Paper Industry

A
STUDY
ON
PAPER INDUSTRY OF INDIA
Management Research Project -I
Submitted
In the partial fulfillment of the Degree of
Master of Business Administration
Semester-III
By
Name Exam No.
Barot Maulika D. 12044311002 (HR.)
Chaudhary Naresh R. 12044311012 (Marketing)
Gardhariya Dhaval L. 12044311024 (Marketing)
Hudka Deep D. 12044311033 (Finance)
Joshi Jagdish R. 12044311034 (Finance)
Rajpara Hiren R. 12044311135 (Marketing)
Under the Guidance of:

Prof. (Dr.) Mahendra Sharma, Prof. & Head
Prof. Harsha Jariwala, Asst. Professor
Prof. Abhishek Parikh, Asst. Professor
V. M. Patel Institute of Management
.
Submitted To:
V. M. Patel Institute of Management,
Ganpat University,
Kherva.
(2012-2014)
CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled “A study on Paper industry” by
Mauika Barot(12044311002), Naresh Chaudhary (12044311012), Dhaval Gardhariya
(12044311024), Deep Hudka (12044311033), Jagdish Joshi (12044311034), Hiren Rajpara
(12044311135), Submitted to V. M. Patel Institute of Management for the Award of Master
of Business Administration (MBA Semester -III) is original research work carried out by
them under my supervision.
This report has not been submitted either partly or fully to any other University or Institute
for award of any degree or diploma.
Prof. (Dr.) Mahendra Sharma,

Professor & Head,
V. M. Patel Institute Of Management,
Ganpat University. Kherva.
Date: 28/11/2013
Place: Ganpat Vidhayanagar.
CANDIDATE’S STATEMENT
We hereby declare that the work incorporated in this report entitled “A study on Paper
industry” in partial fulfillment of the requirements for the award of Master of Business
Administration (Semester - III ) is the outcome of original study undertaken by us and it has
not been submitted earlier to any other University or Institution for the award of any Degree
or Diploma.
Barot Maulika D.
Chaudhary Naresh R.
Gardhariya Dhaval L.
Hudka Deep D.
Joshi Jagdish R.
Rajpara Hiren R.
Date: 28/11/2013
Place: Ganpat Vidhayanagar.
PREFACE
One can deny for the importance of the practical exposure of the problem for its better
understanding and better grip of coming out with an industrially acceptable solution.
Being the Management student and performing small practical even is in itself an experience
of responsibility on our head. The project is certainly the best chance to work in the
Management field and have practical understanding of Management Strategic Planning and
his implementation. This exposure has really added a supplement and nourishment to our
growing tree of management knowledge- just like the fertilizer does to the plants.
In view of above, this report has been completed as a part of syllabus prescribed for the
master of business administration. This had been made in order to know Paper industry
overview and its strategic tools and its planning. This will help us to understand How Made
Strategic Tools for particular industry, which factor affected to Detergent industry. We also
know the Strengths, Weakness, Opportunities, and Threats. This will help to understand
financial overview of Paper industry. We also know the Political, Economical, Social,
Technology factor which affected to the Paper Industry.
ACKNOWLEDGEMENT
It is indeed of great moment to pleasure to express our sense of per found gratitude and
ineptness to all the people who have been instrumental in making our learning a rich
experience. We got the opportunity to do a challenging project in Management Research
Project. The project is the important part of our study and gives us a practical exposure to
Strategic Tools its implementation and it is almost impossible to do the same without the
guidance of people in and around us.
It gives me immense pleasure to acknowledge Strategic Tools which has been nice enough to
give our chance to do our Report and providing us support throughout our Report period and
afterward.
We hereby take the pleasure of thanking all who have contributed to the making of this
report. Firstly we would like to thank Ms. Harsha Jariwala, Who has provided us full
liberty, co –operation during our Report and sharing knowledge of his field with us always
with a smile.
Barot Maulika D. (12044311002)

Chaudhary Naresh R.(12044311012)
Gardhariya Dhaval L.(12044311024)
Hudka Deep D.(12044311033)
Joshi Jagdish R.(12044311034)
Rajpara Hiren R.(12044311135)
INDEX
Sr. No. Chapter Name Page No.
1 Introduction of the Study 01
& Industry
2 Major Players 14
3 Strategic Analysis 27
4 Financial Analysis 44
5 findings & Conclusion 66
6 B-Plan 68
7 Bibliography 83
LIST OF TABLES
Table No. Table Name Page No.
4.1 Total Income 41
4.2 Total Expense 42
4.3 Operating Profit 43
4.4 PBDT 44
4.5 Total Share Capital 45
4.6 Total Liability 46
4.7 Investment 47
4.8 Inventories 48
4.9 Total Assets 49
4.10 Dividend per share 50
4.11 Return on Capital Employee 51
4.12 Return on Net Worth 52
4.13 Current Ratio 54
4.14 Deft Equity Ratio 55
4.15 Inventory Turnover Ratio 56
4.16 Debtors Turnover Ratio 58
4.17 Total Fixed Assets Turnover Ratio 59
4.18 Earning per Share 60
LIST OF CHARTS
Chart No. Chart Name Page No.
4.1 Total Income 41
4.2 Total Expense 42
4.3 Operating Profit 43
4.4 PBDT 44
4.5 Total Share Capital 45
4.6 Total Liability 46
4.7 Investment 47
4.8 Inventories 48
4.9 Total Assets 49
4.10 Dividend per share 50
4.11 Return on Capital Employee 51
4.12 Return on Net Worth 53
4.13 Current Ratio 54
4.14 Deft Equity Ratio 55
4.15 Inventory Turnover Ratio 57
4.16 Debtors Turnover Ratio 58
4.17 Total Fixed Assets Turnover Ratio 59
4.18 Earning per Share 61
Chapter 1 Introduction of the Industry
Chapter No. 1
Sr. No. Particulars Page No.
1.1 Indian Paper Manufacturing Industry Outlook 02
1.2 Paper Manufacturing Process 06
1.3 Global & Indian Demand & Supply 08
1.4 Government Regulations, Permission & Taxes 11
1.5 Current situation and goals 12
1.6 Supply Chain Management of Paper Manufacturing Industry 13
1
Chapter-1 Introduction
1.1 Indian Paper Manufacturing Industry Outlook

