ON

Undertaken at

Century Pulp and Papers Lalkua

PROJECT GUIDE SUBMITTED BY

Mrs. Darshneel Batra Avinash Mishra

Lect. (IIMS Bareilly) M.B.A. 3RD Sem.

Invertis Institute of Management Studies, Bareilly.

PREFACE

There is a famous saying…..

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“The theory without practical is lame and practical without theory is blind.”

This modern era is era of consumers. Consumers satisfy themselves according to their

needs and desires, so they choose that commodity from where they extract maximum

satisfaction. It has been identified that in the beginning of 21st century the market was

observed a drastic change. The successful brand presents itself in such a way that

buyers buy them in special values which match their needs.

Summer training is integral parts of the MBA student have to undergo training

session in a business organization for 6 to 8 weeks to gain some practical knowledge in

their specialization and to gain some working experience.

My institution has come forward with the opportunity to bridge the gap by imparting

modern scientific management principle underlying the concept of the future

prospective managers.

To the emphasis on practical aspect of management education the faculty of

Invertis Institute of Management studies, Bareilly has with a modern system of practical

training of repute and following management technique to the student as integral part of

MBA. In according with the above obligation under going project in “Century Pulp and

Papers Lalkua Dis. Nainital”. The title of my project is “A Brief Study of Effectiveness

of Channel of distribution of century pulp and papers”

Certainly this analysis explores my abilities and strength to its fullest extant for the

achievement of organization as well as my personal goal.

ACKNOWLEDGEMENT

2

I take this opportunity to express my gratitude to the Management of Century pulp &

paper at Lalkua (Nainital) for providing me the opportunity to get an exposure of their

esteemed unit.

I am sincerely thankful to the HR Department for coordinating my training & explicitly

to express my thanks to Mr. T.C. Pandey, Sr. Manager (HRD) & Mr. N. Sharma,

Suptd. (HRD) for their continued help & guidance during my stay there.

I wish to express my sincere gratitude to Mr.Vivek Shotriya (Manager Sales), Mr.

Manoj Gupta (q.c.l.) & all other personnel of baggase process & sales department, for

their inspiring guidance & motivation, I received during my stay in their respective

sections. I would like to specially thank Mr.Umesh Aggrawal (G.M. process) for the

motivational words with which he kept us energized towards my work.

Last but not the least; I would like to express my deep gratitude to the principal of my

respective colleges for sending us to a large integrated pulp & paper industry & giving

me a chance to acquire experience of my life time.

I would also express my heartily thanks to our parents & all other family members &

peer group who directly or indirectly provided us their moral support.

AVINASH MISHRA

CONTENTS

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S. NO. CONTENTS PAGE NO.

1. EXECUTIVE SUMMARY 8

2. COMPANY PROFILE. 10

3. INDUSTRY PROFILE 12

4. DISTRIBUTION CHANNEL 50

5. RESEARCH METHODOLOGY 80

6. OBJECTIVE & SCOPE 87, 89

7. DATA PRESENTATION & ANALYSIS. 90

9. FINDINGS & CONCLUSIONS. 104

10. SUGGESTIONS OR RECOMMENDATIONS. 107

11. SWOT ANALYSIS 110

12. ANNEXURES: 112

References 113

Questionnaires 117

13. BIBLIOGRAPHY. 120

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List of Tables

Table of Indian Paper Industry

Table of Annual Potential of AGRO Based Fibers in India

Table of Financial Highlight of Company

List of Graphs

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Retailer:

Graph of Retailer Response

Graph of Advertisement Required

Graph of Distribution Channel

Graph of Consumer Response

Graph of Quality Attributes

Graph of Problem Faced With Paper

Graph of Frequent Consumer

Graph of Prefer of WPP

Graph of Discount Policies and Schemes

Graph of Packaging of CPP

Graph of Attributes towards Packaging

Graph of Protect From Future Threats

Dealers:

Graph of Allocated Size

Graph of Dealers Godowns

Graph of Type of Godowns

Graph of Dealer Receives Order

Graph of Solving Problems

Graph of Satisfaction With CPP Products

List of Abbreviation

6

CPP- Century Pulp and Papers

WPP- Writing and Printing Paper Plant

CTIL- Century Textile and Industries Ltd

RGP- Rayon Grade Pulp

EXECUTIVE SUMMARY:

7

Today a successful product or service means nothing unless the benefit such that

service can be communicated clearly to the target market.

The aim of the project is to do the market analysis & adjudge potential of writing &

printing paper in the market & suggesting the best quality & service providing as

standardization for increasing the adaptability of Century pulp & paper industries paper

product. More precisely, the ultimate objective of the project was to identify the

promotional & distribution network tools which have effectively converted the

temporary customer into permanent ones of the CPP Product.

Also ,on the basis of various findings made through the market study under this project

I was to provide some suggestion & recommendations so as to enhance & strengthen

the market position of the company’s paper products .More precisely, the ultimate

objective of the project is to identify the promotional & distribution channel tools which

can effectively help in retaining the customers,& analyze various aspects &

identification of marketing loopholes so as to strengthen the brand in the market.

The dealers & retailers sell the company’s product allover India, so for their prudential

guidance, continuous encouragement, valuable & technical advice & willing support

throughout my research work.

I used a combination of both exploratory & conclusive research design with a blend of

descriptive market study so as to collect a relevant data from the market via various

questionnaires & interviews & make a suitable recommendation to the company on

behalf of various responds given by the respondents.

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I would also like to thank the staff members who rendered their help in due course of

my study. Sincere thanks are due to Mr. Shaileshwar Ghosh –Honorable H.O.D.

(M.B.A.) INVERTIS INSTITUTE OF MANAGEMENT STUDIES BAREILLY. &

institute authorities for smooth running of my investigations & studies. I would also like

to thank Mrs. Darshneel Batra who helped in the market analysis of my project work.

I find no words to express my feelings for my beloved Parents for showing their love,

care, support & helping to the maximum extent for shaping this manuscript.

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CENTURY PULP & PAPER: INTRODUCTION

Century Pulp and Paper (CPP) a division of Century Textile

and Industries Ltd (CTIL) is manufacturer of Rayon Grade

Pulp (RGP) and an exhaustive range of excellent quality of

Writing & Printing Paper. The unit successfully achieved

significant efficiencies in various disciplines within a short

span of time. Located at Lalkua (District Nainital, U.K.),

CPP has provided direct and indirect employment to the

people of the surrounding areas.

 

Century Pulp & Paper (an ISO-9001:2000 & ISO-14001:2004 certified Division of

Century Textiles and Industries Ltd.), a Division of Century Textiles and Industries Ltd.

is a member of B.K. Birla Group of Companies. The company chairman is Syt. Basant

Kumar Birla. Established in 1984, the Division is situated at Lalkua on the Bareilly-

Nainital Highway. The Head Office of the Division is on the 11th Floor of Industry

House, 10, Camac Street, Kolkata.

 

Product range of the CPP comprises a vast range of quality Writing & Printing Paper

and superior quality dissolving Rayon Grade Pulp used for Viscose/Staple

fiber/filament yarn. It has other uses in preparing urea, formaldehyde, melamine

formaldehyde and phenol formaldehyde.

 

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CPP has a well equipped and planned department for Environmental Conservation and

Pollution Control. CPP pays sincere attention to the overall development of its

employees and that of the community. It also has a well organized HRD Department for

supervising these activities. CPP maintains an excellent infrastructural set up with

modern facilities in order to carry out organizational activities.

Century pulp & paper industries ,a unit of top Indian corporate conglomerate-B.K. Birla

group of companies is one of the leading integrated pulp & paper plants .Established in

the year 1984 at Lalkua, a township near the foothills of Himalayas in Distt. Nainital

(Uttarakhand), the company after expansion & modernization, presently operates four

fiber lines at the following installed capacities:

Rayon grade pulp : 31320 TPA

Writing & printing papers(wood) : 37250 TPA

Writing & printing papers(bagasse) : 84600 TPA

Writing & printing papers(DIP) : 75960 TPA

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Sales Department

INDUSTRIAL – PROFILE

INTRODUCTION:

With the emergence of the open market economy which leads to reduce tariff barriers &

the promulgation of free trade agreement with thriving neighboring economies, the

competitiveness of the Indian paper industry has come to sharp focus on the front of

costs & quality. The industry has been in turbulent state since the company was opened

& the paper import was allowed under open general license scheme.

Face with various issue & changes like, availability of fibrous raw material,

technological obsolescence, cost, quality & environment, the industry has taken steady

steps to enhance its competitiveness by way of addressing these issues. The demand for

paper, paperboard, & news print has been rising in the recent past & the domestic

market has been registering growth rate of around 6% against the world average of

about 2.8%.

The present paper highlights the status of the Indian paper industry with respect to key

market indicators. Data has been presented for production, import, export, demand, &

consumption of paper, paperboard & newsprint covering technological status of the

Indian paper industry.

