GVG PAPER MILLS LTD

OBJECTIVES OF THE STUDY

To know about the various departments in a paper mill.

To know the function of paper manufacturing process.

To know about various types of paper and their uses.

To study about the factory environment.

INTRODUCTION

INTRODUCTION TO PAPER:-

The word paper, which is obtained from the Greek word

“PAPYRUS”, originated in china. Paper is an important material tool to plan

and execute any work in the world.

Now a days schools, collages, business organization come

into existence in earn for paper marked to reach the decline stage.

HISTORY OF PAPER:-

Paper gets its name from “papyrus”, a read that the ancient

Egyptians used for making a writing material, they cut papyrus stalks into

the steps and pressed crises crossed layers of strips into sheets.

Chilean invented paper in china in 105AD. he uses the inner

barks of the mulberry tree for fiber, later the Chinese found that paper

making material could be obtained by pounding rags, hemp rope, and old

finishing nets to a pulp.

The paper industry was established in Baghdad around

795A.D.

French man named NICHOLOUS LOUIS ROBERT invented a machine to

make paper as continuous roll rather than sheets.

PAPER INDUSTRY IN INDIA:

Paper industry in India is the 15th largest paper industry in the world. It

provides employment to nearly 1.5 million people and contributes Rs 25 billion

to the government's kitty. The government regards the paper industry as one

of the 35 high priority industries of the country.

Paper industry is primarily dependent upon forest-based raw

materials. The first paper mill in India was set up at Sreerampur, West Bengal,

in the year 1812. It was based on grasses and jute as raw material. Large scale

mechanized technology of papermaking was introduced in India in early 1905.

Since then the raw material for the paper industry underwent a number of

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

conventional raw materials have been developed for use in the papermaking.

The Indian pulp and paper industry at present is very well developed and

established. Now, the paper industry is categorized as forest-based, agro-based

and others (waste paper, secondary fibber, bast fibers.

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

units engaged in the manufacture of paper and paperboards and newsprint in

India. The pulp & paper industries in India have been categorized into large-

scale and small-scale. Those paper industries, which have capacity above

24,000 tonnes per annum, are designated as large-scale paper industries. India is

self-sufficient in manufacture of most varieties of paper and paperboards.

Import is confined only to certain specialty papers. To meet part of its raw

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

Indian paper industry has been de-licensed under the Industries

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

interested entrepreneurs are now required to file an Industrial Entrepreneurs'

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

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

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

on automatic route on all activities except those requiring industrial licenses

where prior governmental approval is required. Growth of paper industry in

India has been constrained due to high cost of production caused by inadequate

availability and high cost of raw materials, power cost and concentration of

mills in one particular area. Government has taken several policy measures to

remove the bottlenecks of availability of raw materials and infrastructure

development. For example, to overcome short supply of raw materials, duty on

pulp and waste paper and wood logs/chips has been reduced. The industry has

enormous export potentials.

It is only the government that should encourage the companies in the field

to go for export with all its policy support, tax concessions, availability of

capital etc.

The paper industry has an important social role to play for the country.

Use of paper is considered as an index of cultural growth. Key social objectives

of the Government like eradicating illiteracy, making primary education

compulsory etc. are very much related to the paper industry. The paper industry

is also contributing towards fulfillments of various requirements of the industry

as a whole like information dissemination, publicity etc. which in turn stimulate

industrial growth of the country. The paper industry has, thus, a catalytic role to

play not only for the overall growth of the industry but also for the living

standards of the people. The new millennium is going to be the millennium of

the knowledge. So demand for paper would go on increasing in times to come.

Because of paper industry’s strategic role for the society and also for the overall

industrial growth, it is necessary that the paper industry performs well.

Overview of Paper Industry:

The Indian paper industry has been historically divided on a three dimensional

matrix identified by size, grades manufactured and raw material utilized.

Generally, tariff rates have protected smaller units utilizing “unconventional”

raw material. Over the years, the growth of various segments, investments

levels in specific segments, technological changes, industry fragmentation and

intensity of competition have been significantly influenced by the Government

tariff policy. The present Excise duty on Paper is 12 %. The Government of

India from time to time has given some benefits to small industries in order to

protect them i.e. the first 3500 tones produced by a mill is chargeable only @ 8

% and thereafter it is @ 12 %.

The three main grades of paper manufactured in India are :-

1. Newsprint

2. Writing and printing.

3. Industrial Variety ( Craft paper and Duplex Board )

Over 550 players currently populate the industry and the estimated capacity is

about 7.00 million Metric Tones Per Annum (MTPA). Fragmentation is severe

in the “industrial” (packaging) grades, which rely on “unconventional” raw

material such as waste paper and partly agro residues. This division generally

comprises of units with an average size of about 10000 MTPA and contributes

to 45% of the output of paper and paper boards in the country. Although the

other divisions in the Indian paper industry are also fragmented by international

standards, the degree of fragmentation is less severe. “Newsprint” till about

1995, was the sole preserve of large public sector units and was well protected

by high import tariff barriers. Nevertheless, imports contributed to about 50% of