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 19th century,
paper production became industrialized. Originally intended purely for writing and printing
purposes, a wide variety of paper grades and uses are now available to the consumer. Of all the
writing and drawing materials that people have employed down the ages, paper is the most
widely used around the world. Its name derives from papyrus the material used by the ancient
Egyptians, Greeks and Romans. Papyrus, however, is only one of the predecessors of paper that
together are known by the generic term „Tapa‟ and are mostly made from the inner bark of paper
mulberry, Fig and Da Tapa has been found extensively in nearly all cultures along the Equatorial
belt and is made by what is possibly the oldest papermaking technique – one still practiced in
some parts of the Himalayas and South East Asia. Indeed, recent archaeological excavations in
China have revealed some of the oldest „Tapa‟ paper ever found which shows that paper was
being produced in China before western records began.
2
The tapa technique involves cooked baste, which is flattened with a wooden hammer to form a
thin, fibrous layer and then dissolved in a vat with water to make a pulp. A screen consisting of a
wooden frame with a fabric base is then laid in a puddle or big basin and floats with the fabric
just under the surface of the water. The papermaker then pours the quantity of pulp needed to
make one sheet into this „floating mould‟ and spreads it evenly, by hand, across the surface. The
screen is then carefully lifted out of the water, allowed to drain off and a sheet of paper forms on
the wire. Once the water has dropped off, the screen is placed in the sun or near a fire to dry.
When dry, the sheet easily peels off and, apart from possible smoothing, requires no further
treatment. This technique has two basic drawbacks. Firstly, a separate screen is needed for each
new sheet, and is only available for use again after the last sheet has dried. And secondly, an
increase in production can soon lead to a shortage of raw material, since fresh baste is not always
available everywhere in the required quantity. The fibers normally used for textiles, like flax and
hemp, also served as substitutes for baste. In later times, the fabric was replaced by fine bamboo
sticks, which freed the papermaker of the need to let the paper dry naturally in the mould, since
the poured or ladled sheet could be „couched‟ off.
Paper plays a key role in communication and as a packaging material. Demand for paper is
closely linked to prevalent economic conditions. Strong economic growth boosts demand for
paper and vice versa. In India, the first paper mill was established in 1867. Raw materials used
for the production of paper were rags and wastepaper. Commercial production of paper was
started in 1882, and raw materials used were again non-wood fibers, that is, eulaliopsis binata
and sacharum bengalense. Development of the fractional process of pulping bamboo at the
Forest Research Institute, Dehra Dun, during 1922-24 provided an impetus to the pulp and
paper industry in the country, and bamboo became the main raw material for making various
grades of paper. Turing establishments cut and coat paper and foil. Stationery product
manufacturing establishments make a variety of paper products used for writing, filing, and
similar applications. Other converted paper product manufacturing includes, in particular, the
conversion of sanitary paper stock into such things as tissue paper and disposable diapers.
3
Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products.
The manufacturing of these products is grouped together because they constitute a series of
vertically connected processes. More than one is often carried out in a single establishment.
There are essentially three activities. The manufacturing of pulp involves separating the cellulose
Fibers from other impurities in wood or used paper. The manufacturing of paper involves
matting these fibers into a sheet. Converted paper products are made from paper and other
materials by various cutting and shaping techniques and include coating and laminating
activities. The Paper Manufacturing subsector is subdivided into two industry groups, the
first for the manufacturing of pulp and paper and the second for the manufacturing of
converted paper products. Paper making is treated as the core activity of the subsector.
Therefore, any establishment that makes paper (including paperboard), Either alone or in
combination with pulp manufacturing or paper converting, is classified as a paper or paperboard
mill. Establishments that make pulp without making paper are classified as pulp mills. Pulp
mills, paper mills and paperboard mills comprise the first industry group.
India is not just the second most populous market for paper in the world. It is also the most
demanding. Indian paper industry not only serves a public utility but fulfils a critical national
requirement. It possesses an annual production capacity of five million tones. It generates an
annual turnover of approximately 120 billion. It directly and indirectly employs nearly 1.3
million people.
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 tons produced
by a mill is chargeable only @ 8 % and thereafter it is @ 12 %.
4
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 Tons Per Annum (MTPA)1. 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.
1
www.ipma.co.in
5
1.2 Paper Manufacturing Process2:-
 BRIEF PROCESS
 Chipping-
Bamboo or Wood as such cannot be used for pulping. For economical operation of pulping plant
as well as for better penetration of cooking liquor, wood logs/bamboo are to be chipped into
small pieces. The process is called chipping and the equipment used for chipping are called chip.
 Pulping-
Pulp is obtained by removing lignin and other impurities from the wood & other raw materials
chips through a cooking process. The chips are loaded into a digester and cooking liquor is
added. Then by pressure cooking, the wood, bamboo or other raw material fibers are separated
from unwanted ingredients. Either batch digester or continuous digesters are used in cooking.
2
http://www.paperonweb.com/pmake.htm
6
 Bleaching
Although cellulose fibre is white in colour, due to residual lignin traces remaining on the fibres,
the pulp appears creamish. Therefore, to manufacture white paper we need to remove yellowness
without physically or chemically damaging the fibre, with improvement in various properties. To
increase brightness of the pulp by removal or modification of some of the unwanted elements in
the unbleached pulp.These deleterious elements are lignin traces, resins, metal ions, non-
cellulosic carbohydrates etc. Bleaching for brightness improvement should also help to keep the
pulp stable without turning yellow or lose strength or reduce brilliance - due to aging.
 Additives-
Additives are added to paper pulp. Addition of fillers like talcum & calcium carbonate is very
common & besides acting as fillers they add brightness to the paper. These additives must be
finely ground. Additives like dyes & starch are also added. Other fillers are Titanium Dioxide,
Barium Sulphate & Zinc Sulphide.
 Removing Water-
Removing water is the next important stage. For this the pulp is passed through a rapidly moving
wire mesh called fourdriner. The objective is to remove 93% to 95% of the water in the finished
paper. As the paper flows along the wire mesh and water is drained along the way, a dandy roller
near the end helps to smooth out the paper. The dandy roller improves the formation of the paper
web by application of pressure. When the paper reaches the end of the wire mesh it is transferred
to a felt blanket which conveys it through many steam heated driers to remove the excess
moisture. In the process the paper gets some glaze like coating also. Then it is made to pass
through a series of calendar stacks. The calendars are series of polished iron rollers stacked one
on top of the other, through which the finished paper will pass to smoothen down. The next step
is rewinding on a metal or fibre core. The last stages after this are sheeting, packing & testing.
7
1.3 Global & Indian Demand & Supply
Global Demand
 Globally demand for Paper and Paperboard is likely to keep its growth pace intact
 Writing and printing paper demand to be on slower side with many firms in west going
paperless.
 Robust demand for paper by Chinese household would to keep Asian demand on high
note.
 Packaging and container board to be the major demand segment
 Rising concern for environment with many firms discouraging use of paper to impede
demand growth
 Persistent concern over economic recovery and monetary tightening steps taken by
Chinese Govt. to impact demand.
 Revival in industrial production across the world and increase in global trade stands
crucial for incremental demand.
 Increasing use of packaged goods to further boost demand sentiments
 Persistent concern over economic recovery and monetary tightening steps taken by
Chinese Govt. to impact demand
 Revival in industrial production across the world and increase in global trade stands
crucial for incremental demand.
 Current signals of improving industrial output and trade in certain pockets provide
encouraging scenario for industrial papers in the coming year
Global Supply
 Economic downturn witnessed during 2008-09 resulted in closure of large number of
paper mills in western region with the mills unable to absorb huge losses incurred due to
demand destruction
 With global economy mainly Asia and US giving signals of revival and the same
expected to start showing better results moving into 2012, the same shall prompt some of
the companies to increase their runs and may lead to reopening of few closed plants
8
 Limited availability of virgin pulp to prompt mills to put up capacities based on Agro-
residues and waste papers
 Closure of many small mills in Europe and North America to limit the global supply in
the coming year
 While startup in South America and Asia add to the supply basket, not much of it is for
industrial paper, which shall hinder the supply growth of packaging papers
 With global economy giving signals of revival, the same would prompt some of the
companies to increase their runs and may lead to reopening of few closed plants
 Capacity closure in Europe and North America to limit the global supply in the coming
year
 With global economy giving signals of revival, the same would prompt some of the
companies to increase their runs and may lead to reopening of few closed plants
India Demand
 Strong emphasis on literacy, increase in per-capita income and increasing use of
photocopiers and printers shall keep demand on high note in the region.
 High economic growth propelling demand for consumer goods, thus stimulating demand
for packaging paper
 Increased use into packaging of Pan Masala and Gutkha
 Expectation of robust performance by Indian industrial sector to propel demand for
duplex boards
 Higher export growth and rising demand for high quality packaging to keep Indian
market in tandem
 Increased global trade to spill-over onto the Indian export scenario and enhanced exports
(of products) to fare well for Indian demand scenario
 Better quality packaging of FMCG, rising health care spends and over-thecounter
medicines and increasing preference for ready-to-eat foods are the key demand drivers for
paperboard
9
 Growing number of Export – oriented industries
 Strong demographic factors like population growth and increase in literacy levels
Indian Supply
 Obsolescence of technology and shortage of raw material being a major hindrance at
supply side
 Lack of government initiatives to provide waste land for plantation
 With capacity utilization in the region reaching to 93 percent, new capacity needs to be
added to cater the growing demand
supply side
 Lack of government initiatives to provide waste land for plantation
 Not much new capacity coming on-stream for Kraft paper– A long term issues yet to be
tackled
supply side.
 Government ignoring industry demand for interest subsidy under Technology
Upgradation Fund (TUF) Scheme
 Not much new capacity coming on-stream for Duplex board – A long term issues yet to
be tackled
10
1.4 Government Regulations, Permission & Taxes 3:-
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.
3
http://www.scribd.com/doc/15596383/Final-Project-Report-on-Paper-Industry
11
1.5 Current scenario
CURRENT SITUATION
 Enormous growth potential of Indian market
 Industry structure - with small and medium size mills
 Type and availability of fibre raw materials
 Infrastructural problems
 High costs of financing the projects
 Productivity and efficiency of the mills need to be improved
12
1.6 Supply Chain Management of Paper Manufacturing Industry:-
 The pulp and paper industry depends on an long and integrated supply chain. It starts in forest harvest areas as trees and ends a s
multiple products used in all persons daily usage. The lead time from the first step to the last is long and it involves many steps
operated several companies and organizations. The following diagram shows the supply chain management of the paper
manufacturing industry.
Logs Logs Pulp

Harvest area Log terminals Pulp mill Distribution center
Paper rolls paper rolls & sheets Paper rolls & sheet
Paper mill Converting plants Warehouses Distribution center
Paper rolls & sheets
Market for pulp and

Merchants paper products
13
Chapter 2 Major Players.
Chapter No. 2
2.1 JK Paper Ltd. 15
2.2 Tamil Nadu Newsprint & Papers Ltd. 18
2.3 west Coast Paper Mills Ltd. 22
2.4 Seshasayee Paper & Boards Ltd. 25
14
2.1.1. Introduction of JK Paper Ltd.
J K Paper Ltd (formerly Central Pulp Mills), a member of HS Singhania group is originally
promoted by Parkhe Group of Pune to manufacture Paper and Paper products. The company
which fell sick and referred to BIFR was taken over by JK Corp Ltd a member of the HS
Singhania Group in 1992. JK Corp. holds 44.76% in the equity of this company as on Nov 6,
2003.
The company has turnaround in a short period of time with the rehabilitation package by HS
Singhania Group companies JK Corp Ltd and JK Industries.
JK Paper today has an combined installed capacity of 150000 tpa with two integrated Paper
Mills at JK Paper Mills, Orissa(Inst. Cap 100000 tpa) and Central Pulp Mills, Gujarat(Inst.
Cap 50000 tpa). The company's paper mills are operating with an health average capacity
utilisation of 115%. Further the company has purchased a Pulp Drying Plant from Finland in
2001 to increase the output and realisation of market pulp.The plant was commissioned
during the year itself.
J K Paper has also been consistenly exporting its products to markets such as Sri
Lanka,Bangladesh and several West Asian Countries. The company is the first paper mill in
India to have been accredited with ISO 14001.
The company enjoys the locational advantage inrespect of sourcing raw material. It sources
all its bamboo requirements with in the 200 kms radius of the plant. Further for long term
continuous source of rawmaterial the company is running social forestry and farm forestry
programmes in 11 districts of Orissa and 3 districts of Andhra Pradesh,covering a total area
of over 20,000 Ha. In 2001-02 it has disturbuted 27 million saplings, covering over 5200
hectares. .
J K Paper has been a pioneer in every field related to the manufacture and marketing of
paper. It has the distinction of being the Largest manufacturer of branded copier paper in
India.; First to introduce surface sized maplitho in India.; First to introduce high quality bond
paper 'Finesse' in A4 size consumer friendly retail packs of 100 sheets. ; First to introduce
15
laser paper in India. The company has introduced two new value added products i.e. MICR
Cheque Paper and Cup-stock Board.
The company which is well known for its success in creating brand in paper industry with
having top two paper brand(i.e JK Copier[contributing 140 cr. to co's turnover in FY02-03] &
JK Easy Copier) in its basket the company has initiated outsourcing of paper products in
india. This outsourcing activity was kickstarted in the end of 2001-02 and gathered
momentum last year. The company has outsources JK Cote(positioned in upper art paper
segment) from an international producer who produces as per the specification of JK Paper.
The company outsouces donestically JK Eco Cote(caters to price consious Chrome paper
segment) and 'JK Eco Print'.
The Scheme of Compromise and/or Arrangement between JK Corp Limited and The Central
Pulp Mills Limited was approved and sanctioned by the High Court of Orissa and High Court
of Gujarat and become effective on 5th November,2001. Subsequent to this the name of the
company was changed to JK Paper Ltd from The Central Pulp Mills Ltd.
Latest Development:JK Paper is planning to upgrade over half of its paper manufacturing
capacity to manufacture coated paper. The upgradation(Conversion from non-coated to
coated) to cost around Rs.60 crs.
2.1.2. Vision of company:-
Vision & Values