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Discussions have been made on the basis if issues related to raw materials scenario

keeping in view the present & future demand.

Present status & profitability: The pulp & paper industry presents an incoherent

picture today; with mills of various sizes struggling to survive side by side, unlike the

western counterparts where they have a capacity of 100000 tons per machine per annum

has become a norm here in India. We have a mill capacity of 10000 tons per annum.

The total size of Indian paper industry in terms of volume is approximately 5.7 million

tons & the growth rate of the industry is about 5% to 6% per annum. Exports from India

account for mere 3% of the industry volume. While the per capita consumption has

increased, i.e. 5 kg. This is very low as compared to the world average of 46 kg .The

per capita consumption of China, Iran, Egypt & Thailand are at 26kg, 16kg, 13kg, &

5.5 kg respectively.

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STRUCTURE OF INDIAN PAPER INDUSTRY:

There are around 700 pulp & paper mills in India producing nearly 6.8 million tons of

paper & newsprint out of which 5.8 million tons account for paper & paperboard & the

remaining in newsprints. The mills in the country can be classified into three categories.

Mills that have integrated, largely forest based operations produce over 100 TDP are

classified as large mills.

These mills are 33 in number & account for 36% of the total production. Medium sized

mills that have capacity between 50-100TDP, Using agro based raw material they are

165 in paper as fiber. These are 510 in number & account to about 35% of the total

production .In past few years many mills which were using renewable crop residue as

fiber base have now shifted to recycled fiber in the face of the CREP norms, which

stipulated the chemical recovery for the mills.

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GENERAL PROPERTIES OF PAPER

Grammage: - Grammage is a parameter which denotes available

(Basic weight) surface area of the paper or its weight. It is important

because, it is the surface area paper which is used in

nearly all its applications be it a writing, printing

paper or a tissue paper.

Also the paper is sold on the basis of weight & the

Turnover of a mill is also indicated in units of weight.

daily.

Thickness: - Since the thickness of a paper is affected by its

moisture

(Caliper) content, therefore due care is to be taken as regard to

conditioning of paper.

Apparent: - Typical values of apparent density range from 0.75(in (Density/bulk)

loosely formed or less dense papers) to 1.20 for highly

bonded sheets. Since the density of cellulose (major

Paper making ingredient) is1.5, lower value of apparent

Density means larger fraction of paper volume having

air & vice-versa.in most papers roughly 50% of

volume is air. Apparent density affects nearly all

properties of paper .the inverse of apparent density is

called ‘BULK’.A bulky paper will be more opaque &

soft. Moreover it may also cause more ink absorption

during printing.

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Smoothness: - In comparison to a perfectly flat surface, paper surface

may have hills & terrains, however this statement is a

Comment to the characteristic “smoothness “of the

paper. Thus we have papers of varying degree of

smoothness being referred as having either ‘smooth’ or

‘rough’ texture. Smoother paper will give better print

reproduction but will be stiffer. Generally smoothness is

achieved by calendaring. Higher calendaring might give

reduced brightness & poor opacity.

Porosity: - Paper is porous i.e. paper has air-space in between its

constituents namely fibers & fines. Consequently, density

of paper is less & these spaces give way for permeability

of air & liquid.

Tensile: - Tensile strength depends upon grammage (hence

Strength thickness) of specimen. In order that tensile strength of

specimens with varying grammage may be compared, the

term ‘breaking length’ is used .this is defined as a length

of specimen which breaks under its own weight.

Tear strength: - This parameter indicates the resistance of paper to

tearing action. Tear strength is defined as amount of

energy consumed in continuing the tearing of a given

paper. Tear factor is tear strength (gmf) per unit

grammage (g/m2).

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Double fold: - This parameter represents the resistance of paper to

Repeated folding/unfolding as is experienced in case of

Ledger bank notes etc. It also indicates deterioration of

paper with time. Consequently, fling endurance is of

importance for currency, ledger, map, blue print, records

papers where resistance against repeated

folding/unfolding is required along with longevity.

When paper undergoes repeated folding, the fibers

stains initially. Gradually fiber-bonding starts loosening

resulting into decrease of tensile strength. Consequently

, folding endurance is determination of modified tensile

strength .for example the paper failing after 100 double

folds will not have 10 times more life than weaker paper

against folding/unfolding stress while in use but roughly

only 1.5 times life. Thus number of folds represented log

to the base 10(LOG10) gives better comparison of folding

strength.

Bending: - Paper requires certain stiffness, no matter whatever its u

Strength se may be. Copying machines could not function properly

without proper bending stiffness. Even when we read

our daily news paper we hold the paper for which some

bending stiffness is required.

Bending strength represents the capacity of paper/board

to resist the forces responsible for bending action. It also

indicates the capacity of paper to support its own weight

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while clamped in cantilever form.

Brightness: - A paper sheet appears brighter if it reflects (diffused)

preferentially blue color (wave length=457nm).Pulp is

bleached before making cultural paper, so that the

resulting sheet formed is bright. This is because a sheet is

formed of unbleached pulp &looks pale & hence is not

Pleasing in appearance. The degree of bleaching is

measured by the extent of blue color reflectance. Due to

these reasons, brightness of a sheet is measured as the

diffused reflectance of blue color form an opaque pad of

such sheets. Brightness differs from whiteness in the sense

that whiteness refers to the uniformity of reflectance of

different colors (wavelength).Most white papers have total

reflectance ranging from 50-90%.brightness is affected by

the addition of dyestuff. A small amount of blue dyestuff is

often added in furnish for making white paper. However, it

does not increase brightness.

Opacity: - This property refers to the see through characteristic of a

paper sheet. Opacity increases with increase in grammage

of sheet. Addition of fillers, dyestuff or pigment also

increases opacity of the paper. However, effect of

beating, pressing or calendaring decreases the

opacity. Highly bleached pulps also have less opacity.

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Sheen: - For surfaces with low gloss e.g. low finished, uncoated paper

‘matt’, gloss measurement is done at 850 angle & field

angles. The result is usually reported as sheen.

Company Vision

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Our vision for the millennium remains manufacturing of international quality products

at optimum cost in consistence with the physical and psychological environment best

suitable for customers and stakeholders.

 

Concrete vision elements :

 

   Product quality

   Safety and Environment

   Satisfaction of customer and stakeholders

   Cost Effectiveness

   Energy conservation

Business Strengths of company

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Century Pulp and Paper is the manufacturer of Rayon Grade Pulp, Wood based

Writing Printing Paper & Bagasse based Writing Printing Paper. CPP employs

around 2500 well trained manpower including 700 staff and 1800 workmen.

CPP Specialties in manufacturing :-

Wide variety of quality writing printing paper (agro based) with Bagasse as

raw material.

Best quality photocopiers paper which has been highly appreciated in the

market, both international and domestic.

The mill established at Lalkua is unique because :-

 

It is the only mill in the world producing both rayon grade pulp, wood-based

paper and bagasse based paper.

The level of control instrumentation is relatively high.

CPP is the first mill in the world to use ClO2 for bagasse pulp bleaching.

The mill features a unique pile building system for preventing deterioration

of stored bagasse fiber. Bagasse fiber fed to the digester has a high fiber pith

ratio (more than 5:1).

CPP’s farm forestry scheme ensures that raw material is cultivated and

replenished. CPP is the driver for good forestry management and manages

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socio-forestry nurseries for cultivation and distribution of plant saplings.

The mill has a well equipped laboratory to monitor various water and air

pollution control measures including AOX level.

   

Company Policy

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We at Century Pulp and Paper are committed to strengthen our position as

market leader in manufacturing of writing and printing paper and rayon grade

pulp by developing a company wide culture that promotes :

Customer delight

Quality, Environment, Safety and Information Security

Initiatives

Environment friendly, Safe and Energy efficient operation

Protecting Information of all Stakeholders

 

 

We will continuously pursue for :  

  

Continual improvement in our products, processes & services in all areas.

Protecting information assets and customer information from all threats

through the implementation of suitable information security management

systems.

Remain incompliance with applicable legislations.

Communicate and reinforce this policy throughout the company.

 

 

ENERGY CONSERVATION COMMITMENT POLICY AND SET UP

CPP has accorded high priority for energy conservation from the inception.

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Accordingly for energy conservation, a cell consisting of all energy producers &

consumers is formed. The objective of the cell is to coordinate the steam and power

requirement of the mill, study the causes of variance in consumption figure with targets

on daily basis and take corrective measures. The cell also identifies energy

conservation schemes and monitors their progress.

The energy conservation is a part of our Company Policy. Some of the major energy

saving projects implemented by us are :

Capacity utilization continuously increased

Fine tuning of pumps and motors

Installation of VFD’S

Optimization of voltages & frequency of own generation.

