Khnnna Paper Mills Project

8/4/2019 Khnnna Paper Mills Project

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PROJECT REPORT ON

MARKET SHARE OF

KHANNA PAPER PRODUCTS

IN AMRITSAR

SUBMITTED TO: SUBMITTED BY:

KAMAL KARMAKAR SANDEEP SINGH

(DY.MARKETING MANAGER) (GLOBAL INSTITUTE OF MANAGEMEBT ASR)

AND

NAVEEN SHARMA

(SAI TECHNOLOGY CAMPUS ASR)


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ACKNOWLEDGEMENT

AAnnyy rreeppoorrtt oorr aannaallyyssiiss ccaannnnoott bbee ccoommpplleetteedd wwiitthhoouutt tthhee gguuiiddaannccee,, aassssiissttaannccee,,

iinnssppiirraattiioonn aanndd ccoo--ooppeerraattiioonn ffrroomm vvaarriioouuss qquuaarrtteerrss.. TThhiiss rreeppoorrtt aallssoo bbeeaarrss tthhee

iinnssppiirraattiioonn ooffmmaannyy ppeerrssoonnss.. II ttaakkee tthhiiss ooppppoorrttuunniittyy ttoo eexxpprreessss mmyy ddeeeepp

ggrraattiittuuddee ttoo aallll wwhhoomm hheellppeedd mmee iinn tthhee ccoommppiillaattiioonn oofftthhiiss ssttuuddyy..

FFiirrsstt aanndd ffoorreemmoosstt mmyy iinntteelllleeccttuuaall ddeebbtt ttooMMrr.. KKAAMMAALL KKAARRMMAAKKAARR

DDUUPPTTYYMMAARRKKEETTIINNGG MMAANNAAGGEERR AAmmrriittssaarr ffoorr sshhaarriinngg hhiiss aabbuunnddaannttkknnoowwlleeddggeeaanndd eexxppeerriieennccee wwiitthh mmee aanndd bbeeiinngg aa ccoonnssttaanntt ssoouurrccee ooffiinnssppiirraattiioonn..

LLaasstt bbuutt nnoott tthhee lleeaasstt;; II aallssoo tthhaannkkaallll tthhee ppeeooppllee wwhhoo,, ddiirreeccttllyy oorr iinnddiirreeccttllyy,,

ccoonnttrriibbuutteedd ttoo tthhee ssuucccceessssffuull ccoommpplleettiioonn oofftthhee pprroojjeecctt wwoorrkk..

DDAATTEE SSAANNDDEEEEPP SSIINNGGHH


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ACKNOWLEDGEMENT

AAnnyy rreeppoorrtt oorr aannaallyyssiiss ccaannnnoott bbee ccoommpplleetteedd wwiitthhoouutt tthhee gguuiiddaannccee,, aassssiissttaannccee,,

iinnssppiirraattiioonn aanndd ccoo--ooppeerraattiioonn ffrroomm vvaarriioouuss qquuaarrtteerrss.. TThhiiss rreeppoorrtt aallssoo bbeeaarrss tthheeiinnssppiirraattiioonn ooffmmaannyy ppeerrssoonnss.. II ttaakkee tthhiiss ooppppoorrttuunniittyy ttoo eexxpprreessss mmyy ddeeeepp

ggrraattiittuuddee ttoo aallll wwhhoomm hheellppeedd mmee iinn tthhee ccoommppiillaattiioonn oofftthhiiss ssttuuddyy..

FFiirrsstt aanndd ffoorreemmoosstt mmyy iinntteelllleeccttuuaall ddeebbtt ttooMMrr.. KKAAMMAALL KKAARRMMAAKKAARR

DDUUPPTTYYMMAARRKKEETTIINNGG MMAANNAAGGEERR AAmmrriittssaarr ffoorr sshhaarriinngg hhiiss aabbuunnddaannttkknnoowwlleeddggeeaanndd eexxppeerriieennccee wwiitthh mmee aanndd bbeeiinngg aa ccoonnssttaanntt ssoouurrccee ooffiinnssppiirraattiioonn..