the domestic consumption. Since then, new domestic capacity with private

investment has been allowed to be created. This growth has relied namely on

De-inked waste paper as a source of raw material. Currently import duty on

newsprint is about 5% and domestic manufacture of newsprint is exempted

from excise duty. This tariff structure for newsprint has seen Indian newsprint

price closely mapping international prices. Imports still constitute about 30% of

consumption and newsprint contributes about 10% of the total production of

paper and paperboards. The number of players in the newsprint segment is

relatively limited and manufacturing capacities are larger than in the packaging

grades segment. Historically, the bulk of the output of “Cultural” grades –

comprising of writing, printing, office stationery paper and specialty paper has

been the preserve of “large” producers, who use forest based raw material in

integrated pulping facilities augmented by imported pulp. This segment has

been consistently taxed at higher rates due to its size and use of “conventional”

forest based raw material. Investment in plant has also been higher. With

relatively smaller number of players and high import tariff protection, prices of

end products, generally perceived to be higher quality, have been high.

Import tariff levels, although much lower now, still continues a significant

barrier to imports. The high investment levels required and limited

“conventional” fiber resources are the major deterrents to growth in this

segment for both existing players as well as new entrants. “Lower end cultural

grades” manufactured by smaller players using unconventional raw materials in

low investment, low tech plants cater to consumers in the price sensitive sub

segment of this market. This sub segment depends significantly on the tariff

differential based on size and raw material for its viability.

The Indian Paper industry is going through substantial changes. Global demand

for paper is expected to grow by about 4% p.a. over the next 5 years. The

domestic demand is expected to grow at about 8% which will result in increase

of demand by 30 Lakh tones approximately over the next 5 years. It is expected

that customs duty on import of paper will decrease from the current level to the

level of 10% over a period of time due to WTO compulsions.

The import of raw material for paper including pulp, waste paper and news print

is likely to increase by at least 15% to 20% in 2005-06 to keep up with growing

demand for paper in the domestic market. Despite to the constraints like over

crowded market and limitation in procuring the desired quality of waste paper,

there are indicators of a revival in the Indian Paper Industry. In the current year,

selling price has marginally increased and enabled the industry to partially

offset the rise in cost of inputs, fuel & labour.

The paper industry has an important social role to play for the country. Use of

paper is considered as an index of cultural growth. Key social objectives of the

Government like eradicating illiteracy, making primary education compulsory

etc. are very much related to the paper industry. The paper industry is also

contributing towards fulfillment of various requirements of the industry as a

whole like information dissemination, publicity etc. which in turn stimulate

industrial growth of the country. The paper industry has, thus, a catalytic role to

play not only for the overall growth of the industry but also for the living

standards of the people. The new millennium is going to be the millennium of

the knowledge. So demand for paper would go on increasing in times to come.

Because of paper industry’s strategic role for the society and also for overall

industrial growth, it is necessary that the paper industry performs well.

FUTURE PROSPECTS:

The globalisation of Indian economy has lead to a healthy growth of 6 to 7%

industry and that is growth happening in all the sectors. Moreover the Per

Capita consumption of paper in India is going up with the advent of packaging

in the food industry. Due to environmental concerns, the use of plastics is likely

to be banned by the Government of India within a short span of time. Hence

within 2 to 3 years we will be witnessing an explosive growth of packaging in

India mainly in food, textile and export segments.

The exposure to foreign packaging technology and the need to satisfy the export

customers has led to a drastic change in the industrial packing sector. The

corrugators have started using high BF, high GSM paper instead of the regular

grades and shifting from 7 ply and 9 ply boxes to 5 ply and 3 ply boxes. The

above change has resulted in more aesthetic and cost effective packing

solutions. There is a very good potential market developing for such grades of

paper in India. The market of high quality Kraft paper is now catered only by

few manufactures from western and northern parts of the country. With the

above changes in the industry it would be in the best interest of our company to

put up a Kraft paper plant of 100 MT per day producing high B.F., higher GSM

paper and exploit the emerging market situations better. The company envisages

the following advantages by going for such a plant as follows:

l) Most of the existing paper mills in South India operate with single wire

machine, which can produce up to 24 BF only, whereas the new plant intended

to be set up by SSPML is a twin wire machine which can produce high quality

Kraft paper of 24 BF to 40 BF which is sold in the market at a premium. l By

making high end paper in south India the company stands to gain a lot in terms

of logistics costs when compared to the competition. l GVG paper mill ltd got

the advantage of cost benefit while importing raw materials and exporting

finished product. l The possibility of exporting substantial quantity of the

production to near by countries like, Sri Lanka and eastern African countries is

also bright. This may also be substantiated from the fact that paper exports have

risen at a CAGR of 14 % pa from 105000 tonnes in the year 2000 to 179000

tons in the year 2004. As a strategic measure to expand the international

operations of the company, the company has already started a new business

division – International Business Unit to handle the international marketing

operations of the Company.

2) The company intends to manufacture the paper by using Twin Wire

Technology and also plans to incorporate all latest equipments to have a cost

effective production. The twin wire technology employs two wires drawing

pulp stock from two separate head boxes. The arrangement is in such a way that

the wet webs come into contact before going to the press.

