A Project on One of The Largest Firm in Indian Paper
Industry. 1
The history of paper began in Ancient Egypt approx. 3,700 BC – 3,200 BC (approx. 5,200 years before present) with the use of ‘Papyrus’ as a medium for written records.
The word paper is derived from the Greek term for the ancient Egyptian writing material called ‘Papyrus’, a reedy plant papyrus, which grows abundantly along the Nile River in Egypt. It was formed from beaten strips of ‘Papyrus plants’.
Paper was invented by Cai Lun a Chinese person in 105 AD by using mulberry and other bast fibers along with fishnets, old rags, and hemp waste in the ‘Han Dynasty (202 BC-220 AD) and spread slowly to the west via Samarkand and Baghdad. Later on papermaking started in Italy and Germany. 2
History Of Paper
Greek Parchment Paper
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One Of The First Ever Made Greek Parchment Paper
Paper is a versatile material with many uses. paper is a thin material mainly used for writing upon, drawing upon, printing upon or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets.
Paper is the most important material for the art and craft industry and must needed in painting.
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Uses Of Paper
Industry Overview
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Paper And Pulp
At present, there are about 666 units engaged in the manufacture of paper and paperboard out of which nearly 568 are in operation.
The per capita consumption of paper in India is estimated at 8 kg, which is far lower than the world average of 55 kg.
The total installed capacity of pulp & paper mills in the country are estimated to be over 7.5 million tones which is likely to increase to 8.3 million tones by 2010 & over 14 million tones by the year 2020.
Maximum number of agro residues based mills are located in Uttar Pradesh, Maharashtra, Punjab & Andhra Pradesh while maximum mills based on Recycled fibers are located in Gujarat, followed by Maharashtra, Uttar Pradesh & Punjab.
It is estimated that the paper industry would be growing at the present rate of 7-8%. 6
Paper And Pulp Industry Overview
Company Present Capacity(TPA)
Bilt (Ballarpur Industries Ltd.) 465,000
ITC Ltd. 352,500
Khanna Paper Mills Pvt. Ltd. 350,000
HPC (Hindustan Paper Corporation) 300,000
TNPL (Tamil Nadu Paper Mills) 230,000
JK Paper Mills 180,000
Abhishek Industries Ltd. 175,000
WCPM (West Coast Paper Mills Ltd.) 163,700
APPM (Andhra Pradesh Paper Mills) 153,500
Century Pulp & Paper Mills 153,170
Emami Paper Mills Ltd. 145,000
Rama Pulp and Paper Mills 132,000
SPB (Seshasayee Paper and Boards Ltd.) 115,000
Sirpur Paper Mills Ltd. 85,550
Orient Paper Mills 85,000
Pudumjee Pulp and Paper Mills 60,000 7
Major Paper And Pulp Companies And Their Capacity
JK OrganizationSince 1938 …
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Founder the visionary
The foundation of J.K. Organization was laid when the nation was passing through turbulent times. It was the time when Indians were discriminated against, in their own homeland. Born on 7th November 1884, Lala Kamlapatji, the worthy son of Lala Juggilal Singhania, had the determination to fight against this discrimination and a vision to make Indian business self reliant. With this inspiration he set up the first cotton mill in northern India JK Cotton Spinning Mill in 1921, exclusively using Indian capital, management and labour.
The Visionary personality had strong nationalist fervour. Responding to the Mahatma’s call for ‘Swadeshi’ in 1930, he burnt his whole stock of imported cloth and decided not to import any further. He organised and led a boycott week with a protest march in Kanpur in a procession on August 10, 1930, which was more than three miles long – a reflection of his awakened conscience. 10
Founder the Visionary
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Overview of JK Organization
Overview of JK Organization
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Hari Shankar Singhania, The President of J.K. Organization being bestowed the honour of Padma Bhushan
by the Honorable President of India, Shri A.P.J. Abdul Kalam
Over 100 years in business:Total Assets Rs 42 billion, No of employees over 2,50,000
(Approx.)
Major share is owned by singhania family.
Multi-business, multi-product, multi-location.
Pioneers to introduce several new products in India:Aluminum, Nylon, Radial Tyres, etc.
Strong brands and market leadership in quality.
High capacity utilization and operating efficiencies.
Extensive distribution network – Customer focus.13
Overview of JK Organization
JK PAPERCreating lasting
impressionsSince 1962
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Incorporation :1961 Commencement : 1962 Parent Company : JK Organization Group : Singhania (HS) Group Current Market Capital : Rs.423 Crores Workforce : (<) 20000 employees (Approx.) Auditors : Lodha & Co. Company Secretary : S C Gupta Bankers : Axis, Canara, IDBI, SBI Listed on : The Stock Exchange, Mumbai,
National Stock Exchange of India Ltd., Luxembourg Stock Exchange.
