A Comprehensive Study On Organized Sector of Paper Manufacturing Industry in India Management Research Project - I

A comprehensive study on
Organized sector of Paper Manufacturing

Industry in India
Management research project – I

Submitted
In partial fulfillment of the degree of
Master of Business administration
By
Disha Bhagat-42
Urvi Bhatt-103
Jhalak Dave-105
Pooja Jain-108
Batch (2008-2010)
Under the Guidance of:
Prof (Dr.) Mahendra Sharma
Prof. & Head
&
Dr. Rohit Trivedi
Assistant Professor
V. M. Patel Institute of Management.
Submitted to:
V. M. Patel Institute of Management,
Ganpat University,
Kherva.
Certificate
This is to certify that Ms. Disha Bhagat , Ms. Urvi
Bhatt ,Ms. Jhalak Dave, Ms. Pooja Jain has
successfully completed the Management Research
project-I entitled “A Comprehensive Study On
Organized Sector Of Paper Manufacturing
Industry In India ” for the fulfillment of MBA
semester-III, project from June 2009 – December
2009. Certified that, this work is original & wishing
them a bright career.
Project Guide: Head of the
Department:
ii
Dr. Rohit Trivedi Dr. Mahendra
S. Sharma
Date: - Date:-
Certificate
This is to certify that Ms. Disha Bhagat, Ms. Urvi Bhatt,
Ms. Jhalak Dave, Ms. Pooja Jain has successfully
completed the Management Research project-I entitled “A
Comprehensive Study on Organized Sector of Paper
Manufacturing Industry in India” for the fulfillment of
MBA semester-III project from June 2009 – December 2009.
Certified that, this work is original.
Student’s Signature:
Disha Bhagat ________________
Urvi Bhatt ________________
Jhalak Dave ________________
Pooja Jain________________
iii
Project Guide: Head of the
Department:
Dr. Rohit Trivedi Dr. Mahendra S.
Sharma
Date:- Date:-
PREFACE
One can never deny for the importance of the practical exposure of the problem
for its better understanding and greater grip of coming out with an industrially
acceptable solution. Being the management students and performing small
practical even is in itself an experience of responsibility on our shoulders. The
project is certainly the best chance to learn the implications of the Strategic
Managements Models and the other Management modules to find out the
performance of the Industry and the other things related to it.
In view of above, this report has been completed as a part of syllabus prescribed
for the MASTER OF BUSINESS ADMINISTRATION. The report contains the
analysis of the paper industry in the Indian organized market of paper
manufacturing units i.e. from its evolution to the current market scenario; the
analysis of the key players who dominate the whole Indian market and what is
their respective market share in this segment; the PEST analysis; the SWOT
analysis of the industry; financial analysis.
iv
Based on the various articles that we have referred and based on the various
internet sites that we have visited for our report, we have done the analysis of the
paper industries and we have tried our best to come out with recent news articles
related to the industry. Based on the study and the articles, in the final part of our
report, we have come up with the major findings of the industry and based upon
that, we have given certain recommendations to the industry.
ACKNOWLEDGEMENTS
We think that this is a good opportunity for us to thank those nice and wonderful
people who helped us in our project.
We express gratitude to Dr. Mahendra Sharma, Director, V.M.Patel Institute

of Management. We would like to thanks our faculty Dr. Rohit Trivedi, for
being our project guide helping us in our project work which is not only helpful in
our academics but also helpful in the future.
We would also like to thank the entire faculty for showing their interest in our
Project. We would also like to thank all the people of our institute who directly or
indirectly helped us to carry out our project successfully and come out with output
that helps then in one way or the other.
v
List of Tables
Table Particulars Pg.

No. No.
1.9.1 Category wise Paper mills in India 18
3.1 Installed Capacity Paper unit-Ballarpur 34
3.2 Installed Capacity Paper unit-J.K 41
4.1 Conclusion-SWOT Analysis 48
6.1 Conclusion-Five Force Analysis 54
7.1.1- Tables of Ratio Analysis 55-

7.1.69 92
7.3.1 Trend Analysis 95-
98
vi
List of Figures & Charts
Sr. Particulars Pg.

No. No.
List of Charts
1.2.1 Market Share of Paper Manufacturing 7

Companies
1.3.1 Process Flow Chart 8
1.4.1 Global Demand 11
1.4.2 Paper & Paper board Production 12
1.4.3 Paper & Paper board consumption 12
1.9.1 Raw material wise Paper Mills 18
1.10.1 Paper & Paper board Production in India 20
1.10.2 Import & Export of Paper & Paper 20

boards
1.10.3 Production & consumption of Paper & 21
Paper boards
3.1 Revenue-BILT 32
3.2 Revenue- Segment wise-BILT 33
vii
3.3 Installed Capacity-BILT 33
3.4 Revenue-JKPL 39
3.5 Production-Segment wise-JKPL 39
3.6 Installed Capacity-JKPL 40
7.1.1- Ratio Analysis 55-

7.1.19 91
List of Figures
1.12.1 Supply Chain Management of Industry 25
4.1.1 SWOT Analysis 43
6.1.1 Five Force Analysis 52
viii
ABBREVIATIONS
BILT Ballarpur Industries Limited

TNPL Tamilnadu Newsprints and Paper Limited
JKPL J.K Paper Limited
Index
ix
Sr. Content Pg.
No. No.
Certificate by the Guide ii
Certificate by the Candidates iii
Preface iv
Acknowledgement v
List of Tables vi
List of Figures & Charts vii
Abbreviations viii
1 Introduction 1-26
1.1 Indian Paper manufacturing Industry Outlook 1-5
1.2 Major Manufacturers of Paper 6-7
1.3 Paper Manufacturing process 8-10
1.4 Products of Paper Manufacturing Industry 11-13
1.5 Future Prospects of the Industry 14
1.6 Capacity, Production, Raw Material, and Import 14-15
x
1.7 Demand & Supply Gap in Paper Industry 16-17
1.8 Government regulations, Permission & Taxes 17-18
1.9 Paper Mills Engaged in Production of Paper in India 18-19
1.10 Attractiveness for Foreign Players 20-22
1.11 Key Drivers of Paper Manufacturing Industry 23-24
1.12 Supply Chain Management of Paper Manufacturing 25-26
Industry
2 Research Methodology 27-29

2.1 Research Objective 27
2.2 Non Financial Analysis 27

2.3 Financial Analysis 28
2.4 Source of Data collection 28
2.5 Research Type 28-29
2.6 Limitations of the Study 29
3 Major Players In The Industry 30-42

3.1 Ballarpur Industries Limited 30-35
xi
3.2 Tamilnadu Newsprints and Paper Limited 36-37
3.3 J.K Paper Limited 38-42
4 SWOT Analysis 43-48

4.1 Introduction 43
4.2 Strengths of Paper Industry 44
4.3 Weaknesses of Paper Industry 45
4.4 Opportunities for Paper Industry 46
4.5 Threats for Paper Industry 46-47
5 PEST Analysis 49-51

5.1 Introduction 49
5.2 Political Factors Influencing the Industry 49
5.3 Economical Factors Influencing the Industry 49-50
5.4 Social Factors Influencing the Industry 50
5.5 Technical Factors Influencing the Industry 50-51
6 Michael Porter’s Five Force Analysis 52-54
xii
6.1 Introduction 52
6.2 Five Force Analysis For the Industry 53-54
7 Financial Analysis 55-

101
7.1 Ratio Analysis 55-92
7.2 Horizontal Analysis 93-94
7.3 Trend Analysis 95-
101
8 Recent News Related to Industry 102-

103
9 Findings & Conclusion 104-
105
10 References 106
xiii
xiv
i
1
1
Chapter-1 Introduction
1.1Indian Paper Manufacturing Industry Outlook1:-

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
1
www.inpaper.com
1
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.
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
2
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.
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),
3
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 %.
The three main grades of paper manufactured in India are:-

1. Newsprint
2. Writing and printing.
3. Industrial Variety (Craft paper and Duplex Board)
4
Over 550 players currently populate the industry and the estimated capacity is
about 7.00 million Metric Tons Per Annum (MTPA)2. Fragmentation is severe
in the “industrial” (packaging) grades, which rely on “unconventional” raw
material such as waste paper and partly agro residues. This division generally
comprises of units with an average size of about 10000 MTPA and contributes to
45% of the output of paper and paper boards in the country. Although the
other divisions in the Indian paper industry are also fragmented by international
standards, the degree of fragmentation is less severe.
“Newsprint” till about 1995, was the sole preserve of large public sector units and
was well protected by high import tariff barriers. Nevertheless, imports
contributed to about 50% of the domestic consumption. Since then, new domestic
capacity with private investment has been allowed to be created. This growth has
relied namely on De-inked waste paper as a source of raw material. Currently
import duty on newsprint is about 5% and domestic manufacture of newsprint
is exempted from excise duty. This tariff structure for newsprint has seen Indian
newsprint price closely mapping3.
2
www.ipma.co.in
3
www.itcportal.com/paperboards_specialtypapers/paperboards.html
5
1.2Major Players of Paper Industry4:-
If we see the Market Share of Paper Manufacturers on the basis of the Production
the first ten Industries are as follows:
1. Ballarpur Industry Limited.
2. ITC Limited.
3. Tamilnadu Newsprints & Paper Limited.
4. Hindustan Paper Corporation Limited.
5. Century Limited.
6. J.K.Paper Limited.
7. Khanna Limited.
8. West Coast Paper Mills Limited
9. Andhra Pradesh Paper Mills
10. Seshasayee Paper Boards
But when we go according to sales of 2007-2008 then the eight major companies
are as under:
1. Ballarpur Industries Limited

2. Tamilnadu Newsprints & Paper Limited
3. Hindustan Paper Corporation Limited
4. J.K.Paper Limited
5. West Coast Paper Limited
6. Andhra Pradesh Paper Mills Limited
7. Seshasayee Paper & Boards
4
www.scribd.com/doc/22349605/Indian-Paper-Industry-B2B-Marketing
6
8. Khanna Paper Mill.
Chart-1.2.1
5
http://www.ipma.com/paper_statistics.asp
7
1.3Paper Manufacturing Process6:-
Process steps:-
PROCESS FLOW CHART-1.3.1
 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.
6
http://www.paperonweb.com/pmake.htm
8
 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.
 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
9
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.
1.4Global & Region wise Paper Production7:-

7
http://www.slideshare.net/jaaaspal/indian-paper-industry-presentation
10
 Paper and Paperboard Production – Global Market, 2002-20
(Figures in million tonnes)
Global Demand
600
2002
500
2003
400
2004
300
2005
200
100 2006
0 2010
2002 2003 2004 2005 2006 2010 2020 2020
Chart- 1.4.1
 The annual global paper and paperboard production was approximately

382.0 million tonnes in 2006. It is expected to increase to 402.0 million
tonnes by 2010 and 490.0 million tonnes by 2020.
 The global pulp and paper industry consists of about 5000 industrial pulp
and paper mills, and an equal number of very small companies.
 Broadly, the industry can be classified into two segments:
 Paper and paperboard (writing, printing, packaging and tissue).