3) At present the Company is employing single wire technology wherein the

pulp stock flows from the head box and gets distributed uniformly for further

dewatering, pressing and drying to form a sheet of paper.

The twin wire technology is superior than the single wire technology due to the

following factors:

1. Improves formation of paper.

2. Improves strength properties of paper namely, Burst factor, Tear

factor, Tensile strength and Ring crush test values.

3. Reduces Cost of Production.

The company will be able to derive the synergies of the existing plants and

position itself as a largest Kraft paper manufacturer in south India by the

installation of the plant. The market expectation for the increased production

CAPACITY,PRODUCTION RAW MATRIAL AND IMPORT:

Government has completely de-licensed the paper industry w.e.f. 17th July,

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

Memorandum with the Secretariat for Industrial Assistance for setting up a new

paper mill or substantial expansion of the existing mill in permissible locations.

The industry is a priority industry for foreign collaboration and foreign equity

participation up to 51% receives automatic approval by Reserve Bank of India.

Foreign investment even up to 100% is approved by FIPB on case to case basis.

Several fiscal incentives have also been provided to the paper industry,

particularly to those mills which are based on non-conventional raw material.

There are, at present, about 515 units engaged in the manufacture of paper and

paperboards and newsprint in India. The country is almost self-sufficient in

manufacture of most varieties of paper and paperboards. Import, however, is

confined only to certain specialty papers. To meet part of its raw material needs,

the industry has to rely on imported wood pulp and waste paper. The production

of paper and paper board during the year 2001-02 is 31.62 lakh tonnes.

The proportion of non-wood raw material based paper is increasing over the

years. At present about 60.8 per cent of the total production is based on non-

wood raw material and 39.2 per cent based on wood.

The 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

due to 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

62% as 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 were growing over the years. However, it

has decreased during 2000-2001.

Demand and Supply gap in Paper Industry:

Indian paper industry is the 15th largest in the world and provides employment

to 1.3mn people in the country contributing Rs.25bn to the Government. The

industry has recorded a volume growth of CAGR of 5.47% over the last 3 years.

In 2003-04, it recorded a volume growth of 6%, in line with the GDP growth.

Indian paper industry has a 1:1 correlation with the economy. The demand for

paper is linked to the GDP Growth. The government is planning to target a GDP

Growth of about 10% in 2-3 years. With this increase in the GDP growth the

paper sector is expected to record a similar growth rate.

The Indian paper industry has an installed capacity of 6.7mn tons while, the

effective capacity is estimated to be lower at 6.15mn tons. The industry

produced 5.26mn tons of paper in 2003-04. Newsprint capacity in India is

estimated at 1.12mn tons however, domestic production is only 0.59mn tons,

while consumption of newsprint is 1.1mn tons. Favorable demand - supply

scenario to keep prices firm

The demand for paper is influenced by various macro-economic factors like

national economic growth, industrial production, promotional expenditure,

population growth and the Government’s allocation for the educational sector.

Domestic demand for paper is expected to grow at a CAGR of 6-7%. India’s

paper demand is expected to touch 8mn t.p.a by 2010. A leading global paper

industry consultant projects a shortage of about 0.7mn tpa by 2010.

Proposed capacity expansions:

Capacity expansions (which cost 50% less than new capacities) have been

announced by most players, but would take 1-2 years to be operational.

Capacity expansions of over 600,000 tons have been announced by the 7 large

players in the sector

WTO Impact:

WTO as discussed the implication of Indian Paper and Newsprint Industry as

part of its negotiations and implications. The Indian Paper Industry has

important place in the industrial landscape. The paper industry has a strong

backward linkage with forests and environment on one hand and consumers of a

variety of products on the other hand. The manufacture of paper through pulp of

wood or of other fibrous cellulosic material has been discussed at length.

However, recovery of waste or scrap for paper and paperboard manufacture has

been looked at from different angle in the classification of products of Indian

Paper Industry. In fact the paper industry which are eco friendly imports lot of

waste paper into the country in the manufacturing of paper and paper board.

Generally WTO implication is applicable to all the industries. How ever, in

respect of paper industry where waste paper is the raw material and which is eco

friendly, the impact is not harsh. GVG paper mill ltd is into manufacturing of

paper out of the waste paper and is an eco friendly project.

GOVERNMENT REGULATIONS, PERMISSIONS & TAXES

1. Central Excise:

Central Excise is levied @8% for the first 3500 MT production and thereafter

@12% on the value of the invoice. The Company is availing permitted Modvat

benefits as per Central Excise regulations. For import duty paid on waste paper

procured from overseas the Company is entitled to adjust the entire duty paid

component as that of Modvat credits.

2. VAT (Value Added Tax):

VAT replaces the existing multipoint taxes levied by various states with effect

from April ‘05. As that of other industries, the paper trade is also covered under

VAT for domestic sales done in the state of Kerala. However for interstate sales

CST is continued to be levied as per existing Government regulations.

3. Service Tax:

Being classified as a manufacturing industry, the industry even for Job Work on

conversion basis will not be subjected to Service Tax requirements. A recent

notification from Central Government also confirms such a stand.

4. Factory Licenses:

All the licenses required under Municipality Act, Factories Act are obtained and

duly renewed.