Stands For
- Dynamic & Successful business organisation
- A Socially-valued Enterprise
- Business Integrity
16
Core Values
- Caring for people
- Integrity including intellectual honesty, openness, fairness & trust
- Commitment to Excellence
2.1.3. Product of the Company.
 Product mix includes well known brands like JK Copier, JK Copier Plus, JK Easy
Copier Sparkle, Cedar, JK Excel Bond, JK Bond in the Multi-functional Office paper
segment; JK TuffCote, JK Ultima, JK TuffPac, JK IV Board, JK Endura and JK Club
Card in high-end packaging boards.
 In Printing & Writing papers, it has brands like JK Cote and JK Ledger; in Specialty
papers, MICR cheque paper, Parchment, and Cedar Digital. In addition JK Paper has
premium brands like JK excel, Notepal, JK Photovista under Stationery Business.
2.1.4. Financial Detail of Company.
Mar. 13 Mar. 12 Mar.11 Mar.10 Mar.09

Share Capital 136. 62 136.65 78.24 78.35 78.56
Sales 1727.30 1558.90 1435.04 1297.51 1265.48
Profit(PAT) 35.85 42.74 104.79 115.65 54.88
17
2.2.1. Introduction of Tamil Nadu Newsprint & Papers Ltd.
Tamil Nadu Newsprint and Papers Ltd is the largest bagasse, an agricultural residue, based
paper unit in India. The company is in the business of manufacturing and marketing of
newsprint and printing & writing papers. The products are being marketed throughout the
country and also being exported to 30 countries around the world. Their manufacturing
facility is located at Kagithapuram.
Tamil Nadu Newsprint and Papers Ltd was established by the Government of Tamil Nadu in
April 1979 as a public limited company. The primary objective of the company is to produce
newsprint and printing & writing paper using bagasse, a sugarcane residue, as the primary
raw material. The company started their commercial production in the year 1985.
During the year 1994-95, the company undertook expansion programme and doubled their
capacity from 90,000 tpa to 1,80,000 tpa. During the year 1998-99, the company signed a
MoU with Quena Newsprint, Egypt for providing technical assistance and support for
erection of a Newsprint and Paper Mill in Egypt. The mill was successfully commissioned
during the year 2000-01.
During the year 2000-01, the company introduced a new versatile all purpose cut size paper
under the brand name TNPL OS 2000. Also, they formally launched 'TNPL Canefields'
copier paper in the Australian market. In March 2001, the company increased the wind farm
capacity from 15 MW to 18 MW, by installing 4 nos of 750 KW each wind turbines at
Devarkulam.
During the year 2002-03, the company commissioned the Bio-methanation plant to treat
around 12000 cu m of biogas (methane) per day, to be used as fuel in the lime-kiln. They
completed the upgrades of both Beloit and Voith paper machines and production capacity
increased from 180,000.
During the year, the company launched a new product named Hitech Maplitho plus with
90% brightness and improved optical properties. Also, they entered into a long term
agreement with Terra Energy Ltd, a subsidiary company of Thiru Arooran Sugars for
18
procuring bagasse in exchange.
During the year 2003-04, the company upgraded the paper machines and pulp mills at a
capital outlay of Rs 140 and increased the installed capacity form 180000 Mts to 230000 Mts
per annum. In March 2004, the company installed 3 nos of 1250 kw capacity wind turbines at
Devarkulam, thereby enhancing the overall wind farm capacity from 18 MW to 21.75 MW.
During the year 2004-05, the company introduced two new products, namely, TNPL Offset
Printing and TNPL Elegant Printing. They entered into a long term agreement with Tamil
Nadu Forest Plantation Corporation Ltd for continuous supply of pulpwood. In February
2006, the company increased the wind farm capacity from 21.75 MW to 28 MW by installing
5 Nos. of 1250 KW wind energy generators at Devarkulam.
During the year 2006-07, the company installed 6 wind electric generators of 1250 KVA each
and increased the wind farm capacity from 28 MW to 35.5 MW. They installed a 200 tpd Cut
Pack line during the year and increased the conversion capacity from 150 tpd to 350 tpd.
The company received Special Export Award from CAPEXIL in recognition of outstanding
export performance. They received Received the 'Best Energy Conservation Award' for the
year 2007 from the Government of Tamil Nadu. They also received TERI Corporate
Environmental Award 2008 for the efforts towards environmental management and
innovative initiatives among corporate.
The company installed new 300 tpd state-of-the-art Hardwood Pulp Line with ECF
bleaching and a 500 tpd ECF bleach plant for Chemical Bagasse Pulp with supporting
system. They also set up a state-of-art Clonal Propagation and Research Centre (CPRC) for
producing about 1.5 crore.
The company has initiated action for which would augment the paper production capacity
from 2,45,000 tonnes per annum to 4,00,000 tonnes per annum utilizing the surplus pulp
generated under the Mill Development Plan. The company is also undertaking the Life cycle
Extension programme, under which the Paper Machine 1 installed during 1985 will be
upgraded.
19
The company plans to increase the plantation area by about 15,000 acres per annum to reach
the target of one lakh acres by the year 2012-13. They also propose to install a 400 tpd dry
process cement plant within the factory complex converting the waste fly ash and lime sludge
generated in the factory, into high quality cement.
2.2.2. Vision of the Company.
TNPL‟s vision is to be the market leader in manufacture of world-class eco-friendly paper

adopting innovative technologies for sustainable development.
2.2.3. Product of Company.
The paper produced by TNPL is eco- friendly as the pulp is manufactured out of renewable
raw material and is subjected to Elemental Chlorine Free (ECF) bleaching. As the paper is
acid free, it has a longer colour stability and enhanced permanency in terms of strength
characteristics. TNPL caters to the requirements of multifunctional printing processes like
sheet-fed, web offset, and digital printers. The paper reels have uniform profile with strength
properties to cope even with high speed machines. TNPL manufactures Printing and Writing
Papers in substances ranging from 50 GSM to 90 GSM Newsprint is normally manufactured
in 49 Gsm reels and directly sold by the company to the various newspaper establishments
such as The Hindu, Malayala Manorama, Ananda Bazaar Patrika and so on. Printing &
Writing paper (PWP) is manufactured in reel and sheet forms with the Gsm (Grams per
square meter – basis weight of the paper) varying from 50 to 80. Various sizes of reels and
sheets are also cut to suit the customer requirements. Some of the major end-use segments of
PWP are printing applications, note books, computer stationery, office stationery, etc.
 TNPL Ultra White Maplitho  Cream wove

 TNPL Ultra White Maplitho  Copy Crown
 TNPL Ultra White Maplitho  TNPL Copier
 TNPL Ultra White Maplitho  Students' Favorites
 Radiant Printing  Super Print Maplitho
20
 Hardbound Notebook  Perfect Copier
 TNPL Offset Printing  Ace Marvel
2.2.4. Financial Detail of company.

Share Capital 69.38 69.38 69.38 69.38 69.38
Sales 1668.32 1277.80 1092.81 1154.66 1053.81
Profit (PAT) 129.09 188.48 135.78 139.64 155.55
21
2.3.1. Introduction of West Coast Paper Mills Ltd.
West Coast Paper Mills (WCPM), part of Bangur group is one of the leading player in the
Indian Paper Industry. Apart from paper the company is also into manufacture & sale of
Optical Fibre Cable and Jelly Filled Telephone cables. WCPM's Paper Division is located at
Dandeli in Karnataka and Cable Division in Mysore, Karnataka. Further the company owns
six windmills with an installed capacity of 1.75 MW in Tamil Nadu and mojority of this wind
power is supplied to Tamil Nadu Electricity Board.
WCPM's paper division at Dandeli consists an paper mill with an installed capacity of 1.57
lakh MTPA and a 28 MW co-generation power plant. The product mix of WCPM's paper
division includes writing,printing & packing paper. The company which has raised the paper
capacity by 18000 tonnes per annum is presently engaged in further raising the paper capacity
to 163750 tpa by FY 2002-03.
The Cable Division i.e Sudharshan Telecom came into existence in 1996 by setting up a
plant to manufacture Optical Fibre Cable(OFC). Latter in 2001 the company set up facility to
produce Jelly Filled Telephone Cable(JFTC). Currently the cable division has an installed
capacity to produce 83500 Kms of OFC and 1542000 Ckm of JFTC. Sumitomo Electric
Industries of Japan and John Royale & Sons of USA are the technonolgy providers for
Sudarshan Telecom. This state of the plant at Mysore is capable of producing armoured and
aerial types of OFC in addition to the underground duct burial type cables with a fibre count
upto 40 fibres.
Expansion, Modernisation and Diversification Programme for the Paper Division at Dandeli
has been taken up with a cost of Rs.214.50 crores(of which 65% had been completed by the
end of 2001-02).In 2000-2001 the company has ISO 9001 Certification from Det Norske
Veritas,The Netherlands.
During last quarter of 2001-02 the new 33000 TPA Duplex Board Machine was
commissioned by the company and the company looks forward to increase the market share
in the duplex board segment in the near future.
22
During the year 2003-04, the Company completed its ongoing expansion programme for the
the Paper Division at Dandeli in Karnataka at a cost of Rs.230.14 crores.
Subsidiaries
WCPM has two subsidiaries Speciality Coatings & Laminations Ltd(SPCL) is engaged in
manufacture of Coated paper and paper boards i.e Chromo & Art Paper. SPCL's 15000 tpa
plant is located at Gurgaon in Haryana. WCPM holds 65% stake in the equity of SPCL.
Bharat Sugars, which is taking steps for settting up a 1250 TCD sugar mill with 7.5 MW co-
generation plant at Kesoralli village, Haliyal Taluka at a cost of Rs.48.47 Crores has become
subsidiary of WCPM effective from Dec 3, 2002. No progress is achived in implementation
of this Sugar project.
WCPM has acquired 59.79 % equity stake in Rama News Print on Sep 2003. This gives the
Bangur group the much needed Econmic of Scale in the Indian Paper Industry.
The company came out with a Rs 5.33-cr rights issue at a premium of Rs 30 in Oct.'91 to
part-finance a modernisation / renovation programme for technology upgradation,
diversification and energy conservation.
2.3.2. Vision of company.
Mission: To achieve customer loyalty by providing the highest standards of quality products
suitable for various business segments and all age groups.To focus on innovation through
constant research and development in production and processes using a raw material and
technology that protect the environment and the interests of future generations.
Vision: To excel in serving demands of paper and paper products worldwide.
23
2.3.3. Product of company.
The West Coast product-line features well-established brands of commercial to premium

grades of paper and boards ranging from 54 to 600 GSM, catered to across six different
product segment namely; Writing, Printing, Business stationery, specialty, industrial and
packaging.
2.3.4. Financial Detail of company.

