Escolar Documentos
Profissional Documentos
Cultura Documentos
1. INDUSTRY PROFILE
Paper has a long history beginning with the ancient Egyptians and continuing to the
present day. For thousands of years hand made methods dominated and then during the 19 th
century paper production became industrialized. Originally intended purely for writing and
printing purposes, a wide variety of paper grades and uses are available to the consumer.
The art of making paper was first discovered in China, 2nd Century B.C. From there it
traveled slowly towards Europe. The end of 14th century gave birth to number of paper mills
in Italy, France and Germany. In the year 1837, Dr. Charley established a paper mill at ‘West
Bengal’. Unfortunately, it was closed in a few years. In 1967, the royal paper mill was set up
in West Bengal again.
Currently there are about 525 paper mills in the country with an installed capacity of
78 Lakh MTs, out of which there are about 32 mills with a capacity in the range of 100 to
600 MTs per day, 110 mills in the 30-100 MTs per day and 383 mills in the 3-30 MTs per
day. During 2006-07, the production of writing, printing, packing paper & board was
approx. 72 Lakh MTs against 68 Lakh MTs in 2005-06 (5.9% growth). The demand for
paper in the country went up from 65 Lakh MTs to 69 Lakh MTs (6% growth). Though the
overall import (mainly newsprint(7 Lakh MTs) coupled with smaller quantity(3 Lakh MTs)
of specialty papers) was in the range of 9.5 to 10 Lakh Tons during 2007-08, the import of
newsprint grew marginally from 7.0 to 8 Lakh Tons. The export of paper from the country
continued to be in the range of 3-4 Lakh MTs in 2007-08.
2. Fragmented capacity and Market volumes of each grade of paper are very low – do
not justify setting up of large single grade mills.
5. Cost of inputs like electricity, coal, chemicals increasing year after year while paper
prices are pegged at international parity.
6. Strict environment regulations have forced the industry to go in for new chlorine free
technology, reduce water and energy consumption and invest heavily in lime kiln and
NCG gas burning.
The biggest constraint for the paper industry in the next few years will be the
availability of wood in the country. As per the estimates of IPMA, the wood requirement for
the paper industry would go up from 60 lakh tons to 130 lakh tons by 2020. The plantation
land required for this, however, can be easily allocated by government out of the vast
degraded forest land and the waste land available in the country. However the dependence
on imported Pulp will continue along with usage of imported waste paper, as there is no
proper collection of waste paper in our country.
Considering the present low level of consumption of paper (6Kgs) and the anticipated
growth in population, literacy level and living standards; growth in the
packaging/printing/publishing industries; and the environmental restrictions on the usage of
plastics vis-à-vis paper, there is a vast scope for increasing the consumption of paper in the
country.
As the growth in consumption of paper is directly related to the GDP growth of our
country, it is expected that the industry would grow at a rate of over 8% in the coming years.
The demand for both WPP (Writing and printing paper) and Newsprint paper would grow.
However, in the case of WPP the maximum growth would be in the speciality papers. With
growth in literacy by about 10% in the 3-4 years, the demand for paper would increase. In
the case of Newsprint the consumption would grow with the increased circulation of most of
the Newspaper publications. However, the price war among various publications would
continue along with the fight for getting the largest share of the advertisement pie.
Advertising in the print media is expected to go up along with advertising on TV and other
media
Following are the new developments in the Paper Industry that are taking place:
1. Continuous up-gradation of the existing machinery by Mills coupled with
introduction of newer technologies of production of paper at lower costs.
2. Most Mills are going in for expansion of their capacities. The additional capacities
are in the production of Writing and Printing Paper and not of Newsprint due to
higher realization on WPP as compared to Newsprint.
4. In the production of WPP the trend is towards speciality papers like security paper,
high brightness copier, lightweight coated paper, tissue paper, etc., where the
realization is better.
5. In newsprint, the trend is towards more usage of 45 gsm paper than 49 gsm paper and
also high bright paper (around 67 brightness as compared to 55-56 brightness
presently available domestically).
6. Since the demand for WPP paper & Board is lower than the current production, Mills
are resorting to export of the surplus production.
7. With VAT introduced in most states, Mills have started strengthening their
distribution network to take advantage of the lower VAT(4%) in the states against 8-
10% which was prevailing earlier.
Strong demand from packaging segment will drive demand growth for industrial
paper.