5. Pollution Control:

Necessary permission under effluent discharge Act is obtained and the facilities

required to maintain the permission are in place.

AVAILABILITY OF DOMESTIC WASTE PAPER :

Waste paper recovery system in India is very unorganized and unplanned . As a

result, large quantities of waste paper get diverted for cheaper packaging and

other uses or get destroyed as rubbish. Bulk of waste paper collected by street

collectors in metropolitan cities goes to household paper bag manufacturers.

Due to lack of any grading/ classification system in context of waste paper, no

sorting or segregation is done at source and so most of the waste paper varieties

are collected in commingled form. The probable sources of waste paper

collection are as under:

Waste Paper

Source

Examples

Domestic refuse Newspaper, magazines, board cartons.

 Industrial refuse Corrugated boards, duplex & other packaging board, paper

sacks etc.Office refuse Ledger files and papers from Govt. offices,

Universities & large business organizations.Trade refuse Boards trimmings from converters & packaging

manufactures, paper savings from printersRoad Sweeping Newspapers and magazines are usually recycled directly

as wrapping and packaging papers by the grocers and pretty traders and therefore they are not available for mills in their first rejection. Other fibrous domestic refuse probably find their way as road sweepings.

 In India, collection of office refuse has not been very high mainly due to

unavailability of a viable collection system. In practice, more than 80% of the

paper consumed in India is being collected, of which only 20% is being made

available to paper industry and the rest 60% is usually diverted for other

diversified / secondary uses such as wrapping, packing etc.  

PROFILE OF THE COMPANY :

GVG Paper Mills Private Limited Was Incorporated In the year 1985 as a private limited company with an installed capacity of 3000 MT annum of printing and writing paper.

The company commenced its production in the year 1986 with a capacity of 10 MT per day and within a span of 5 years,the production was increased to 20 MT per day with the installation of few balancing equipments and increased drying capacity.

In the year 1991,the company went in for MG machine to produce Kraft varieties of papar with a capacity of 15 MT per day. This has enabled the company to have a wide range was converted as a dedicated Newaprint making machine which presently produces around 60 MT of Newsprint.

During the year 1995-96,the company put up the 3rd machine(MG) to manufacture special varieties of paper.The present capacity of the Mill is 140 MT/Day and the turnover is around Rs.115.00 Crores per annum.The company exports around Rs.12.00 Crorers/annnum and imports around Rs.15.00 Crorers/Annum.

GVG group has paper mills and 3 textile mills with a combined turnover of Rs.275.00 Crores per annum.The production capacity of 2 paper mills is 200 MT/Day and the installed capacity of textile mills is 65000 spindles.

The company has put up 10 wind mills supplied by various manufacturs in Attukinathupatti Village, Coimbatore & Kongalnagaram.

There are 25 wind Mills in our Group of company.We also have a back pressure Turbine connected to the FBC Boiler which produces around 24000 units of power per day.Thepower Generated

from wind mills and Turbine takes care of more than 50% of our power requirement and even during power cut imposed by the Tamilnadu Electricity Board we are able to comfortably maintain our production without compromising any of our processes.

Our Group engages itself in lot of social welfare activities and we have recently contributed a sum of Rs.16.00 Lakhs from our group towards the construction of a modern Electric crematorium in udumalpet .Our group also has a Poly Technique institution in the name of Rudharaveni Muthusamy Poly Techniques which caters to the needs of lot of students in and around our Taluk.

Our Group also contributed for the building of a compound wall of a huge play ground belonging to the Government High School in Udumalpet.Our Group also sponsors lot of others games which are being conducted in and around Udumalpet.Apart from this,we also do lot of charities for the Temples.

The following are the founder Directors of the company:-

1)Shri M Soundararajan

2)Shri M Velusamy

3)Shri M Amarnath

The following constitute the present Board of Directors of the company.

Manging Directors : Shri M Amarnath

Directors : Shri M Velusamy

Smt A Padma

Shri V Vivek

The company has working capital limits with M/S.The Lakshmi Vilas Bank Ltd., Udumalpet with a fund based limit of 10 crores and non-fund limits of 5.5 Crores.

We are producing Newsprint,Printing & Writing Papers and Kraft varieties of papers in our 3 machine.

The Newsprint produced by us is being used by most of thr leading dailies in Tamil Nadu like Dinakaran,Dinamalar,The New indiaan Express,Kaalaikathir etc.We are also selling newsprint to major Kerala dailies like Deshahimani,Chandrika etc...We have a good network of dealers and consignement agents across the country which helps us in easy clearance of our products.

The company has a work force of 250 direct workers and nearly 500 indirect workers in the factory.The monthly Wage bill workers out to Rs.25 Lakhs

The company pays an amount of Rs.2.00 crores per annum by way of excise duty,Rs.2.00 Crores by way of sales Tax and Rs.2.50 Crores by way of Income tax every year and has paid an Advance Tax of Rs.2.50 crore this year.

The Factory Address is : GVG paper Mills p Ltd

Nallur,Pushpathur Village

Palani TK.

Tamil Nadu

India.