LLaasstt bbuutt nnoott tthhee lleeaasstt;; II aallssoo tthhaannkkttoo tthhee aallll tthhee ppeeooppllee wwhhoo,, ddiirreeccttllyy oorr

iinnddiirreeccttllyy,, ccoonnttrriibbuutteedd ttoo tthhee ssuucccceessssffuull ccoommpplleettiioonn oofftthhee pprroojjeecctt wwoorrkk..

DATE NAVEEN SHARMA


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PPRREEFFAACCEE

AAss MMBBAA ddeeggrreeee rreeqquuiirree eeqquuaall aatttteennttiioonn pprraaccttiiccaall aass wweellll aass tthheeoorreettiiccaall aassppeecctt ooff

tthhee bbuussiinneessss,, vvaarriioouuss pprroobblleemmss aarree ttoo bbee ddeeaalltt wwiitthh iinn tthheessee ccoouurrsseess,, tthhaatt iiss wwhhyy

rreesseeaarrcchh pprrooggrraammss aarree tthheerree ttoo ggiivvee ddeeeepp aass wweellll aass tthhoorroouugghh kknnoowwlleeddggee oofftthhee

ssuubbjjeeccttss..

II hhaavvee aatttteemmpptteedd ttoo lliivvee uupp tthheessee rreeqquuiissiitteess wwhhiillee pprreeppaarriinngg tthhiiss rreeppoorrtt..

IInndduussttrriiaall TTrraaiinniinngg iiss aa ppaarrtt ooffpprrooffeessssiioonnaall ccoouurrsseess.. WWiitthh tthhee hheellpp ooffIInndduussttrriiaallTTrraaiinniinngg wwee ccaann aabbllee ttoo uunnddeerrssttaanndd tthhee wwoorrkkuunnddeerrttaakkeenn iinn aa ccoommppaannyy..

SSuucccceessss ooffaann oorrggaanniizzaattiioonn ddeeppeennddss llaarrggeellyy oonn ssuucccceessssffuull hhaannddlliinngg ooffiittss hhuummaann

rreessoouurrcceess.. EEmmppllooyyeeee TTrraaiinniinngg aanndd mmoottiivvaattiioonn aarree vviittaall ttoooollss ffoorr iinnddiivviidduuaall &&

oorrggaanniizzaattiioonnaall ddeevveellooppmmeenntt TTrraaiinniinngg nnoott oonnllyy mmoottiivvaatteess tthhee eemmppllooyyeeeess,, bbuutt aallssoopprreeppaarreess tthheemm ffoorr ffuuttuurree nneeeeddss oofftthhee ccoommppaannyy..

IInn tthhee ffiirrsstt pphhaassee oofftthhee rreesseeaarrcchh pprroojjeecctt,, tthheerree iiss aann iinnttrroodduuccttiioonn ooffccoommppaannyy

pprrooffiillee KKHHAANNNNAA PPAAPPEERR MMIILLLL iiss ggiivveenn.. TThhee mmaaiinn oobbjjeeccttiivvee oofftthhee rreesseeaarrcchhiiss ttoo ssttuuddyy TTHHEE MMAARRKKEETT SSHHAARREE OOFF KKHHAANNNNAA PPRROODDUUCCTT SSPPEECCIIAALLLLYY

IINN CCOOPPIIEERR MMeeaassuurreess iinn AAmmrriittssaarr MMaarrkkeett.. IInn tthhee llaasstt pphhaassee oofftthhee rreeppoorrtt

ffiinnddiinnggss,, ssuuggggeessttiioonnss aanndd ccoonncclluussiioonnss hhaavvee bbeeeenn ddrraawwnn..


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INTRODUCTION

Amritsar-based Khanna Paper Mills Private Ltd, the single-largest location plant in India

using recyclable paper waste, is putting up a waste paper-based writing and printing paper

unit in Amritsar with a capacity of 250 tonnes per day.

The expansion will take the companys capacity from 231,000 tonnes per annum to 313,000

tonnes per annum, with a total project cost of Rs 270 crore.

The project will be funded by internal accrual and institutional loans. Also, the company will

soon diversify into producing A4 copier paper, expected to be launched in the market later

this year.

Started in 1965 by founder chairman B M Khanna with a 200-kg-per-day sun dry board unit,

the company has expanded its capacity to 700 tonnes per day, 400 tonnes of paper and 300

tonnes of board per day.

