1

ers needs the paper industry manufactures different products such as newsprint,

printing and writing papers, magazine paper, packaging paper, boxes, tissue (toilet paper, kitchen

towels, napkins, etc.) and a large number of special papers (e.g. stamps, air filters, coffee filters,

baking paper etc.). each of these categories demands specific properties of the product and the most

appropriate manufacturing route to these products may differ substantially. history of paper formed from

wood pulp or plant fiber, paper is chiefly used for written communication. the

earliest paper was papyrus, made from reeds by the ancient egyptians. paper was made by the

chinese in the second century, probably by a chinese court official named cai lun. his paper was
2
 coniferous trees, such as spruce and fir, used to be preferred for papermaking because

the cellulose fibers in the pulp of these species are longer, therefore making for stronger paper. these

trees are called "softwood" by the paper industry. deciduous trees (leafy trees such as poplar and

elm) are called "hardwood." because of increasing demand for paper, and improvements in pulp processing

technology, almost any species of tree can now be harvested for paper.

. the remaining material comes from wood fiber from sawmills, recycled newspaper, some vegetable matter,

and recycled cloth

manufacturing process
3-
 A. timber

timber used for papermaking comes from well managed forests where more trees are planted than harvested

to ensure sustainable growth. papermakers usually use only the parts of the tree that other commercial

industries don't want - such as saw mill waste and forest thinnings.

b. de-barker

bark is stripped from the logs by knife, drum, abrasion, or hydraulic barker. the stripped bark is then used
for fuel or as soil enrichment
4
the chips are 'cooked' by heat and pressure in caustic soda and sulphur. the chemical process is energy self-

sufficient as nearly all by-products can be used to fire the pulp

mill power plant. the chemical pulping process produces lower fibre yield than mechanical

pulping, typically 50-60%.

e. mechanical pulping process

mechanical pulp yields over 90% of the wood as fiber is produced by forcing debarked logs,

about two meters long, and hot water between enormous rotating steel discs with teeth that
5
bottom which breaks up the bales into small pieces. the pulp mass created begins to look like

thick porridge. this machine is known as a hydrapulper. it operates automatically and when the disintegrating

process is complete it discharges the pulp into large storage tanks. hydrapulpers used mainly for handling waste

paper are fitted with special devices for removing unwanted contraries such as wire, plastic, paper clips, staples

etc.

the pulp is next put through a pounding and squeezing process called, appropriately enough,

beating. inside a large tub, the pulp is subjected to the effect of machine beaters. at this point,

various filler materials can be added such as chalks, clays, or chemicals such as titanium oxide. these additives
will influence the opacity and other qualities of the final product. sizings are also
6
 devices below the belt drain off water. if the paper is to receive a water-mark, a device called a dandy

moves across the sheet of pulp and presses a design into it.

A. blend chest

the stock passes to a blend chest where numerous chemicals can be added to obtain the required

characteristics to the finished paper. dyes are also added, as necessary, to color the paper. dyes fix

themselves to the cellulose fibers and are fast to light and water.
7
3. finishing

finally, the dried paper is wound onto large reels, where it will be further processed

depending on its ultimate use. paper is smoothed and compacted further by passing through

metal rollers called calendars. a particular finish, whether soft and dull or hard and shiny, can be imparted by

the calendars.

the paper may be further finished by passing through a vat of sizing material. it may also

receive a coating, which is either brushed on or rolled on. coating adds chemicals or

pigments to the paper's surface, supplementing the sizings and fillers from earlier in the
8
drier section, size press, calendar and reeling up.

the first section of the machine is called the 'wet end'. this is where the diluted stock first comes

into contact with the paper machine. it is poured onto the machine by the flow box which is a

collecting box for the dilute paper stock. a narrow apperture running across the width of the box

allows the stock to flow onto the wire with the fibres distributed evenly over the whole width of the paper
machine.
9
other manufacturers. not all paper and board is processed by converters. some papermakers do their own

converting,

for example, the manufacturers of soft tissues market their own products and sell directly to the public.

the printing industry converts large quantities of paper and board, much of which reaches the

customer as newspapers, magazines or books. quality management for the pulp and paper

industry
10
 providing complete traceability - direct and prompt answers to customer complaints

improving productivity and product quality- developing existing quality processes

the quality management system enables mill personnel to plan, coordinate, and control production

quality, from raw materials to delivered product, and to gather and analyze data captured at every

step of the process. the result is reduced costs through better quality determination, faster grade

changes, reduced waste, higher revenues and strengthened trading partnerships from increased customer

satisfaction

2. laboratory management
11
respond promptly and directly to problems as they arise, and to report and analyze quality

information for process and production improvement. the system includes a broad set of standard

reports that can be printed on demand or to a predefined schedule. managerial reports can be generated e.g. per

shift, day, month or year.