The writing and printing paper market can be further divided into
coated and uncoated segments.
 Newsprint mainly uses for newspapers, flyers, and other printed
material intended for mass distribution.
11
 Paper and Paperboard Production – Region wise, 2006
(Figures in percent)
100% =382.0 million tonnes
Production
Europe North America

30% 27%
Asia
Rest of the 36%
world
2%
Latin America
5%
Chart-1.4.2
 Paper and Paperboard Consumption – Region wise, 2006
(Figures in percent)
100% =381.2 million tonnes
Consumption
Europe North America

26% 26%
Asia
Rest of 39%
the
world
3%
Latin America
6%
Chart-1.4.3
 The US is the largest producer and consumer of paper and paperboard in
the world. On a regional basis, Asia emerged as the largest producer and
consumer of paper and paperboard in 2006.
 The paper and paperboard industry has witnessed a radical shift in last
decade.
12
 Due to the strong economic growth in both China and India, the
demand for paper and paperboard is increasing at a fast rate i.e. 8-
9%.
 Latin America in the south and Indonesia in the east are emerged
as a fibre supplier with a concurrent decline in the North American
pulp industry.
 North America, Europe and Asia dominate the global pulp and paper
industry. Asia, mainly China and India, would emerge as an important
market for pulp & paper.
 It is expected that Asian market would account for 60% of global
incremental production during the period 2004-2020.
 The share of fast developing Asian markets, excluding Japan, in
global consumption is estimated to increase to 34% by 2010 from
the 32% in 2006.
 The share of mature markets like North America and Europe
would fall to around 50% by 2010 from the 52% in 20068.
1.5Future Prospects of The Industry9:-

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
8
9
http://www.scribd.com/doc/15596383/Final-Project-Report-on-Paper-Industry
13
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.
1.6Capacity, Production, Raw Material, and Import10:-

Government has completely de-licensed the paper industry 17th July, 1997.
The entrepreneurs are now required to file an Industrial Entrepreneur
Memorandum with the Secretariat for Industrial Assistance for setting up a new
paper mill or substantial expansion of the existing mill in permissible locations.
The industry is a priority industry for foreign collaboration and foreign

equity participation up to 51% receives automatic approval by Reserve Bank
of India. Foreign investment even up to 100% is approved by FIPB on case to
case basis. Several fiscal incentives have also been provided to the paper industry,
particularly to those mills which are based on non-conventional raw material.
10
14
There are, at present, about 515 units engaged in the manufacture of paper
and paperboards and newsprint in India. The country is almost self-sufficient
in manufacture of most varieties of paper and paperboards. Import, however, is
confined only to certain specialty papers. To meet part of its raw material needs,
the industry has to rely on imported wood pulp and waste paper. The production
of paper and paper board during the year 2001-02 is 31.62 lakh tonnes. The
proportion of non-wood raw material based paper is increasing over the years. At
present about 60.8 per cent of the total production is based on non-wood raw
material and 39.2 per cent based on wood.
The performance of the industry has been constrained due to high cost of
production caused by inadequate availability and high cost of raw materials,
power cost and concentration of mills in one particular area. Several policy
measures have been initiated in recent years to remove the bottlenecks of
availability of raw materials and infrastructure development. To bridge the gap
due to short supply of raw materials, duty on pulp and waste paper and wood
logs/chips have been reduced. The capacity utilization of the industry is low at
62% as about 194 paper mills, particularly small mills, are sick and/or lying
closed. Several policy measures have been initiated in recent years. Imports of
paper and paper products were growing over the years. However, it has decreased
during 2000-2001.
1.7Demand & Supply Gap in Paper Industry11:-

Indian paper industry is the 15th largest in the world and provides
employment to 1.3mn people in the country contributing Rs.25bn to the
Government. The industry has recorded a volume growth of CAGR of 5.47% over
the last 3 years. In 2003-04, it recorded a volume growth of 6%, in line with the
11
15
GDP growth. Indian paper industry has a 1:1 correlation with the economy. The
demand for paper is linked to the GDP Growth. The government is planning to
target a GDP Growth of about 10% in 2-3 years. With this increase in the GDP
growth the paper sector is expected to record a similar growth rate.
The Indian paper industry has an installed capacity of 6.7mn tons while, the
effective capacity is estimated to be lower at 6.15mn tons. The industry produced
5.26mn tons of paper in 2003-04. Newsprint capacity in India is estimated at
1.12mn tons however, domestic production is only 0.59mn tons, while
consumption of newsprint is 1.1mn tons. Favorable demand - supply scenario to
keep prices firm the demand for paper is influenced by various macro-economic
factors like national economic growth, industrial production, promotional
expenditure, population growth and the Government’s allocation for the
educational sector. Domestic demand for paper is expected to grow at a CAGR of
6-7%. India’s paper demand is expected to touch 8mn t.p.a by 2010. A leading
global paper industry consultant projects a shortage of about 0.7mn tpa by 2010.
Proposed capacity expansions:

Capacity expansions (which cost 50% less than new capacities) have been
announced by most players, but would take 1-2 years to be operational. Capacity
expansions of over 600,000 tons have been announced by the 7 large players in
the sector.
1.8Government Regulations, Permission & Taxes12:-

1. Central Excise:
12
16
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.
1.9 Paper Mills Engaged in Production of Paper in

India
17
Category-wise paper mills in India
(Figures in number)
Category Capacity Range Number of units Capacity (TPA)

Small Up to 10000 299 12,90,382
<2000 69 75,522
2000–5000 107 2,96,980
5000–10000 123 9,17,880
Medium 10000–20000 116 16,69,460
Large >20000 70 38,93,048
Table-1.9.1
Raw material-wise paper mills in India
Raw Material
Wood
32% Recycled Paper
38%
Agri-Residue
30%
Chart-1.9.1
 India is the 15th largest paper producer in the world. It provides
employment to nearly 1.5 million people and contributes INR25.0 billion
to the government's exchequer.
 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.
 Capacity utilization of the industry is just 79%, due to old
technology. Moreover, 194 mills under the purview of the Board of
Industrial and Financial Reconstruction (BIFR) and nearly 60 mills
(with a capacity of 1.3 million tonnes is closed).
18
 Indian paper mills can be categorized based on the raw materials
wood/forest based mills, agro-residue based mills and wastepaper-based
mills.
 Due to the increasing regulation and raw material prices, the companies
are increasingly using more non-wood based raw material over the years.
In 2006, around 70 % of the total production is based on non-wood raw
material13.
13
19
1.10 Attractiveness for Foreign Players14:-
 Paper and Paperboard - Production in India, 2002-06
(Figures in million tonnes)
9 Chart Title
8
7
6
5
4
3 Installed Capacity
2 Production
1
0
2002-032003-042004-052005-062006-07
Chart-1.10.1
Paper and Paperboard - Import-Export, 2002-06
(Figures in million tons)
0.4
Chart Title
0.35
0.3
0.25
0.2
0.15 Import
0.1 Export
0.05
0
2002-03 2003-04 2004-05 2005-06 2006-07
Chart-1.10.2
14
20
 India is self-sufficient in manufacture of most varieties of paper and
paperboards.
 Import is mainly related to certain specialty papers such as
light weight coated variety of paper, cheque paper, etc.
 Due to the scarcity of raw material, the companies also need to
rely on imported wood pulp and waste paper.
 In last 5 years, capacity was increased mainly through expansion and
modernization of the existing facilities rather than setting up Greenfield
projects.
 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.
 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.
 Paper & Paperboard - Production and Consumption
(Figures in million tones)

25 Chart Title
20
15
10
Production
5
Consumption
0
2009-10 2014-15 2019-20
Chart-1.10.3
21
 Various macro-economic factors like national economic growth, industrial
production, promotional expenditure, population growth and the
government’s allocations for the educational sector influence the demand
for paper
 The growth in paper consumption is directly related to GDP
growth in the country. In the past, it has shown the 1:1
relationship with the GDP growth rate.
 With expected GDP growth of 9-9.5%, the demand for
Newsprint and Writing & Printing Paper is expected to grow at
the same rate.
 Continued availability of raw materials would be a big challenge for the
industry in the next 5-10 years. According to the Indian Pulp and Paper
Technical Association (IPPTA), the paper industry is expected to fall short
of demand by 1.1 million tonnes by 2010-11 due to raw material
constraints.
 According to ITC’s estimates, the total demand for paper is around 8.0
million tonnes and is expected to grow to 10.0 million tonnes by 2012 and
21.0 million tonnes by 2020.
 According to Indian Paper Manufacturers Association (IPMA),
consumption of paper in India is set to double from the current 7.0 million
tonnes per annum by 2015.
22
1.11 Key Drivers of Paper Manufacturing Industry15:-
 Strong Consumer Demand for Packaged goods fueling high growth in
Industrial grades of Paper & Boards largely led by growing
disposable incomes & Lifestyle changes.
Trend:-
 Strong economic growth:-
 Indian economy is growing at more than 8% rate over the last 4 years.
 The government expects that economy would continue to grow at the
same pace for the current fiscal 2007-08.
Potential Implications:-
 Strong economic growth would fuel the demand for paper and newsprints.
15
http://www.economywatch.com/business-and-economy/paper-industry.html
23
 The industry would witness a large capital investment both by domestic
and international players.
 Increased government focus on education:-