It has a captive power generation plant producing 27.5 Mw. Also, the company has a capacity

of 500 bone dry tonnes per day.

Talking to Business Standard, Chairman Brij Mohan Khanna, said, The new project is part

of our expansion plans and to meet the growing demand of paper in India, we will invest Rs

270 crore in putting up this plant, having a production capacity of 250 TPD. I am hopeful that

the new plant will start its production from January 1 2008.

Khanna Paper Mills is an ISO 9001 certified company and registered export house recognised

by the directorate-general of foreign trade. The mill is the third largest single-location plant

and the largest user of waste paper in the country. It is also one of the leading manufacturersof high quality writing and printing paper and duplex board in India.

The firms products are exported mainly to Sri Lanka, Bangladesh, and African and SouthAmerican countries. Exports contribute 15 per cent to the total production. With its expanded

capacity, the company is hopeful to achieve a turnover of about Rs 927.88 crore in 2008-09.

In the last fiscal the turnover of the company was Rs 425.20 crore, while in 2004-05 it was Rs

297.7 crore. Also, the company is projecting Rs 91.90 as EPS(earning per share) in 2008-09,

which is currently Rs 28.70.

In December it was reported that the firm would come up with an IPO, which Khaitan said

is in the pipeline.

The company imports waste paper. Commenting on the benefits, Khanna added, Being a

recycled product it is environment-friendly, requires less power and hence creates a strong

economic and environmental sense.

He added that for making 1 tonne of paper, 17 trees were felled, so by utilising waste paper

for manufacturing paper they were saving trees to a great extent.

With a strong environmental policy, we are the market leader in the manufacture of paper

board out of recyclable paper, in India. We offer our customers a varied range of productslike coated wood-free recycle range of Duplex board, Ecobrite,


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HISTORY OF KHANNA PAPER MILL

The story of Khanna papers begins with our Founder-Director Mr. Brij Mohan Khanna.

Born on October 13, 1947, in the dawn of Indias newly gained independence, he grew up

with ideals of service to the country and a fierce belief that India could and must excel.

Bright and intelligent, he sought and got admission for an M.B.B.S degree. However a re-

look at his family finances made him decide that he would put his fresh, young mind to

improvingthefamilyfuture.

Starting with a small sum of Rs.10,000/- culled from the familys savings Mr. Brij Mohan set

up a small paper plant in 1968 with the capacity of 200 Kg, and named it " Khanna Small

Scale Industry". With his hard work and canny business sense, the plant flourished and

grew.

Never one to rest on his successes, in 1978 he started a Duplex Board Plant with a capacity

of 5 metric ton. In honour of his father, Shri Rattan Chand Khanna he named it "Rattan Paper

Mills". As this second plant flourished, the time came to increase the capacity and the

product range. In1981, he put up another unit by the name of "Satya Paper Mills" with a

capacity of 8 TPD of writing Paper. This was named after his mother Shrimati Satyavati

Khanna.

In small ways are the inner workings of the mind reflected Brij Mohan Khanna, remains a

strong believer in family values. The difference is that today, the family comprises not just of

his wife Renu Khanna and his two sons Rahul and Saurabh, but encompasses the entire staffand workers of Khanna Paper Mills. This perhaps is the underlying reason for the success

of Khanna Papers the loving guidance and far seeing vision of Brij Mohan Khanna,

whoisapatriarchinthetruesense.

In 1991 he set up another unit in the name of"R. C. Paper Mills Pvt. Ltd." with a capacity

of25TPD.

In a short span of five years, in 1996, Khanna Paper Mills Pvt. Ltd. was created by merging

togetherR.C.PaperMillsandSatyaPaperMills.

Conceptualized in 2000, this unique project was completed in 2002. This successful

experiment with utilizing waste, coalesced into our strong Ecological Policy, and is one of

thebasictenetsinourbusinessideology.

Khanna Paper Mills Private Limited, is now an ISO 9001:2000 certified company,

manufacturing quality paper and board not only for domestic consumption but also exporting

it to the SAARC countries, and to Africa and the Middle East. Our export Market continues

to grow at a rapid rate. Our newest product the Flexible White Board challenges the

domination of existing behemotth


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VISION AND MISSION

VISON

Vison is to be a world eco largest organization that is a

benchmark for other organisationin country setting

standard for excellent and leading the trusting adapting run

friendly organization.