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
 12

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
@ 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 onl
7.00 million Metric Tones Per Annum (MTPA). Fragmentation is severe in the “industrial” (packaging) y
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”
13
 ntly

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
 14

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 t
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 exportts.segmen
The exposure to foreign packaging technology and the need to satisfy the export customers has led too
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
15
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
16
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.
 17

Imports of paper and paper products were growing over the years. However, it has

-2001.
decreased during 2000

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 -04
2003
recordeda 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
years. With this incre
ase 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 , isit
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 -
3
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
18
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:
19
Waste Paper Examples
Source
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 printers
20
 s
.
o
f

In India, however, no such regulations / law / directives are in force to promote use of
recyclable resources, as a result of which the recovery of used paper is also low. As per
the statistics available , the Indian paper industry is using more than 70% imported waste
paper in its total waste paper consumption . The general issues related with use of
imported waste paper in Indian Paper Industry are:

1. Inconsistency in quality and varieties of waste paper grades.

2. High level of contamination i.e. prohibitive & out throws.

3. Price fluctuation in the international market.

4. High price for good quality waste paper i.e. low to negligible contamination
level.
 21

5. High ash content in paper leading to fiber

low yield /paper
t and generation of
inorganic sludge.

ISSUES RELATED TO WASTE PAPER BASED MILLS

In spite of the fact that waste paper processing for paper making is considered to be ov
an eco friendly process , there are certain technological & environmental issues still e

associated with waste paper based mills which needs to be addressed to impr
its environmental compatibility.

Technological Issues :

of
The main objective of recycled fiber processing is the removal of contaminants and elimination of their
-
effects as much as necessary to meet quality requirements. Removal of contaminants makes recycled
fiber processing systems significantly more complex than systems for virgin fibers. There are several
unit operations / stages viz. slushing, screening, cleaning, flotation, disperger etc. to remove the
contaminants from recycled fiber stock. The technology is well established to produce newsprint,
packaging grades and fine papers and most of the mills in USA, Europe have stateart technology for
processing of recycled fiber. In India, however, most of the recycled fiber based mills do not have
appropriate system configuration for efficient processing, as a result the quality of finished paper is
low. The level of technology in majority of mills is obsolete. The operational efficiency of equipments
and machines are also considerably below the optimum level . Due to lack of appropriate
configurations, the amount of rejects generated are also high and is a major source of solid waste
generated in such mills .

ENVIRONMENTAL ISSUES :
Among the environmental issues associated with recycled fiber mills , solid waste disposal and
management is the subject of main concern. Deinkined sludge generated from deinking plants in
mills using printed waste paper for producing writing & printing grade of paper , consists of mainly
fillers and coating pigments,

22
fibers, fiber fines, printing inks and adhesive components. A characteristic feature of
the deinking sludge is its high ash content in the range of 40% - 70%. Traces of
heavy metals may also be present in some cases. In most of the cases the heavy
metal content is insignificant and sometimes even below the detection limit. The
another important issue reported recently is the clandestine import of other
waste like plastics, metal and cloth / rags etc (technically defined as prohibitive and
out throws) along with waste paper.

OBESRVATION & REMARKS :

Generally the waste paper being imported in the country are recovered in segregated
form as per the request of the importer. However, some cases have been reported
wherein municipal solid waste constituting of plastics, metal cans and zcloth / rags
etc (technically defined as prohibitive and out throws) have been illegally imported
in grab of imported waste paper This has led to the need of defining / formulating
the permissible limits for the contaminants like plastics, metal cans and cloth / rags
etc. in the imported paper . At present, no data /guideline is available on this issue
Therefore; it is recommended to undertake an indepth study on this issue so
as to evolve permissible limits for prohibitive and outthrows in the imported

waste paper consignments entering into the country .