Share Capital 13.21 12.55 77.55 77.55 77.08
Sales 1545.19 1370.55 1115.33 650.5 662.71
Profit (PAT) 24.18 (46.7) 92.18 81.17 88.97
24
2.4.1. Introduction of Seshasayee Paper & Boards Ltd.
Incorporated in 1960 and promoted by S Viswanathan and N Gopalaratnam, Seshasayee

Paper & Boards manufactures and markets almost all varieties of paper boards and also
effects substantial exports of not only paper and boards but also merchandise like cashew.
The manufacturing capacity of paper is 115000 tpa (average weightage:82 gsm).
The company derives 70% of its turnover from writing and printing paper, while the balance
comes from industrial varieties like poster paper, duplex boards, kraft paper, etc. The
company uses bagasse as raw material to enjoy tax benefits.
The company completed the first phase (cost:Rs 10 cr) of its modernisation programme in
1994, for which it came out with a rights issue at a premium of Rs 10 in Dec.'93. In the same
year, the company spent over Rs 6 cr on energy conservation, financed by term loans from
IDBI. It has enhanced its capacity to 115000 tpa from 69000 tpa. Company's quality systems
continue to be covered by the "ISO 9001" accrediation awarded by Det Norske Veritas, The
Netherlands. The company is repaying its term loans for which it availed for
Expansion/Modernization projects,due to the Financial Institution/Banks. A multi-purpose
business paper 'SPRINT' was launched during 2003 and the same was well accepted in the
market.
2.4.2. Vision of Company.
We at Seshasayee Paper have been producing Fine Paper since 1960. Quality and reliability
have been our by-words for over four decades We are constantly in touch with the market and
stay in tune with the industry standards. We regularly improve ourselves to meet the ever
growing demands of the printing world. Our customer base spans over 20 countries,with an
extensive range of products that cater to varies needs.
2.4.3. Product of Company.
SPB produces a wide range of products such as printing and writing papers, packing and
wrapping papers and speciality papers. SPB also has branded products namely, "SPrint",
"Colour Sprint", "Index", SprintPlus", "Success" etc.
25
2.4.4. Financial Detail of Company.

Share Capital 11.25 11.25 11.25 11.25 11.25
Sales 880.77 639.12 595.14 528.97 561.16
Profit(PAT) 16.47 33.28 60.77 59.71 23.91
Conclusion
Here we had included four paper Company and they are JK Paper Ltd,TNPL, West Cost
Paper Mills Ltd and Seshasayee Paper and Board Ltd.
They are producing product like copies;easy copier sparkle,exel bond club card and so on.It is
seen that the share capital of the JK Paper company is increasing in avary fast way, it is
observed that theshare has reached from 78.56 in the year 2009 to 136.62 2013 which show a
huge increase in the share comparing to the other companylike TNPL which has reached
from 69.38 to 69.38 which is constant, West Cost Paper Mills Ltd which reached 77.08 to
13.21 and Seshasayee Paper and Board Ltd which has reached to 11.25 to 11.25
It has been seen that all those company which has increase their share capital has either has
either seen increase in sales or profit or in some case both sare and profit are increasing.
26
Chapter 3 Strategy Analysis
Chapter No. 3
3.1 SWOT Analysis of paper industry 28
3.2 PEST Analysis of paper industry 33
3.3 Micheal Poter‟s FIVE FORCE model of paper industry 36
3.4 BCG Matrix 40
3.5 Group maps of paper industry 43
27
3.1 SWOT ANALYSIS OF PAPER INDUSTRY
3.1.1 Introduction:-
SWOT analysis is a simple framework for generating strategic alternatives from a situation
analysis. It is a strategic planning method used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieving that objective.
The following diagram shows how a SWOT analysis fits into an environmental scan.
Situation Analysis
/ \
Internal Analysis External Analysis
/\ /\
Strengths Weaknesses Opportunities Threats
|
SWOT Profile
Figure-4.1.1
28
3.1.2 Strengths of Paper Industry:-
 Large and growing domestic paper market: - India has the second most
populous market for paper in the world. It is also the most demanding. Indian
paper industry not only serves a public utility but fulfils a critical national
requirement. It possesses an annual production capacity of five million tones. It
generates an annual turnover of approximately 120 billion.
 Non wood pulping: - 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.
 Well developed printing industry: - Indian printing industry would grow from
$12.1 billion in 2008 to $20.9 billion in 2013. The strong growth in printing
industry would also fuel the demand for paper in the future.
 Increase in employment level: - Paper manufacturing industries directly and
indirectly employs nearly 1.3 million people.
 Latest technology for high: - grade paper manufacturing: - 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.
 Local market knowledge: - The companies which are engaged in the paper
manufacturing industry have a complete knowledge of local market.
 WTO impact on paper manufacturing industry: - WTO as discussed the
implication of Indian Paper and Newsprint Industry as part of its negotiations and
implications.
3.1.3 Weaknesses of Paper Industry:-
 Small and fragmented industry: - There are large numbers of small scale
industries in India whose production capacity is only 12, 90,382 tonnes. Which is
very low in comparisons to large scale industries?
 Low standard of converting industry: - The manufacturing of paper involves
matting these fibers into a sheet. Converted paper products are made from paper
and other materials by various cutting and shaping techniques and include coating
and laminating activities.
29
 Poor Infrastructure, transportation: - In India, the transportation facility is not
good especially in villages. So it is very difficult to lift the heavy bamboos from
forest to the manufacturing unit. Due to this the transportation cost is also very
high.
 High cost - raw material, energy and finance: - 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.
 Obsolescence of technology: - The small scales of production and outdated
technology have been the main features of Indian paper units, and are still so. On
an average, to produce 100,000 tonnes in a year, Indian mills manages five paper
machines in one or more location, while abroad, paper-making machines of
500,000 tonnes per annum, or more, are the norm.
 Impact of high local taxes: - Central Excise is levied @8% for the first 3500 MT
production and thereafter @12% on the value of the invoice. VAT replaces the
existing multipoint taxes levied by various states with effect from April „05. All
the licenses required under Municipality Act, Factories Act are obtained and duly
renew.
3.1.4 Opportunities of Paper Industry:-
 Increase in demand and consumption: - 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 T.P.A by 2010.
 Forest plantation potential: - In India there is a vast forest area which is useful
in paper manufacturing.
 Increase in various usage of paper: - Now days the paper uses for various
purpose. It is not for writing purpose but also now various types of vessels,
napkins, packaging etc are highly demanded.
30
 Increase in consumption of premium quality copier due to growth in
corporate sector and educational levels: - Increased rates of literacy and
improved school infrastructure would result in greater demand for paper.
 Export potential: - The export of paper and paperboard is continuously
increasing. In 2006-2007 the export is 0.27 million tones.
 Low labor cost: - In paper manufacturing industry the uneducated employee is
required. So the income of the labor is very low.
3.1.5 Threats of Paper Industry:-
 Internet threat: - Due to increase in the usage of internet the demand for paper is
decrease. Internet is work as a substitute product.
 Low per capital consumption: - The per capita consumption of paper in India is
very low i.e. 7 Kgs in 2006, as compared to an average consumption of 28 Kgs
and 58 Kgs in Asia and world respectively. The per capita consumption is
expected to increase to 12 Kgs by 2020.
 Decline in capacity due to environmental pressures: - The paper manufacturing
industry creates lots of environmental disturbance. The raw material used by the
industry is pulp which is come out from the bark of trees. Due to this production
capacity is decline and import is increasing.
 Fiber Deficit: - The raw material fiber which is used for manufacturing paper is
continuously decreasing and due to the quality of paper is also decline.
 Lack of international perspective in project development and
implementation:-In India there is lack of international projects.
 Low Capacity Addition / Expansion:- In last 55 years, the number of paper
mills has increased from just 17 mills in 1951 to more than 666 units engaged in
the manufacture of paper and paperboard, out of which nearly 568 are in operation
by 2006.
 Growth in Chinese paper and threats of cheap import: - Due increase in price
of raw and growth in Chinese paper the import of paper continuously increases.
31
Imports of paper and paper products were growing over the years. The Chinese
papers are of high quality so the import of that paper is increasing.
 Competition from existing players: - The domestic paper market is dominated
by large players owing to their size, brand value and financial strength. In 2006-
07, the top 10 players control around 60% of the market in term of capacity.
Conclusion
After seeing the SWOT analysis we had come to know about the strength, weakness,
opportunity and threat of the paper Industry.
Now a day‟s paper industry is in high demand because paper is use in various purposes.
Though there is increase in IT Company where all work are done in electronic form, but same
time the use of paper in going on increasing day by day. Apart from this there are various
competitors increasing but it has been seen that those company which has good quality paper
has no problem in their sales company like JK Paper Company.
32
3.2 PEST ANALYSIS OF PAPER INDUSTRY
A scan of the external macro-environment in which the firm operates can be expressed in
terms of the following factors:
PEST is shorthand for a list of macro economic factors that :
 Already ; or
 May , at some time in the future, affect your business.
“ macro economic “ is a fancy way of describing those external factors which will /
may affect your business but over which your business as no control.
Those factors are grouped under the following hidings:
· Political
· Economic
· Social
· Technological
The factors that you would include in your list will depend on the nature and size of your
business.
3.2.2 Political Factors:-
 Government has completely de licensed the paper industry with effect