Optimization of operating procedures for Agitator, pumps, Depithers

Energy efficient lighting practices

Prevent idle running of equipments

CPP also believes that apart from energy conservation lot of savings can be generated

by effective utilization of plant capacities. The thrust is on continuous plant operation

without any unscheduled stoppages. In order to involve and motivate

EXPORT

Century pulp & paper industries is basically into three kinds of

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exports:

Deemed export

Mercendise export

Direct export

DEEMED EXPORT:

The paper already purchased is reprocessed & than supplied to export dealers. Various

publishing agencies who are customers of century pulp& paper do this. For e.g.:

Navneet publications.

MERCENDISE EXPORT :

In mercendise export a mediator is involved into & does the export, the paper is not

reprocessed. The sole responsibility is of the dealer.

DIRECT EXPORT :

In direct export the material is dispatched directly to the destination by the company &

sole responsibility in this case is of CPP industries itself. As per the available sources at

century pulp & paper industries, there are various countries in which the paper is

exported by meeting out the standards & specifications of the respective countries as

per the rules set up in ISO: 14001.

CURRENT EXPORT’S OF CPP INDUSTRIES :

Century pulp & paper industries is currently exporting the various verities of paper

products to

Canada,Egypt,Kenya,Srilanka,Phillipines,Ghana,Thopia,Bangladesh,Nigeria,Myanmar

etc.

Environment Management of company

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Century Pulp & Paper maintains a perfect

harmony with Environment through excellent

pollution-control measures both for Air and Water.

All initiatives and efforts are made to curb pollution

at the grass-roof level. In order to meet the

measures set by the Board for air & water, CPP

has adopted the following control facilities.

Water: - Effluent Treatment Plant having most

modern technology, based on Activated Sludge

Process involving Primary clarifier, Anaerobic

treatment, Biological reactor, Secondary clarifier

and Sludge handling system.

 

  

Air - Electrostatic Precipitators and Bag Filter in Coal Fired Boilers:

Electrostatic Precipitators in Recovery Boilers; Electrostatic Precipitator &

ventury scrubber in Rotary Lime Kiln; jet condensers for Digester Blow offs.

 

Green Belt development and Plantations are an integral part of the total

Environmental Management Program. CPP maintains its own plant

nurseries and has planted various species in and around the premises.

 

Maintaining a clean and unpolluted environment has been one of the prime

objectives of CPP. All endeavors have been made right from the inception

26

to incorporate devices that can take care of pollution –both of water and air.

“Waste Control” forms an integral part of the overall “Waste Management

System” – systematically planned and adopted by CPP.

Preserving and protecting the environment is a top priority at century. We are

always sensitive to our bio-diversity of the soil, water and air around us. The

power plant features an efficient system for reducing Air emissions.

Electrostatic Precipitators has been installed to remove particles from recovery

Boilers, Coal- fired Boilers and Lime Kiln flue gases.

In strict adherence to the standards and guidelines, the effluents are treated in

a modern Effluent Treatment Plant which is recognized as a Model Plant for its

efficiency and performance. Company ‘s adoption of a systematic approach to

the Environment matters including Waste Minimization, Water- Recycling and

Re-use programs of the by – products has facilitated the company in getting the

ISO-14001 Certification. or its Environment management System Company’s

friendship with Environment has also reflected in its Bagasse - based papers

being licensed for ECO labeling a distinct honor to be attained. Sincere efforts

are made to find applications for the waste material. Few examples are

The dust generated during Lime stone crushing is used in place of normal sand

with cement. The stones received along with coal are used for stone pitching in

place of natural stones. The PH Liquor is directly burned in Chemical Recovery

Boilers along with black liquor. The organic solid waste collected in PH Liquor

Tank is burned in coal fired boilers.

Apart from reducing the effluent loads these schemes have resulted into a

saving of Rs 8.94 lacks. Continuous efforts are made to minimize our water

27

consumption by finding opportunities of Recycling and minimizing its

consumption. Water consumption trend is as shown.

020406080100120m3/ton2004-052005-062006-072007-08WATER

CONSUMPTION

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Century’s Socio-Forestry venture, to scientifically grow large – scale plantation

to meet the future Raw Material requirement reflects company’s commitment

towards sustainable development. The company maintains and distributes

quality saplings to farmers and offers technical support. Massive plantation and

Green belt has been developed within and around the company premises.

The employees are very conscious about the safety aspect of the mill and strive

to achieve zero accidents. For this departmental safety committees operate

under the control of central safety committee. Work permit system exists for all

jobs. Why-why analysis is done for each accident, root causes identified and

counter measures are taken. As a proactive approach, frequent safety patrols

are carried out to identify unsafe acts and conditions in the plant.

There is continuous thrust for training of employees and regular training and awareness

programs are conducted by internal and external faculties.

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HIERARCHY OF THE ORGANIZATION

JOINT PRESIDENT (UNIT HEAD)

Sr. VICE PRESIDENT (S)

VICE PRESIDENT

SENIOR GENRAL MANAGER (S)

GENRAL MANAGER (S)

DY.GENRAL MANAGER (S)

Sr. MANAGER (S)

MANAGER (S)

DY.MANAGER (S)

SR.SUPREINTENDENT (S)

SUPREINTENDENT (S)

OFFICER

ASSISTANT.OFFICER

GRADED STAFF

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MANAGEMENT AND SR.EXECUTIVES OF THE COMPANY

AT LALKUAN:

Mr. Deepak Tandon DIRECTOR

Mr.A.K Bisarya JT.PRESIDENT (works).

Mr.A.C Mittal SR.VICE PRESIDENT (production)

Mr.S.K. Aggarwal SR.VICE PRESIDENT (Commercial)

Mr.A.K Sharma VICE PRESIDENT (P&A).

Nearly 2700 peoples are working as a team to achieve the objective of the

organization. There is an excellent harmony between the employees union & the

management.

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AWARDS & HIGHLIGHTS

State energy conservation award-2009,First prize under the category of “Large

& medium scale industries” at Dehradun on 14.12.2009

Excellent award to “AGRO” quality circle (bagasse process) in National

Convention on quality circles (NCQC-09) held at Bangalore on 19.12.09.

National Energy Conservation award in pulp & paper sector for the year 2004,

2006 & 2008 by Govt. of India at New Delhi.

National Award for excellence in energy Management for the year 2007 &

2008 by CII.

National safety award for outstanding performance in industrial safety for the

performance year 2007 by govt. of India, as runner-up on 17th Sep 2009 at New

Delhi.

IPMA Environment Award – I prize for Environment conservation in 2006 for

the year 2005-06.

Energy Conservation Award for the year 2002 & 2004 by ‘Indian paper makers

association’.

Based on the Environment Management & cleaner technology adopted, CPP

was selected as a “Model unit” In the field of “Waste Minimization audit” by

CPCB/NPC.

Awarded “Eco-labeling” for copier paper from Baggase & some of the

varieties of writing & printing paper from Bagasse

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We have identified and implemented 259 schemes in the last 3

years with an investment of Rs 4495.93 lac. and resulting into a

savings of Rs 2479 lac. The specific energy has a reducing trend.

Appreciating our efforts –

IPMA awarded us ENERGY CONSERVATION AWARD for the year 2002

– 03 & 2003 - 04.

CII identified us as “Energy Efficient Unit “ for the year 2003-2004 &

2006-07

Awarded National Energy Conservation Award for 2003 – 04 and 2005-

06 by G.O.I.

CII identified us as “Energy Efficient Unit “ for the year 2007-2008

33

PROCESS DESCRIPTION:

The company four streets of production viz, W.P.P.Bagasse & Recycled fiber

& R.G.P, Streets. A wide variety of writing & printing paper is manufactured

in W.P.P. Baggase & recycled fiber streets & Rayon Grade pulp is

manufactured in R.G.P, Street.

The main steps in manufacturing paper/Rayon Grade pulp are as follows:

Chipping of the logs of bamboo, eucalyptus /poplar in W.P.P. street &

eucalyptus in R.G.P street to about 1 inch size chips & strong in chips silo.

Baggase unloading, handling, depithing, pile building, reclaming &washing in

Bagasse street.

COOKING:-sulphate process, In W.P.P. & RGP streets, vertical batch

digestors (for chips cooking) & in Bagasse street, continuous tube type digestor

(for Baggase fibre cooking) are in operation. The cooking process is carried out

at preset temperature & pressure in presence of cooking chemicals for specified

cooking period.

Removal of knots/uncooked/partially cooked portion of the material obtained

from digestors on knotters.

Washing of pulp in brown stock washers to remove spent chemicals & organic

matters.

Screening & cleaning of the pulp to remove impurities.

Bleaching of the pulp based on the latest technology to attain final pulp

brightness as per requirement.

Sizing & loading of pulp stock in the stock preparation section to achieve

desired qualities in final product.