Future Plan : Expansion of plants with investment of Rs.1500 Crores.
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Overview of JK Paper
1962 - JK Paper Mills (JKPM) commences operations with 18,000 t.p.a capacity as a division of Straw Products Ltd (renamed JK Corp Limited).
1992 - Installed capacity grew to 75,000 t.p.a. 1992 - Acquired a BIFR company ‘The Central Pulp Mills Limited’ (CPML) 47,000
t.p.a capacity and turned it into a profitable company. 1997 - JKPM capacity increased to 90,000 t.p.a. 1998 - State-of-art Pulp Mill of 127,000 t.p.a capacity installed at JKPM. 2000 - JKPM transferred from JK Corp to CPML in April 2000 under Business and Financial restructuring of JK Corp.
- CPML became second largest paper company in private sector. 2001 - CPML name changed to JK paper Ltd. In November 2001. 2003 - Commenced outsourcing operations of coated paper. 2004 - Combined capacity of 180,000 t.p.a of Paper and Pulp. 2005 - Commissioned 46000 t.p.a coated paper capacity.
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History of JK Paper
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To be amongst the best and the ever most admired companies in India, committed to the ultimate excellence.
To be a Dynamic Benchmark and Leader in the Indian Paper Industry.
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Vision of JK Paper
Be a Customer Obsessed Company - Customer First 24x7 Motivated and Committed team for excellence in
performance Be a Green Company Deliver Enhanced Value to all stakeholders Enhance global presence through Acquisition / JV /
Strategic Partnerships To be a World Class Company by achieving Growth and
Leadership through; JK Brand Equity, customer obsession, technological innovation, cost competitiveness, environmental & social care. 19
Mission of JK Paper
• JK Paper passionately believes in Environment and Safety and has been introducing cleaner and environment-friendly technologies. JK Paper Mills has been adjudged as the Greenest Paper Mills in India. Both the units of the Company are ISO 14001 certified for their eco-friendly operations and OHSAS-18001 Certified for Health, Safety and Security.
• The Company’s plantation, driven by in-house research programme, has coverage of more than 70,000 hectares with 7,000 hectares of plantation being added every year. By providing farmers high quality plant species through the Company’s plantation research centre, it helps farmers to improve their economic well being. A large number of farmers in the state of Orissa, Andhra Pradesh, Chhattisgarh, West Bengal, Gujarat and Maharashtra are benefited from the programme. These plantations with their superior quality plants contribute towards a strong base for high quality raw materials for the Company. 20
Social Responsibility
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Management of JK Paper
Managing Director Chairman
Name Designation
Hari Shankar Singhania Chairman / Chair Person
Harsh Pati Singhania Managing Director
Om Prakash Goyal Whole Time Director
Dhirendra Kumar Director
R V Kanoria Director
Shailesh Haribhakti Director
Udayan Bose Director
Arun Bharat Ram Director
M H Dalmia Director
Shailendra Swarup Director
S K Pathak Director
Vinita Singhania Director 22
Management of JK Paper
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Products of JK Paper
1. JK Copier A4 size double Sided
Copying. Sharp, Crisp Copies. Usable in all Standard
Speed Copiers. Controlled Moisture
Content Curling. Typing, Printing and
General Office Use.
Products of JK Paper
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2. JK Copier Plus A4 size coated paper. Used for printing
colourful copies. Best suitable for
printing presentations. Used mainly in colour
printers. Controlled Moisture
Content Curling.
Products of JK Paper
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3. JK Easy CopierIncreases Copier Efficiency.
Excellent Runnability.
Good Printability.
Suitable For Double- Sided Printing.
Products of JK Paper
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4. JK Excel Bond Mainly used for project
reporting. Controlled Moisture
Content Curling. Sharp, Crisp Copies. Usable with standard
printing device. Used largely for office
works.
Products of JK Paper
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5. JK Maplitho• Mainly used in Portable
printing machines.• Easy to use paper
instant handy prints.• Used mainly in STD
booths.
Products of JK Paper
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Achievements
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First Indian Paper Company to• Introduce surface sized maplitho in the Indian market• Introduce copier paper in India.• Produce airmail paper from bamboo pulp.• Be awarded sword of honour by the British Safety Council.