from17th 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.
 Accelerated depreciation to partially mitigate high capital intensity. Allow duty
free imports of new & second hand machinery/equipment for Technology Up
gradation.
33
3.2.3 Economic Factors:-
 Manufacturing of paper and thousands of other paper related commodities

contributes immensely to the economic growth of India
 One of the major impacts of Green rating projects has been the setting of AOX
standard for the pulp and paper sector. Before GRP, this parameter was neither
monitored nor regulated in India. The result was very high chlorine consumption
and very high oregano chlorine emissions from the India paper industry. Today,
pollution control authorities strictly regulate AOX emissions and paper companies
now regularly monitor their AOX loads.
3.2.4 Social Factors:-
 Transparent extrapolation between our quality discipline and customer delight, so

that each workman recognizes the inseparable role of quality in every batch of
paper.
 A continued focus on enhancing manpower productivity to bring it at par with
industry norms. A slew of initiatives and best practices are being implemented in
this direction to meet upcoming global challenges in the post–WTO era.
 Redefined the dynamics of the paper industry by moving the traditional
transaction-based sales system to a relationship-based model.
3.2.5 Technological factors:-
 Annual speed increase of fastest machines in the world is about 50 m/min. When the
paper machine is designed for highest speed then the product quality and machine run
ability are also excellent.
 All grades have today very high speeds. Upgraded second hand machines are not
viable anymore, because they are always too slow compared to new machines.
34
 New machines should have as high speed as is possible to be build mainly in India.
This has been made in China and the capacities of those machines are about half of
the international maximum capacity.
 Estimated technology level of best Indian production lines is about 30 years behind
the best lines in Europe. Best lines in China are only some years behind the
international top level.
 There are only some twin wire machines in India. Best roll and blade gap formers
improve paper quality and drainage, which are important for paper made of Indian
raw materials.
 New drying concepts include web supported run with vacuum pick-up to dryer section
and single-tier dryers. Hood is closed and there are efficient air and infrared dryers.
Conclusion:-
As per the above factors included in political, economical, Sociological, technological, it can
be said that all the factors are having more impact on the paper manufacturing industry which
increases the stress on the existing players, more control on the standards application for
further growth as well as increasing the competition among the Rivals at the domestic level.
35
3.3 MICHEAL POTER’S FIVE FORCE MODEL OF PAPER
INDUSTRY
36
3.3.2 Five Force Analysis for the Industry:-
 Threats of intense segment rivalry

There are many strong competitors like BILT, JK, TNPL, ITC, ABIL etc. produces a large
number of qualitative papers and the paper products like tissue paper, napkins, and etc faces
much stiff competition among them.
Change in industry structure

• Industry size, consolidation and investment capacity
• access to raw material, recycled fibre, non-wood fibre and wood resources
• Minimum efficient scale and asset quality
• Quality improvements and standards
• Environmental considerations and standards
• Trade of fibre, pulp and paper products
 Threats of new entrants

This business requires a huge investment and therefore not many entrants jump into this
market. But still industry face a merger threat from the local mills such as SETIA,
RUCHIRA etc who enter into the market with low priced products. Both entry and exit
barriers are very high in the market and hence firm faces less threats from the new potential
entrants.
Change in competitive conduct

• Foreign investments and the attractiveness of Indian markets
• Modernization of existing assets and capital needs
• Development of pulp and paper industry in South East Asia
• Consolidation and acquisitions as growth vehicle
• Partnerships and alliances
• Management of scale and scope through networked production
37
 Threats of substitute products
In the paper industry now-a-days internet work is as a substitute product. But still there is
requirement of hard copy in the offices and educational institute. So the industry faces a less
threats from the substitute product. And also in comparison to past the use of paper products
increase vastly like paper dish, paper soap, napkins etc.
Change in industry performance

• Global competitiveness
• Improvement of profitability
• Increased capital intensity
• Tax incentives
• Shareholder returns
• Job creation opportunities
• Improvement of paper and related products trade balance.
 Threats of buyer’s growing bargaining power

The paper industry first buyer is dealers, which have bargaining power depending upon the
market conditions. When the market is up the dealers have less bargaining power and when
the market is down they have more bargaining power. During downturn there is less cash
liquidity into the market and hence the dealers get upper hand in terms of bargaining power.
External driving forces :-

• GDP growth and increased standard of living
• Development of export-led industry
• Growth potential in India and South-East Asia
• Development of human capital
• Legislation and government regulations
• Access to capital
• Technology and process innovations driving efficiency and scale of production equipment
38
 Threats of supplier’s growing bargaining power
The main supplier‟s of the paper industry farmers. The farmers in the Punjab, Haryana, U.P,
Assam, Andhra Pradesh etc are the main suppliers of raw materials like wood, wheat straws,
pulp etc. There are very few mills which makes agro based products like the mill of Punjab
ABIL and hence command a high bargaining power with the suppliers.
Conclusion
Five force analysis for the industry is all about Threats of intense segment rivalry, Threats of
new entrants, Threats of substitute products, and Threats of buyer‟s growing bargaining
power
 In paper industry this five force analysis play a very important role, it has been seen that in
paper industry the threats of substitute products, threats of buyer‟s growing bargaining power,
threats of supplier‟s growing bargaining power, threats of new entrants are mostly observed
in Urban area where there is high education and only t hearts of supplier‟s growing
bargaining power is seen in rural where there are limited buyer and only few substitute
product are found.
39
3.4 BCG MATRIX
3.4.1 Introduction
2 Cash Cow - a business unit that has a large market share in a mature, slow growing
industry. Cash cows require little investment and generate cash that can be used to invest
in other business units.
3 Star - a business unit that has a large market share in a fast growing industry. Stars may
generate cash, but because the market is growing rapidly they require investment to
maintain their lead. If successful, a star will become a cash cow when its industry
matures.
4 Question Mark - a business unit that has a small market share in a high growth market.
These business units require resources to grow market share, but whether they will
succeed and become stars is unknown.
5 Dog - a business unit that has a small market share in a mature industry. A dog may not
require substantial cash, but it ties up capital that could better be deployed elsewhere.
Unless a dog has some other strategic purpose, it should be liquidated if there is little
prospect for it to gain market share
40
BCG Matrix of paper Industry
No. Company Name Growth Rate Market Share

1 JK Paper 10.80 % 13.56 %
2 Seshasayee Paper 37.81 % 6.88 %
3 TN Newsprint 26.53 % 16.79 %
4 West coast 12.74 % 12 %
40 Seshasayee Paper
35 STARS
30
QUESTION MARKS
25 T.N.Newsprint
20
15
West Cost
10
J.K.Paper
05 CASH COWS DOGS
18 16 14 12 10 8 6 4 2
Market Share
41
 Cash Cows :-
West Coast and JK Paper are included in cash cows.
 Stars :-
T.N. Newsprints is included in Stars.
 Question Marks :-
Seshasayee Paper is included in Question Marks.
 Dogs :-
There are no any Company included in Dogs.
Conclusion
BCG matrix is all about star, question mark, cash cow,and dogs.
TNPL comes under star because this company has increase in both market share as well as
growth .Seshasayee Paper comes under question mark because the reason behind it is that it
has growth rate high but market share is low comparatively. Both JK and West Coast comes
under cash cow because both company has high market share and low growth rate. There are
no company which comes in dogs where there is low growth rate and market share.
42
3.5 GROUP MAPS OF PAPER INDUSTRY
3.5.1 Introduction
A strategic group consists of those industry members with similar competitive approaches
and positions in the market. Companies in the same strategy group can resemble one another
in any of several ways. They may have comparable product-line breadth, sell in the same
price quality range, emphasize the same distribution channel, use essentially the same product
attribute to appeal to similar type of buyers, depend on identical technological approaches, or
offer buyers similar services and technical assistance.
1800 TNPL
jk
JK Paper
1600
& West
Coast
1400 Paper
1200
1000
800 Seshas
ayee.
Hind
600 Paper
Emami
400
200
0
1 2 3 4 5 6 7 8 9 10 11
Product Range
Conclusion
The above graph showing the group maping of various company in paper industry. JK Paper
and west Coast paper are more competitor to each other the reason is company sales and
product rang is nearest. The seshasayee company competitor is Hind Paper and Emami. So
the group maping helps to identify the nearest competitor.
43
Chapter 04 Financial Analysis
The company select based on those company sales exceed Rs. 500 corer.
NO. COMPANY NAME SALES

1 AP Paper 1,230.50
2 Ballarpur Inds. 1,094.35
3 Emami Paper 510.02
4 Hind.Paper Corp 646.82
5 JK Paper 1,643.81
6 Seshasayee Paper 833.55
7 T N Newsprint 1,803.96
8 West Coast Paper 1,454.64
Those company EPS is more than Rs. 2
NO. COMPANY NAME EPS