Paper sheet formation in sheeting machines (WPP & Baggase streets) equipped

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Production Process

CPP is the first large pulp and paper mill in India, who had not only floated the

idea of consuming bagasse for manufacturing Quality paper but also gave concrete

base to its idea in the form of Bagasse Unit. The Bagasse Unit of CPP was

commissioned in early 1995 with a capacity of 211 TPD for manufacturing quality

paper. The salient features of bagasse unit are latest bagasse handling, pulping and

paper making technologies.

1. Bagasse handling, moist depithing, pile building

reclaiming and washing

 - Beloit UK.

2. Bagasse cooking continuous digester, cold blow to

avoid Emissions and to retain fiber strength.

 - Sunds

3. Brown Stock Washing.  - HDO

4. Screening and cleaning  - Ahlstrom,Finlan

d

5. Bleaching system based on C/D, E/O D sequence to

attain final pulp brightness of +88 without

affecting the strength of pulp.

 - Sunds, Sweden

Bagasse:

 

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Bagasse is received from the Sugar Mills either in bale

form or in loose form as per the requirement. Whole

bagasse from the sugar mill is available only in the

sugar cane crushing season which is stretched over a

period of maximum six to seven months only, whereas

the process of production of paper is continuous

throughout the year.

Therefore, it is essential to store bagasse in a proper

way so as to make it available for paper making

throughout the year i.e. during off season without

affecting the quality

 

 

Hence, the total amount of bagasse required for the production throughout the year

is carefully stored so that the production is not affected due to the shortage of

bagasse.

Writing and Printing Paper Plant Process (WPP)

This integrated plant is based on Eucalyptus and Bamboo furnishes to produce

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paper ranging between 45 to 210 gsm.

 

The best selected species of Eucalyptus and other hard wood/bamboo which is

locally available from nearby forest is used for pulping. Pulping process is

conventional kraft process. For high brightness and good strength pulp output latest

technology of bleaching sequences consisting of Hydrogen peroxide, chlorine

dioxide & sulphur dioxide is used. Pulp is further processed in highly sophisticated

continuous stock preparation plant.

 

To cater to market requirement of reels and sheets facilities of winding, sheeting

and packing is available. The packing of reels & sheets is conforming to seaworthy

standards suitable for export.

The company has established a strong brand image in the domestic & oversees

market with excellent quality of its products & services & caters to diversified

sectors like note books & diaries, continuous stationary, copier, envelopes, offset

printing, security papers, industrial papers & viscose filament yarn & cell phone

paper.

The company has been awarded golden status by DGFT. Govt. of India as

golden star trading house at the corporate level. The unit is ISO 9001:2008,

ISO 14001:2004, OHSAS 18001:2007 & ISMS (ISO 27001:2005) certified

unit. The bagasse based papers are eco labeled. Company’s main raw material

Eucalyptus, poplar, bamboo,

Bagasse & waste paper. Company’s marketing policy is targeted to meet

customers’ need & satisfaction. Presently the company is also exporting its

paper to various countries. The head office of the company is at Kolkata.

37

Company Product

CPP’s range of products includes some of the finest varieties of writing

and printing paper which has carved a niche in the market.

CPP also manufacturers raw material for viscose filament yarn/staple

fiber and also paper grade pulp.

A. Writing and Printing Papers (45 to 210 gsm)

(Wood based)

Azurelaid

Maplitho White/NS

Maplitho Deluxe CG

SS Maplitho

Dye line base

Offset printing paper

Maplitho NS (ARSR)

Century Parchment

Super Printing

Century Bond

Railway Bond

Copier

Continuous Stationery (HB)

38

Base Paper for coating

Plain Paper

Opaline Base Paper

Overlay tissue

Century Maplitho

NCR Base Paper

MICR Cheque Paper

Color Ptg Paper

Century Excel Ptg

Century Index Paper

Broke cover MF – Sticker Base

 

(Bagasse Plant) 

Copier

Super Maplitho white

39

Super shine Printing

Plain Paper / Writing Paper

B. Rayon Grade Pulp

C. Bleached Hardwood Pulp (Paper Grade) 

CPP range of products includes finest varieties of writing & printing paper,

industrial papers, specialty papers, security papers & copier papers from

diversified range of raw materials.

Century parchment, NCR base, Overlay tissue, wax match tissue, century

index, MICR cheque paper, buff pulp board, Railway bond, Azure-laid (ivory),

MF book cover(UV Fiber), maplitho, super white maplitho, super shine

printing, base paper for coating, sticker Base paper, Copier paper 75 gsm

(ECO-MARK) are some of the verities that have wide range of applications.

CPP also manufactures high quality dissolving rayon grade pulp, raw material

for viscose filament yarn/staple fiber & bleached hardwood paper grade pulp.

Rayon Grade pulp/paper grade pulp :

This fiber line manufacturers wood pulp with eucalyptus & popular furnish for

40

dissolving grade as well as paper grade application.

Century is one of the leading suppliers to rayon

industry for viscose filament yarn manufacture. The

pulp also finds application as filler in melamine

formaldehyde /urea formaldehyde for making

melmo ware/ electrical switches.

Writing & printing papers (wood based):

The integrated plant incorporates eucalyptus &

bamboo furnish to produce papers ranging from 40

to 210 gsm .The plant is equipped with two paper

machines with a total capacity of 110 TDP &

manufactures some of the finest qualities of

specialty papers.

BAGGASE-Based papers:

The plant incorporates modern, state –of- art

machinery & technology & is based on a completely

environment-friendly concept. The salient features

are a unique bleaching sequence with chlorine –

dioxide, oxygen enriched extraction stage along

with enzyme pre-bleaching, biotechnology

application that the company has pioneered to

41

implement; & a comprehensive computer-aided control system. The high speed

paper machine is equipped with film press for on-line coating applications. The

product range includes fine varieties of writing & printing papers of 53-130

gsm including copier.

Recycled fibre based paper:

A secondary fiber based plant manufacturing writing printing paper, DIP plant

is equipped with two stage flotation & two-stage bleaching. Latest technology

incorporated in this plant facilitates production of finest paper quality in this

category. The product range includes writing & printing papers of 52-130

GSM.

TISSUE PLANT:

Prime grade tissue plant of 100 TDP with hi-speed machine (2000 mpm)

supplied by Metso is equipped with latest technology to produce finest quality

in this category. The product range will include Facial, Napkin, Toilet, C-fold,

& kitchen Towel etc, in the range 13-40 gsm

Packing Details :-

 

42

Pulp Sheets of Size 80+ 60 cms. Packed in Bales

with strong wropper & tied with steel wires by

Automatic Tying Machine. Bale Wt: 175 Kgs.

CPP is following IS specification for its entire range

of product. However, various properties can be

custom made to meet the customer requirement.  

 

 

 

 

 

Commitment to quality & service:

At century, quality is an all-pervasive commitment. We strive to continually

improve the quality of our products & a service, which has been, affirmed in

the form of ISO 9001:2008 certifications to the company for its quality

management system. The company has been responsive to the changing market

requirement & has developed new quality products to care to the varying end

uses.

Care for Environment:

Preserving & protecting the environment is a top priority at century. We are

always sensitive to our bio-diversity of the soil, water & air around us.

CPP’S power plant maintains an efficient system for reducing air emissions.

Electrostatic precipitators have been installed to remove particulates from

recovery boilers, coal fired boilers & lime kiln fuel gases.

In strict adherence to the standards & guidelines, the effluents are treated in a

modern ETP, which is recognized as a model plant for its efficiency &

43

performance.

Company’s adoption of a systematic approach to the environment matters

including waste minimization, water recycling & re-use programs of by

products has facilitated the company in getting the ISO-14001:2004

certification for its environment management system.

Company’s friendship with Environments has also reflected in its bagasse

based paper being licensed for eco labeling, a distinct honor to be attained.

Power Block:

Power house has 8 coal fired boilers & three turbines .The turbines are of 6.8

mw BHEL TG set (Extraction back pressure),21 MW TDK TG set (double

extraction condensing type)& 16 MW BHEL Turbine.

Towards sustainable development:

Caring for the community:

Century cares for the community at large & strives to be a good corporate &

social citizen. We actively contribute to the community development of the

areas in our surroundings & regularly conduct medical camps, undertake

construction work of schools, drinking water facilities, self-employment

schemes etc.

Marching Ahead:

The company has embarked on a prestigious expansion program to install a

modern 450TDP fiber line (ECF) & 500TDP multilayered board plant along

with 44 MW turbine & chemical recovery boiler.

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Technology

Writing & Printing Paper Plant (WPP) 

   

Capacity - 37250 TPA

Integrated Pulp & Paper Unit based on

Eucalyptus & Bamboo Furnish.

Two Paper Machines equipped with size

press.

