo Total

1997-98

z 4

5 120 129

00

a) 129

0

4 112 116

00

00 116

1998-99

1 30

4 180 224

00

00 224

u 29

22 181 232

00

ai 232

1999-00

s

240

40 131 411

00

00 411

fiu

240

36 123 399

00

00

399

2000^1

i 72

10 50

132

00

00 132

75

10 54

139

00

00 139

2001-02

fiu

z 260

5 170 435

170

00 615

RU U

257

3 168 428

166

00 594

20024)3

1 290

30 120 440

190

(XI 630

297

26 135 458

183

00 641

20034)4

1 Z 230

30 150 415

90

90 595

S W 227

26 148 401

80

93 574

In-hoaseProg.

OfBcTrt Supetvisois Wofkmen Eaqjloyec Tained (total) Cont«a Labour Others Total

00 00

00

00

00 00

00 00

00

00

00 00

270 50

570 790

263 55

561 879

00

00 879

220 25

140 38S

50

50 485

218 25

136 379

48

48 427

100 15 70

185

15

18 218

90 15 69

174

12

12 198

16 15 35 66

18

25 109

14 13 33 60

19

19 79

25 20

260 307

00

00 307

22 20

264 206

00

0 206

UK) 25

230 355

00

00 3155

90 21

203 314

00

0 314

Sources: Official document of T&D divisions.

93

year 1997- 98 to 2003-04. The corporation is also conducting external T&D

programmes for the officers, supervisors, and workmen. The Company with

the help of other T&D institutes and HRD related agencies have/had

organized the external programs. The external T&D programmes conducted

for performance enhancement backup, development of ultradex skills, and

development of organization and management techniques. The table-3.7 (in

appead3X'3) is showing a comparative picture of external T&D programmes

organized by the both the mills of the corporation.

Organizational Development Training: The diird major type of training

organized by corporation (NPM+CPM) is organization development training

organized for the cadre of junior management development, and for the cadre

of workmen to transfer the learning of organizational development (OD). The

table -3.8 (in annexure ) is showing a comparative picture of OD training

organized by both the mills of the corporations and shows the concern for

need for OD knowledge enhancement for all cadres of employee of the

corporation/mills. By categorizing the T&D activities of the corporation on

the basis of nature and skills transferred to workplace, then can be seen that

the HPC is more concemed with developing of Ultradex, Sure-skill, and

Predicta. As defined by the Manpower Corporation, ultradex skill denotes

the skills pertaining to several important light industrial skills. Sure-skilb

94

means for office automation skills, and complex software related skills

necessary in modem industries. Predicta skill denotes critical general office

Table-3.9: Programs for Different type of Skill Transfer

Programmes Use of Safety Equqpment & Emergency Preparedness

Use of Fist Aid and Fire Equqmient

Fire Training Campaign

Contract Labour Training Program: Excellence and Quality Assurance

Campaign on occupational Health and Medical Aid

Contract labour Training Programe

Chemical Recovery (for shop floor Technical staf^ executive-l cadre)

Environmental Legislation relevant to Industry

Chemical Recovery, Environmental Management

Iiulustrial Hydraulics

bidu^rial Steam Turbine Governing System

Executive development (By IIM-C)

Electrical Safety (NFC, Mumbai)

Equipment Maintenance (CD-Kolkata)

Fitter Course (Advanced Trainning Institute- Kolkata)

Negotiation Skill- Towards a positive IR environment (CD- Kolkata)

ERF- Trainning, Computer Awareness

Type of Skills Ultradcx/inhouse

UHradex/inhouse

Ultradex/inhouse

UltiBdex/inhouse

Ultradex/inhouse

Ultradex/inhouse

Ultradex/inhouse

Predicta/inhouse

Ultradex/Predicta/inhouse

Ultradex/inhouse

Uhradex/.inhouse

Predicta/Extemal

Ultradex/Extemal

Uhradex/Extemal

Ultradex/Extemal

Predicta/Extemal

SureskiU/Exlemal

Sources: KOMPOL. Darpan

and organizational skill. The table- 3.9 was prepared on the basis of available

information on HRD and T&D of the organization that appeared in the news

letters of both the mills to show various types of training organized for

knowledge and skill, formation and development of the employees of both the

mills.

95

2.VIII. Interactions with the institutes

Trainings were conducted in interaction with some nodal institutions.