1 JK Paper 2.5
2 Seshasayee Paper 17.5
3 T N Newsprint 13.2
4 West Coast Paper 7.1
44
4.1TREND ANALYSIS
4.1.1Total Income
Table No. 4.1
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 1003.19 1192.24 1121.17 1305.76 1815.43
West Coast Paper Mills Ltd 639.13 623.51 1082.03 1324.08 1446.88
JK paper 1223.88 1257.34 1387.76 1531.41 1683.54
Seshasayee Paper & Boards Ltd 535.94 517.88 581.68 627.27 834.71
Total 3402.14 3590.97 4172.64 4788.52 5780.56
Average 850.54 897.74 1043.16 1197.13 1445.14
(www.capitaline.com)
1600
1400
1200
1000
800
Average total income
600
400
200
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.1
The Industry has a fluctuating flow of income over the 5 years. The industry has been
able to improve its sell much but not able in 2009-10. After 2009-10 the income decrease in
JK paper and Seshasayee paper at decreasing rate. But TN news print and West coast paper
mill income continues increase. This is a good sign for the industry having such a reputed
name in the market. Also it affects the earnings of shareholders.
45
4.1.2 Total Expenses
Table No. 4.2
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 740.35 884.14 801.36 943 1380
JK paper 1032.93 1003.57 1116.32 1355.17 1523.39
Total 2743.96 2789.98 3219.37 3978.02 4841.44
Average 685.99 697.50 804.84 994.51 1210.36
1400
1200
1000
800
600 Average expenses
400
200
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.2
Above graph show the industry fluctuating of expenses over the 5 year. The industry
has not able to decrease their expenses. The expenses of last 5 years is continually increase.
In 2009-10 West Coast Paper Mills Ltd, JK paper and Seshasayee paper total expenses
decrease and than after increase.
46
4.1.3 Operating Profit
Table No. 4.3
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 262.84 308.1 319.81 362.76 435.43
JK paper 190.95 253.77 271.44 176.31 160.15
Total 658.18 800.99 953.27 810.57 939.12
Average 164.55 200.25 238.32 202.64 234.78
300
250
200
150
Average operating profit
100
50
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.3
Above graph show the industry different year operating profit over the 5 year. The graph
show the first 3 year operating profit continually increase. The industry show, they have
achieved good market share over the first 3 year. But the year of the 2011-12 the industry
operating profit was decrease the reason is West Coast Paper Mills Ltd, JK paper and
Seshasayee paper operating profit is decrease. In 2012-13 the operating profit increase.
47
4.1.4 PBDT
Table No. 4.4
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 238.6 258.83 273.63 318.52 294.16
JK paper 123.77 196.97 220.07 125.06 110.25
Total 532.93 654.36 777.63 619.25 630.92
Average 133.23 163.59 194.41 154.81 157.73
250
200
150
Average PBDT
100
50
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.4
Above graph show the industry fluctuating of PBDT over the 5 year. The industry has
able to improve their PBDT in 2008-09 to 2011-12 but than after PBDT not improve in 2012
and 2013 . The first 3 year industry has increase PBDT But suddenly in the year of 2011-12
the trend was downfall. Because in the year 2011-12 and 2012-13 the three company West
Coast Paper Mills Ltd, JK paper and Seshasayee Paper & Boards Ltd suddenly down their
PBDT.
48
4.1.5 Total Share Capital
Table No. 4.5
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 69.38 69.38 69.38 69.38 69.38
JK paper 78.56 78.35 78.24 136.65 136.62
Total 236.27 236.53 236.42 229.83 230.46
Average 59.07 59.13 59.11 57.46 57.62
59.5
59
58.5
58
Average share capital
57.5
57
56.5
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.5
Above graph show the industry fluctuating of Total share capital over the 5 year. In
first three year the total share capital of the industry is near to equal, but in 2011-12 the share
capital is decrease the reason is West Coast Paper Mills Ltd share capital is decrease. This is
not a good sign for the industry having such a reputed name in the market. Also it affects the industry
volume and profit.
49
4.1.6 Total Liability
Table No. 4.6
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 1194.34 1470.77 2167.41 2468.37 2778.82
JK paper 1104.72 1023.95 1258.28 1971.93 2652.71
Total 4603.44 4880.74 6037.27 6853.1 7969.75
Average 1150.86 1220.19 1509.32 1713.28 1992.44
2500
2000
1500
Average liability
1000
500
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.6
Above graph show that the industry total liability continually over the 5 year. The
industry liability is continues increase in all 5 year the reason is all four company increase
the liability but in a year 2012-13 West Coast Paper Mills Ltd and Seshasayee Paper &
Boards Ltd the total liability is decrease.
50
4.1.7 Investment
Table No. 4.7
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 17.15 1.14 11.4 1.14 1.14
JK paper 2.75 41.94 82.77 72.96 15.05
Total 74.14 99.98 164.11 144.04 85.66
Average 18.54 25.00 41.03 36.01 21.42
45
40
35
30
25
20 Average investment
15
10
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.7
At the initial level the industry is very poor in making investments at the year 2008 -09
industry sold its investments but in 2009-10 and 2010-11 industry had done good business
And the year 2011-12 and 2012-13 industry had decrease their investment the reason is T N
news print and JK paper sold his investment.
51
4.1.8 Inventories
Table No. 4.8
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 147.26 196.39 178.74 205 327.67
JK paper 117.11 126.89 127.53 164.19 216
Total 476.5 550.15 552.1 768.68 931.5
Average 119.13 137.54 138.03 192.17 232.88
250
200
150
Average inventories
100
50
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.8
From the above trend of inventories the industry cost of inventories is continues increase
in 2008-09 to 2012-13 the reason is T N news print, West Coast Paper Mills Ltd and JK
paper the inventories cost increase. It is because of increased price level of raw material and
stores.
52
4.1.9 Total Assets
Table No. 4.9
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 1194.34 1470.77 2167.41 2468.37 2778.82
JK paper 1104.72 1023.95 1258.28 1971.93 2652.71
Total 4603.44 4880.74 6037.27 6853.1 7969.75
Average 1150.86 1220.19 1509.32 1713.28 1992.44
2500
2000
1500
Average assets
1000
500
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.9
From the above trend of total assets of the company we can say that company has a good
growth rate. It has increased in all five year the reason is JK paper and T N news print
company assets are more increase compare to other company. It is because of company
overvalued its fixed assets and investments.
53
4.2RATIO ANALYSIS
4.2.1 DIVIDEND PER SHARE

The the sum of declared dividends for every ordinary share issued. Dividend per share (DPS)
is the total dividends paid out over an entire year (including interim dividends but not
including special dividends) divided by the number of outstanding ordinary shares issued.
DIVIDEND PER SHARE TOTAL DIVIDEND

= _________________
NO OF OUTSTANDING
SHARE
Table No. 4.10
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 31.15 31.15 31.14 34.61 34.61
JK paper 13.68 15.63 17.59 20.49 6.83
Total 61.32 66.08 66.91 61.99 53.08
Average 15.33 16.52 16.73 15.50 13.27
18
16
14
12
10
8 Average dividend per

share
6
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.10
54
Above graph show the industry pay divined to all 5 year. The graph show the divined per
share first 2-3 year industry good divined to their holder and it continues increase. But last 2
year industry divined per share is decrease. The last 2 year dividend per share is suddenly fall
down because West Coast Paper Mills Ltd company dividend decrease compare to earlier. It
is not good sign for industry.
4.2.2 RETURN ON CAPITAL EMPLOYEE %

A financial ratio that measures a company's profitability and the efficiency with which its
capital is employed.
EARNINGS BEFORE INTEREST AND TAX

RETURN ON CAPITAL EMPLOYEE = _________________________
CAPITAL EMPLOYED
Table No. 4.11
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 13.99 11.23 8.97 6.35 9.15
JK paper 11.01 17.37 17.58 6.08 3.78
Total 42.7 49.66 47.75 23.52 29.45
Average 10.68 12.42 11.94 5.88 7.36
14
12
10
6 Average ROCE
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.11
55
Return on capital employee that indicates the efficiency profitability of the industry capital
investment. Above graph show the industry return of capital employee increase in 2009-10.
In 2010-11 and 2011-12 the return on capital employee is decrease the reason is the all four
companys return on capital employee is decrease. This is not a good sign for the industry
having such a reputed name in the market. It also affects industry capital investment. But in
2012-13 the return on capital employee increase.
4.2.3 RETURN ON NET WORTH %
The return on equity ratio (also known as the return on net worth) reveals the amount of
return earned by investors on their investments in a business. This return can be improved
when a business buys back its own stock from investors, or by using more debt and less
equity to fund its operations.
RETURN ON NET WORTH = NET INCOME

____________________
EQUITY
Table No. 4.12
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 14.30 17.16 15.14 4.78 9.12
JK paper 9.63 20.85 20.17 6.29 4.38
Total 51.96 66.63 75.73 22.56 27.86
Average 12.99 16.66 18.93 5.64 6.97
56
20
18
16
14
12
10
Average RONW
8
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.12
Return on equity measures a corporation's profitability by revealing how much profit

an industry generates with the money shareholders have invested.
Above graph show the fluctuating of the return on net worth over the 5 year. In the year
2008-09 the return on net worth was around 13 and the in a year 2009-10 and 2010-11 the
return on net worth is increase the reason is the Seshasayee Paper & Boards Ltd company
highly increase in return on net worth . It is good for industry but year 2011-12 industry
return on net worth fall down.
4.2.4 CURRENT RATIO

It is a measure of general liquidity and is most widely used to make the analysis for short
term financial position or liquidity of a firm. It is calculated by dividing the total of the
current assets by total of the current liabilities.
CURRENT ASSETS
CURRENT RATIO = _____________
CURRENT LIABILITY
57
Table No. 4.13
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 0.65 0.66 0.57 0.56 0.54
JK paper 1.02 1.02 0.88 0.93 0.90
Total 4.6 4.46 3.39 3.1 2.92
Average 1.15 1.12 0.85 0.78 0.73
1.4
1.2
0.8
0.6 Average current ratio
0.4
0.2
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.13
The current ratio is a financial ratio that measures whether or not a industry has enough
resources to pay its debts over the next 12 months. It compares a firm's current assets to its
current liabilities. Above graph show the current ratio in the year of 2008-09 was 1.15 and
suddenly next four year falls down the reason is T N news print, West Coast Paper Mills Ltd
and JK paper company decrease the ratio continues. It means the industry next four year
current assets and current liability was decrease.
58
4.2.5 DEBT/ EQUITY RATIO
A measure of a company's financial leverage calculated by dividing its total liabilities by

stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
TOTAL LIABILITIES
DEBT/EQUITY RATIO = ____________________
SHAREHOLDERS EQUITY
Table No. 4.14
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 1.04 1.48 1.66 1.71 1.61
JK paper 1.80 1.42 1.13 1.21 1.65
Total 6.37 6.63 6.13 5.96 6.24
Average 1.59 1.66 1.53 1.49 1.56
1.7
1.65
1.6
1.55
Average debt equity ratio
1.5
1.45
1.4
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.14
59
A measure of an industry financial leverage calculated by dividing its total
liabilities by stockholders' equity. It indicates what proportion of equity and debt the industry
is using to finance its assets. Above graph show the industry debt equity ratio was increase in
the year of the 2009-10 and the decrease in year 2010-11 and 2011-12 the reason is
Seshasayee Paper & Boards Ltd and JK paper the ratio is decrease. it is good position in the
market.
4.2.6 INVENTORY TURNOVER RATIO
Inventory turnover is the ratio of cost of goods sold by a business to its average inventory
during a given accounting period. It is an activity ratio measuring the number of times per
period, a business sells and replaces its entire batch of inventory again.
INVENTORY TURNOVER COST OF GOODS SOLD