MISSION

To achieve our objective of becoming market leader.we eii

aggressively seek sustainable profit growth through

reventless persuit of our mission and attains our goals by

persieve strong business stratagies and leveraging our core

strength.


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COMPANY PROFILE

One of the largest paper mills of India estb in 1965 with a turnover of more than 500

crore Rupees a year. Plant is located in Amritsar. One of the largest importer of waste

paper and one of biggest Paper mill of India making Paper and Board out of recycled

Paper. Launched India's first eco friendly A 4 copier paper namely e copier paperBasic

Information

Company Name: Khanna paper Mills ltd

Business Type: Manufacturer

Product/Service

(We Sell):Paper And Board

Number of Employees: Above 1000 People

Trade & Market

Main Markets:

NorthAmerica

SouthAmerica

WesternEurope

EasternEurope

EasternAsia

SoutheasAsia

MidEast

Africa

Oceania


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DIRECTORS PROFILES

Brij Mohan Khanna

The Founder- Director of the company Brij Mohan Khanna is a man of rare intelligence and

intuitive ability. The company has experienced tremendous growth under his able guidance

and hands-on involvement in the daily processes of production. His vision and pioneering

concern for the environment, lead to the conversion of Khanna Papers into a green

company which manufactures paper products out of paper waste.

As suppliers, vendors, employees reiterate - for Brij Mohan Khanna there is no word likeimpossible. Never daunted, he is the force behind the companys constant evolution and

continuing growth. He remains ambitious not only for the growth of the company but also for

the personal advancement of all employees. He is a true Patriarch and encourages his

Management team to adopt an open door policy whereby any employee can walk in with

ideas or a problem. Brij Mohan Khanna leads his company with canny foresight, enthusiasm,

energy and gentle benevolence.


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Rahul Khanna

Rahul Khanna is the eldest son of Brij Mohan Khanna. He believes that that there is more to

life than success and more to success than money. And it is with this belief that Rahul

Khanna has grown to acquire an independent persona which has brought a generational

change in the working of the Khanna Paper Mills. Sincere and committed in all his ventures,

Rahul has the capacity for extreme hard work and tremendous focus. He believes strongly inthe Company and is confident of its success.

Rahul completed his graduation and attended business enhancement courses at IIM,

Ahmedabad, in order to be able to bring global standards to the energetically growing

company that he joined under the aegis of his father. Together with his brother, he forms part

of the young Management team that carries Khanna paper Mills forward with tremendous

zeal.

He is the Director of Marketing and Finance at Khanna paper Mills and has given

unstintingly of himself and his talents to the company. He is believes firmly in giving back to

society and is responsible for the free medical camp that is made available to employees.

Rahul Khanna character bespeaks of invincible honesty and visible outspokenness - a

combination rare on the business scene of India.


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Saurabh Khanna

Energetic and Effervescent, Khanna Paper Mill's youngest Director, started work at KPM

while doing his graduation. Such was his zeal and enthusiasm to take the company forward

that he enjoined upon his father, Brij Mohan Khanna to let him join the company and startworking at the young age of 20 years. Saurabh is the younger of Brij Mohan Khanna's two

sons. Saurabh has an excellent in-depth understanding of the business, having started learning

about the business from the "nuts and bolts" stage and then moving on to understand to the

financial and management aspects. He has a practical, no- nonsense approach to business,

dealing with problems with a "lets get this done" approach. A quick decision taker, he brings

in progressive ideas and is responsible for Projects, Contractors, Procurement, and

Administration. Saurabh has fully adopted his father's open door policy and is quick to

appreciate a workers effort.

He is extremely focused with an intuitive understanding of the business he loves. His

excellent delegation skills that help him get the best out of his team. He is forwardlooking

and hopes to achieve global standards in his business. He is responsible for the cutting edge

technology acquired by his company and is keen to continue implementing the best

technology. In his own words I love challenges" and he would like to see "Khanna Paper

Mills grow to be one of the largest and best Paper companies" in India.