Few of them are-

1. CII (Eastern Region); 2. Indium Institute of Technology, Roorkee, Institute of Paper Technology; 3. CPPRl, Saharanpur, 4. Cross Cultural Communication Centra, New Delhi; 5. National Productivity Council, New Delhi, Guwahati, 6. National Safety Council, Mumbai; 7. Advanced Trainning Institute, Kolkata; 8. CETE, STQC, Kolkata; 9. Central Board of Workers Education; 10. Fire Trainning Institute, Jamshedpur, 11. Indian Chambers of Commerce; 12. Ahmed Management Technologies Private Limited (AMTPL) Kolkata; 13. ISTM (DOP, Govt, of India, New Delhi); 14. L& T, Mumbai; 15. ICWAI; 16. Indian Institute of Material Management; 17. Indian Institute of Technology, Guwahati; 18. National Power Training Institute, Nagpur; 19. Indian Institute of Entrepreneurship, Guwahati, 20. Det Norkse Veritas (DNV) Kolkata, 21.XLRI; 22. NITIE, Mumbai, 23. CBI- Academy, Ghaziabad.

3.IX. Human Capital Formation

As a responsible corporate citizen of the country, HPC has been

playing a significant role in skill development/skill development of human

capital in the region. Both the mills of the corporation are providing support in

skill formation of technical non-technical trainees under the guidance of

apprenticeship role of govt, of India Yearly at least 20 such trainees are

96

getting facilities in both the mills of the corporation. The table-3.l0 (in

Appendix-2) is showing the picture of numbers trainers received training

facilities for skill formation in both the mills.

Other than the apprenticeships, both the mills are providing In-Plant

training facilities to students of different Institutes of technical and non­

technical courses. Among Uic students of technical courses such as

Mechanical, Civil, Electrical, Electronics, Industrial Engineering., and

Industrial Safety are getting facilities for attending in-plant training in both the

mills. The students of professional courses such as MBA, MSW, Urban

Plaiming and Management are also getting facilities in conducting research-

based study with the support of the guidance of executives of both the mills.

Even the research scholars for doctoral programs are also conducting research

in botii the mills. At the time of survey within the mills, the researcher of the

present study met one scholar from economics; other is from the chemical

sciences that were conducted study with the support data, and laboratory of

the HPC. Table-3.\0{appendiX'2) of the earlier page is showing data regarding

In-Plant trainees who received training in both the mills of Assam. A notable

point is that, NPM received more requests to accommodate students from the

institutes due to location, and proximity to major educational institutions and

communication facility from the coital city- Guwahati. The statistics as

97

appeared in the KOMPAL- A in-house news journal of NPM, many students

along with their teacher also visiting the mill. In industry, institute linkage the

corporation is playing a vital role. Besides the local industry- institute

interaction, the Mills of HPC are having connections with various types of

institutes of national and International repute. HPC is exchanging knowledge,

facilitating faculty members to express themselves for academic-industry

exchanges. These are directly and indirectly contributions for knowledge

formation and development in the region, and in the country at large.

3.x. Contribution of Human Capital to HPC

So far, the foregoing section attempted delved into the contributions

made by both paper mills in human capital development and knowledge

formation in the region. While we talk about the contributions of corporation

to the human capital formation, then automatically the question of

contribution of human capital toward organization come to the researcher's

mind. The answer to the same was also a part of organizational outcomes of

engagement. Li this section, only Productivity and Human Capital Revenue

are taken into consideration to show human capital contributions to

organization- HPC as a whole. The other parameters such as Human Capital

Cost, Human Capital Return, Satisfaction Percentage, Work Environment

PercentJ^e, Work Climate Percentage, is forwarded to the next chapter-IV.

98

Table- 3.12 (Contribation of Hunum Capital)

Employee Productivity (in Tonnes)

Human Capital Revenue (HCR) (Rs. in crore)

I99S.99

43.62

.11

1999-00

48.23

.12

2000-01

52.44

.13

2001-02

61.35

.17

2002-03

65.78

.19

2003-04

71.02

.22

Fig-3.12(b)

00

70

«0

90

40

30

20

10

1998 199 -99 -00

Fig.3.12(a) Employees* Prodnctivit) 1

_._

9 2000 2001 2002 2003 -01 -02 -03 -04

r— .VVM'J7 ~i. •—rl

Productivity

Human Capital Revenu*

a Lakhs

R>. In Cr. Is Changed to Lakhs.