RATIO
= ________________
AVERAGE INVENTORY
Table No. 4.15
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 6.72 5.83 6.66 6.16 7.02
JK paper 10.66 10.64 11.28 10.69 9.09
Total 30.63 29.6 36.65 31.93 31.3
Average 7.66 7.40 9.16 7.98 7.83
60
10
9
8
7
6
5 Average inventory turnover
4 ratio
3
2
1
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.15
A ratio showing how many times a inventory is sold and replaced over a period. Here the
graph show the higher inventory turnover ratio is 9.16 in the year of the 2010-11 the reason is
the all four company inventory turnover ratio is increase. It means the industry inventory is
more sold and replaced over a period. But in 2011-12 and 2012-13 is decrease the reason is
West Coast Paper Mills Ltd and JK paper ratio is decrease.
4.2.7 DEBTOR TURNOVER RATIO
Debtors Turnover ratio is a test of the liquidity of the firm. This ratio establishes the
relationship between net credit sales and accounts receivables. The objective of this ratio is to
determine the efficiency with which the debtors are being managed. It suggests the number of
time the amount of credit sale is collected during the year.
NET SALES
DEBTOR TURNOVER RATIO = ________
DEBTOR
61
Table No. 4.16
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 8.61 5.92 6.30 5.86 6.59
JK paper 11.61 12.26 13.52 12.37 13.11
Total 46.92 46.19 52.83 45.38 48.45
Average 11.73 11.55 13.21 11.35 12.11
13.5
13
12.5
12
11.5 Average debtor…
11
10.5
10
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.16
Debtor turnover ratio or accounts receivable turnover ratio indicates the velocity of debt
collection of an industry. In simple words it indicates the number of times average debtors
(receivable) are turned over during a year. The graph show debtor turnover ratio in the year
2009-10 is decrease the reason is T N news print ratio is decrease. It is the benefit of the
industry. But in 2010-11 the ratio is increase the reason is all four company debtor turnover
ratio is increase.
4.2.8 TOTAL FIXED ASSEST TURNOVER RATIO

A financial ratio of net sales to fixed assets. The fixed-asset turnover ratio measures a
company's ability to generate net sales from fixed-asset investments - specifically property,
plant and equipment (PP&E) - net of depreciation. A higher fixed-asset turnover ratio shows
that the company has been more effective in using the investment in fixed assets to generate
62
revenues.
NET SALES
TOTAL FIXED ASSET TURNOVER RATIO = ____________________
TOTAL FIXED ASSETS
Table No. 4.17
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 0.57 0.49 0.45 0.48 0.59
JK paper 0.91 0.92 1.00 1.06 1.15
Total 3.89 3.02 3.01 3.1 3.47
Average 0.97 0.76 0.75 0.78 0.87
1.2
0.8
0.6 Average fixed assest

turnover ratio
0.4
0.2
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.17
The total asset turnover ratio measures the ability of a industry to use its assets to efficiently
generate sales. This ratio considers all assets, current and fixed. The graph show the industry
total assets turnover ratio is decrease in 2009-10 and 2010-11, the reason is a T N news print,
63
West Coast Paper Mills Ltd, Seshasayee Paper & Boards Ltd fixed turnover ratio is decrease .
In the year of 2011-12 and 2012-13 the total turnover ratio is increase.
4.2.9 EARNING PER SHARE
The portion of a company's profit allocated to each outstanding share of common

stock. Earnings per share serves as an indicator of a company's profitability.
NET INCOME- DIVIDENDS

ON PREFERRED STOCK
EARNING PER SHARE = ____________________
AVERAGE OUTSTANDING
SHARES
Table No. 4.18
YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

T N news print 15.5 14.72 17.42 20.67 14.89
West Coast Paper Mills Ltd 14.63 7.35 13.02 0 2.57
JK paper 4.56 11.31 13.24 3.37 2.67
Total 47.45 67.88 100.65 53.54 37.6
Average 11.86 16.97 25.16 13.39 9.40
64
30
25
20
15
Average EPS
10
0
2008-09 2009-10 2010-11 2011-12 2012-13
Chart No. 4.18
Financial analyst considers the earning per share as an important measure of profitability.
EPS measures the profit available to the equity share holders on a per share basis. That is the
amount that they can get on every share held.
The earnings per share has increase rapidly from 2008-09 to 2010-11. In 2010-11 it
was highest at 25.16 and it has decreased to in 2011-12 and 2012-13. This lower ratio will not
attract investors. This ratio shows that company fails to increase profitability in 2011-12 and
2012-13.
65
Chapter-5 Findings & Conclusion
 Indian paper industry is currently in the midst of a transformation with major capital
expenditure (capex) underway and improving operating efficiencies is the major concern of
the all players. All players are committing a large amount of investment, focusing on:
• Improving the operational efficiencies through rightsizing pulping capacities

• Brown-field capacity expansions
• Backward integration into captive power
• Adherence to pollution norms by chemical recovery
 The paper industry would witness an investment worth INR100.0 billion capex in next 2-3
years. The top 10 domestic players in paper sector would account for around 70% of the
capex planned to be implemented in 2008-10.
 Big players from the considerable market share, but the company should also tap the medium
and small players for expansion in India.
 Moreover, since plastic bags are going to be banded in coming years completely it will be an
opportunity for paper industry to grow.
 Companies in paper industry should reduce their current liabilities or increase their current
assets to grow.
 It should increase the plantation and put efforts to protect plants and recycling of paper is a
very good opportunity for this industry and it should grab this opportunity.
 Technologies from china and other countries are upgrading in paper industry so India should
import this machineries for growth of Indian Paper Industry.
 Also economic growth and FDI investment in Indian Paper Industry is an opportunity for
India.
 India has availability of cheap labour and also the manpower efficiency and productivity is
good in India which is beneficial for Paper Industry.
 De-licensing of paper industry has invited entrepreneur and industry development.
 Development in printing and packaging industry is opportunity for Paper industry to grow.
 Moreover there are around 13,000 printing companies in India which helps in growth of
paper industry.
66
 Future Prospects of The Industry:-
The globalization 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.
 FUTURE GOALS
 Ensure profitability and competitiveness of the industry in years to come by focusing

on Providing qualitative product.
 Market potential in India and potential export markets
 Raw materials available for paper industry in India
 Competitiveness of the industry
 Utilisation of global and proprietary technologies
 Management practices
 Government regulations and guidance
67
Chapter:- 6 B-Plan
Sr. No. Particular Page No.

6.1 Introduction 69
6.2 Company Description 70
6.3 Process/Steps for starting Business 71
6.4 Brand Information 72
6.5 Manufacturing Process 73
6.6 STP Analysis 74
6.7 Rajhansh & Co. (Distribution Channel) 75
6.8 Cost of Project 76
6.9 Staff 77
6.10 Source of Finance 78
6.11 Financial Analysis 79
68
6.1 INTRODUCTION
Rajhansh & Co created Recycling of Paper entirely in domestic marketplace and quickly
emerged as dominant market player. We specially focused on paper we specially focused on
the rich & middal class people segmentation. Rajhansh & Co works to create a better future
every day and helps people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
6.1.1 OBJECTIVE:-
- Capture the market through provide product in paper segment.

- To achieve higher level of satisfaction through quality paper.
- To achieve high market share in paper segment.
-
6.1.2 VISION
We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact. Vision should be like this that more and
more People want to be part of the company.
6.1.3 MISSION
Rajhansh & Co o f f e r h i g h q u a l i t y a nd h i g h va l u e products and services to

the customers and also tries to improve consumer life.
69
6.2 COMPANY DESCRIPTION
COMPANY NAME “ Rajhansh & co. ”
COMPANY’S ADDRESS Head office at Ahmedabad
GULMOHOR PAPER
Bilkha Road, Junagadh. 362-001
OWNERS OF THE COMPANY Deep Hudka (20% Share)
Hiren Rajpara (20% Share)
Dhaval Gardhariya (20% Share)
Jagdish Joshi (20% Share)
Naresh Chaudhary (10% Share)
Maulika Barot (10% Share)
THERE BASIC QUALIFICATION All partners having MBA degree with

specialization on (Marketing, Finance, and
H.R.)
TOTAL INVESTMENT Rs.50, 00,000
MAIN PRODUCT OFFERED A4 Paper And Bond Paper
TYPES OF INDUSTRY Paper industry
70
6.3 PROCESS/STEPS FOR STARTING BUSINESS
 To check our market potentiality. (Go for market research about selling of pepar
product also check for business generated through services).
 Location selection
 Physical set up (office/furniture etc.)
 Purchasing of materials
 Applying local govt. (municipal) for registration
 Starting Business
6.3.1 LIST OF DOCUMENTS/FORMALITIES REQUIRED TO DO

BUSINESS
 Partnership deed (MoA / AoA )

 License from Govt. (shop registered under municipality)
 PAN number for business
 “Gumasta-dhara” certificate
 Opening of bank account
 Telephone/Fax connection (land line)
71
6.4 BRAND INFORMATION
6.4.1 BRAND NAME
 A4 HD Paper
 DN Paper
6.4.2 BRAND DETAILS
 A4 HD Paper (Specially using Print)
 BENEFITS
- Useful for colour & white Print
- Clean Print
 DN Paper (Use of Sales or Purchase Agreement)
 BENEFITS
- Useful for Long time save
- Useful for easily maintain.
6.4.3 PRICE
 A4 Paper – At Rs 100 (Per Kg)

 Bond Paper - At Rs 240 (Per Kg)
 Prices are decided on the basis of Cost Base pricing strategy
72
6.5 MANUFACTURING PROCESS
73
6.6 STP ANALYSIS
1) A4 HD Paper & Bond Paper :-
 Segments:
People who have fixed budget for household things like paper and look for
economical options
 Target groups:
All paper needed people.
 Positioning:
Product which has all the qualities required from a paper-quality, low price
74
6.7.1 Rajhansh & co. – (DISTRIBUTION CHANNEL)
Company Manufacturing Unit
Wholesaler
Retailer
Consumer
6.7.2 MARKETING & SALES PROMOTION
 Personal sales
 Internet / Interactive Selling
 Consumer oriented sales Promotion
- Chipset Rate,
- Free sample
 Trade oriented sales Promotion