 In 2007-08, the central government has allocated INR106.7 billion for
SSA programme.
 It allocated INR6.9 billion (4.1% of total fund) for textbook in 2006-07
• Increased rates of literacy and improved school infrastructure would result

in greater demand for paper.
 Low consumption per capita:-

• The paper consumption in India is just 7 Kgs per capita, as compared to
global average of 50 Kgs per capita.
 The impact of just 1 kg increase in per capita consumption would lead to
increase in demand by 1.1 million tonnes of paper.
 Printing Industry:-
 There are approximately 130,000 printing presses in India.
 Indian printing and packaging industry is growing at a CAGR of over
16.2% since 1989.
 Indian printing industry would grow from $12.1 billion in 2006 to $20.9
billion in 2011.
 The strong growth in printing industry would also fuel the demand for
paper in the future.
24
1.12 Supply Chain Management of Paper Manufacturing
Industry16:-
 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 & sheets
Paper mill Converting plants Warehouses Distribution center
Paper rolls & sheets
Merchants Market for pulp and

 paper products
Figure-1.12.1
16
https://www.cirrelt.ca/DocumentsTravail/2006/DT-2006-AM-3.pdf
25
We have three major processes, Harvesting, pulp making and paper making.
 Harvesting consists of the following major stages

 The trees are cut and branches are removed. There after the tree is bucked
into the logs. This process is typically done on directly at harvest area.
 Logs are transported from harvest areas directly to mills or through

intermediate storage at terminal.
 The Pulp making process involves the following steps
 Conversion of pulp logs to chips. Chips from different species are mixed
according to recipes with sawmill chips depending on the pulp quality
produced.
 The chips are boiled and washed. Here the fibers and lignin are separated.
 The fibers are then in a number of steps where chemicals is added
bleached in order to produce fibers with a certain brightness.
 The paper making process involves the following steps
 Fixed width reels of a given paper grade, also referred to as a jumbo rolls,
are produced on a paper machine.
 The reels are put on a winder and sliced into several rolls of smaller
diameters and widths. The part of the reel not cut into rolls in trim loss.
 Finally, the rolls are shipped to customer, or converted into cut sheet
finished products on a sheet, which may also generate some trim loss. The
roll sheeted into finished products is known as parent rolls.
26
Chapter-2 Research Methodology
2.1 Research Objective:-

The major objective of the project was to study and to know about the Indian
market situation of the Paper manufacturing Industry. And after finding the Major
three companies based on the Average sales we wanted to find the financial
condition and future growth prospects of the Industry.
2.2 Non Financial Analysis:-

The following were the main objectives under the non financial analysis of the
industry:
 Identification & analysis of Competitive forces of the industry on the

basis of Michael Porter’s five force model.
 Identification of strengths, weakness, opportunities & threat in the
External business environment with the help of SWOT (Strengths,
Weakness, Opportunities analysis.
 In-depth analysis of factors affecting the business environment with
the help of Political, Economical, Social and Technological (PEST)
analysis.
 Comparative analysis would be undertaken to know about the
offerings or the products that the particular company offers to the
27
market and also to know their rivals and the key players of this
industry.
2.3 Financial Analysis:-

The following were the main objectives under the financial analysis of the
industry:
 A percentage change in financial statement items for a number of last

five years is calculated with the trend analysis, in order to identify
basic changes in nature of the Industry’s business.
 Ratio analysis is to be carried out, which involves a relevant financial
relationship between components of the financial statements and is
used for recognizing an industry strengths as well as weakness.
 Horizontal Analysis is also been done of Income, Expenses, Assets,
And Liabilities Statements of last five years to compare the financial
condition of the Whole Industry with compare to the precedent year.
2.4 Source of Data Collection:-

The following are the sources for Secondary Data collection for making our study
and making the report:
 Research Articles related to Paper Industry.
 Prowess Software.
 Internet websites.
 Business Periodicals.
28
2.5 Research Type:-
Exploratory Research is being undertaken so we can find insights and
understanding of Paper Manufacturing Industr
Exploratory research is generally used for below mentioned purposes:
 Formulate a problem or define a problem more precisely.

 Identify alternative course of action.
 Develop hypotheses.
 Isolate key variables and relationships for further examination.
 Gain insights for developing an approach to the problem.
 Establish priorities for further research.
2.6 Limitations of the Study:-

 We could not apply the Primary research.
 All the group mates are living at different cities so to meet at one place
at the same time was our main limitation.
 Time Limitation.
 Money Limitations
29
30
Chapter-3 Major Players of the Industry
 Ballarpur Industries Limited17:
Company Background
 Established in 1945, Ballarpur Industries

(BILT) is the flagship company of the L.M.
Thapar Group. It is the largest company in
the domestic paper industry with an installed
paper capacity of 4, 81,568 tons per annum.
The company also has 98,550 tons per
annum of rayon grade pulp capacity in
Kamalapuram at Andhra Pradesh. The company mainly manufactures
17
http://www.biltpaper.com/
31
printing and writing paper in five locations - Ballarpur, Bhigwan & Ashti
in Maharashtra, Shreegopal in Haryana and Sewa in Orissa.
 The company manufactures different types of paper, viz., maplitho, coated
paper, cream wove and specialty papers. It claims to be a leader in many
of the high--end value--added segments like wood--free coated paper (47
per cent market share) and hi--bright maplitho (42 per cent). The company
also has a dominant position in copier paper with a market share of 28 per
cent. The company has a network of 126 dealers.
 The company has grown over the past few years organically as well as
inorganically. It acquired and subsequently merged Bilt Graphic Papers in
2003. Further, in April 2006, the company merged APR Packaging which
is engaged in writing and printing paper. The merger increased BILT's
paper capacity by 55,000 tonnes per annum. With a view to cater to the
growing demand, the company has chalked a capex plan of Rs.800 crore
towards increasing its total capacity by 2.5 lakh tonnes per annum. The
project is expected to be completed by June 2008.
 In June 2006, the company acquired 80 per cent stake in Sabah Forest
Industries (SFI), Malaysia's largest pulp and paper mill from Lion Forest
Industries for USD 261 million. This acquisition is a strategic fit into the
company's growth plans. SFI has paper and pulp capacity of 1.4 lakh
tonnes and 1.2 lakh tonnes per annum, respectively. It would also provide
the company with huge forest land of 289 thousand acres that can be used
captively for fibre requirement. Besides securing future supplies of raw
material through this acquisition, the company also created an entry into
the rapidly growing South--East Asian markets.
32
 The company product portfolio includes - coated wood free paper,
uncoated hi-bright paper (Maplitho), business stationery, copy paper, and
speciality & fine paper
 In 2006, BILT controlled approximately 21% of Writing and Printing
Paper (WPP) market and approximately 53% of the coated paper market.
 The company is pursuing both organic and inorganic strategy to increase
its installed capacity to 1.0 million tonnes paper by 2010.
 In 2006, the company acquired a paper manufacturing firm, Sabah Forest
Industries, in Malaysia. The acquisition not only help the company to
secure the future supply but also provide a platform to the company to
enter the South-east and east Asian market
 To maintains its leadership in the market, BILT is focusing on 4 key areas:
1. Securing raw material supply
2. Rapidly developing larger scale of operations
3. Continuously innovating to introduce new products and grow new
market.
4. Creating a de-risked corporate financial and capital structure
Revenue, 2002-06 (Figures in INR billion)
25 23.7988
21.158 20.756
19.695 19.974
20
15
10
0
2002-03 2003-04 2004-05 2005-06 2006-07
Revenue
Chart-3.1
33
 Revenue – Segment wise, 2006-0718 (Figures in percent)
100% =INR 23.8 billion
Segment
Others
2%
Paper products &
office supplies Pulp
10% 12%
Paper
76%
Chart-3.2
 Installed Capacity, 2002-06 (Figures in ‘000 tonnes)
Chart Title
600
500
400
300 Installed Capacity
200 Paper Production
100
0
2002-03 2003-04 2004-05 2005-06 2006-07
Chart-3.3
18
34
19
 Installed Capacity – Paper unit, 2005-06 (Figures in ‘000
tonnes)
Paper unit State Installed

capacity
Ballarpur Maharashtra 126
Bhigwan Maharashtra 125
Shreegopal Haryana 81
Sewa Orissa 68
Kamalapuram Andhra Pradesh --
Ashti Maharashtra 75
Table-3.1
 The company operations span across 6 units, together with a capacity of
480,000 tonnes and a pulp mill of capacity 100,000 tonnes manufacturing
rayon grade pulp, in the state of Andhra Pradesh (Kamlapuram Unit).
 BILT is also expanding its production capacity in both coated and non-
coated paper, to take its current capacity of 480,000 tonnes in 2006 to
around 1.0 million tonnes by 2009-10. With the increase in overall
capacity, the company expects to double its turnover by 2009-10.
• In October 2007, the company announced to increase the capacity
of its coated wood free paper unit at Bhigwan in Pune by adding
19
35
190,000 tonnes. After the expansion, the total unit capacity would
increase to 315,000 tonnes.
• The main plant and machinery and its installation would be
supplied by Voith, Germany, while some equipment will be
sourced locally from suppliers like L&T, etc.
 In July 2007, the company also initiated a restructuring plan, under which
it would transfer 3 manufacturing units at Bhigwan, Ballarpur and
Kamalapuram, to a separate company called BILT Graphic Paper
Products, which would be transferred to Ballarpur Paper Holdings BV
(BPH) after court approval. By this exercise, the company would transfer
its commodity business, which is capital-intensive and would focus on the
specialty and consumer-focused products business.
 Tamilnadu Newsprint & Paper Limited20:
Company Background
20
www.tnpl.com/
36
Tamil Nadu Newsprint & Papers (TNPL), promoted by Government of Tamil
Nadu, is engaged in the manufacture of paper and newsprint. It is the second
largest producer of writing and printing paper (WPP) and a dominant company in
South India. With its sole plant at Kagithapuram in the Karur district of Tamil
Nadu, the company's current capacity stands at 2.3
lakh tones per annum. This makes it the largest paper
plant at a single location in the country. The
company pioneered the concept of using bagasse as a
raw material for paper production. TNPL has
prudently reaped the benefit of its plant technology
which allows it to switch conveniently from
newsprint to WPP and vice--versa. Since realizations in WPP segment are higher,
the share of newsprint in the company's total production has sharply declined
from 32 per cent in 2000--01 to 1.3 per cent in 2006--07.
TNPL has co--generation plants with a capacity of 61 MW, which generate power
using steam turbines. Apart from being self sufficient in its power requirements,
the company exports surplus power to the state grid. The company also generates
35.5 MW of wind energy using wind turbines, which is entirely sold to the state
grid.
TNPL initiated a mill development plan (MDP) project in 2005--06 at an outlay