--- 1992.• First Paper Mill Certified ISO 9001 (DNV) --- 1995.• Be accredited IS0 9001 and ISO 14001 standard --- 1998.• Get adjudged as greenest paper mill by centre for science
& environment (CSE) --- 2003.• Export branded photocopier paper.• Certified OHSAS 18001 (DNV) --- 2007 30
Achievements
Strategic Geographical Presence
• Strategic location– JKPM located close to raw-material sources– CPM located close to large end customers and
raw material source .
• Strong distribution reach– 4 regional offices– 11 warehouses– 102 distributors– over 2,500 dealers 31
Achievements
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Performance of JK Paper
Dividends DeclaredAnnounce-ment
DateEffective
DateDividend Type Dividend (%)
18-05-10 16-07-10 Final 20.00
14-05-09 17-07-09 Final 17.50
27-06-08 13-08-08 Final 15.00
29-10-07 29-11-07 Final 22.50
26-09-06 10-11-06 Final 6.00
27-02-06 10-03-06 Interim 14.00
12-08-05 25-08-05 Final 20.0033
Performance of JK Paper
Cash Flow of JK Paper (in Rs. Cr.) Particulars Jun
'06Jun '07
Mar '08
Mar '09
Mar '10
12 months
12 months
9 months
12 months
12 months
Net Profit Before Tax 54.33 71.69 34.92 54.09 126.93
Net Cash From Operating Activities 119.03 146.85 93.67 202.77 243.83
Net Cash (used in)/fromInvesting Activities -127.93 -204.18 -93.67 -25.18 -66.13
Net Cash (used in)/from Financing Activities 11.06 55.40 -1.32 -146.87 -204.05
Net (decrease)/increase In Cash and Cash Equivalents 2.16 -1.92 -1.33 30.72 -26.35
Opening Cash & Cash Equivalents 4.59 6.75 4.83 3.50 34.22
Closing Cash & Cash Equivalents 6.75 4.83 3.50 34.22 7.8734
Performance of JK Paper
Key Financial Ratios of JK PaperParticulars Jun '06 Jun '07 Mar '08 Mar '09 Mar '10
Face Value (Rs) 10.00 10.00 10.00 10.00 10.00
Dividend Per Share (Rs) 2.00 2.25 1.50 1.75 2.00
Operating Profit Per Share (Rs) 17.63 19.94 14.01 23.22 31.23
Net Operating Profit Per Share (Rs) 97.11 108.78 87.86 154.37 160.69
Free Reserves Per Share (Rs) 34.39 36.64 38.68 41.03 -0.03
Current Ratio 1.34 0.77 0.73 0.88 1.26
Debt Equity Ratio 1.72 1.89 1.87 1.73 1.15
Long Term Debt Equity Ratio 1.63 1.57 1.36 1.36 1.15
Debtors Turnover Ratio 7.28 7.58 6.30 11.07 11.87
Gross Profit Margin(%) 13.69 14.40 9.26 9.26 13.86
Net Profit Margin(%) 4.64 5.35 4.97 3.12 7.24
Earnings Per Share 4.26 5.86 4.43 4.86 11.65
Book Value 45.35 47.54 49.30 51.54 60.8535
Performance of JK Paper
Yearly Results of JK Paper (in Rs. Cr.) Particulars Jun '06 Jun '07 Mar '08 Mar '09 Mar '10
Sales Turnover 732.96 759.48 606.72 1,077.18 1,106.49
Other Income 1.37 3.72 7.87 4.92 0.39
Total Income 734.33 763.20 614.59 1,082.10 1,106.88
Total Expenses 598.86 606.85 498.52 899.86 861.42
Operating Profit 134.10 152.63 108.20 177.32 245.07
Gross Profit 135.47 156.35 116.07 182.24 245.46
Interest 33.84 34.37 35.29 58.47 48.49
Depreciation 47.14 50.48 45.86 69.69 70.04
Tax 18.69 25.40 0.21 16.07 35.90
Net Profit 35.80 46.10 34.71 38.01 91.03
Earnings Per Share 4.58 5.90 4.44 4.86 11.65
Equity 78.15 78.15 78.15 78.15 78.15
Reserves -- -- 307.12 -- 391.99
Face Value 10.00 10.00 10.00 10.00 10.0036
Performance of JK Paper
Firm Share Price(Rs.)
Market Cap.(in Rs. Cr.)
SalesTurnover(in Rs. Cr.)
Net Profit(in Rs.
Cr.)
Total Assets(in Rs.
Cr.)