Admin.Office : GVG paper Mills p Ltd

168/2 Sikkander batcha Street

Gandhi Nagar,Udumalpet 642 154

Phone : 04252 -224113, 224513

E-mail : gvgpmudt@gmail.com,

gvgpmudt@dataone.in

COMPETITORS:-

In a world of competitions, the company has a host of competitors. They are:

1) Sri Venkatesa papers & board Ltd. Madthukulam.

2) Amaravathi paper mills.

3) BVV paper mills.

4) Dhanalakshmi paper mills ltd. Nilakotai.

5) Seshasayee paper & board ltd. Erode.

6) Aliyar paper board. Ambarampalayam.

7) Karthikeya paper board. Sathyamangalam.

8) Sudhassan paper mills ltd. Mettupalayam.

DETAILOF DIFFERENT DEPARTMENTS

Finance/Administration Department:

Mr. Anil Goyal is a Chartered Accountant, has a distinguished career in

the area of Corporate Finance and brings with him a unique combination

of skills from Accounting, Costing, Secretarial Services and Financial

Management. He started his career in 1986 and added to his profile

significant skills in the areas of Taxation, Costing, Insurance, Working

Capital Management, Project funding by way of debt from multinational

agencies, raising equity etc.  Ever since he joined Gvg paper mill he has

been instrumental in bringing in the financial discipline and analysis that

helped the Management to take various cost effective decisions.  He has

made significant contributions in identifying the financial institutions for

sourcing the funds for the Mill Development Plan.

Accounts Department:

Accounts Department has also been supervised by Mr.M.Velusamy,

Director Finance under assistance of Accounts Manager & Accounts

Assistances. Under his supervision and new ideas company has a

modern and high-tech accounting software and a well established

computer lab.

Purchase Department:

Purchase of raw material is supervised by Mr.V.Vivek, Director Purchase.

Director Purchase is assisted by Purchase Manager and Raw Material

Quality Managers.

Production Department:

Production is supervised by by Mr.R.Duraisamy. , Director Production. He

is assisted by the Production Manager and Plant Supervisors. He is the

key contributor to the process of developing the Quality Assurance and

R&D Functions  in the organization. His contribution in customer

development and customized product development has been

unparalleled.  Later on with his abilities in technical and administrative

skills, took over the role of managing the Production Operations.  He is

specialized in the areas of Technical Sales, Customer service, and

Product development.  He is the critical In-house Resource for various

Learning Events being conducted in various technical areas.

Dispatch Department

Dispatch Department has also been supervised by Mr.R.Duraisamy. He is

assisted by supervisors and dispatch clerks.

HR. Department

GVG paper mill Ltd’s Human Resource Processes are rooted in business

priorities, market realities and long term oriented. Inherent in them are the

qualities like innovation, continuous learning and improvement in the work

processes, talent identification and nurturing. GVG Paper Mill Ltd through

its concerted efforts aims at becoming the most preferred employer in the

Industry and create one of the best places to work in the manufacturing

sector.

Our HR processes stem from the faith in Human Potential and its Creative

Power. Our work culture that enable its Human Resources enjoy

professional freedom. Our Learning Center is a forum where unique

learning events take place as a part of the process of institutionalization of

continuous learning.

The compensation package of the Gvg Paper Mill Ltd matches with the

Industry Standards with qualities of flexibility, valuing talent and

encouraging career growth.

Our Performance Management System encourages its Human Resources

to add value and increase their contribution to the growth of the

organization on a continuous basis thereby guarantees timely reward and

recognition.

Maintenance Department:

Extensive monitoring, analysis, and control would optimize

mechanical/electrical systems, manage energy usage, pinpoint problem

sources, and avoid unnecessary downtime.

For electrical maintenance GVG Paper Mill Ltd has flexible solution with

comprehensive energy consumption logs and immediate access to a

range of electrical parameters, presenting information remotely via the

company's existing computer network. Power Measurement offered the

right set of capabilities with its energy management software, installed on

distributed workstations, and a network of intelligent power meters. The

system proved to be a valuable aid in the design and operation of

electrical installations. Further operational savings are being realized,

especially related to fast alarm response, and the system's modular

architecture facilitates affordable growth of all energy management

applications.

PROFILE OF THE PRODUCT:

Varieties of the product:

The company is producing two types of papers

1. Printing and writing and,

2. Newsprint

Gsm = grams per square meter

1. Printing and writing papers:

a). Manifold(30gsm)- white and colour.

b). Super colour wave (44-47gsm)-blue, green and yellow.

c).cream wave (44-58gsm).

d). Super cream wave (44-58).

e).Azure laid (56, 61 and 70 gsm).

f).White duplicating [thick] (60, 70 and 72 gsm).

g). Colour duplicating (60, 70 and 72 gsm).

H).Colour printing.

i). Economic super colour wave (43, 44 and 47 gms).