of Rs.565 crore (funded through internal generation of Rs.150 crore and term loan
of Rs.415 crore). The project includes expansion of captive pulping capacity
(from 520 tpd to 800 tpd) using an environment friendly chlorine--free process,
increase in power generation capacity by 20 MW and rise in paper production
capacity to 2.5 lakh tones from 2.3 lakh tones per annum. The project is expected
to be completed by the end of March 2008. Subsequent to completion of MDP,
TNPL plans to undertake execution of mill expansion plan (MEP), for which it
37
has already completed feasibility study and initiated the process for getting
requisite clearances. MEP envisages expansion of the paper production capacity
from 2.5 lakh tones to 4 lakh tones per annum. The total cost of expansion is
estimated at around Rs.725 crore funded in a debt--equity ratio of 2.2:1. The MEP
is targeted for completion by December 2009.
38
 J.K. Paper Limited21:
Company Background
 J K Paper Limited was incorporated in 1960

under the ownership of Hari Shankar
Singhania Group. The company is engaged in
manufacturing and sale of pulp paper, paper
board, straw paper, writing and printing papers
and specialty papers.
 The company has manufacturing plants at Jaykaypur in Rayagada, Orissa
and at Songadh in Gujarat having manufacturing capacity of 150000 tones
till June 2005.JK papers distribution networks includes more than 100
wholesalers and 1700 dealers. It also has 10 warehouses and 4 regional
offices.
 The main brands of the company are JK Copier, JK Easy Copier, JK
Evervite, JK Excel Bond, JK Bond, JK SHB Maplitho, CPM Parchment
and JK MICR. JK Copier is designed for single and multicolor laser prints
for reporting, presentations etc. JK easy copier is designed for
 Photocopy machines and desktop publishing. JK bond papers is designed
for inkjet and laser printing for photocopying, non- touch printing and use
in office stationary. JK copier plus is designed for multipurpose user.
 The company exports its products to countries like Sri Lanka, Bangladesh
and several West Asian companies.
21
www.jkpaper.com/
39
 Mr Hari Shankar Singhania is the chairman of the company. Promoters
hold around 42 percent of the company's equity while institutional
investors and the Indian Public hold nearly 13 percent and above 30
percent respectively.
Revenue, 2002-0622 (Figures in INR billion)
Revenue
12
10
6
Revenue
4
0
2002-03 2003-04 2004-05 2005-06 2006-07
Chart-3.4
Production – Segment wise, 2006-07 (Figures in percent)
Production
Others
30%
Coated
and
Branded
Papers
70%
22
40
Chart-3.5
 JKPM is the first paper company to get TPM Certification from JIPM,
Japan and 3rd paper company in the world.
 JKPM is the largest producer of branded papers in India. The company is a
market leader in copier varieties and SS Maplitho segment.
• Due to low capacity, the company started to outsource coated
paper in 2003. Outsourcing and trading contributed approx. 10% of
total sales.
 The company has a wide range of branded products in its portfolio. It sells
approximately 40% of paper produced under various brand names - JK
Copier, JK Excel Bond, JK Bond, JK Savannah, JK Copier Plus and JK
Easy Copier.
 The other major product is JK Maplitho, a superior uncoated
Writing and Printing paper.
 It sells its products through a nationwide distribution network of
approximately 100 distributors and 2,500 dealers.
 Installed Capacity, 2002-06 (Figures in ‘000 tonnes)
Chart Title
250
200
150
Installed Capacity
100
Production
50
0
2002-03 2003-04 2004-05 2005-06 2006-07
41
Chart-3.6
 Installed Capacity – Paper unit, 2005-0623 (Figures in ‘000

tonnes)
Paper unit State Installed capacity

Paper Pulp
Rayagada Orissa 125 127
(JK Paper Mills)
Songadh Gujarat 55 47
(Central Pulp Mills)
Table-3.2
 JKPM’s strategy its to focus on value added product segments and
enhance its premium product portfolio. In line with its strategy, it
expanded its value-added cut-size papers and coated varieties portfolio.
• It started a 46,000 tonnes per annum plant in Rayagada, Orissa to
enter into coated paper and boards segment in 2005.
• It commenced commercial production of multilayer duplex board
in Gujarat with an annual production capacity of 60,000 tonnes in
October 2007.
 JKPM follows its growth plans through capacity addition and its market
expansion plans through outsourcing & trading.
• The company exports its products to more than 40 countries
including Sri Lanka, Bangladesh, Middle East, Africa, Australia,
Singapore, Malaysia etc.
23
42
 In 2006-07, JKPM registered its highest ever sales volumes at 210,000
tonnes, owing to high capacity utilization of 110%, improved operating
efficiencies and higher sales in the copier and coated Paper segments.
• The plants currently operate at more than 120% capacity utilization
with an aggregate annual output of over 180,000 tonnes per year of
paper and pulp, using latest technology.
43
Chapter-4 SWOT Analysis
4.1 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
44
4.2 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 2006 to $20.9 billion in 2011. 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.
45
4.3 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.
 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
46
states with effect from April ‘05. All the licenses required under
Municipality Act, Factories Act are obtained and duly renew.
4.4 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.
 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.
4.5 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
47
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. 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.
48
Conclusion:-
To conclude, the following table shows the conclusion of SWOT analysis
Sr. High Medium low

no
1 Large and growing domestic market 
2 Non wood pulping 
3 Employment level 
4 Small scale industry 
5 High cost of raw material 
6 Taxes 
7 Demand of paper 
8 Usage of paper 
9 Internet threat 
10 Environmental issues 
11 Import of paper product 
12 Competition 
13 Fiber deficit 
14 Labor cost 
15 Forest plantation 
Table-4.1
So there is lots of strength of paper manufacturing industry India. It is the 15th
largest industry among the world. But there are some internal weaknesses of the
industry. Industry is also having large number of external opportunities and some
external threats.
Chapter-5 PEST Analysis
5.1 Introduction:-
49
A scan of the external macro-environment in which the firm operates can be
expressed in terms of the following factors:
· Political
· Economic
· Social
· Technological
5.2 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.
5.3 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
50
emissions from the India paper industry. Today, pollution control
authorities strictly regulate AOX emissions and paper companies now
regularly monitor their AOX loads.
5.4 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.
5.5 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.
51
 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.
Chapter-6 Michael Porter’s Five Force Analysis
6.1 Introduction:-
52
Figure-6.1.1
6.2 Five Force Analysis for the Industry:-

 Threats of intense segment rivalry
53
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.
 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.
 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.
 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.
 Threats of supplier’s growing bargaining power
54
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:-
To conclude the five force model, the following are table
Sr. no Factors High Moderate Low

1 Rivalry 
2 New entrants 
3 Substitute products 
4 Buyer’s Bargaining power 
5 Supplier’s bargaining power 
Table-6.1
Chapter-7 Financial Analysis
55
7.1 Ratio Analysis:-
Paper manufacturing industry
Liquidity ratio
1. Current ratio
Current ratio = Current Assets

Current Liability
Year 2004 2005 2006 2007 2008

Current assets 4688.9 5157.55 6016.55 6733.92 6741.97
Current Liability 3108.12 3383.93 3515 3987.47 3885.17
Ratio 1.50860 1.52413 1.71168 1.68877 1.73531
Table-7.1.1
56
Chart-7.1.1
Ballarpur industry -
Year 2004 2005 2006 2007 2008

Current assets 712.52 882.72 874.62 1377.06 1326.22
Current Liability 494.71 327.38 345.99 372.01 440.94
Ratio 1.4403 2.6963 2.5279 3.7017 3.0077
Table-7.1.2
J.K industry -
Year 2004 2005 2006 2007 2008

Current assets 235.28 186.13 329.05 270.25 356.11
Ratio 2.2502 1.7864 2.5205 2.1389 2.0815
Table-7.1.3
TNPL industry-
Year 2004 2005 2006 2007 2008

Current assets 305.08 384.71 363.59 367.91 376.76
Ratio 1.5607 1.6609 1.8459 1.4242 1.2209
Table-7.1.4
 Interpretation-
 The average current ratio of industry is 1.633698.
 Among the three companies the Ballarpur industry has the highest
current ratio.
 The average current ratio of the Ballarpur industry is highest then
the overall average current ratio of industry.
 The position of the Ballarpur industry is good in the paper
57
2. Debt to equity ratio
Debt to equity ratio = Debt

Equity
Debt = Long term borrowing + Short term borrowing
Equity = Issued equity capital
Year 2004 2005 2006 2007 2008

Debt 3078.16 3419.23 3769.3 4995.97 5362.47
Equity 2312.01 2408.16 2600.64 2542.33 2588.4
Ratio 1.33 1.42 1.45 1.97 2.07
Table-7.1.5
Chart-7.1.2
Ballarpur industry –
Year 2004 2005 2006 2007 2008
58
Debt 596.07 743.16 722.88 781.5 897.21
Equity 39.42 39.42 39.42 18.63 285.5
Ratio 15.12 18.85 18.34 41.95 3.14
Table-7.1.6
J.K industry-
Year 2004 2005 2006 2007 2008

Debt 142.16 228.53 483.55 444.77 609.77
Equity 5.57 5.57 5.57 5.58 7.27
Ratio 25.5224 41.0287 86.8133 79.7079 78.9858
Table-7.1.7
TNPL industry-
Year 2004 2005 2006 2007 2008

Debt 228.43 45.25 153.68 381.94 368.89
Equity 1.14 1.14 1.14 1.14 1.14
Ratio 200.38 39.69 134.81 335.04 323.59
Table-7.1.8
 Interpretation-
 The debt to equity ratio of industry is continuously increasing due
to continuous increase in debt. The average of debt to equity ratio
is 1.648.
debt to equity ratio. Here the debt is highest.
 The average debt to equity ratio of the Ballarpur industry is
highest then the average debt to equity ratio of industry.
3. Interest coverage ratio
59
Interest coverage ratio = Interest expenses
Total Liability
Year 2004 2005 2006 2007 2008