 

 

Paper Grammage Range- 45-210

Machine deckle - 2.69 Meters

Rewinders  - Jagenberg

R/W speed  - 1000 m/min

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Cutters - 1.45 m width with 200 m/min. speed

 

Bagasse Paper Plant :-

 

CPP has recently commissioned Bagasse Paper Plant to manufacture 211

TPD quality papers based on Bagasse furnish. The salient features of the

project are the latest pulping technology involving oxygen bleaching and a

comprehensive computer-aided control system.

 

Bagasse handling, depithing,

pile building Reclaiming &

Washing.

 - Beloit Corporation, U.K.

Bagasse cooking:

continuous digester cold

Blows to avoid emissions

and to retain Fiber strength.

 - Sunds Defibrator, Sweden

Brown stock washing&

deckering.

-Hindustan Door-Oliver

Screening & Cleaning  - AhlstromCorpn.Finland

Bleaching System based on

D/C-E/O–D Sequence to

attain final pulp brightness

 - Sunds Defibrator, Sweden

46

of 88(+). 

Paper Machine  - Equipped with Film-Press for on-line

coating Voith-Sulzer, Germany

Capacity  - 84600 TPA

Deckle  - 5.2 MTR

Qualities  - Fine varieties of writing & printing

paper53-130 GSM including light

weight coated varieties copier.

Slitters & Cutters  - Jagenberg, Germany

 

Rayon Grade Paper Plant/Paper Grade Pulp

 

Based on Eucalyptus furnish

Bleaching sequence includes Chlorine-Di-Oxide treatment.

Sheeting Machine with 105 TPD capacity (Carmano, Italy)

Deckle 2.4 Meters with on-machine cutters and Bailing Press.

 

Power Block

 

3 Nos. AFBC Coal

Fired Boilers

- 23T/Hr (47 at, 420° C)

1 No. Spreader

Stroker Coal Fired

- 25T/Hr (47 at, 420° C)

2 Nos. AFBC Coal - 50T/Hr each (53 at, 480° C)

47

Fired Boilers

BHEL Recovery

Boiler

- 325 Tons/day dry solids (47 at, 420° C)

ABL Recovery

Boiler

- 350 Tons/day dry solids (63 at, 480° C)

6.8 MW BHEL TG

Set

- Extraction Back Pressure

21 MW TDK TG Set - Double Extraction, Condensing

DG Sets - 3 x 1450 KVA

Grid Power available

132 KVA

- 10 MVA at (Maximum demand)

Producer Gas Plant - An innovation and pioneering project

implemented to substitute RFO in Lime Kiln.

 

CPP has also undertaken a project to generate green power by installation

of a Boiler dedicated on Bio-fuels.

 

 

48

Quality Control

Century Pulp and Paper, Lalkua has well organized

laboratory equipped with modern pulp and paper testing

equipments including Auto line from L&W Sweden,

Qualified and experienced staff manage the quality control

department.

For all inputs fibrous/non fibrous, in-process material

(digester section, bleaching section, stock preparation);

finished material (Paper/Pulp) at paper machine

rewinders/cutters, finishing house and Godowns, standards/

specifications are followed as per guidelines of ISO-

9001:2000) quality system (quality Inspection Plant).

 

 

Inputs and Finished product is allowed only after conforming to standards.

Testing/analysis is carried out as per TAPPI/ISO standard.

 

49

A separate customer cell has been formulated to redress customer grievances and

recourse to quick solutions. This cell understands changing needs of customers, caries

out periodical market research to improve customer-choice process and also monitors

competitor moves.

DISTRIBUTION CHANNEL

A distribution channel is a method of getting a product to its consumer. Distribution

channels are part of a company's marketing mix. A marketing mix refers to each

business' unique combination of product, price, promotion and place. Distribution

affects the place or path through which consumers can buy and receive the product. A

distribution channel may be an on-site store, a virtual store, a retailer, a wholesaler, an

agent, a telemarketer or direct mail.

DISTRIBUTION CHANNEL

A channel is a distribution for a product and it is the route by the help of

which the goods are move from the producers to the ultimate uses.

According to the AMA “The structure of intra company organization and

extra ordinary company agents and dealers, wholesalers and retailers, through

which a commodity, product or services is marketed.

Marketing channel are the set of interdependent organization involved in the

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process of making a product or services available for the use or consumption.

Distribution Channels

• A distribution channel is a set of independent organizations involved in the

process of making a product or service available to the consumer or business

user

• Used to move the customer towards the product

Why Use Marketing Intermediaries

• Selling through wholesalers and retailers usually is much more efficient and

cost effective than direct sales

Distribution channels move products and services from businesses to consumers and

to other businesses. Also known as marketing channels, channels of distribution

consist of a set of interdependent organizations—such as wholesalers, retailers, and

sales agents—involved in making a product or service available for use or

consumption. Distribution channels are just one component of the overall concept of

distribution networks, which are the real, tangible systems of interconnected sources

and destinations through which products pass on their way to final consumers. As

Howard J. Weiss and Mark E. Gershon noted in Production and Operations

Management, a basic distribution network consists of two parts: 1) a set of locations

that store, ship, or receive materials (such as factories, warehouses, retail outlets); and

2) a set of routes (land, sea, air, satellite, cable, Internet) that connect these locations.

51

Distribution networks may be classified as either simple or complex. A simple

distribution network is one that consists of only a single source of supply, a single

source of demand, or both, along with fixed transportation routes connecting that

source with other parts of the network. In a simple distribution network, the major

decisions for managers to make include when and how much to order and ship, based

on internal purchasing and inventory considerations.

In short, distribution describes all the logistics involved in delivering a company's

products or services to the right place, at the right time, for the lowest cost. In the

unending efforts to realize these goals, the channels of distribution selected by a

business play a vital role in this process. Well-chosen channels constitute a significant

competitive advantage, while poorly conceived or chosen channels can doom even a

superior product or service to failure in the market

MULTIPLE CHANNELS OF DISTRIBUTION

For many products and services, their manufacturers or providers use multiple

channels of distribution. A personal computer, for example, might be bought directly

from the manufacturer, either over the telephone, direct mail, or the Internet, or

through several kinds of retailers, including independent computer stores, franchised

computer stores, and department stores. In addition, large and small businesses may

make their purchases through other outlets.

Channel structures range from two to five levels. The simplest is a two-level structure

in which goods and services move directly from the manufacturer or provider to the

consumer. Two-level structures occur in some industries where consumers are able to

order products directly from the manufacturer and the manufacturer fulfills those

52

orders through its own physical distribution system. In a three-level channel structure

retailers serve as intermediaries between consumers and manufacturers. Retailers

order products directly from the manufacturer, and then sell those products directly to

the consumer. A fourth level is added when manufacturers sell to wholesalers rather

than to retailers. In a four-level structure, retailers order goods from wholesalers

rather than manufacturers. Finally, a manufacturer's agent can serve as an

intermediary between the manufacturer and its wholesalers, creating a five-level

channel structure consisting of the manufacturer, agent, wholesale, retail, and

consumer levels. A five-level channel structure might also consist of the

manufacturer, wholesale, jobber, retail, and consumer levels, whereby jobbers service

smaller retailers not covered by the large wholesalers in the industry.

BENEFITS OF INTERMEDIARIES

If selling directly from the manufacturer to the consumer were always the most

efficient methodology for doing business, the need for channels of distribution would

be obviated. Intermediaries, however, provide several benefits to both manufacturers

and consumers: improved efficiency, a better assortment of products, routinization of

transactions, and easier searching for goods as well as customers.

The improved efficiency that results from adding intermediaries in the channels of

distribution can easily be grasped with the help of a few examples. Take five

manufacturers and 20 retailers, for instance. If each manufacturer sells directly to

each retailer, there are 100 contact lines—one line from each manufacturer to each

retailer. The complexity of this distribution arrangement can be reduced by adding

53

wholesalers as intermediaries between manufacturers and retailers. If a single

wholesaler serves as the intermediary, the number of contacts is reduced from 100 to

25: five contact lines between the manufacturers and the wholesaler, and 20 contact

lines between the wholesaler and the retailers. Reducing the number of necessary

contacts brings more efficiency into the distribution system by eliminating duplicate

efforts in ordering, processing, shipping, etc.

In terms of efficiency there is an effect of diminishing returns as more intermediaries

are added to the channels of distribution. If, in the example above, there were three

wholesalers instead of only one, the number of essential contacts increases to 75: 15

contacts between five manufacturers and three wholesalers, plus 60 contacts between

three wholesalers and 20 retailers. Of course this example assumes that each retailer

would order from each wholesaler and that each manufacturer would supply each

wholesaler. In fact geographic and other constraints typically eliminate some lines of

contact, making the channels of distribution more efficient.

Intermediaries provide a second benefit by bridging the gap between the assortment

of goods and services generated by producers and those in demand from consumers.