2. Newsprint:

a). News print (48 gsm).

b). Magazines

c). Journals

d). Gazette

e). Board sheets

f). Tabloids

g). Documents

h). Certificates

i). Lining papers

ORGANISATION CHART:

MD

GM(operation)

Personal officer

DGM

Technical

Purchase Sales All

All A/c’s

Sales Manager

DGM

Factory Dept.Head

Shift Supervisor

Maistery

Workers

Security

Time Office

Canteen

Coop Stores

Watchman

All Workers

RAW MATERIALS ANALYSIS:-

In this section the various raw materials for paper production

like wood and bagasse are analysed. The various raw materials are,

LIME

SOAP STONE POWDER

ALUM

DYES

SODIUM SULTHATE

H2O2

SULPHURIC ACID

SODIUM HYDROXIDE

HYDROCLORIC ACID

NITRIC ACID

STARCH.

CUSTOMER SERVICE:

Convenience : We provide customers the benefit of staggered delivery so that

they do not need to keep a large inventory at their end; this maximises working

capital efficiency

Customer service : We weave the marketing and manufacturing functions

together. Quick and punctual delivery has added to customer convenience

PROCUREMENT OF RAW MATERIALS:

Main raw material for the company is corrugated boxes/waste paper which is

purchased through local suppliers and global suppliers. Company has adopted

inventory control system for purchase Raw material. Decision for making

purchase is taken by the Executive Director (Purchase) after considering the

indents for requirement of raw materials, received from the production

department. Director (Purchase) is assisted by team of purchasers, who calls

quotations from different suppliers of raw materials.

RAW MATERIAL MANAGEMENT:

Director (Purchase) after considering lowest quotations along with sample of

raw material, place order for supply of raw material.

TESTING/CHECKING OF RAW MATERIAL:

After receipt, consignment of raw material is weighted at company’s own

weighing bridge. Weight as per company’s weighing bridge is tallied with the

weighing slip as produced by the supplier of raw material. Bill of the material is

also collected by the gate office for their necessary inward material entries.

Weight of the raw material is tallied with the weighing slip/bill of the supplier.

If the weight is not tallied with the weighing slip/bill due to shortage, it is

immediately informed to supplier/driver. A written consent on the back side of

bill is taken for information of shortage to supplier. Vehicle is then allowed to

go to raw material godown for unloading with prior intimation to quality

checking supervisors.

Raw Material Quality Supervisor got unloaded the material in his presence.

Sample from different bundles of raw material is taken for checking of

quality/moisture etc. If, moisture is found in any bundle, sample of same is

handed over to laboratory technician, who tested the percentage of moisture in

the material. A report is being prepared by Lab. Technician for moisture and

other prohibited contents like plastic strips, kaccha material, reel core material

etc. present in the lot of raw material. Report is also signed by Lab. Incharge as

well as supplier of material. Weight of moisture/other prohibited contents

present in the material is deducted from the total weight of material. Lab.

Report so prepared, is forwarded to Director (Purchase) for his information and

signature purpose. Copy of the report is then given to supplier of raw material.

If, supplier does not accept weight of moisture/prohibited contents he is allowed

to take his material back.

Copy of the report, is attached with bill of supplier and handed over to gate

department for entries in their inward receipt register. Rates of different type of

raw materials are as under :-

1. Corrugated Cartoons (Fresh) Rs.8000/- PMT

2. Corrugated Cartoons (used) Rs.7000/- ,,

3. Corrugated Cuttings (Fresh) Rs.6800/- ,,

4. Corrugated Cuttings (Old) Rs.6500/- ,,

5. Media (Kaccha Material) Rs.5500/- ,,

6. Media (Core Pipes) Rs.5000/- ,,

MANUFACTURING PROCESS ;

Paper is manufactured using corrugated cartoons/waste paper, Chemicals and

water. The manufacturing process can be bifurcated in to four stages.

A) PULPING :

Corrugated Boxes/Waste Paper after cutting and dusting feed in to the

pulpers for pulping. The waste paper can directly be beaten and washed in the

beaters for pulping.

B) PREPARATORY TREATMENT OF STOCK :

Pulp, as it, is not fit for being converted in to paper and must undergo some

preparatory treatment depending on the end product. Before going to the

paper machine, the stock must be prepaid uniformly with a fixed thickness

and be screened and refined by crushing so that it may be reduce in to fixed

thickness with uniform properties in a uniform speed. The treatment is carried

out in appratus called refiner and sizing agents like alum, dyes, loading

materials are added in the process to develop its strength. The main flow of

pulp which is freed from tailings in the vibrating screen and fine pulp sieved

out from the tailings are put together and sent to the centricleaners which work

quite efficiently in removing fine dust.

C) PAPER MAKING :

Prior to going in to the paper making machine the stock which has gone through

necessary treatments, is diluted in the mixing box, down to the required

consistency with the use of back water generated in the paper making process.

Similarly speaking, the paper making machine performs its function in this

way :-

In the pulp stock which goes over travelling wire the fiber is separated from

water & sheets of paper is formed. The wet sheet is pressed dried and

smoothened by going through several sets of roll machines. To get M.G.Kraft

Paper, the sheet is then passed through M.G.Dryer which imparts glaze to the

paper. Paper is finally wound up by means of pop-reel machines. The out put

of a paper machine is determined by the trimmed width of paper, the speed of

machine and grammage of paper.

D)FINISHING OF PAPER :

Paper and board intended for sale in reels and cut sheets is rewound & cut to

certain fixed measurements. Defective paper and board sheets are removed .