CORPORATE PROFILE

M/s Shree Jagdambe Paper Mills Limited(SJPML), incorporated in July, 1980 as

a private limited Company, commenced its commercial production of Semi Kraft
Paper on single production line in March, 1982 with an installed capacity of 1950
M.T. per annum based on agro residue. In the year 1985-86 the capacity was
increased to 3000 M.T. per annum & later in 1987-88 to 5000 M.T. per annum by
adding certain balancing equipments. In 1990, SJPML added another production
Line and increased the capacity to 10000 M.T. per annum. In 1993-94 the plant has
been operated at 95% capacity utilization to give a production of 9587 M.T.
SJPML has been promoted by Shri Man Mohan Kumar Goyal, Shri Ramesh
 23

Kumar Goyal, Shri Surender Kumar Goyal, Shri Anil Kumar Goyal and Shri Parveen
Kumar Goyal who have professional background. SJPML has been converted into
a Limited Company on 28.12.94 and also enhanced its production capacity from 10000
M.T. At present to 20000 M.T. per annum through Modernization
- cum-Expansion
Scheme.
During the year 1994
-95 an other sister unit of
SJPML for manufacture of Kraft Paper was incorporated as Shree Sita Ram Paper n
Mills Ltd., at Village Nanasanja Taluka Jagadia, Distt Bharuch (Gujarat) with installed
capacity of 20000 MT per annum. As product of the company is well accepted in ope
market, but due to Government policies of liberalising international trade, Import duty
on Kraft Paper was reduced resulting dumping of Paper in India by multinational
Companies and same also became a reason for down in production for the year 2001 200
1
to 2003. Similarly Excise Duty was also increased between-95
1994
to 2000-
from 0% to 5% and then to 8% and 16 % (-2003)
2002.

BRIEF PARTICULARS OF THE COMPANY

The Company was incorporated under the name & style of M/s Jagdambe Paper Industries(P)Ltd.,
vide certificate of incorporation No.H-10725 dated 31.07.1980, with Registrar of Companies,
Delhi & Haryana, (New Delhi). The name of the Company was changed to Shree Jagdambe Paper
Mills (P) Ltd., on
10.02.1994. Now Company’s constitution has been changed to that of a Limited Company on
28.12.94. The Company has registered itself with Directorate General of Technical Development,
Delhi, Ministry of Industry, Government of India for manufacturing of Paper & Paper Board vide
Registration No.1020(89)DLR dated 17.11.1989 for 10000 M.T. And memorandum for expansion of
capacity to 20000 M.T. Has been filed with SIA as per acknowledgement dated 23.08.94.

BRIEF PARTICULARS ABOUT PROMOTERS OF THE COMPANY

The Project was promoted by Shri Murli Dhar Jhuthran and Shri Ramesh Kumar Goyal. Shri Murli Dhar
Jhuthran retired as Director in 1982. After then promoters were Shri
Man Mohan Kumar Goyal, the Chairman of the Board of Directors, Sh Ramesh
Kumar Goyal, Managing Director, Sh Surender Kumar Goyal, Director(Sales), Sh

24
oping
25
 Taluka Jagadia, Village NanaSanjha,
Distt. Bharuch (Gujarat)
Shree Sita Ram Paper Mills Ltd., incorporated in the year 1995 is sister company of Shree
Jagdambe Paper Mills Ltd., involved in manufacturing of Multi Liner Craft Paper having production
capacity of 20000 MT per annum.

b) Shree Amba Paper (P) Ltd.,

73/4, Village Ghavera,
Delhi
c) Ahmedabad Chemical Trading (P) Ltd.,
44, Ekjot Apartments,
Maduban Chowk,
New Delhi
26
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. 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.
27
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

28
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 :
29
 .

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 :

SJPML has got a well equipped laboratory with all the latest equipments for test cobb value, Tear
Factor, Burst Factor, Consistency, Degree SR and Grammage etc.
 30

NET WORK OF SALES

SJPML has a wide range of net work of dealers spread all over the India, which covers
mostly all the states of India.
CLIENTS

SJPML 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)
j)
k)
l)
Kamal Boxes, Jalandhar
Jay Ambe Overseas, Surat
Industrial Packers, Daman
Meiyappa Paper, Chennai

EMPLOYEES CAPACITY
Details of employees are as under :- 1. Repair & Maintenance Staff 15