Manufacturers typically produce large quantities of a few similar products, while

consumers want small quantities of many different products. In order to smooth the

flow of goods and services, intermediaries perform such functions as sorting,

accumulation, allocation, and creating assortments. In sorting, intermediaries take a

supply of different items and sort them into similar groupings, as exemplified by

graded agricultural products. Accumulation means that intermediaries bring together

items from a number of different sources to create a larger supply for their customers.

Intermediaries allocate products by breaking down a homogeneous supply into

54

smaller units for resale. Finally, they build up an assortment of products to give their

customers a wider selection.

A third benefit provided by intermediaries is that they help reduce the cost of

distribution by making transactions routine. Exchange relationships can be

standardized in terms of lot size, frequency of delivery and payment, and

communications. Seller and buyer no longer have to bargain over every transaction.

As transactions become more routine, the costs associated with those transactions are

reduced.

The use of intermediaries also aids the search processes of both buyers and sellers.

Producers are searching to determine their customers' needs, while customers are

searching for certain products and services. A degree of uncertainty in both search

processes can be reduced by using channels of distribution. For example, consumers

are more likely to find what they are looking for when they shop at wholesale or retail

institutions organized by separate lines of trade, such as grocery, hardware, and

clothing stores. In addition, producers can make some of their commonly used

products more widely available by placing them in many different retail outlets, so

that consumers are more likely to find them at the right time.

Distribution Channel Functions

Information → Gathering & distributing marketing resear about the environment

Promotion → Developing & spreading persuasive Communication about an offer

Contract → Findings & communicating with prospective Buyers

55

Matching → Shaping & fitting the offer to the buyers need

Negotiation → Agreeding on price & terms of the offer so Ownership or possession

can

be transferred

Physical → Distribution: transporting & storing goods

Financing → Acquiring & using funds to cover the cost Of channel work

Risk taking → Assuming financial risks such as the inability to sell inventory at

full

margin.

Number of Channel Levels

Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in

Bringing the Product and its Ownership Closer to the Final Buyer.

56

1- 0 level channel – Direct

Producer → consumer

3- 1-level channel

Producer → Retailer → consumer

5- 2-level channel

Producer → wholesaler → retailer → consumer

7- 3-level channel

Producer → wholesaler → jobber → retailer → consumer

CHANNEL OF DISTRIBUTION FOR CONSUMER

PRODUCTS

ZERO LEVEL CHANNEL (BATA, EUKEKA FOBES)

57

ONE LEVEL CHANNEL ( TITAN WATCHES)

TWO LEVEL CHANNEL ( LML, BAJAJ, KWALITY ICE CREAM)

THREE LEVEL CHANNEL ( COLGATE, CLOSEUP )

DISTRIBUTION CHANNEL FOR THE SERVICES

PRODUCER OF SERVICES

58

↓

↓

↓

PRODUCER OF SERVICES

AGENTS

ULTIMATE CONSUMERS OR BUSINESS USERS

59

60

61

E.g. Distribution Channel Of Agriculture Sector

62

Parallel Distribution: Most manufacturers find it useful to go through at least

one wholesaler in order to reach the retailer, and it is simply not efficient for Colgate

to sell directly to pathetic little "mom and pop" neighborhood stores. However, large

retail chains such as K-Mart and Ralph’s buy toothpaste and other Colgate products

in such large volumes that it may be efficient to sell directly to those chains. Thus, we

have a "parallel" distribution network whereby some retailers buy through a

distributor and others do not. Note that we may also be tempted to add a direct

channel—e.g., many clothing manufacturers have factory outlet stores. However, note

that the full service retailers will likely object to being "undercut" in this manner and

may decide to drop or give less emphasis to the brand. It may be possible to minimize

this contract by precautions such as (1) having outlet stores located in vacation areas

not within easy access of most people, (2) presenting the merchandise as being

slightly irregular, and/or (3) emphasizing discontinued brands and merchandise not

sold in regular stores.

63

64

Channel Management and Conflict:

Vertical integration. Generically speaking, products may come and reach consumers

through a chain somewhat like this:

Raw materials ---> component parts ---> product manufacturing

---> product/brand marketing ---> wholesaler ---> retailer

---> consumer

Money can be made at each stage in the chain and it may be tempting for firms to try

to get into all aspects. For example, Henry Ford wanted to make all the components

for his own cars, so Ford tried to run its own rubber plantation with limited success.

The temptation to try to expand vertically can be especially strong when an industry

faces limited growth and thus presents limited opportunities for reinvestment into

traditional operations (e.g., if the auto industry is not growing as much as desired, one

way to reinvest profits, rather than having to pay them back to stockholders who

would then have to pay taxes on the dividends, might be to buy steel mills. The

problems, however, is that the management is not used to running such businesses

and that managerial time will be spread among more areas.

65

Distribution Objectives:

Objectives : A firm’s distribution objectives will ultimately be highly related—

some will enhance each other while others will compete.  For example, as we have

discussed, more exclusive and higher service distribution will generally entail less

intensity and lesser reach.  Cost has to be traded off against speed of delivery and

intensity (it is much more expensive to have a product available in convenience stores

than in supermarkets, for example).

Narrow vs. wide reach : The extent to which a firm should seek narrow

(exclusive) vs. wide (intense) distribution depends on a number of factors.  One issue

is the consumer’s likelihood of switching and willingness to search.  For example,

most consumers will switch soft drink brands rather than walking from a vending

machine to a convenience store several blocks away, so intensity of distribution is

essential here.  However, for sewing machines, consumers will expect to travel at

least to a department or discount store, and premium brands may have more

credibility if they are carried only in full service specialty stores.

Retailers involved in a more exclusive distribution arrangement are likely to be more

66

“loyal”—i.e., they will tend to

 Recommend the product to the customer and thus sell large quantities;

 Carry larger inventories and selections;

 Provide more services

Thus, for example, Compaq in its early history instituted a policy that all computers

must be purchased through a dealer.  On the surface, Compaq passed up the

opportunity to sell large numbers of computers directly to large firms without sharing

the profits with dealers.  On the other hand, dealers were more likely to recommend

Compaq since they knew that consumers would be buying these from dealers.  When

customers came in asking for IBMs, the dealers were more likely to indicate that if

they really wanted those, they could have them—“But first, let’s show you how you

will get much better value with a Compaq.”

Distribution opportunities :   Distribution provides a number of opportunities for

the marketer that may normally be associated with other elements of the marketing

mix.  For example, for a cost, the firm can promote its objective by such activities as

in-store demonstrations/samples and special placement (for which the retailer is often

paid).  Placement is also an opportunity for promotion—e.g., airlines know that they,

as “prestige accounts,” can get very good deals from soft drink makers who are eager

to have their products offered on the airlines.  Similarly, it may be useful to give

away, or sell at low prices, certain premiums (e.g., T-shirts or cups with the corporate

logo.)  It may even be possible to have advertisements printed on the retailer’s bags

(e.g., “Got milk?”)

Other opportunities involve “parallel” distribution (e.g., having products sold both

67

through conventional channels and through the Internet or factory outlet stores). 

Partnerships and joint promotions may involve distribution (e.g., Burger King sells

clearly branded Hershey pies).

Deciding on a strategy :   In view of the need for markets to be balanced, the

same distribution strategy is unlikely to be successful for each firm.  The question,

then, is exactly which strategy should one use?  It may not be obvious whether higher

margins in a selective distribution setting will compensate for smaller unit sales. 

Here, various research tools are useful.  In focus groups, it is possible to assess what

consumers are looking for an which attributes are more important.  Scanner data,

indicating how frequently various products are purchased and items whose sales

correlate with each other may suggest the best placement strategies.  It may also, to

the extent ethically possible, be useful to observe consumers in the field using

products and making purchase decisions.  Here, one can observe factors such as (1)

how much time is devoted to selecting a product in a given category, (2) how many

products are compared, (3) what different kinds of products are compared or are

substitutes (e.g., frozen yogurt vs. cookies in a mall), (4) what are “complementing”

products that may cue the purchase of others if placed nearby.  Channel members—

both wholesalers and retailers—may have valuable information, but their comments

should be viewed with suspicion as they have their own agendas and may distort

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information.

Function of Distribution Channel

Gather information about the potential and current customer, competitors and

other forces in the marketing environment.

Develop the persuasive communication to stimulate the purchasing.

Helpful in communication.

Matching in the process of demand and supply

Helpful in marketing research.

Movement of the physical goods.

Promote the products.

Sell the product through personal presentation

Service products and provide advice on their uses required.

Creates three types of utilities:

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Place utility, Time Utility, Ownership utility

STRATEGIES TO COVER THE MARKET

(A) Intensive Distribution

Maximum market coverage, maximum exposure for the product.

Used for the convenience product. (Cigarettes, chewing gum, etc.)

In this buyer are unwilling to spend much time for shopping.