Interest expenses 529.55 473.07 476.62 525.83 604.23
Total liability 14685.69 15888.28 17434.25 20432.7 20583.3
Ratio 0.0361 0.0298 0.0273 0.0257 0.0294
Table-7.1.9
Chart-7.1.3
Profitability ratio
a. On the basis of Income
1. PBDITA
Total income
60
Year 2004 2005 2006 2007 2008
PBDITA 1453.2 1484.28 2111.18 2507.25 2352.52
Total 11335.18 12158.02 13720.15 15566.7 14562.5
Ratio
Income 0.12820 0.12208 0.15387 0.16106 0.16155
Table-7.1.10
Chart-7.1.4
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBDITA 408.63 443.15 463.33 525.66 580.27
Total 1863.64 2020.45 2026.35 2124.33 2395.97
Income
Ratio 0.21926 0.21933 0.22865 0.24745 0.24219
Table-7.1.11
J.K industry-
Year 2004 2005 2006 2007 2008

PBDITA 130.76 146.03 122.77 147.98 126.05
Total Income 688.69 788.77 739.45 859.75 746.58
Ratio 0.1899 0.1851 0.1660 0.1721 0.1688
Table-7.1.12
61
TNPL industry-
Year 2004 2005 2006 2007 2008

PBDITA 142.4 114.68 182.95 208.9 273.02
Total 660.89 752.87 908.25 979.46 1095.82
Income
Ratio 0.2155 0.1523 0.2014 0.2133 0.2491
Table-7.1.13
 Interpretation-
 The PBDITA/Total income ratio of industry is continuously
increasing due to continuous increase in Total income and
PBDITA. The average of PBDITA/Total income ratio is 0.145.
PBDITA/Total income ratio. The total income of Ballarpur
industry is highest among the three companies.
 The average PBDITA/Total income of the Ballarpur industry is
0.231 which is highest then the average of industry.
2. PBDTA
Total income
PBDTA= PBDITA - Depreciation
Year 2004 2005 2006 2007 2008

PBDTA 913.57 900.98 1506.5 1825.75 1733.59
Total 11335.18 12158.02 13720.15 15566.7 14562.5
Income
62
Ratio 0.08060 0.07411 0.10980 0.11729 0.11940
Table-7.1.14
Chart-7.1.5
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBDTA 401.48 436.1 455.65 517.83 573.02
Total 1863.64 2020.45 2026.35 2124.33 2395.97
Income
Ratio 0.21543 0.21584 0.22486 0.24376 0.23916
Table-7.1.15
J.K industry-
Year 2004 2005 2006 2007 2008

PBDTA 100.26 109.34 81.68 109.04 88.19
Total Income 688.69 788.77 739.45 859.75 746.58
Ratio 0.1456 0.1386 0.1105 0.1268 0.1181
Table-7.1.16
TNPL industry-
63
Year 2004 2005 2006 2007 2008
PBDTA 128.55 100.88 166.7 190.8 249.25
Total Income 660.89 752.87 908.25 979.46 1095.82
Ratio 0.1945 0.1340 0.1835 0.1948 0.2275
Table-7.1.17
 Interpretation-
 The PBDTA/Total income ratio of industry is decreasing in 2005
because of decrease in PBDTA. In 2006, 2007 and 2008 the
PBDTA is increasing. The average of PBDTA/Total income ratio
is 0.100.
PBDTA/Total income ratio. The total income of Ballarpur industry
is highest among the three companies.
 The average PBDTA/Total income ratio of the Ballarpur industry
is 0.227 which is highest then the average of industry.
3. PBIT=
PBIT
Total Income
Year 2004 2005 2006 2007 2008

PBIT 896.23 884.43 1391.16 1814.55 1729.11
Total 11335.18 12158.02 13720.15 15566.7 14562.5
Income
Ratio 0.07907 0.07274 0.10140 0.11657 0.11874
Table-7.1.18
64
Chart-7.1.6
4. PBT
Total income
Year 2004 2005 2006 2007 2008

PBT 366.56 411.2 914.2 1288.53 1124.63
Total 11335.18 12158.02 13720.15 15566.7 14562.5
Ratio
Income 0.03234 0.03382 0.06663 0.08277 0.07723
Table-7.1.19
Chart-7.1.7
65
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBT 136.07 177.67 207.12 265.2 323.62
Total 1863.64 2020.45 2026.35 2124.33 2395.97
Income
Ratio 0.07301 0.08794 0.10221 0.12484 0.13507
Table-7.1.20
J.K industry-
Year 2004 2005 2006 2007 2008

PBT 58.3 66.57 38.6 58.94 41.05
Total 688.69 788.77 739.45 859.75 746.58
Income
Ratio 0.0847 0.0844 0.0522 0.0686 0.0550
Table-7.1.21
TNPL industry-
Year 2004 2005 2006 2007 2008

PBT 68.57 39.17 104.2 124.27 173.95
Total 660.89 752.87 908.25 979.46 1095.82
Income
Ratio 0.1038 0.0520 0.1147 0.1269 0.1587
Table-7.1.22
 Interpretation-
 The PBT/Total income ratio of industry is decreasing in 2008
because of decrease in Total income. In 2004, 2005, 2006 and
2007 the PBT and total income is increasing. The average of
PBT/Total income ratio is 0.058.
66
PBT/Total income ratio. The total income of Ballarpur industry is
highest among the three companies.
 The average PBT/Total income ratio of the Ballarpur industry is
highest then the average of industry.
manufacturing industry
5. PAT (As reported by company)

Total income
Year 2004 2005 2006 2007 2008

PAT 261.8 308.62 633.47 924.83 817.82
Total 11335.18 12158.02 13720.15 15566.7 14562.5
Ratio
Income 0.02310 0.02538 0.04617 0.05941 0.05616
Table-7.1.23
Chart-7.1.8
67
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PAT 96.46 133.91 168.1 212 250.77
Total 1863.64 2020.45 2026.35 2124.33 2395.97
Income
Ratio 0.05176 0.06628 0.08296 0.09980 0.10466
Table-7.1.24
J.K industry –
Year 2004 2005 2006 2007 2008

PAT 33.04 41.22 38.53 35.52 34.71
Total 688.69 788.77 739.45 859.75 746.58
Income
Ratio 0.0480 0.0523 0.0521 0.0413 0.0465
Table-7.1.25
TNPL industry-
Year 2004 2005 2006 2007 2008

PAT 52.8 37.95 80.55 86.06 112.83
Total 660.89 752.87 908.25 979.46 1095.82
Income
Ratio 0.0799 0.0504 0.0887 0.0879 0.1030
Table-7.1.26
 Interpretation-
 The PAT/Total income ratio of industry is decreasing in 2008
because of decrease in Total income and profit after tax. In 2004,
68
2005, 2006 and 2007 the PAT and total income is increasing. The
average of PAT/Total income ratio is 0.042.
PAT/Total income ratio. The total income of Ballarpur industry is
 The average PAT/Total income ratio of the Ballarpur industry is
6. Cash profit
Total income
Cash profit is taken as cash prior period income
Year 2004 2005 2006 2007 2008

Cash 30.96 0.8 5.04 4.72 9.1
profit
Total 11335.18 12158.02 13720.15 15566.7 14562.5
Income
Ratio 0.00273 0.00007 0.00037 0.00030 0.00062
Table-7.1.27
69
Chart-7.1.9
b.On the basis of sales
1. PBDITA Net of P&E

Sales
Year 2004 2005 2006 2007 2008

PBDITA Net of P&E 1379.32 1494.6 1932.68 2305.67 2066.55
Sales 10991.5 11893.17 13288.08 15148.3 13931
Ratio 0.12549 0.12567 0.14544 0.15221 0.14834
Table-7.1.28
70
Chart-7.1.10
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBDITA Net of 404.31 437.31 463.43 507.25 579.11
P&E
Sales 1842 1999.62 2011.59 2085.34 2375.92
Ratio 0.21950 0.21870 0.23038 0.24325 0.24374
Table-7.1.29
J.K industry-
Year 2004 2005 2006 2007 2008

PBDITA Net of 128.84 138.18 122.5 143.54 112.98
P&E
Sales 679.83 725.42 732.31 848.07 726.97
Ratio 0.1895 0.1905 0.1673 0.1693 0.1554
Table-7.1.30
TNPL industry-
Year 2004 2005 2006 2007 2008

PBDITA Net of 145.87 112.21 185.29 208.07 262.3
P&E
Sales 637.33 741.87 892.91 962.98 1070.38
Ratio 0.2289 0.1513 0.2075 0.2161 0.2451
Table-7.1.31
 Interpretation-
 The PBDITA Net of P&E/Sales ratio of industry is decreasing in
2008 because of decrease in sales. In 2004, 2005, 2006 and 2007
71
the PBDITA Net of P&E and sales is increasing. The average of
PBDITA Net of P&E/Sales ratio is 0.108.
PBDITA Net of P&E/Sales ratio. The sale of Ballarpur industry is
 The average PBDITA Net of P&E/Sales ratio of the Ballarpur
industry is highest then the average of industry.
2. PBIT Net of P&E

Sales
Year 2004 2005 2006 2007 2008

PBIT Net of 822.35 894.75 1212.66 1612.97 1443.14
P&E
Sales 10991.5 11893.17 13288.08 15148.3 13931
Ratio 0.07482 0.07523 0.09126 0.10648 0.10359
Table-7.1.32
72
Chart-7.1.10
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBIT Net of 269.76 298.21 312.67 350.73 419.24
P&E
Sales 1842 1999.62 2011.59 2085.34 2375.92
Ratio 0.14645 0.14913 0.15543 0.16819 0.17645
Table-7.1.33
J.K industry-
Year 2004 2005 2006 2007 2008