Establishment of new business area such as telecom and power will lead to increasing
literacy levels, thus improving the low per capita consumption of paper (3.2 KGS per
annum). Besides rapid growth in population, enhanced literacy levels, growing
quality consciousness and changing consumer preferences will drive paper demand.
In view of the high capital costs, expansion of existing units and revival of sick units
remain the practical option for capacity additions. Also, paper mills in India have to
look for ways to cut down costs to compete with imports.
International paper prices are not expected to rise substantially over the short-medium
term. Domestic paper companies will thus continue to reel under the pressure of
reduced margins. However, a app `preciating rupee will marginally protect domestic
companies from imports. Due to increased supply, some of the companies have put
their expansion plans on hold or have reduced their investment opting for lesser
capacity expansions.
2. COMPANY PROFILE
The Company has an Authorized Capital of 150 Crs. and paid up capital of about 120
Crs. The shares of the company are listed in the Bombay Stock Exchange and there are about
17,000 shareholders.
The company is managed by eminent Board of Directors consisting of IAS, IFS and
other professionals.
MPM with 5000 employees has its own township. About 15000 families of the cane
growers who supply sugarcane to the company are directly dependent on this company and
many more depend indirectly The direct and indirect contribution by MPM to the local
economy is about Rs.170 Cr P.A
VISION:
To be a world-class enterprise offering paper, sugar and allied products and services,
enhancing stake holders value.
MISSION:
Customer satisfaction.
Consistent quality
Competitive price.
Environmental Policy
MPM is committed to the society, to continuously improve its environmental
performance by adopting best practicable technologies and processes, which
minimizes its impact on environment.
MPM is committed to protect, sustain and upgrade the local environment and
health and quality of life of its employees, customers and neighbourers.
Now MPM ltd is a 350 crores public sector company. MPM ltd owns Rs 815 crores
worth of land. The company has about 3069 permanent employees on its role. MPM ltd has
four regional offices situated at New Delhi, Calcutta, Chennai, and Mumbai with its
corporate office at Bangalore. It is the first largest single location integrated plant in the
country manufacturing newsprint, cultural verities of paper and sugar. The Mysore Paper
Mills ltd has its own forest land of 30,000 hectares for producing the raw material required.
2.4 Milestones:
Date Particulars
20.05.1936 Incorporated with an initial share capital of Rs.25 lakhs. Obtained license to
produce 4000 Mt. Per annum of Writing and Printing Paper.
01.04.1937 Foundation laid by His Highness Sri KrishnaRaja Wodeyar Bahadur.
In 1954, the production was doubled to the capacity of 8000 tonnes per annum by
taking a loan of Rs 50, 00,000 form the IFCI and loan was repaid ahead of schedule.
2.6 Production
The Company has an installed capacity of 30,000 tonnes per annum for production of
writing & Printing Paper, 75,000 tonnes per annum for production of Newsprint and Sugar
Mill with a capacity for crushing of sugarcane of 2,500 TCD. The water requirements of the
Company are met through adjoining Bhadra River.85% of the power requirements (41 MW
capacity) are met through captive power generation.
MPM is engaged in the manufacture of varieties of Cultural Paper, Standard and Pink
Newsprint and Sugar. MPM is the only company in India to have a sugar factory as an
integrated part of the Paper Mill wherein bagasse bye product of sugar is being used as raw
material for manufacture of WPP.
The average turnover of the Company is about Rs.325 Crs. Per annum of which 65%
is from Newsprint, 20% from Writing & Printing Paper and 15% from Sugar. The market
share of Newsprint is 11%.
Cultural Paper
The cultural variety of paper are classified as fallows
1. Writing paper
2. Printing paper
3. Packaging and wrapping paper
4. Special paper
The above said writing printing and special paper are classified into following varieties.
a. Cream wove : Uses for pose
The following table shows the total production and sales of cultural paper from 2000 to 2007.
The paper is a consumer oriented product and there is keen competition among
various mills. The marketing of paper occupies an important position. Therefore, MPM
Limited has set up a separate division to market its products. Marketing division has its
headquarters at Bangalore and regional sales office at New Delhi, Mumbai, Kolkata and
Chennai and the marketing office at Bhadravathi is the nodal.
1. To ensure that the Machines are provided with sufficient Orders, so that, the capacity
utilisations of the Machines are optimum.