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THE BASIC IDEA CONCIEVED BY BRIJ MOHANJI OF MAKING QUALITY PAPER FROM WASTE

RESOURCES. TO PRESERVE OUR NATURAL

RESOURCES

As he puts itIf the world must have paper, and

we have chosen to fulfill that need, then the

responsibility lies with us to always be on thelookout for ecological alternatives to

fulfillthatneed.


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KHANNA IS BASED ON FSC CERTIFIED

COMPANY

The FSC certified companies help in saving:-

17 Trees463 Gallons of Oil4077KW Energy6953 Gallon of Water587pounds of Air Pollution3.06cubic yars of Landfill sapce

(Source: American Forest & Paper Association


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LOCATION OF MANUFACTURING PLANT AND

ITS BRANCHES

Works sector : Fatehgarh Road, Amritsar.

Registered Office : Fatehgarh Road, Amritsar,

Punjab, India


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ENVIRONMENT OF KHANNA MILL

Paper remains one of the most critically needed products reaped from the environment.

Whether it is notebooks used by children in school, or the books that entertain andintellectually sustain us, whether it is the carton of toothpaste or the box of medicines,

paper is an integral part of our lives. While we fulfill this critical need for society, we

also remain mindful of the huge losses suffered by the environment through

deforestation.

At Khanna papers, we utilize as raw materiel paper waste imported from other countries.

Thus we begin our manufacturing process by making use of waste, instead of wood

chips obtained from cutting down of trees.

Throughout our products, activities and services, we endeavor to minimise any

adverse impact on the environment by means of pollution prevention, energy andwater conservation. In this way, cost savings, increased operational efficiency and

improved quality of products and services are achieved as well as a safe environment

maintained for the community as a whole and a healthy workplace for the Company's

employees

pursuit of this policy, we believe:-

Environmental Protection and Waste Minimisation is the responsibility of every

employee and persons working for and on behalf of the company and should be an

integral part of their working life supported by training whenever appropriate.Every endeavor will be made to ensure that the Company meets its responsibilities by

conforming to all applicable Environmental Legislation and regulatory requirements,

and with other requirements to which the company subscribes, in relation to its

environmental aspects.

Prime consideration will be given to the prevention of pollution and the elimination of

waste and emissions at source.

Customers and suppliers will be encouraged to support the same objectives by

minimising environmental impact through waste and reducing energy consumption

whenever possible.

Inform and educate all person(s) working for or on behalf of the company, about

environmental issues


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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 :

B) PREPARATORY TREATMENT OF STOCK :

C) PAPER MAKING :

D)FINISHING OF PAPER :


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PRODUCTS OF KHANNA PAPER MILL

PAPER:-

Our paper touches customer's lives everyday. In more ways than ever know. Stationery,Playing cards, High Quality coated paper for Brochures and magazines, Currency notes,

Copier Paper. We service these everyday instances across the length & breath of nation with

our wide product portfolio ranging from basic to high- end specialty paper.

OPTIMA MAPLITHO ECO BRITE PAPER

OPTIMA MAPLITHO:

GSM Range: 60-140

Machine Deckle: 435

Applications:

Printing: Annual Reports, Journals, Novels, Books, Notebooks, Diaries, Leaflets,

Mailers, Calendars, Writing Pads, etc.

ECO BRITE PAPER

GSM Range: 54-90

Machine Deckle: 435 cms

Applications:

Notebooks, Textbooks, Novels, Examination material, Scribble pads, Computer, stationery,

Bills, Invoices, Cash books

BOARD:-

Packaging Board

ABSOLUT Folding Box Board (AFBB) SBS Craze Miracle White Back Optic Graphic White Back Optic Graphic Grey Back Spectra Light Super Deluxe Duplex Board (LWC)


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NEWS PRINT

Excellent appearance of the paper after printing due to its brightness, shade and

printquality

Superior bulk and Opacity

Good strength properties of breaking length and tear for high speed printing

GSM Range: 45-60

Machine Deckle: 667 cms

Applications:

Principle applications are in the News print publications, Magazines besides children

coloring books, Novels etc.