PBIT Net of 86.88 95.41 79.42 93.44 65.84
P&E
Sales 679.83 725.42 732.31 848.07 726.97
Ratio 0.1278 0.1315 0.1085 0.1102 0.0906
Table-7.1.34
TNPL industry-
73
Year 2004 2005 2006 2007 2008
PBIT Net of 85.89 50.5 122.79 141.54 187
P&E
Sales 637.33 741.87 892.91 962.98 1070.38
Ratio 0.1348 0.0681 0.1375 0.1470 0.1747
Table-7.1.35
 Interpretation-
 The PBIT Net of P&E/Sales ratio of industry is decreasing in 2008
because of decrease in sales and PBIT Net of P&E. In 2004, 2005,
2006 and 2007 the PBIT Net of P&E and sales is increasing. The
average of PBIT Net of P&E/Sales ratio is 0.090.
PBIT Net of P&E/Sales ratio. The sale of Ballarpur industry is
 The average PBIT Net of P&E/Sales ratio of the Ballarpur
3. Earning per share
Earning per share = PAT

No. of share
Assume that each share is of Rs.10
Year 2004 2005 2006 2007 2008
74
PAT 212.43 253.48 658.49 937.75 817.81
No. of 231.20 240.82 260.06 254.23 258.84
Ratio
shares 0.91881 1.05257 2.53207 3.68859 3.15952
Table-7.1.36
Chart-7.1.11
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PAT 96.46 133.91 168.1 212 250.77
No. of 3.942 3.942 3.942 1.863 28.55
shares
Ratio 24.470 33.970 42.643 113.795 8.784
Table-7.1.37
J.K industry-
Year 2004 2005 2006 2007 2008

PAT 33.04 41.22 38.53 35.52 34.71
No. of 0.557 0.557 0.557 0.558 0.727
shares
Ratio 59.3178 74.0036 69.1741 63.6559 47.7442
Table-7.1.38
75
TNPL industry-
Year 2004 2005 2006 2007 2008

PAT 52.8 37.95 80.55 86.06 112.83
No. of 0.114 0.114 0.114 0.114 0.114
shares
Ratio 463.16 332.89 706.58 754.91 989.74
Table-7.1.39
 Interpretation-
 The Earning per share ratio of industry is decreasing in 2008
because of decrease in no. of shares. In 2004, 2005, 2006 and 2007
the earning per share ratio is increasing. The average of earning per
share ratio is 2.27.
no of shares.
 The average of earning per share ratio of the Ballarpur industry is
4. PBT Net of P&E

Sales
Year 2004 2005 2006 2007 2008

PBT 366.56 411.2 914.2 1288.53 1124.63
Sales 10991.5 11893.17 13288.08 15148.3 13931
Ratio 0.03335 0.03457 0.06880 0.08506 0.08073
Table-7.1.40
76
Chart-7.1.12
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBT 131.75 171.83 207.22 246.8 322.46
Sales 1842 1999.62 2011.59 2085.34 2375.92
Ratio 0.072 0.086 0.103 0.118 0.136
Table-7.1.41
J.K industry-
Year 2004 2005 2006 2007 2008

PBT 56.38 58.72 38.33 54.5 27.98
Sales 679.83 725.42 732.31 848.07 726.97
Ratio 0.0829 0.0809 0.0523 0.0643 0.0385
Table-7.1.42
TNPL industry-
Year 2004 2005 2006 2007 2008

PBT 72.04 36.7 106.54 123.44 163.23
Sales 637.33 741.87 892.91 962.98 1070.38
Ratio 0.1130 0.0495 0.1193 0.1282 0.1525
Table-7.1.43
 Interpretation-
77
 The PBT Net of P&E/Sales ratio of industry is lightly decreasing
in 2008 because of decrease in sales and PBT Net of P&E. In
2004, 2005, 2006 and 2007 the PBT Net of P&E and sales is
increasing. The average of PBT Net of P&E/Sales ratio is 0.060.
PBT Net of P&E/Sales ratio. The sale of Ballarpur industry is
 The average PBT Net of P&E/Sales ratio of the Ballarpur industry
is highest then the average of industry.
5. PAT Net of P & E

Sales
Year 2004 2005 2006 2007 2008

PAT Net of 138.55 263.8 479.99 736.17 531.84
P&E
Sales 10991.5 11893.17 13288.08 15148.3 13931
Ratio 0.01261 0.02218 0.03612 0.04860 0.03818
Table-7.1.44
78
Chart-7.1.13
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PAT Net of 92.14 128.07 168.2 193.59 249.61
P&E
Sales 1842 1999.62 2011.59 2085.34 2375.92
Ratio 0.050 0.064 0.084 0.093 0.105
Table-7.1.45
J.K industry-
Year 2004 2005 2006 2007 2008

PAT Net of 31.12 33.37 38.26 31.08 21.64
P&E
Sales 679.83 725.42 732.31 848.07 726.97
Ratio 0.0458 0.0460 0.0522 0.0366 0.0298
Table-7.1.46
TNPL industry-
79
Year 2004 2005 2006 2007 2008
PAT Net of 56.27 35.48 82.89 85.23 102.11
P&E
Sales 637.33 741.87 892.91 962.98 1070.38
Ratio 0.0883 0.0478 0.0928 0.0885 0.0954
Table-7.1.47
 Interpretation-
 The PAT Net of P&E/Sales ratio of industry is decrease in 2008
because of decrease in sales and PAT Net of P&E. In 2004, 2005,
2006 and 2007 the PAT Net of P&E and sales is increasing. The
average of PAT Net of P&E/Sales ratio is 0.031.
 Among the three companies the TNPL industry has the highest
PAT Net of P&E/Sales ratio.
 The average PAT Net of P&E/Sales ratio of the TNPL industry is
 The position of the TNPL industry is good.
b. On the basis of total income
1. PBDITA Net of P&E

Total income
Year 2004 2005 2006 2007 2008

PBDITA Net of 1379.32 1494.6 1932.68 2305.67 2066.55
P&E
Total Income 11335.18 12158.02 13720.15 15566.7 14562.5
Ratio 0.12168 0.12293 0.14086 0.14812 0.14191
Table-7.1.48
80
Chart-7.1.14
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBDITA Net of 404.31 437.31 463.43 507.25 579.11
P&E
Total Income Net 1863.64 2020.45 2026.35 2124.33 2395.97
of P&E
Ratio 0.21695 0.21644 0.22870 0.23878 0.24170
Table-7.1.49
J.K industry-
Year 2004 2005 2006 2007 2008

PBDITA Net of 128.84 138.18 122.5 143.54 112.98
P&E
Total Income 688.69 788.77 739.45 859.75 746.58
Ratio 0.1871 0.1752 0.1657 0.1670 0.1513
Table-7.1.50
TNPL industry-
81
Year 2004 2005 2006 2007 2008
PBDITA Net of 145.87 112.21 185.29 208.07 262.3
P&E
Total Income 660.89 752.87 908.25 979.46 1095.82
Ratio 0.2207 0.1490 0.2040 0.2124 0.2394
Table-7.1.51
 Interpretation-
 The PBDITA Net of P&E/Total income ratio of industry is
decrease in 2008 because of decrease in total income. In 2004,
2005, 2006 and 2007 the PBDITA Net of P&E and total income is
increasing. The average of PBDITA Net of P&E/Total income
ratio is 0.106.
in PBDITA Net of P&E/Total income ratio.
 The average PBDITA Net of P&E/Total income ratio of the
Ballarpur industry is highest then the average of industry.
 The position of the Ballarpur industry is good.
Return Ratio (Efficiency Ratio)
a. On the basis of net worth
1. PBIT Net of P&E

Average net worth
Year 2004 2005 2006 2007 2008
82
PBIT Net of 822.35 894.75 1212.66 1612.97 1443.14
P&E
Average net 4486.06 5186.09 6057.21 7193.16 7198.65
Ratio
worth 0.18331 0.17253 0.02009 0.22424 0.20047
Table-7.1.52
Chart-7.1.15
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PBIT Net of 269.76 298.21 312.67 350.73 419.24
P&E
Average net 1159.46 1387.84 1463.67 1609.89 1988.03
worth
Ratio 0.23266 0.21487 0.21362 0.21786 0.21088
Table-7.1.53
J.K industry-
Year 2004 2005 2006 2007 2008
83
PBIT Net of P&E 86.88 95.41 79.42 93.44 65.84
Average net worth 347.95 356.7 254.37 415.38 392.58
Ratio 0.2497 0.2675 0.3122 0.2250 0.1677
Table-7.1.54
TNPL industry-
Year 2004 2005 2006 2007 2008

PBIT Net of P&E 85.89 50.5 122.79 141.54 187
Ratio 0.1912 0.1085 0.2350 0.2455 0.2922
Table-7.1.55
 Interpretation-
 The PBIT Net of P&E/Average net worth ratio of industry is
decrease in 2006. In 2004, 2005 and 2007 the PBIT Net of P&E
and Average net worth is increasing.
 Among the three companies the J.K industry has the highest in
PBIT Net of P&E/Average net worth ratio.
 The average PBIT Net of P&E/Average net worth ratio of the J.K
2. PAT Net of P&E

Average net worth
Year 2004 2005 2006 2007 2008

PAT Net of P&E 138.55 263.8 479.99 736.17 531.84
Average net 4486.06 5186.09 6057.21 7193.16 7198.65
Ratio 0.03088 0.05087 0.07924 0.10234 0.07388
Table-7.1.56
84
Chart-7.1.16
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PAT Net of P&E 92.14 128.07 168.2 193.59 249.61
Average net 1159.46 1387.84 1463.67 1609.89 1988.03
worth
Ratio 0.07947 0.09228 0.11492 0.12025 0.12556
Table-7.1.57
J.K industry-
Year 2004 2005 2006 2007 2008

PAT Net of P&E 31.12 33.37 38.26 31.08 21.64
Ratio 0.0894 0.0936 0.1504 0.0748 0.0551
Table-7.1.58
TNPL industry-
Year 2004 2005 2006 2007 2008
85
PAT Net of P&E 56.27 35.48 82.89 85.23 102.11
Ratio 0.1253 0.0762 0.1586 0.1478 0.1595
Table-7.1.59
 Interpretation-
 The PAT Net of P&E/Average net worth ratio of industry is
decrease in 2008 because of decrease in PAT Net of P&E. In 2004,
2005, 2006 and 2007 the PAT Net of P&E and Average net worth
is increasing.
 Among the three companies the TNPL industry has the highest in
PAT Net of P&E/Average net worth ratio.
 The average PAT Net of P&E/Average net worth ratio of the
TNPL industry is highest then the average of industry.
b. On the basis of capital employed
1. PBIT
Average capital employed
Year 2004 2005 2006 2007 2008