2. Production is not only optimized but also the sales realization is maximized.
3. Feed-back to Production Department regarding customers’ acceptance of the quality
of MPM products.
4. Regular interaction with the dealers/customers to understand their changing needs
5. To price the product taking in to account the competition from domestic and
international suppliers
6. To supply the customers material as per their schedules.
7. Customer Satisfaction-Resolving customer complaints.
8. Timely collection of payments from customers/dealers.
9. Adherence to the stipulations given by government in the sale of controlled
commodity(Sugar)
News Print is marketed directly to large RNI registered News paper publishers by
entering in to contract with them. For catering to requirement of small and medium news
paper publishers dealer is appointed. The contract with publishers/dealer generally will be
with an exchange of letters between the mill and the publishers/dealer. The general procedure
followed for appointment of dealer for news print is available with the division. The
marketing practice followed by MPM in line MPM sell through a network of dealers. MPM
sell approximately 50% of their sale of writing and printing paper through the dealer
network (numbering around 80 spread across the country) and the balance directly to
government/institutions .The general guidelines/criteria followed in appointment of a dealer
in writing and printing paper is available with the division. The marketing practice followed
by MPM in line with the trade practice in the paper industry.
Ultimate Consumers
2. MPM Godown
Sub Dealers
Ultimate Consumer
3. MPM Godown
CHAPTER- 3
GENERAL INTRODUCTION
Customer Satisfaction
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement and in
term of their perception and expectation the of the performance of the organisation being
measured.
ATTITUDES
Consumer researchers asses attitudes by asking questions or making inference from
behavior more over, the illustration suggests that a whole universe of consumer behavior of
purchase recommendation to others, top rankings, believes, evaluations, and intentions are
related to attitudes. What, then, are attitudes? In a consumer behaviors context an attitude is
learned predisposition to behave in a consistently favorable are unfavorable way with respect
to given object. Each part of definition describes an important property of an attitude and its
critical to understanding the role of attitudes in consumer behavior.
OBJECT
The word object in our consumer oriented definition of attitude should be interpreted
broadly to include specific consumption or marketing related concepts, such as product,
product category, brand, service, possessions, product use, causes or issues, people,
advertisement, internet site, price, medium, or retailer.
In conducting attitude research, we tend to be object specific.
Marketing Research-
The part of marketing intelligence that involves specific enquires in to problems and
marketing activities to discover new information so as to guide marketing decisions.
Marketing strategy
Successful companies know how to adapt to a continuously changing marketplace.
They practice the art of market-oriented strategic planning, the managerial process of
developing and maintaining a viable fit between the organization’s objectives, skills, and
resources and its changing market opportunities.
The aim of strategic planning is to shape the company’s businesses, products,
services, and messages so that they achieve targeted profits and growth.
The questionnaire was formulated under the guidance of Mr. Vasanth Vete. Manager
[marketing] MPM Bhadravathi and T.M. Prasanna Kumar. Faculty member, department of
management studies JNN College of Engineering, Shimoga. Data has been gathered from 30
cultural paper consumers.
Secondary data has been gathered from many published sources such as news papers,
Magazines, company reports, standard text books and information from website has been
acquired where ever necessary.
Sampling plan-
Sample selection- The survey was conducted in Bangalore market because majority of the
customers of MPM are located in Bangalore, and the sample was selected on the basis of
information provided by Mr. Ravi Shankar Manager (Marketing) MPM, Bangalore. The
target customers of the study consist of the regular and irregular dealers/ customers who
purchase the product directly or indirectly from the company.
Analysis of data:
Data collected was analyzed using simple statistical methods and the same
represented using graphs / tables. Then based on findings few suggestion has been put forth.
1] The executives of MPM inspite of their own busy business schedules responded and
helped fully . But due to restricted time period 100% complete and detailed
knowledge could not be acquired.
2] As the customers are scattered all over India, a primary first hand information from
all customers cannot be obtained.
3] Some of the respondents were uneducated, so there was some difficulty in making
them to fill the questionnaire.
5] Even though MPM has wide range of products, the present study is confined to
marketing of cultural paper only.
6] Despite of all these limitations, efforts have been put forth for making the survey
report as realistic as possible with the resource available. Therefore I hope that the
conclusions are realistic and correct.