Ballarpur Industries 33.45 2,008.75 1,002.54 125.39 2,239.40
Tamil Newsprint 119.70 828.45 1,068.66 126.06 1,470.77
West Coast Paper 90.45 567.56 623.57 90.54 1,836.05
AP Paper Mills 127.75 418.40 650.42 54.19 996.30
Seshasayee Paper 215.80 242.78 517.27 39.93 549.98
Pudumjee Pulp 25.75 105.58 218.41 10.28 166.56
Rama Newsprint 17.70 102.94 314.53 -56.65 500.79
Sirpur Paper 59.10 93.90 340.04 -11.16 554.30
Star Paper 39.60 61.81 260.91 8.33 165.4537
Competitors of JK Paper
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Accolades
( Consisting of the largest 500 Indian Companies amongst the 28 sectors and 6 of these companies were belonging to the
paper and pulp industry.)
This was the first time that a CSR Rating for companies were declared in India or anywhere in the world.
www.karmayog.org/csr39
Accolades
Karmayog Corporate Social Responsibility
Rating - 2007
Ratings for the Paper Industry
* Note : Karmayog recommends that Companies spend a minimum of 0.2 % of sales on CSR activities annually
Accolades
Karmayog CSR Rating of Largest 500 Indian Companies - Extract of Paper Sector
No Company Net Profit Rs. Cr.
CSR Rs. Cr.
CSR Rating
CSR Activities
1Andhra Pradesh Paper
Mills 25 0.9 2/5education, healthcare
2 Ballarpur Industries 150 3.6 2/5community,
environment
3 JK Paper 15 1.3 2/5education,
health
4Rama Newsprint &
Papers 20 0.6 1/5community
development
5Tamil Nadu Newsprint &
Papers 35 1.4 1/5 environment
6 West Coast Paper Mills 30 0.7 1/5 environment
National Energy Conservation Award
- 2008
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Accolades
PULP & PAPER
Bilt Graphic Paper Products Ltd. Unit: Bhigwan, Dist. Pune
MAHARASHTRA
1st Prize
Energy Savings
9.22%
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Accolades
PULP & PAPER
Century Pulp and Paper Lalkua, Dist. Nainital
UTTARAKHAND
2nd Prize
Rs. 6.71 Crores
Energy Savings 43
Accolades
PULP & PAPER
JK Paper Mills (A Unit of JK Paper Ltd.)
Jaykaypur, Dist. Rayagada ORISSA
Certificate of Merit
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Accolades
Rs. 1.2 Crores
Energy Savings
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National Safety Award for Longest Accident Free Period (National Safety Council) --- 1980-87.
National Safety Award for Longest Average Frequency Rate (National Safety Council) --- 1980-87.
Safety Performance Citation at Gold Grade (British Safety Council) --- 1990.
Sword of Honour (British Safety Council) --- 1992. Award of Honour for Outstanding Safety Performance (NSC,
USA) --- 1996. Certificate of Appreciation in Commendable Efforts in the field
of Safety Management (CIIER) --- 1997. Significant Improvement Award – NSC,USA. --- 1999. TPM Award – 1st Category --- 2006.
Other AwardsAccolades
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SWOT Analysis
Strength• Has a rapid development.• More and better chances of expansion as it is
enjoying (90 – 100)% subsidy.• Very big market share is already captured.• Very few companies appear in near
competition with it.
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SWOT Analysis
Weakness• It does not take active part in any promotional
events.• It does not promote its product on large scale.• It is not much advanced in technology compared
to others though has a large market share.• It has now just started its expansion and is
moving towards modernization so it will take time to become more advanced and other may take benefits of this opportunity.
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SWOT Analysis
Opportunity• It has an opportunity to capture market of
notebooks as education in India is Expanding.• It has an opportunity to perform much better
by adopting latest technology.• It has an opportunity to capture the markets
of other developing nations.
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SWOT Analysis
Threats• Major threats of companies are its
competitors as they have entered in all kinds of paper markets. Its major competitors are:
1) Bilt (Ballarpur Industries Ltd.) 2) ITC Ltd. 3) Khanna Paper Mills Pvt. Ltd. 4) HPC (Hindustan Paper Corporation) 5) TNPL (Tamil Nadu Paper Mills)
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SWOT Analysis
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Email : [email protected] : http://www.jkpaper.comGroup : Singhania (HS) Group
Contact InfoAdministrative Office Plant Location Registered Office
Nehru House , 4 Bahadur Shah Zafar Marg ,New Delhi.
Tel : 91-011-41011116Fax : 91-011-23712680
JK Paper Mills , Jaykaypur ,Rayagada,Orissa.
P O Central Pulp Mills , Fort Songadh ,Surat,Gujarat.
P O Central Pulp Mills , Fort Songadh ,Tapi,Gujarat.
Tel : 91-02624-221228 / 221278-80Fax : 91-02624-221138
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Queries ? ?
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Thank You …