Intensive distribution is a form of distribution in which the manufacturer

distributes his products through as many outlets as possible.

Products like chocolates, biscuits, shaving blades, soaps and detergents are

distributed in this manner, so that they are easily available to the customers at

their nearest locations.

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EXCLUSIVE DISTRIBUTION

Exclusive distribution is a form of distribution in which there are a limited

number of intermediaries between the producer and the customer.

This type of distribution network is opted for by producers who want to

deliver the maximum service quality to the customers.

By limiting the number of distribution outlets, the manufacturer or producer

can control the quality levels at these outlets.

An exclusive distribution arrangement also helps the producers ensure that

the distributors do not sell competing products along with the producer’s

products.

Products that are marketed through the exclusive distribution process have a

higher brand value and are naturally priced higher.

Automobiles, apparels and its accessories are sold through exclusive

distributorship.

SELECTIVE DISTRIBUTION

This form of distribution falls somewhere in between the two extremes of

exclusive and intensive distribution.

In this form of distribution, although the manufacturer does not use all the

available marketing channels, he uses more than one distribution channel.

As the manufacturer uses a relatively fewer number of distribution channels,

he can maintain good relations with the channel members and as a result,

expect an increased marketing effort from them.

Branded menswears like Color Plus, Arrow, Zodiac, Lee and so on are

71

available at exclusive showrooms as well as through other distribution

channels.

Similarly, in the branded suitcase or luggage market, VIP, Aristocrat, etc., sell

their products at exclusive showrooms as well as at other retail outlets.

Channel Organization

• A vertical marketing system (VMS) consists of producers, wholesalers, and

retailers acting as a unified system

One channel member either owns the others, has contracts with them,

or wields so much power that they all cooperate

Conventional vs. Vertical Marketing Channels

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Vertical Marketing Systems

• Corporate VMS combines successive stages of production and distribution

under single ownership

• Administered VMS coordinates successive stages of production and

73

distribution through the size and power of the parties

• Contractual VMS consists of independent firms at different levels of

production and distribution who join through contracts to obtain economies or

sales impact

Channel Conflict

• Horizontal conflict is conflict between firms at the same level of the channel

74

i.e. retailer to retailer

– Vertical conflict, which is more common, refers to conflicts between

different levels of the same channel

– i.e. retailer to wholesaler

Path or 'pipeline' through which goods and services flow in one direction (from

vendor to the consumer), and the payments generated by them flow in the opposite

direction (from consumer to the vendor). A distribution channel can be as short as

being direct from the vendor to the consumer or may include several inter-connected

(usually independent but mutually dependent) intermediaries such as wholesalers,

distributors, agents, retailers. Each intermediary receives the item at one pricing point

and moves it to the next higher pricing point until it reaches the final buyer. Also

called channel of distribution or marketing channel.

A THEORETICAL FRAME WORK OF CHANNEL OF

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DISTRIBUTION

“Marketing channels are sets of interdependent organization involved in the

process of making a product or service available for use or consumption.”

The main objective of the marketing process is to distribute the products to

the actual users. This function involves a number of sub-functions to be performed by

a producer or manufacturer. These two functions are most important first, the creation

of demand is made through the process of advertising and sales promotion activities.

On the other hand the distribution through the channels of distribution. The decision

relating to the channel of distribution is a very important decision from the firm point

of view because the selected channels affect considerable other marketing decision.

Such decisions are of long term nature and exercise their impact on the cost structure

of the firm also.

By channel distribution mean the intermediaries or the process through which the

goods products are transferred from the producer to the ultimate users.

Now a day any of the producers possibly do not sell their goods directly to

the final users. There are a lot of intermediaries between producers and consumer,

bearing a variety of name performing various kinds of function. Some intermediaries

like wholesalers and retailers buy and resale taking the bill. They are known as

merchant middle men and other are brokers, representative sales agent who seeks or

search for customers and negotiate on the behalf of the producer but do not take of

goods. These are called as middlemen.

The manufacturer and its distributive outlets share common objective to sell

the manufactured products at a profit. No doubt its objective differs with the

76

marketing circumstance. Even though many variation of specific objective fits into

some categories. These are as follows:-

To built distribution network loyalty

To stimulate distribution

To develop managerial efficiency in distribution organization

DECISION MAKING FOR CHANNEL OF

DISTRIBUTION

The marketing executive must undertake to following steps in order to establish

the channel of distribution for a company.

1. He/She must understand the retail and wholesale market and type of middlemen

available in both.

2. He/She must understand the various conflicts which continually exist between and

within the channel.

3. He/She must select the general channel to be used keeping in mind the goals of

the company marketing programme and the job to be done by distribution system.

4. He/She must take decision regarding be intensity of the distribution (i.e. the

number of middlemen) to be used each level and each market.

5. He/She must select the specific firms which will handle his product and then

manage the day to day working relationship with them.

He/She must determine the methods and the procedure in firms (i.e. use of the

transportation and warehouse facilities and services in firms making programme) in

the physical distribution of the product.

77

Types of Marketing Channels

1. Direct marketing channel: A marketing channel that has no intermediaries’ level

2. Indirect marketing channel : Channels containing one or more intermediaries

Customer Marketing Channels

Channel 1.

Manufacturer………………………………………………..…Consumer

Channel 2.

Manufacturer……………Retailer……………………………Consumer

Channel 3.

Manufacturer……...Wholesaler………….Retailer…………Consumer

Channel 4.

Manufacture…….Wholesaler……Jobber……Retailer…….Consumer

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TYPE OF CHANNEL LEVELS USED BY CPP

INDUSTRIES

Century pulp & paper industries mainly uses two types of distribution channel to

cater their product viz :

The channels used by CPP are one level channel & two level channel.

Via one level distribution channels what the company does is that it distributes the

paper products to different dealers in different zones & these distributers than

distribute goods to the retailers & various organizations or institutions who

themselves are final consumers.

The company also uses two level channel of distribution so as to catter its products

among ordinary customers like us, who do not use the product in excess.viz.

Special parameters taken into consideration by the company while deciding a

distribution channel:

CENTURY PULP &PAPER IND.

KANSAL TRADERS(DEALER) BHARGAVA

STATIONERS.(RETAILER)

79

SALES TAX: Govt. of India generally takes 10% sales tax (central sales tax) on

the goods from dealers. Dealer is provided with “form c” if he fulfills the norms

against it. Then central government takes 4% (central sales tax on goods.)

Local sales tax: Generally 8% tax is tax is taken by state government from the

dealers. But if the dealer is capable enough of submitting”Form-3b” to the paper

company ,the sales tax imposed on to the dealer by state government reduces down

to only 2.5%.

EXCISE DUTY: The central government takes excise duty on the finished goods

at the time of sales, basic excise duty (BAD) is charged as 16% of the value of

finished paper products of the company ready to use, at present.

Also called (CENVAT) central value added tax.

However it was interesting for me to know that no excise duty is charged for the pulp

manufactured in the plant, it is because pulp is been considered as semi-finished

good. No excise duty is charged on export of pulp.

It is also to be noted that CENTURY PULP & PAPER INDUSTRIES, is also

involved in export of fine quality pulp & it generates huge revenue via pulp sales.

80

DISTRIBUTION- NETWORK OF CPP INDUSTRIES

Before we focus on distribution network of CPP industries, we would first discuss

what actually a distribution system refers to.

Distribution network is a network & integrated system of channels through which

flow of goods & services takes place from producer to consumer smoothly.

Now ,discussing about the Century pulp & paper industries, there are various dealers

which directly get the paper from mill on behalf of quotation made by them & send it

to various converters & their consignees or parties by placing order, indents &

invoices as issued by the company, from where it reaches to the end users.

Specimens of these are mentioned in the Annexure attached with the research report.

81

TYPE O

RESEARCH METHODOLOGY

RESEARCH OBJECTIVE

RESEARCH DESIGN.

DATA SOURCES (SAMPLING PLAN &RESEARCH INSTRUMENT.)

DATA COLLECTION.

82

RESEARCH OBJECTIVE

Every research has an ultimate objective to be fulfilled. A research without objective is

worthless.

Research process is actually that vital framework under which we plan the whole

structure of the work to be done which involves-identifying the research problem,

making appropriate plans, collection of data, data

analysis, preparation of questionnaires, studying the market & finally drawing a

conclusion & achieving the research objective.

RESEARCH

The word research derives from the French recherche, from rechercher, to search

closely where "chercher" means "to look for or to search".

Research can be defined as the search for knowledge or as any systematic investigation

to establish facts. The primary purpose for applied research (as opposed to basic

research) is discovering, interpreting, and the development of methods and systems for

the advancement of human knowledge on a wide variety of scientific matters of our

world and the universe. Research can use the scientific method, but need not do so.

DATA ANALYSIS.