CHAPTER – 4
ANALYSIS & INTERPRETATION
Analysis:
From the above table it is observed that among 30 respondents 27% of the
respondents are the customer of MPM from 10-20 years and 33% of them are being the
customer from 5-10 years and 20% are the customers from less than 5 years and above
20years each.
Graph -1
Duration as Customers of MPM.
Cream wove 1 20 6 0
( 3.33%) (66%) (20%)
Azurlaid 1 15 11 2
(3.33%) (50%) (36.66%) (6.60%)
Colour printing 1 3 9 1
(3.33%) (10%) (30%) (3.33%)
Kraft paper 0 3 3 1
(10%) (10%) (3.33%)
Cover paper 0 5 14 2
(16.66%) (46.66%) (6.66%)
Source: Primary data
Analysis:
66% of the respondent says that they are purchasing Cream wove paper per month.
50% of the respondent says that they are purchasing Azurlaid paper per month.
30% of the respondent are purchasing Colour printing paper per 6 months.
10% of the respondent are purchasing Kraft paper per month and equal % are purchasing per
6 month.
Graph -2
Frequency of purchase with respect to different types of cultural paper
Table: 3
Analysis:
From the above table we can observe that among 30 respondents 46% of respondents
rate mpm as superior and 33% of respondents rate mpm as competitive and 21% of
respondent rate mpm as inferior.
Graph -3
MPM in Comparison with other suppliers by respondents.
e JK 3 10%
f SeshaShayee 2 6.6%
Source: Primary data.
Analysis:
From the above table we can see that out of 30 respondents, 40% prefer APPM and
26.6% prefer TNPL Paper Mill. They are followed by West Coast, JK Paper Mill, NEEPA
and SeshaShayee in terms of preference.
Graph -4
Respondents’ preferred supplier other than MPM :
Criteria
Quality 13 11 5 1 30
(43.33%) (36.66%) (16.66%) (3.33%)
Price 13 11 3 3 30
(43.33%) (36.66%) (10%) (10%)
Service 1 4 8 17 30
(3.33%) (13.33%) (26.66%) (56.66%)
Credit 3 4 14 9 30
(10%) (13.33%) (46.66%) (30%)
Availability 2 2 7 19 30
(6.66%) (6.66%) (23.33%) (63.33%)
Demand 2 5 14 9 30
(6.66%) (16.66%) (46.66%) (30%)
Source: Primary data.
Analysis:
With respect to quality and price most of the respondents have ranked 1 which
indicates that they are the most important criteria which the customers consider before
making purchase. Similarly. with respect to service most of the respondents have ranked IV ,
credit - III, Availability - IV, and demand - III.
Table: 6
Percentage of
Sl. No. Particulars No. of Respondents Respondents
1 Highly Satisfied 3 10%
2 Satisfied 16 53%
3 Average 9 30%
4 Not satisfied 2 7%
Total 30 100%
Source: Primary data.
Analysis:
From the above table it can observed that among 30 respondents 53% of the respondents
are satisfied with the quality of the product of MPM, 10% of them are highly satisfied, 30%
of them say quality is average and 7% are not satisfied with the quality of MPM Product.
Graph -6
4.7 Respondents opinion with respect to price and service of M.P.M products.
Table: 7
Price 16 11 3 0
(53.33%) (36.66%) (10%)
Service 05 16 09 0
(16.66%) (53.33%) (30%)
Analysis:
53.33% of the respondents say that they are highly satisfied with the price of the
products offered by MPM.
53.33% of the respondents are satisfied with service of MPM
Graph-7
Percentage of
Sl. No. Particulars No. of Respondents Respondents
1 All the time 10 33%
2 Most of the time 15 50%
3 Few times 5 17%
4 Never 0 0%
Total 30 100%
Source: Primary data.
Analysis:
From the above table it can be observed that among 30 respondents, 33% of the
respondents are getting M.P.M Products in time always , 50% of them are getting most of the
time, and remaining 17% only few times. There is no negative response from the
respondents about the supply of M.P.M Products in time.
Graph-8
Supply of products in time by MPM
Source: Table No 8
Analysis:
From the above table it is observed that 93% respondents are satisfied with the Sales
Discount offered by the company and 7% are not satisfied.
Graph-9
Satisfaction with respect to Sales Discount
Analysis:
From the above table we can see that there are 10% of respondents who are highly
satisfied with the Credit facility provided by the company, 50% of the respondents are
satisfied and 33% said credit facilities offered is average and 9% are not satisfied.