PBIT 896.23 884.43 1391.16 1814.55 1729.11
Average 15689.65 15888.28 17434.25 20432.7 20983.3
capital
employed
Ratio 0.05714 0.05567 0.07979 0.08881 0.08240
Table-7.1.60
2. PAT
86
Average capital employed
Year 2004 2005 2006 2007 2008

PAT 212.43 253.48 658.49 937.75 817.81
Average capital 15689.65 15888.28 17434.25 20432.7 20983.3
Ratio
employed 0.01354 0.01595 0.03777 0.04589 0.03897
Table-7.1.61
Chart-7.1.17
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PAT 96.46 133.91 168.1 212 250.77
Average capital 3057.36 3242.45 3217.65 3673.81 4026.38
employed
Ratio 0.03155 0.04130 0.05224 0.05771 0.06228
Table-7.1.62
J.K industry-
87
Year 2004 2005 2006 2007 2008
PAT 33.04 41.22 38.53 35.52 34.71
Average capital 958.88 1057.04 1091.75 1190.41 1414.32
employed
Ratio 0.01354 0.01595 0.03777 0.04589 0.03897
Table-7.1.63
TNPL industry-
Year 2004 2005 2006 2007 2008

PAT 52.8 37.95 80.55 86.06 112.83
Average capital 1084.84 1125.76 1188.75 1555.73 1709.45
employed
Ratio 0.0487 0.0337 0.0678 0.0553 0.0660
Table-7.1.64
 Interpretation-
 The PAT/Average capital employed ratio of industry is decrease in
2008 because of decrease in PAT. In 2004, 2005, 2006 and 2007
the PAT and Average capital employed is increasing. In 2007 there
is highest increase in ratio.
 Among the three companies the TNPL industry has the highest in
PAT/Average capital employed ratio.
 The average PAT/Average capital employed ratio of the TNPL
c. On the basis of Total Assets
1. PBIT
Total assets
88
Year 2004 2005 2006 2007 2008
PBIT 896.23 884.43 1391.16 1814.55 1729.11
Total 13378.43 14682.56 16342.95 19044.6 18700.4
assets
Ratio 0.06699 0.06024 0.08512 0.09528 0.09246
Table-7.1.65
Chart-7.1.18
2. PAT
Total Assets
Year 2004 2005 2006 2007 2008

PAT 212.43 253.48 658.49 937.75 817.81
Total 13378.43 14682.56 16342.95 19044.6 18700.4
Ratio
Assets 0.01588 0.01726 0.04029 0.04924 0.04373
Table-7.1.66
89
Chart-7.1.19
Ballarpur industry-
Year 2004 2005 2006 2007 2008

PAT 96.46 133.91 168.1 212 250.77
Total 3057.36 3242.45 3217.65 3673.81 4026.38
Assets
Ratio 0.03155 0.04130 0.05224 0.05771 0.06228
Table-7.1.67
J.K industry-
Year 2004 2005 2006 2007 2008

PAT 33.04 41.22 38.53 35.52 34.71
Total 958.88 1057.04 1091.75 1190.41 1414.34
Assets
Ratio 0.0345 0.0390 0.0353 0.0298 0.0245
Table-7.1.68
TNPL industry-
Year 2004 2005 2006 2007 2008
90
PAT 52.8 37.95 80.55 86.06 112.83
Total 1084.84 1125.76 1188.75 1555.73 1709.45
Assets
Ratio 0.0487 0.0338 0.0678 0.0553 0.0660
Table-7.1.69
 Interpretation-
 The PAT/Total assets ratio of industry is decrease in 2008 because
of decrease in PAT and total assets. In 2004, 2005, 2006 and 2007
the PAT and Total assets is increasing. In 2007 there is highest
increase in ratio.
in PAT/Total assets ratio.
 The average PAT/Total assets ratio of the Ballarpur industry is
7.2 Horizontal Analysis:-
 Income
As per as horizontal analysis of income is concerned the following are the

findings
 Total income increases by 8.64%, 7.26%, 12.85%, and 13.45% in the year
2004, 2005, 2006, and 2007 respectively. In the year 2008 it is decreasing
by 6.45%.
 Sales increases by 8.36%, 8.2%, 11.73%, and 14% in the year 2004, 2005,
2006, and 2007 respectively. In the year 2008 it is decreasing by 8.04%.
91
 Other income decreases by 14.04% in the year 2006 and increases by
21.8%, 17.74%, 0.1% and 14.31% in the year 2004, 2005, 2007, and 2008
respectively. In the year 2008 it shows the highest increase.
 Liabilities
As per as horizontal analysis of liabilities is concerned the following are the

findings
 Net worth increases by 18.75% in the year 2007 which shows good
position of the overall industry.
 Reserves and surplus increases by 30.6%, 30.13%, 31.81%, 41.69% and
0.14% in the year 2004, 2005, 2006, 2007 and 2008 respectively. In the
year 2007 it shows the highest increase.
 Total borrowing increases by 4.23%, 2.67%, 8.05%, 18.61% and 3.81% in
the year 2004, 2005, 2006, 2007 and 2008 respectively. In the year 2007 it
shows the highest increase.
 Current liabilities and provision shows negative sign in the year 2004 and
2008. In the year, 2005, 2006, 2007 it is increases by 8.87%, 3.87%,
13.44% respectively.
 Deferred tax liability shows negative sign in the year 2008 which means
that tax liabilities is decreasing that year. In the year 2004, 2005, 2006,
2007 it is increases by 11.4%, 6.38%, 38.44% and 13.19% respectively.
92
7.3 Trend Analysis:-
Trend analysis – Industry
Assumption – 2003 is taken as a base year
Liabilities 2004 2005 2006 2007 2008
Net worth 109.48 126.56 147.82 175.54 175.56

Authorized capital 101.43 108.75 116.51 122.35 122.35
Issued equity capital 104.99 109.36 118.10 115.45 117.55
Paid up equity capital [net 104.92 109.38 117.94 115.62 114.38
of forfeited]
Forfeited equity capital 100.00 145.45 218.18 172.73 172.73
93
Paid up preference capital 68.25 48.35 46.82 37.74 30.20
Capital contribution 98.78 479.29 302.04 92.63 255.57
suspense & application
Reserves & surplus 130.61 169.96 224.02 317.42 317.87
Free reserves 115.78 127.21 156.85 189.52 183.35
Security premium reserves 111.60 115.51 135.18 154.41 106.69
Other free reserves 119.10 136.50 174.80 217.42 244.27
Specific reserves 145.03 146.29 145.61 259.93 265.82
Revaluation reserves 103.71 289.86 283.02 287.87 287.52
Less : accumulated losses 105.48 117.73 118.81 107.86 98.55
Total borrowings 104.23 107.02 115.63 137.15 142.37
Bank borrowings 110.85 123.13 135.74 179.91 193.11
Short term bank 116.10 122.77 129.64 162.37 173.82
borrowings
Long term bank 107.24 123.37 139.92 191.94 206.34
borrowings
Financial institutional 82.24 45.34 37.99 26.29 23.99
borrowings
Central & state 102.85 110.12 116.29 122.01 106.00
government
Debentures/bonds 103.67 50.48 40.36 52.12 44.80
Convertible 1710.11 0.00 0.00 272.65 272.65
Nonconvertible 7.32 5.11 4.08 4.45 3.96
Fixed deposit 86.70 64.70 34.91 28.25 29.06
Foreign borrowings 134.35 492.69 656.67 656.57 762.89
Of which euro convertible 0.00 0.00 0.00 0.00 0.00
bond
Borrowing from corporate 119.38 124.26 77.45 90.46 81.83
bodies
Group/associate 97.56 97.42 25.47 26.42 3.01
Borrowing from 121.14 156.74 148.52 183.83 167.59
promoters/directors
Commercial paper 0.00 0.00 0.00 0.00 0.00
Hire purchase borrowing 108.29 90.00 84.00 80.86 105.14
Deferred credit 119.60 139.43 155.73 154.31 156.91
Other borrowings 93.34 114.64 283.16 293.60 251.19
94
Secured borrowings 104.30 104.13 111.29 132.11 143.06
Unsecured borrowings 104.00 115.97 129.07 152.78 140.22
Current portion of long 74.13 100.58 135.32 175.69 264.66
term debt
Current liabilities & 92.77 101.01 104.92 119.02 115.97
provision
Sundry creditor 89.57 99.48 99.89 117.10 130.20
Acceptances 118.68 135.45 96.94 57.56 82.24
Deposits & advances from 92.89 115.75 134.88 154.63 126.43
customer
interest accrued 77.23 89.48 88.47 89.23 63.99
Share application money 91.73 4.51 12.03 151804.51 130.83
Other current liabilities 101.81 95.59 109.63 124.69 68.87
Provision 113.17 111.20 156.05 190.22 229.27
Deferred tax liabilities 111.40 118.51 123.05 137.83 131.45
Total liabilities 103.50 111.97 122.87 144.00 145.06
Net worth 111.91 116.06 143.29 174.23 175.42
Contingent liabilities 108.31 145.71 179.19 221.00 181.11
Assets
Gross fixed assets 104.10 114.20 122.47 141.17 135.53
Land & building 102.89 106.39 103.18 108.00 105.45
Plant & machinery 105.84 114.67 122.02 134.13 132.54
Transport & 106.08 132.95 146.91 188.26 176.93
communication equipment
Furniture amenities 7 106.40 120.18 112.87 58.91 56.67
Capital work in progress 105.04 144.34 195.57 351.32 286.98
Intangible assets 304.09 309.21 333.59 368.16 369.07
Net per operative expenses 3.24 24.80 53.96 166.09 121.37
Net lease reserve 0.00 0.00 0.00 0.00 0.00
Less: cumulative 110.04 120.71 127.14 138.61 130.25
depreciation
Less: areas of depreciation 87.42 156.17 213.82 187.75 192.02
Net fixed assets 100.66 110.34 119.62 142.60 138.52
Investment 103.29 99.77 89.34 149.92 161.15
Equity shares 108.98 109.63 102.92 179.15 184.21
Preference shares 100.38 100.15 113.12 164.60 164.40
Mutual fund 80.63 48.93 30.82 13.99 59.39
95
Debt instrument 105.04 98.42 9.90 15.31 6.68
Approved security 0.00 0.00 0.00 0.00 0.00
Assisted companies` 0.00 0.00 0.00 0.00 0.00
Others 18.53 36.00 66.53 50.00 171.73
Less: provision for de 105.14 94.08 96.42 95.56 127.41
Group companies 112.34 111.85 102.56 195.39 202.77
Non group companies 86.38 73.67 59.43 41.07 57.09
Market value of quoted 63.34 369.06 331.22 206.54 263.09
investment
Deferred tax assets 93.80 81.09 64.98 64.73 81.18
Current assets 109.27 120.19 140.21 156.93 157.12
Cash & bank balance 140.10 136.67 301.48 300.61 331.54
Inventories 102.04 114.86 121.69 136.17 131.61
Receivables 109.97 123.25 128.82 146.62 140.76
Expenses paid in advances 109.54 100.67 139.52 201.53 263.67
Loans & advances 140.35 93.90 133.85 153.05 302.84
Deferred revenue 62.28 120.43 46.95 35.52 12.02
expenditure
Total assets 103.50 111.97 122.87 144.00 145.06
Table-7.3.1
 Interpretation of trend analysis
Liabilities
1. Net worth of paper manufacturing industry is in increasing trend. From