The rejected produce is returned to pulping section and mixed into the main

flow of pulp stocks.

E) DISPATCHES:

Reels so prepared, is then wrapped by plastic cloth and clipped with the help of

plastic strips. Supervisor on duty mark a serial number, size and grammage on

each reel for the purpose of identification. Wrapped reels are then weighted

through electronic weighing scale. Weight as shown on the display is written in

the reel by the supervisor. Supervisor also maintained a register in which he

entered weight of each reel along with serial number of the reel. Reel is then

shifted in finished goods godown from where it is dispatched as per orders

received. Complete record of reels manufactured and reels dispatched are

forwarded to account office.

QUALITY CONTROL:

The quality control can be defined as checking of the products

quality at various stages of production.

Paper making process is a continuous process which involves a lot

of operation. In order to get good quality paper, we should control each and

every important factor involved in the whole paper making process. Laboratory

plays initial role of monitoring the various process variable and enable the

concern department to take necessary steps if any thing goes wrong.

CLIENTS :

GVG keeps stringent control over quality for consistent quality which has

helped it have clients like :-

a) Micro Tek, Parwanoo

b) Action Shoes, Delhi

c) H.P.Cotton Textiles Mills Limited, Hissar

d) Baldeo Mange Lal, Ujjain

e) Patel Paper Box, Udaipur

f) Perfect Pack Ltd., Faridabad

g) Lakhani Group of Industries, Faridabad

h) Ravi Sons, Chandigarh

i) Kamal Boxes, Jalandhar

j) Jay Ambe Overseas, Surat

k) Industrial Packers, Daman

l) Meiyappa Paper, Chennai

EMPLOYEES CAPACITY

Details of employees are as under :-

1. Repair & Maintenance Staff 15

2. Engineering & Manufacturing Staff 18

3. Clerk 10

4. Supervisors Connected with Process 5

5. Supervisors Connected with Production 5

6. Supervisor Connected with Despatches 5

7. Supervisor Quality Checking 5

8. Officer Staff 5

9. Production labours 100

9. Security 5

GVG PAPER MILLS LTD.,

PROCESS FLOW DIAGRAM

Waste Paper

Along with 12% Normal Moisture,

Stapple Pins & Adhesives)

CONVEYOR

PULPER

SAND TRAP

DUMPING CHEST

HIGH DENSITY CLEANER

TURBO

THICKNER

VACCUM BOXES

WIRE PART

HEAD BOX

CENTI CLEANER

FLOW BOX

MACHINE CHEST

MIXING CHEST NO.2

ALUM ROSIN

PRESS NO.1

PRESS NO.2

DRYER

M.G.DRUM

REELER

REWINDER

FINISH PRODUCT

REFINER

Solid Waste to Boiler/ETP

SAFETY & ACCIDENT PREVENTION :

1. The Safety and Accident Prevention activities at GVG paper mill ltd are

monitored by a participative safety committee with equal number of

members from Management and Workmen. This committee is in existence

since 1976. There are 3 department level safety sub-committees, which

look in to local level safety and accident prevention activities in

collaboration with the Safety Committee and Safety Department. The

Safety Department is manned by qualified safety officers and other

administrative assistance.

1. Accident Reporting and Investigation :

All the accidents and near miss accidents are reported and investigated

and reviewed by the Safety Committee. The accident data is analyzed and

Safety Performance is measured monthly, quarterly and yearly and

communicated to concerned depts. and higher authorities.

2. Identification of Hazards :

Frequent inspections are being carried out by using checklists. The Safety

Committee and Sub-committees also inspect the plants regularly.

3. Safety Systems :

Safety Work Permit System and Danger Tag System are in use for

carrying out repair and maintenance works, hot works in fire prone areas,

entry in to confined space, work on roof, excavation, etc.

4. Safety Training :

General and need based training is given regularly to all employees

including cont. workmen

5. Motivation :

National Safety Day is celebrated every year. Many competitions like

slogans, stories, posters, essays, etc. are organized on the occasion of

National Safety Day Celebrations every year. An accident reduction

contest is organized.

.

6. Publicity :

Posters, Slogans, Bulletins, etc. are displayed through out plant Safety

Magazine is published

7. Personal Protective Equipment :

Shoes are provided once in a year to all employees including contract

workmen Helmets are provided to all employees All other Personal

Protective Equipment is issued based on the need Some equipment like

Self Contained Breathing Apparatus; Canister Masks, PVC suits etc. are

kept in the depts. for use whenever and wherever those are needed

8. Emergency Planning & Preparedness & Response:

Emergency Plan is made and copies distributed to all concerned

personnel. Periodic mock drills are being organized

Emergency control centers established. Active role is being played in

preparation of Off Site Emergency Plan being made by District

Emergency Authority.

9. Occupational Health :

Occupational Health Centre is established. One doctors and 2 nurses are

working in Occupational Health Centre. It is operated round the clock

Periodical medical exams are being carried out for the identified

personnel. This includes X-rays, Clinical examination; Blood exam; Lung

function test; audio metric, stool exam; eye exam as per the requirement

under Factories Act 1948

ENVIRONMENT CELL AT GVG :

GVG paper mill has established a separate, dedicated ENVIRONMENT CELL

for Water and Air pollution abatement, which indicates the commitment of the

Industry in controlling the pollution.