2. Engineering & Manufacturing Staff 18

31
 SHREE JAGDAMBE PAPER MILLS LTD., SIRSA

PROCESS FLOW DIAGRAM

Waste Paper

Along with 12% Normal Moisture,

32
REMMUNERATION OF WHOLE TIME DIRECTOR

Sri Surinder Kumar Goyal

Sri Surinder Kumar Goyal a Post Graduate in Commerce and has been in the services of the
Company as Director (Sales) since the incorporation of the Company. He will be entitled to the
following remuneration as fixed at the Board meeting Committee and as approved at the Annual
General Meeting of the Shareholders of the Company , in accordance with the provisions of Section
311, 198, 269 and 309 read with Schedule
33
 fifty

Sri Anil Kumar Goyal

Sri Anil Kumar Goyal a Chartered Accountant is in the services of the Company as Director
(Finance) since the incorporation of the Company. He will be entitled to the following remuneration as
fixed at the Board meeting Committee and as approved at the Annual General Meeting of the
Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and 309
read with Schedule XIII and all other applicable provisions if any of the Companies Act, 1956 or any
statutory modifications or re-enactment thereof.

1. Salary Rs. 30000/- per month

2. Commission : N.a.
 34

fift

Sri Rakesh Kumar Goyal a Graduate in Commerce and has been in the services of the Company
as Director since 1996. He will be entitled to the following remuneration as fixed at the Board
meeting Committee and as approved at the Annual General Meeting of the Shareholders of the
Company , in accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule
XIII and all other applicable provisions if any of the Companies Act, 1956 or any statutory
modifications or re-enactment thereof.

1. Salary Rs. 25000/- per month

2. Commission : N.a.

3. Perquisites House rent allowance at the rate of 30% (

percentage) of the Salary
 fifty

35

Medical expenses:
- Medical expenses for the Director

and his Family subject to a ceiling of one month’s salary in a year

or three month’s salary over a period of three years

Personal Accident insurance

– an amount of the annual premium of which does
not exceed Rs. 12000/
-

Gratuity payable
– Not to exceed half a month’s salary for each completed year
of service. Provision of Car for use on Company’s business and Telephone at
residence Perquisites shall be evaluated as per Income tax rules, 1962
wherever applicable.

Sri Manoj Kumar Goyal

Sri Manoj Kumar Goyal a Graduate in Commerce and has been in the services of the Company as
Director since 2000. He will be entitled to the following remuneration as fixed at the Board meeting
Committee and as approved at the Annual General Meeting of the Shareholders of the Company , in
accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule XIII and all other
applicable provisions if any of the Companies Act, 1956 or any statutory modifications or reenactment
fift
thereof. y

1. Salary Rs. 20000/- per month

2. Commission : N.a.

3. Perquisites House rent allowance at the rate of 30% (

percentage) of the Salary

Medical expenses:- Medical expenses for the Director and his Family
subject to a ceiling of one month’s salary in a year or three month’s salary over a
period of three years
36
 tech

Accounts Department
Accounts Department has also been supervised by Sh Anil Goyal, Director Finance under
assistance of Accounts Manager & Accounts Assistances. Under his supervision and new
ideas company has a modern and highaccounting software and a well established computer
lab.

Purchase Department
Purchase of raw material is supervised by Sh Manoj Goyal, Director Purchase. Director
Purchase is assisted by Purchase Manager and Raw Material Quality Managers.
37
HR. Department
SJPML’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. SJPML 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 SJPML matches with the Industry Standards with qualities
of flexibility, valuing talent and encouraging career growth.
38
 Energy Conservation
SJPML has always been concerned and committed to improve the mill energy performance levels
continuously. Basically because it realizes that natural energy resources available are finite with no
way of replenishing the quantum consumed and also heavy investments are required for energy
sector for meeting the demands and these resources are to be consumed with prudence to conserve
the energy. For SJPML, conservation of energy has become a way of life. It reflects and manifests
itself in all the endeavors. SJPML realizes that this not only is a means to improve competitiveness,
enhance profitability but also is a source of moral responsibility.
39
 for

To achieve the above objectives of energy performance, SJPML has constituted an

independent Energy Conservation Department and engaged reputed proven “Energy
Consultants” as early as in 1987 for energy audit, 1990-91, 1996-97, 2001-02
detailed energy audit with mass; and energy balance and in 2007 for energy audit.
These studies are conducted for identification and implementation of energy saving
proposals, reduction in energy cost and wastage with improved housekeeping and
monitoring practices. The department is bestowed with the functions of bringing
awareness of; importance of energy to the employees by conducting in house
training programs, by organizing energy conservation week celebrations, Energy
Conferences, etc.