Graph-10
Opinion about Credit Facility
3 Delay 8 27%
Total 30 100%
Analysis:
From the above table we can observe that among 30 respondents 23% responded for
immediate handling of complaints and 50% of them responded for reasonable time and the
remaining 8% responded for delay.
Graph-11
CHAPTER- 5
SUMMARY OF THE FINDINGS
Place : Bangalore.
Survey Size : 30 Respondents
Time frame : 6 Weeks
The summary is purely based on analysis and interpretation of primary data in the
present study primary data plays a vital role.
As our survey is limited in Bangalore city only. This study gives a bird’s eye view
about their opinions of MPM cultural paper.
• We can understand that MPM is having more customers (33%) who are dealing from
long time (5-10 years). Therefore, it is clearly showing that MPM is maintaining good
relationship with their customers.
• It is evident that each variety of cultural paper is being procured at different
frequency and comparatively Cream Wove and Azurlid papers have more demand in
the current market.
• We can observe that, about 46% of respondents rate mpm as superior and 33% of
respondents rate mpm as competitive and 21% of respondent rate mpm as inferior.
• We can observe that, about 40% prefer APPM and 26.6% prefer TNPL Paper Mill.
• With respect to quality and price most of the respondents have ranked 1 which
indicates that they are the most important criteria which the customers consider
before making purchase.
• We can observed that, about 53% of the respondents are satisfied with the quality of
the product of MPM.
• We can observed that, about 53.33% of the respondents say that they are highly
satisfied with the price of the products and services offered by MPM.
• We can be observed that, about 33% of the respondents are getting M.P.M Products
in time always , 50% of them are getting most of the time, and remaining 17% only
few times. There is no negative response from the respondents about the supply of
M.P.M Products in time.
• We observed that about 93% respondents are satisfied with the Sales Discount offered
by the company and only 7% are not satisfied.
• We observed that, about 10% of respondents who are highly satisfied with the Credit
facility provided by the company, 50% of the respondents are satisfied, 33% said
credit facilities offered is average and 9% are not satisfied.
• We can observe that, about 23% responded for immediate handling of complaints and
50% of them responded for reasonable time and the remaining 8% responded for
delay.
SUGGESTION
• The company has to give importance to manufacture different variety of products and
improve its quality.
• The company has to give importance to know the products dealing by its competitive
company’s and the quality, and should try to compete with that company.
• The company has to give more important to pricing and quality factors by comparing to
its competitors while marketing the product. To capture more market share the company
should think over the improvement in quality of cultural paper and at the same time
should think over the issue of reducing the price.
To improve the quality, MPM should update its technology & improve the quality of raw
material consumed .
• The company should works towards reducing the cost of production to provide
competitive price in the market.
• The company has to work to increase its discount level from 3% to 3.5% - 5% for the
bulk purchasers to highly satisfy them.
• The company should provide sufficient credit period from 15-20 days to 20-25 days to its
customers to highly satisfy them.
• The company has to improve it’s after sales service and should respond immediately for
the complaints of its customers.
CONCLUSION
This study is undertaken to find out the satisfaction level of the customers of Mysore
Paper Mills. This study helped to understand the customer’s requirement and their
expectation from cultural paper of MPM.
This study revealed that quality and price are the major attributes, which the
customers takes into account while making the purchase decision. Customers of MPM are
highly satisfied with the availability of the MPM product but it has to still improve its quality
of paper and offer the product `at competitive price in the market.
MPM is operating with its existing technology, which requires modernization; hence the
company should modernize it’s plant and adopt new technologies to produce special type of
products to compete in the present scenario.
EXECUTIVE SUMMARY
Primary data was collected using a questionnaire. The survey was conducted in
Bangalore market and the sample was selected on the basis of information provided by the
Marketing Manager of MPM. The target customers of the study consisted of main dealers
and their sub-dealers in Bangalore. Based on the study, certain inferences have been drawn
and a few suggestions have been made for improvement of Mysore Paper Mills Ltd.
This study revealed some useful insights related to Cultural Paper quality, variety,
price and service offered by the MPM . And it also revealed problems faced by the Cultural
paper industry in the open market economy with special reference to MPM Cultural Paper
segment.
To sum-up, this study is expected to help the MPM Ltd. in terms of improving or
retaining its market share.
BIBLIOGRAPHY
4. Encyclopedia
5. www.mpm.co.in