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TECHNOLOGY OF KHANNA MILL

TheCoatedBoardMakingProcess

The Process of coated board making at Khanna Paper Mills involves various phases & steps

of converting Raw Material into a Finished Product. The various phases involved during this

process could be summarized as :

RAW MATERIAL & PULP MAKING

SHEET FORMING

PRESSING & DRYING

COATING & FINISHING

CONVERTING & PACKING


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REGULAR CUSTOMER OF MILL

A loyal customer base is KPM biggest quality endorsement. The institutional customers

comprise brand-enhancing names like J.K & Sons (Bombay), Golden Paper Mart (Delhi),

Amber Paper (Agra), Shri Banke Bihari JI Traders (Lucknow),Bharat Paper (Patiala).

DEALERS OF MILL

Now comes the most important part in the products life that is the distribution of the end

product. Khanna Paper Mill do not deals with the customers directly but it has dealers those

are covering most of the part of India to make the end product available to the customers. The

dealers deal with the customers on the behalf of the company. The dealers are provided with

the specific area to deal in. The dealers have to achieve the target that has been allotted by the

company to the dealer month wise. The dealers have the responsibility to make the product

reach the customer on time. Its like a flow chart in which the cycle of demand and supply

goes on and it is:-

The dealer looks out for the customer or the end user in the market. He will make a proposal in such a way so that the customer cant deny it. After receiving the order from the customer, the dealer forwards the order to the

company.

According to the order the company plans to produce the amount of the product whichhas been required by the dealer.


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NEW PRODUCT LAUNCHED BY KHANNA

PRODUCT:- COPIER PAPER

NAME :- GREEN PLANET

WIDTH :- 2.3kg

GSM :- 75

SHEETS :- 500

MRP :- 175 Rs. (including of all taxes)


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ANALYSIS OF SURVEY REPORT

CUSTOMER NAME PRODUCT KHANNA BILT JK

UNIVERSAL STORE COPIER 70% 20% 10%

54%

36%

10%

RINKU SALES CROP.

1 2 3 4


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CUSTOMER NAME PRODUCT KHANNA SPECTRA JK

V.K TRADERS COPIER 45% 30% 25%

45%

35%

20%

MAHAJAN MART

1

2

3

4


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ORIENTAL COPY COPIER 60% 25% 15%

40%

35%

25%

SHAKUNTLA STORE.

1

2

3

4


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RADHA COPY HOUSE COPIER 65% 25% 10%

65%

25%

10%

RADHA COPY HOUSE

1

2

3


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MEHTA BOOK DEPOT COPIER 75% 15% 10%

75%

15%

10%

MEHTA BOOK DEPOT

1

2

3

4


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SUGGESTIONS

FROM DIFFERENT CUSTOMERS

1.RATTAN STORES:-Rattan store which is located in the market of hall bazaar

Amritsar using 70% copier product of khanna paper mill.Their response about khanna

paper products is so good and they are satisfied about the qualities and the distribution

system of khanna paper products.

2.UNIVERSAL STORE:-Universal store which is located in hall bazaar Amritsar using

70% copier products of khanna paper mill and also satisfied from their rates and

distribution.

3.V.K TRADERS:-V.k traders having located in IDH market Amritsar usung 45%copier of khanna paper products.They are satisfied about distribution system but they

suggest us to there would be expensive to us to making copies.

4.ORIENTAL COPY MANUFACTURER:-Located in IDH market using 60% of copier

products and also satisfied about all things of khanna paper products.

5.RADHA COPY HOUSE:-Located in IDH market Amritsar and using 65% of copier

products.they are having problem in rates about the discounts.


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FINDINGS

From the above data this is proved that the market reputation of khanna papermill is very very good and very fine as compared to anothers.

They built their very good image in the Amritsar market. Paper quality is also better than other paper mills. Total amritsar market using 65% or more than khanna paper products. Distribution system of khanna paper mill is too good and facing no any problem

at the time of order.

Some customers want is that the company should try to give discounts forpurchasing the heavy quantity of commodities because of when they buy 1 pallet

of paper from distributer they charged same price of 1 pallet and also when they

buy 100 pallet the distributer also charged same price according to the 1 pallet

they want to take fairly discounts.

ACCORDING TO THE SURVEY WE CAN SAY THAT KHANNA PAPER

INDUSTRY IS ONE OF THE BEST INDUSTORY AS LIKE ANOTHER

INDUSTORIES .THEY SATISFIED THEIR CUSTOMERS NEEDS AND

WANTS AS THEIR REQUIREMENTS.


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Khnnna Paper Mills Project