The Energy Conservation department prepares and monitors daily energy

performance of the mills through computerized daily energy performance reporting
system. SJPML has installed energy meters and measurement devices for all energy
inputs like power, water, steam, fuels, compressed air and condensate return. The
energy performance report indicates the figures of today and till date against best
achieved norms for immediate comparison and for identification of variances on total
and specific energy consumption figures of various sections of the mill for all the
above energy inputs.

These daily reports are put for specific discussions on energy performance in daily
production meetings, for taking effective corrective actions. The detailed monthly
energy performance reports are also presented in monthly executive performance
review meetings for identifying areas of improvement and for making; necessary
exclusive decisions.

Energy Consumption:

SJPML, being an integrated pulp and paper mill, consumes steam and power for the
production. Steam is generated not only for the process, but also captive power
generation. The fuel for steam generation is husk, the solid waste dust generated in
the process is also used as fuel.
 40

The Mills has operating TG sets for

-generation,
co Double
-Extraction
-Condensing type
of 12 MW capacity and fully condensing set of 5 MW capacity. The 12 MW and 5 MW
steam turbo generator sets are operated continuously.

In the year 2006

-2007the fuel consumed in the boilers for process steam requirements
and the power generation is a total of 197274 Tons out of which 108579 tons is used
for process steam 88695 tons for power generation.

Energy Conservation is an ongoing process. Realizing the need for energy

conservation, SJPML puts its efforts for improving the energy performance on
continuous basis.

Description of the energy conservation schemes

Installation of energy efficient booster water pump in paper machines.

Mill water header pressure is maintained at 2.6 kg/cm2. The pressure could not be reduced to 2.2
kg/cm2 due to bleach plants pressure requirement at 2.5 kg/cm2. Booster water pumps of 2.5 kg/cm2
pressure are installed in bleach plant and mill water pressure is reduced to 2.2 kg/cm2. Investment is
Rs. 6.5 lakhs, savings Rs. 4.43 lakhs per annum and simple payback period is 8 months.

Conversion of non-lubricating type compressor into lubricating type and installation in paper machines:

Compressors are unitized in power block area . The removed compressor is converted to non-
lubricating type and installed in paper machines there by unitizing four numbers of compressors in that
area.

Installation of energy efficient vacuum pumps in paper machines:

Paper Machine commissioned in 1966 has old version vacuum pumps of N14 E model.
Two pumps are replaced with Nash make energy efficient pumps of 904 M2 model.
41
 inspections are being carried out by using checklists. The Safety Committee and Sub-committe
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.
42
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 SJPML

SJPML has established a separate, dedicated ENVIRONMENT CELL for Water and Air pollution
abatement, which indicates the commitment of the Industry in controlling the pollution.
43
 . The

pollutants in the effluent discharged are Suspended Solids, B.O.D, and C.O.D etc. The wastewater from th
is treated in Effluent Treatment Plant consisting of Primary Treatment to remove the suspended soli
Secondary Treatment (Activated Sludge Process) to remove B.O.D and C.O.D and then treated b
Treatment process to remove even the Colour of the effluents. SJPML is the only mill discharging e
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 M 3 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 M volume. There are
11 Nos. of mechanical surface aerators, each of 75 HP. Nutrients
 44

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
3
(2 Nos.) of 6000 M each. The effluent after Secondary Treatment is pumped to Land
Treatment.

LANDTREATMENT:
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.

id
of
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 vo 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 (CaCO 3) is burnt to get burnt lime (CaO) to reuse in the
Causticizing Process.

ELECTROSTATIC 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

45
 in

RECOMMENDATIONS OR SUGGESTIONS
During my training in SJPML, I have got exposure of so many things related to this field. I am
very grateful to SJPML to offer me such an opportunity. I feel that it is my responsibility to
recommend some suggestions these will ultimately for the benefit of the company. Some
important recommendation or suggestions are as under:-

1. SJPML should check its supply & distribution channels. Presently company is
selling their product through commission agents network. If company, sell its products
through agencies/dealer network, company could get better realisation.
46
LIMITATIONS:
The extent to which study is reliable, it is important to note the limitations under which the study has
been conducted. These limitations are as follows:-

10. Due to shortage of time it was not possible to cover all the network of the Company.
11. It being my first attempt to undertake such a study, thus inexperience is also a obstacle to
accomplish the project in proper way.
12. It is also difficult for me to get information about some other confidential clients of the
company.
47