Here, in the table-3,12. Employee Productivity and Human Capital Revenue

with the help of diagrams bellow. The figure of productivity and human

capital revenue (year wise) is showing an increasing trend, indicated explicit

contribution of HC toward the corporation. Above quantitative and qualitative

data-based profile of the corporation is helping us to visualize over the

outcomes on engagement of employees. HPC in continuously and

99

consecutively improving, productive, and responsive, quality conscious work

environment are partly due to engagement Now HPC is under the wave of

change (explicit cause is MTUP and emerging competition). In this critical

situation, the organizational change with the rising trend of human capital

revenue provided a logical basis for exploration over the employee's

engagement. The next ch^ter- IV is concentrated on Engagement of

Employees in NPM and CPM, and as whole in HPC; and explored the top

drivers of engagement in the organization empirically.

100

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Jain, Singh and KuJkami (2005), The Indian Paper Industry: Towards Smtainability, Pulp and Paper International, March-2005, published from

326, Avenue Louise, Box 22, Brusals, Belgium, also at http://www.paperloop.com

Toland, Justin, Consolidating Their Positions- India's BILT the Highest New Entry at 90; A Year of Few Changes to the Top, Pulp and Paper International

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About the Hindustan Paper Corporation, Published on 1988 by OL Section of HPC Limited

Development Plan of HPC, prepared by Sendwell Consultants, at http://MDP-HPC/market.com

Thailand: Paper and Competition; at http://www.paperloop.com/thai market.com.

MTUP unfolded at NPM and CPM, Papyrus {A bimonthly News Bulletin of HPC) Vol- rv. No. 5. Jan-Feb, 2005.

Unfolding of Modernization and Technological Upgradation Plans, Darpan (A Quaiarly In House Journal ofCachar Paper Mill), Vol. 1, No. 4, Jan- March, 2005.

HPC Inks MoU with GOI for FY 2005-06, Papyrus {A bimonthly News Bulletin of HPQ Vol- IV, No. 6, March-April, 2005.

HPC achieves record production and sales, Kolkata, April 22,2002, at http://www.hindpaper.com/press/pressl .htm.

HPC Scales New Peaks, Kolkata, April 28,2004, at www.hindpaper.com/hip presscliD.htm

at http://www.hindpaper.com/tffess/pressl .htm.

HPC Group achieves record production & sales, Kolkata, May 2,2003, at http://www.hindpaper.com/press/press2003.htm

Papyrus {A bimonthly News Bulletin of HPQ, Vol. Ill, No. 2, July-Aug, 2003.

Documents incorporated by reference; Form 10-K, of Annual Report- 2005-06 Manpower Inc., United States Securities and Exchange Conmiission, Washington D.C. 20549, pp-6.

101

Diary of Hindustan Papers- 2007

iDformatlon from In-house News- Journals used: Papyrus, Vol. IV (6) March-April, 2005, (HPC) Papyrus, Vol. IV (1) May-June, 2004 (HPC) Papyrus, Vol. in (2) July-Aug, 2003 (HPC) Papyrus, Vol. IV (4) Nov-Dec, 2004 (HPC) Papyrus, Vol. IV (3) Sept.-Oct, 2004 (HPC) Papyrus, Vol. IV (6) Mar.-April, 2004 (HPC) Papyrus, Vol. Ill (3) Sept-Oct, 2003 (HPC) Papyrus, Vol. II (6) March.-April, 2003 (HPC) Papyrus, Vol. Ill (4) Nov.-Dec, 2003 (HPC) Papyrus, Vol. Ill (2) July.-Aug, 2003 (HPC) Papyrus, Vol. Ill (5) Jan.-Feb. 2004 (HPC) Papyrus, Vol. Ill (1) May.-June. 2003 (HPC) Kompal. Vol.1 (2) Jan-Feb, 2003 (NPM) Kompal. Vol.1 (3) March-April, 2003 (NPM) Kompal .Vol.1 (4) May-June, 2003 (NPM) Kompal. Vol.11 (1) Jan-Feb, 2004 (NPM) Kompal. Vol. 11 (3), May-June, 2003 (NPM) Duran, Vol.1 (4), January- March 2005 (CPM) Kompal. Vol.11 (2), March-April, 2004 (NPM) Kompal. Vol. 11 (8), Oct. Nov 2004 (NPM) Darpan, Vol. 1 (2) July-Sept, 2004 (CPM) Darpan, Vol. 1 (4) Jan-March, 2005 (CPM)

Annual Reports: Annual Reports of Financial Year 1999-00, 2000-01, 2001-02,2002-03, 2003-04.

102