- Dealer incentive
- Trade Allowance
75
6.8 COST OF PROJECT
The estimated project cost under various heads has been worked out for New Project like
furniture & fixture, various electric items like machinery, etc
(Amount in )
SR.NO. PARTICULARS AMOUNT
1 Site on Rent 1,50,000
2 Computer 40,000
3 Furniture 2,50,000
4 Machinery & Equipments 24,50,000
5 Raw material expenses 10,00,000
6 Marketing and Sales Promotion Expenses 1,20,000
7 Staff Salary 2,40,000
8 Other Expenses 1,50,000
TOTAL 44,00,000
CASH ON HAND 6,00,000
COST OF PROJECT 50,00,000
76
6.9.1 STAFF
(Amount in )
NO. OF
JOB ROLE EMPLOYEE SALARY TOTAL
Machine Operator 3 4,000 1,44,000
Labour 4 2,000 96,000
TOTAL SALARY - - 2,40,000
6.9.2 MACHINERY PURCHASE EXPENSES
 Large-sized paper recycling machine 008615038179135

 Min. Order: 1 Set
We purchase 2 machinery of (Rs. 12, 25,000 * 2) 24, 50,000.
77
6.10 SOURCE OF FINANCE
(Amount in )
PARTICULARS AMOUNT
Promoters Contribution
Deep Hudka 1000000
Dhaval Gardhariya 1000000
Hiren Rajpara 1000000
Jagdhish Joshi 1000000
Naresh Chaudhary 500000
Maulika Barot 500000
TOTAL 5000000
78
6.11 FINANCIAL ANALYSIS
6.11.1 PROJECTED SALES

YEAR PRODUCTS PRICE (Per PACKET SALES
Packet)
2013-14 A-4 Paper 100 9100 9,10,000
Bond Paper 240 4500 10,80,000
TOTAL 19,90,000
2014-15 A-4 Paper 100 9737 9,73,700
Bond Paper 240 4815 11,55,600
TOTAL 21,29,300
2015-16 A-4 Paper 100 10030 10,03,000
Bond Paper 240 4960 11,90,400
TOTAL 21,93,400
2016-17 A-4 Paper 100 10330 10,33,000
Bond Paper 240 5110 12,26,400
TOTAL 22,59,400
2017-18 A-4 Paper 100 10848 10,84,800
Bond Paper 240 5366 12,87,840
TOTAL 23,72,640
79
6.11.2 PROJECTED INCOME STATEMENT
(Amount in )
Profit & Loss account for the year ended 2013-14 to 2017-18
Particular 2013-14 2014-15 2015-16 2016-17 2017-18

Income: -
Sales 19,90,000 21,29,300 21,93,400 22,59,400 23,72,640
Scrap 1,99,000 2,12,930 2,19,340 2,25,940 2,37,264
Total (A) 21,89,000 23,42,230 24,12,740 24,85,340 26,09,904
Expenses: -
Rent 1,50,000 1,57,500 1,65,375 1,73,650 1,82,333

Salary 2,40,000 2,52,000 2,64,600 2,77,830 2,91,722
Electricity bill 28,000 32,000 37,000 40,000 44,000
Raw material expenses 10,00,000 10,50,000 10,81,500 11,13,945 11,69,642
Advertising expenses 1,20,000 1,26,000 1,32,300 1,38,915 1,45,860
Dep. on furniture 25,000 25,000 25,000 25,000 25,000
Dep. on Machinery & 2,45,000 2,45,000 2,45,000 2,45,000 2,45,000
equipments
Dep. on computer 4,000 4,000 4,000 4,000 4,000
Other expenses 1,50,000 1,65,000 1,81,500 1,99,650 2,19,615
Total (B) 19,62,000 20,56,500 21,36,275 22,17,990 21,07,557
PBT (A-B) 2,27,000 2,85,730 2,76,465 2,67,350 2,82,732

Tax on profit 68,100 85,719 82,940 80,205 84,820
Net profit 1,58,900 2,00,011 1,93,525 1,87,145 1,97,912
80
6.11.3 PROJECTED BALANCE SHEET
(Amount in )
Balance sheet for the year ended 2013-14 to 2017-18
Particular 2013-14 2014-15 2015-16 2016-17 2017-18

Assets: -
Furniture 2,50,000 2,25,000 2,00,000 1,75,000 1,50,000
Computer 40,000 36,000 32,000 28,000 24,000
Machinery & Equipment 24,50,000 22,05,000 19,60,000 17,15,000 14,70,000
Cash balance 6,00,000 6,60,000 7,59,000 8,72,850 10,03,778
Finished goods 10,00,000 11,00,000 12,65,000 14,54,750 14,64,100
Pre paid expenses 5,50,000 6,00,000 6,50,000 7,47,500 9,59,625
Sundry Debtor 2,68,900 3,74,011 3,27,525 1,94,045 1,26,409
Total 51,58,900 52,00,011 51,93,525 51,87,145 51,97,912
Liabilities: -
Owner funds 50,00,000 50,00,000 50,00,000 50,00,000 50,00,000

Net profit 1,58,900 2,00,011 1,93,525 1,87,145 1,97,912
Total 51,58,900 52,00,011 51,93,525 51,87,145 51,97,912
81
6.11.4 PROJECTED CASH FLOW
 Net present value (NPV)

CASH NET CASH P.V. FACTOR P.V. OF CASH
YEAR FLOW DEPRECIATION FLOW @10% FLOW
1 (1,10,000) 2,74,000 1,64,000 0.909 1,49,076
2 (1,74,000) 2,74,000 1,00,000 0.826 82,600
3 (1,34,000) 2,74,000 1,40,000 0.751 1,05,140
4 (6900) 2,74,000 2,67,100 0.683 1,82,430
5 71,503 2,74,000 3,45,503 0.621 2,14,557
Total 7,33,803
Here cash outflow = Rs.10,00,000

Required rate of return= 10%
NPV= P.V of cash flow- cash outflow
= 7,33,803-10,00,000
= (2,66,197)
Here we can say that if NPV is less than 0 then the project is Rejected and
we can see that in our project NPV is less than 0 i.e. (2,66,197) so our project is Rejected.
 P.I(Profitability Index):
P.I = P.V of cash inflow / cash outflow
= 7,33,803/ 10,00,000
= 0.73times
Here we can say that our project‟s P.I is 0.73so our project is accepted.
82
Chapter :7 Bibliography
Web Site.
 www.capitaline.com
 www.moneycontrol.com
 www.inpaper.com
Link
 http://www.oppapers.com/essays/Pest-Analysis-Apparel-Manufacturing-
Industry/143295 Date :- 30/10/2013 Time : 7:12pm
 http://www.economywatch.com/business-and-economy/paper-industry.html
Date :- 9/11/2013 Time : 8:12pm
Books Name
 Arthur A. Thompson, A. J. Strickland, John E Gamble, Arun K. Jain (2009). Crafting

And Executing Strategy. New Dehli: Prentice – Tata McGraw-Hill Publishing
Company Limited.
 Aswathapa 9th Edition.Business environment.New Dehli: Prentice- McGraw-Hill

Publication.
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A

Under the Guidance of:

Prof. (Dr.) Mahendra Sharma,

Barot Maulika D. (12044311002)

5 findings & Conclusion 66

1.1 Indian Paper Manufacturing Industry Outlook

2. VAT (Value Added Tax):

Logs Logs Pulp

Paper mill Converting plants Warehouses Distribution center

Paper rolls & sheets

Market for pulp and

2.1.2. Vision of company:-

Vision & Values

2.1.3. Product of the Company.

2.1.4. Financial Detail of Company.

Mar. 13 Mar. 12 Mar.11 Mar.10 Mar.09

2.2.2. Vision of the Company.

TNPL‟s vision is to be the market leader in manufacture of world-class eco-friendly paper

2.2.3. Product of Company.

 TNPL Ultra White Maplitho  Cream wove

2.2.4. Financial Detail of company.

Mar. 13 Mar. 12 Mar.11 Mar.10 Mar.09

2.3.2. Vision of company.

Vision: To excel in serving demands of paper and paper products worldwide.

The West Coast product-line features well-established brands of commercial to premium

2.3.4. Financial Detail of company.

Mar. 13 Mar. 12 Mar.11 Mar.10 Mar.09

Incorporated in 1960 and promoted by S Viswanathan and N Gopalaratnam, Seshasayee

2.4.2. Vision of Company.

2.4.3. Product of Company.

Mar. 13 Mar. 12 Mar.11 Mar.10 Mar.09

3.1.3 Weaknesses of Paper Industry:-

3.1.4 Opportunities of Paper Industry:-

 Increase in demand and consumption: - Domestic demand for paper is expected

3.1.5 Threats of Paper Industry:-

3.2.2 Political Factors:-

 Government has completely de licensed the paper industry with effect

 Manufacturing of paper and thousands of other paper related commodities

3.2.4 Social Factors:-

 Transparent extrapolation between our quality discipline and customer delight, so

3.2.5 Technological factors:-

 Threats of intense segment rivalry

Change in industry structure

 Threats of new entrants

Change in competitive conduct

Change in industry performance

 Threats of buyer’s growing bargaining power

External driving forces :-

No. Company Name Growth Rate Market Share

05 CASH COWS DOGS

West Coast and JK Paper are included in cash cows.

T.N. Newsprints is included in Stars.

Seshasayee Paper is included in Question Marks.

There are no any Company included in Dogs.

NO. COMPANY NAME SALES

Those company EPS is more than Rs. 2

NO. COMPANY NAME EPS

YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

Chart No. 4.1

YEAR 2008-09 2009-10 2010-11 2011-12 2012-13

600 Average expenses

Chart No. 4.2

YEAR 2008-09 2009-10 2010-11 2011-12 2012-13