2004 to 2008 it increases by 60.35%.
2. Authorized capital of paper manufacturing industry is in increasing trend.
It increases only by 20.62% from 2004 to 2008.
3. Issued equity capital of paper manufacturing industry is in fluctuate trend.
Up to 2006 it increases but in 2007 it decreases and in 2008 it goes on
increasing.
4. Paid up equity capital [net of fortified is in fluctuate trend.
96
5. Forfeited equity capital is also in fluctuate trend. First it increases but
after 2006 it decreases.
6. Paid up preference capital of paper manufacturing industry is in
decreasing trend. It decreases by 55.75% from 2004 to 2008.
7. Capital contribution suspense & application is in fluctuating trend. First it
increases but later it decreases.
8. Reserves & surplus of paper manufacturing industry is in increasing trend.
It increases by 143.37% from 2004 to 2008.
9. Free reserves of paper manufacturing industry are in increasing trend. It
increases by 58.36% from 2004 to 2008.
10. Security premium reserves are in fluctuating trend. From 2004 to 2007 it
increases by 38.36% but in 2008 it decreases.
11. Other free reserves are in increasing trend. It increases by 105.09% from
2004 to 2008.
12. Specific reserves are in fluctuating trend.
13. Revaluation reserves are in fluctuating trend. First it increases but later it
decreases.
14. Accumulated losses are in fluctuating trend. From 2004 to 2006 it
increases but from 2007 onwards it decreases.
15. Total borrowings are in increasing trend. It increases by 36.59% from
2004 to 2008.
16. Bank borrowings are in increasing trend. It increases by 74.20% from
2004 to 2008.
17. Short term bank borrowings are in increasing trend. It increases by
49.71% from 2004 to 2008.
18. Long term bank borrowings are in increasing trend. It increases by 92.40%
from 2004 to 2008.
97
19. Financial institutional borrowings of paper manufacturing industry are in
decreasing trend. It decreases by 70.82% from 2004 to 2008.
20. Central & state government is in fluctuating trend. From 2004 to 2007 it
increases by 18.62% but in 2008 it decreases.
21. Debentures/bonds are in fluctuating trend. From 2004 to 2006 it decreases
by 61.06% but in 2007 it increases and in 2008 it decreases.
22. Fixed deposit is in decreasing trend. It decreases by 66.48% from 2004 to
2008.
23. Foreign borrowings are in increasing trend. It increases by 467.8% from
2004 to 2008.
24. Borrowing from corporate bodies is in fluctuating trend.
25. Group/associate is in decreasing trend. It decreases by 96.91% from 2004
to 2008.
Assets
1. Gross fixed assets are in increasing trend. It increases by 35.60%.

2. Intangible assets are in increasing trend. It increases by 21.36% from 2004
to 2008.
3. Net fixed assets are in fluctuating trend. From 2004 to 2007 it increases
but in 2008 it decreases.
4. Investment is in fluctuating trend. From 2004 to 2006 it decreases but in
2007 it decreases.
5. Current assets are in continues increasing trend. It increases by 43.79%
from 2004 to 2008.
6. Cash & bank balance is in fluctuating trend.
7. Inventories are in increasing trend.
8. Receivables are in increasing trend. It increases by 33.32% till 2007 but in
2008 it decreases.
98
9. Expenses paid in advances are in fluctuating trend. First it decreases and
later it increases.
10. Loans & advances are in fluctuating trend. First it decreases and later it
increases
Chapter-8 Recent News Related to the Industry
 Paper Industry invests in contract farming (February 15 2009)

Paper industry, which faces difficulty in getting wood pulp, has started to
induce farmers to take contract farming. Now every farmer, who plants
eucalyputus, acacia or sabaul will get Rs.15000 per acre. The agreements are
done to benefit the farmers, either they get market price for wood pulp or as
per the contract price or whichever is higher. The industry also provides
assistance in lending or coax banks to lend, as most plantations take 4 years to
yield. Expected demand for paper is to go up from 8.0 million tonnes to 11.5
million tonnes by 2010.
99
 Paper Industry to face some tough year(September 04 2009)
Indian Paper industry is to face a mismatch in demand-supply as large and
small players are adding capacities. Around 4 lakh tonnes of capacity is being
added this year where the demand may not be there, though the industry is
growing at 5-6%. Importers are also wary in such a situation as larger players
are lobbying for safeguard duty. Looking at export opportunities as prices
have corrected largely in Europe and US. Locally, the prices have dropped
considerably from Rs.50,000 /tone to Rs.38000 /tonne where large mills could
barely break even.
 TUF scheme for Indian paper industry on the anvil(march 13
2009)
Once the scheme is through, about 700 to 800 paper manufacturing units in
the small and medium sector would go for up gradation and improve the
quality of the products The Centre has in principle agreed to come out with a
Technology Up gradation Fund Scheme (TUFS) for the benefit of the paper
industry, an official of Indian Agro and Recycled Paper Mills Association
(IARPMA).
 Paper manufacturers pass on benefit of excise duty cuts(December 2008)

 Paper industry for increasing duty against imports(January 12, 2009)
 Orchids Paper Products Company Reports Increased Sales and Earnings in
Third Quarter Results(October 28 2009)
 Paper wins another battle ……….plastic bags banded and paper bags made
from 40% recycled paper is used.(October 2009)
100
Chapter-9 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
101
 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 2007-09.
 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.
102
Chapter-10 References
 www.scribd.com/.../Prospect-of-Pulp-and-Paper-Industry-in-the-Middle-of-
Raw-Material-Crisis-2008
 www.inpaper.com
 www.ipma.co.in
 www.scribd.com/doc/21339016/Paper-Industry-Project-Report
 www.scribd.com/doc/19989653/OPM-Project-Paper-Industry
 www.scribd.com/doc/13629599/Paper
 www.itcportal.com/paperboards_specialtypapers/paperboards.html
 www.sooperarticles.com/business-articles/small-business-articles/current-
scenario-handmade-paper-industry-india-15683.html
 http://resources.bnet.com.html
 http://www.oppapers.com/essays/Pest-Analysis-Apparel-Manufacturing-
Industry/143295
 http://www.thehindubusinessline.com/2008/05/28/stories/2008052850350900.
htm
 http://ies.lbl.gov/iespubs/41843.pdf
 http://www.economywatch.com/business-and-economy/paper-industry.html
103

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A comprehensive study on

Organized sector of Paper Manufacturing

Management research project – I

Project Guide: Head of the

We express gratitude to Dr. Mahendra Sharma, Director, V.M.Patel Institute

Table Particulars Pg.

3.1 Installed Capacity Paper unit-Ballarpur 34

3.2 Installed Capacity Paper unit-J.K 41

4.1 Conclusion-SWOT Analysis 48

6.1 Conclusion-Five Force Analysis 54

7.1.1- Tables of Ratio Analysis 55-

Sr. Particulars Pg.

1.2.1 Market Share of Paper Manufacturing 7

1.4.1 Global Demand 11

1.4.2 Paper & Paper board Production 12

1.4.3 Paper & Paper board consumption 12

1.9.1 Raw material wise Paper Mills 18

1.10.1 Paper & Paper board Production in India 20

1.10.2 Import & Export of Paper & Paper 20

3.2 Revenue- Segment wise-BILT 33

3.5 Production-Segment wise-JKPL 39

3.6 Installed Capacity-JKPL 40

7.1.1- Ratio Analysis 55-

4.1.1 SWOT Analysis 43

6.1.1 Five Force Analysis 52

BILT Ballarpur Industries Limited

Certificate by the Candidates iii

List of Figures & Charts vii

2 Research Methodology 27-29

2.2 Non Financial Analysis 27

3 Major Players In The Industry 30-42

3.3 J.K Paper Limited 38-42

4 SWOT Analysis 43-48

5 PEST Analysis 49-51

6 Michael Porter’s Five Force Analysis 52-54

7 Financial Analysis 55-

8 Recent News Related to Industry 102-

1.1Indian Paper Manufacturing Industry Outlook1:-

Industries in the Paper Manufacturing subsector make pulp, paper, or converted

There are essentially three activities. The manufacturing of pulp involves

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

1. Ballarpur Industries Limited

PROCESS FLOW CHART-1.3.1

1.4Global & Region wise Paper Production7:-

(Figures in million tonnes)

 The annual global paper and paperboard production was approximately

 Paper and paperboard (writing, printing, packaging and tissue).

Europe North America

Europe North America

1.5Future Prospects of The Industry9:-

1.6Capacity, Production, Raw Material, and Import10:-

The industry is a priority industry for foreign collaboration and foreign

1.7Demand & Supply Gap in Paper Industry11:-

Proposed capacity expansions:

1.8Government Regulations, Permission & Taxes12:-

2. VAT (Value Added Tax):

1.9 Paper Mills Engaged in Production of Paper in

Category Capacity Range Number of units Capacity (TPA)

 Paper & Paperboard - Production and Consumption

(Figures in million tones)

 Increased government focus on education:-

• Increased rates of literacy and improved school infrastructure would result