ENVIRONMENT LABORATORY:

Environment Cell is having an exclusive Environment Laboratory equipped

with modern monitoring/testing facilities. Testing facilities available at

Environment Laboratory.

Water and Waste Water Testing

AOX Testing

Stack Monitoring Facilities

Ambient Air Quality Monitoring

Meteorological Station with automatic data logger

The Environmental issues are reviewed in the daily coordination meeting

chaired by Vice President (Operations).

WATER POLLUTANTS AND TREATMENT MEASURES WASTE

WATER TREATMENT:

The main pollutants in the effluent discharged are Suspended Solids, B.O.D,

and C.O.D etc. The wastewater from the mills is treated in Effluent Treatment

Plant consisting of Primary Treatment to remove the suspended solids and

Secondary Treatment (Activated Sludge Process) to remove B.O.D and C.O.D

and then treated by Land Treatment process to remove even the Colour of the

effluents. GVG paper mill ltd is the only mill discharging effluents upstream

and drawing water from down stream.

PRIMARY TREATMENT:

Wastewater is passed through bar screens and perforated screens to remove any

foreign material and pumped to primary clarifiers (2 Nos.). of each 7500 M3.

The settleable solids are removed from the bottom and clarified effluent from

the top of the clarifier is taken to Secondary Treatment.

SECONDARY TREATMENT (ACTIVATED SLUDGE PROCESS):

The effluent from the Primary Treatment is taken to an aeration tank of 25000

M3 volume. There are 11 Nos. of mechanical surface aerators, each of 75 HP.

Nutrients like Urea and SSP (Single Super Phosphate), are dosed in to the

aeration tank as food to the bacteria. From the aeration tank the effluent is taken

to the secondary clarifiers (2 Nos.) of 6000 M3 each. The effluent after

Secondary Treatment is pumped to Land Treatment.

LAND TREATMENT:

It is a well recognized fact that top layer of the soil maintains a Micro

Environment within which soil Flora and Fauna decompose varieties of organic

matter. Thus, top layer of soil can be utilized for the treatment of Biodegradable

Organic Waste water. Several conventional (natural, physical and biological)

treatment processes occur in Land Treatment. Considering such capability of

land for treating wastewater, land treatment is well recognized as Living Filter

all over the World. As wastewater is discharged on land for treatment, part of it

infiltrates down wards and part evaporates and part gets transpired by Plants.

The remaining portion gets utilized under the influence of Land as Living Filter.

The removal of constituents from wastewater by filtering and straining action of

soil are excellent in this RI system. B.O.D, T.S.S & Faecal Coliform are almost

completely removed. It is also observed that the effluents after percolation

through land is void of colour. The soil seems to be working as colour removal

media which is otherwise prohibitively expensive treatment. This is an

additional benefit achieved through Land Treatment.

AIR POLLUTION CONTROL MEASURES:

In Paper Manufacturing Process steam is required at various stages. For

generating the steam the Mills has installed five Coal Fired Boilers and three

Recovery Boilers, where in the black liquor is fired in the furnace to recover

and reuse the valuable chemical in the process. The Mill also installed one

Rotary Lime Kiln where the lime sludge (CaCO3) is burnt to get burnt lime

(CaO) to reuse in the Causticizing Process.

ELECTRO STATIC PRECIPITATORS:

The emissions from the boilers contain dust particles (Suspended Particulate

Matter, SPM) and contain gases like Sulphur dioxide and Hydrogen sulphide

etc,. In order to control the dust particles and gases from the boilers the Mills

has installed most modern sophisticated Electro Static Precipitators as Pollution

Control Equipments to all the nine stacks.

CONCLUSION:

GVG paper mills a well established unit with 40 years of existence is

performing well in its business activities maintaining company customer

relationship intact or improving day by day thanks to a quality of its product,

credit facilities offers, a fine distributing system and reasonable pricing

policy for its products. The analysis made regarding customer satisfaction

and the findings thereof reveal that GVG is performing well on all fronts.

The company to become more competitive among the contemporary paper

mills should perform still better in terms of quality, prices and credit

facilities offered, distribution system, etc. Therefore to reap the advantages

of the economies of scale, the company should expand its business and

production thereof by investing some more capital. Besides the mills should

also diversify its paper products so that different kinds of customers or

dealers will come under the fold of the company. It should also target the

international markets with its multi type of products through its export

business.

As for the Indian paper industry is concerned, the following measures

have to be taken for the industry to become more competitive

Improvements in infrastructural facilities like ports, roads, railways,

and communication facilities.

Revision of forest policy is required for wood based paper industry so

that plantation can be raised by industry, cooperatives of farmers, and

state government. Degraded forest land should be made available to the

industry for raising plantations.

Import duty on waste paper should be reduced.

Duty free imports of new and second hand machinery/equipment should

be allowed for technology up gradation.

If the above measures are taken up by the government, the paper industry

will grow gradually, and the mills producing different paper products, will

become quality oriented, cost conscious, customer oriented so that they can

become highly competitive in global environment.