83

Research methods

The goal of the research process is to produce new knowledge, which takes three main

forms (although, as previously discussed, the boundaries between them may be

obscure.):

1. Exploratory research , which structures and identifies new problems

2. Constructive research , which develops solutions to a problem

3. Empirical research , which tests the feasibility of a solution using empirical

evidence

RESEARCH DESIGN

Research design is a framework or a statement describing the research problem clearly,

it highlights on those procedures & techniques which are to be used for gathering

information, processing it & analyzing the Data collected .Research design also

describes those mathematical & Statistical tools which are to be used & are helpful

further in the research work.

A good research design covers each & every aspect of the Research work. It is actually

a blueprint of how the research work would be successfully accomplished, how the data

will be collected & from where.

84

RESEARCH DESIGN

CONCLUSIVE RESEARCH DESIGN.

TWO MAJOR TYPES OF RESEARCH DESIGN --

EXPLORATORYRESEARCH DESIGN.

85

EXPLORATORY RESEARCH DESIGN :

Exploratory research design describes the whole problem in a brief & concise

form. This research design is helpful to those research works where sample size

is indefinite & the research work is not too much analytical. Through

exploratory research design the researcher through various data collection

regarding the problem, descriptive market study, & by analyzation of the data’s

collected can draw a conclusion.

This research design mainly focuses on to the highlighted factors of the research

problem & covers all the theoretical aspects been involved into it.

CONCLUSIVE RESEARCH DESIGN :

One of the major research design is conclusive research design, which focuses

on to the problem deeply, describes each & every aspect of the problem &

finally helps in drawing the conclusion via detailed analyzation of data,

application of various mathematical &statistical tools which gives an accurate

measure.

Conclusive research design is helpful in solving those research problems where

the sample size is definite, numerical data collected is accurate up to standards.

86

DATA COLLECTION:

PRIMARY DATA: These are the first hand information’s collected via

some source or through observation, the primary data may be collected through

conducting any survey, interviewing sample units directly through

questionnaire, or conducting a telephonic or electronic survey.

QUESTIONAIRE: It can be recognized as a schedule with a particular

formalized Set of questions prepared specifically so as To conduct various

interviews by the help of which the respondents respond towards the questions

is adjudjed. It is widely used in consumer & industrial marketing research

Analysis.

SECONDRY DATA: Secondary data is the data which is readymade i.e.

. data which is already available in usable form.

Such as blog reports, magazines, newspapers etc.

VARIOUS TYPES OF SECONDRY DATA’S USED BY ME DURING THE

STUDY INCLUDES:

LITERATURE OF CENTURY PULP & PAPER.

LITERATURE FROM PUBLISHED MAGZINES OF B.K BIRLA

GROUP OF COMPANIES.

LITERATURE ON (CPP) WEBSITE.

DISCRIPTIVE RESEARCH DESIGN

87

Along with the exploratory research some descriptive research was used in the study of

marketing strategies for the sales of companies’ product also studying about the various

parameters which affect the competitiveness of companies’ major product (COPIER

PAPER).

Sampling technique : Snow ball sampling has been used for the purpose of

studying the dealers & retailers as it helped in locating the dealers who were presently

engaged in the sales of CPP products &Convenient sampling method was used for

dealers in distant places as accessibility emerged as a problem in these locations.

Sampling unit: sampling unit defines the target population that was being sampled

together for carrying out the research. It included both dealers & retailers.

Sampling size: So as to conduct the study on market & distribution network system

of CPP (century pulp & paper) some regions of Uttarakhand (Kashipur, Haldwani,

Rudrapur) were selected, also Moradabad (U.P.) was selected by me to collect the

relevant data from market.

Sample size taken is 57(in all) …… [retailers+dealers+distributers]

RESEARCH INSTRUMENTS:

88

1. Direct Interviews.

2. Questionnaires.

3. Telephonic interviews.

OBJECTIVES OF RESEARCH

1. The major objective of the research is to find out the market potential of century

industries product line.

This will help to know that what are the prospective of century as a whole & will

also give an idea about its credibility, customer’s point of view & stability; apart

from all these it will help me to analyze the upcoming future of the company.

2. To know about the demand & consumption of the products manufactured in the

unit & thereby getting an idea about market forecast.

The paper market is huge & variety of product mix has been found which serve

the purpose industrial users & the ordinary customers like us as well. Through

this knowledge about the verities of products & their demand in the scenario can

be identified. Also the state of consumption of these products will also give a

focus on the target market customer’s taste & preferences & the current status of

the paper industry in the globalized world.

3. Another major objective is to get aware about the distribution network & the

marketing channels of CPP industries.

89

Every manufacturer needs a link with the consumer to sell its product. The vast laid

net of market intermediaries from the link is called distribution scheme trade

channel, or sometimes the dealer’s network.

Channel is a comprehensive term used to denote the group of agencies or

intermediaries, who help to deliver the products from producer to consumer.

The manufacturer’s choice of selecting the type of channel & the number of dealers

depend on various criteria’s.

Marketing channel can be vied as set of interdependent organization, involved in the

process of marketing the product or service available for consumption.

Thus by these objectives an idea about the networking through dealers to reach the

end customers is surveyed & analyzed.

4. To study & analyze the buying behavior of consumers towards CPP brand as

compared with similar product of some other companies, thus understanding the

consumer acceptance of the products.

SCOPE

90

The scope of market study of CENTURY PULP & PAPER INDUSTRIES. Is vast.

It helped me to know about the market trend, demands & consumption patterns,

future prospects in terms of potential growth, consumer taste & buying behavior for

the CPP product & other aspects related to channel & network i.e.-distribution, at

the same time some bottlenecks & loopholes in the entire process could also be

taken into consideration for the solutions as well as betterments,

Also the following few aspects could be taken care off through this research

study:-

To study & adjudge the relationships & association among

To study the distribution network of Century Pulp & Paper Industries. The

dealer & company.

Identifying those attributes on the basis of which the dealer selects the

products of CPP. (mainly Copier paper-the major product).

To know about the credit policy of the company.

Popularity of company products among customers.

To analyze the order quoted by the dealer & its fulfillment made by the

company.

To find out the response of the dealers towards the brand.

DATA ANALYSIS & PRESENTATION:

RETAILERS.

91

DEALERS.

RETAILERS: Sample size of retailers is 50; it includes retailers in the nearby cities

such as Haldwani, Kashipur, Rudrapur, Moradabad, Almora.

For the purpose of analysis percentages has been obtained by simple calculation of

equation & percentages.

For e.g. if 40out of 50 respondets response for “yes” & rest 10 for “no”, then solution

will be obtained by:

40/ 50 * 100

10/50 * 100

DEALERS: sample size of dealers is 7, for the analysis purpose a percentage has been

obtained by simple calculation of equation & percentages.

For e.g. ,if 5 out of 7 respondents responds for “yes” & rest 2 for no then, solution

would be obtained by:

5/7 * 100.

2/7 * 100.

RETAILERS RESPONSES

1. Since how long are you associated with the dealers of CPP Industries?

92

YES NO.

30%

70%

1

2

Contract mktg. Direct marketing

20%

80%

1

2

a) >4 years b) >8 years c)>12years d)>16 years.

2. Are advertisements required to serve the purpose better?

a) Yes b) No

3. Type of Distribution network?

a) Contract marketing b) Direct mktg.

4. Which type of consumer responses forwards the products of CPP?

a) Highly positive b) Positive c) Moderate d) Negative.

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Highly positive moderate Negative

positive

10%

14%

34%

42%

bulk smoothness

brightness

opacity

26%

40%

20%

14%

1

2

3

4

5. Which of the quality attributes for writing & printing paper you?

prefer most in terms of customer preferences?

a) Smoothness b) Brightness c) Bulk d) Opacity.

6. Which problem have you generally faced with w.p.p. papers?

a) See thoroughness b) Poor ink absorbancy c) Creasing d) Other.

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other

See thoroughness poor Ink absorbancy.

creasing

10%

16%

44%

30%

1

2

3

4

Schools & institutions Govt.offices

Students.

Corporate professionals

10%

20%

34%

36%1

2

3

4

7. Who are your frequent consumers?

a) Corporate professionals b) Govt. officers c) Schools&institutions

d) Students.

95

10%

20%

16%12%

14%

10%

18%

YES

NO.

64%

36%

8. Which w. p.p. you prefer most?

a) Cpp b) JK paper C) Andhra papers d) Orient

e) Ballapur

ANDHRA

OTHER ORIENT PAPERS CPP

HPC BALLARPUR JK

9. Do the CPP dealer provide you with some discount policies or

schemes sometimes?

a) Yes. b) No.

10. The current packaging of CPP products attractive & safe?

96

ATTRACTIVE

BOTH

PROTECTIVE.

18%

22%60%

1

2

3

Advertisement QualityImprovemt

Promotional Offer.

44%

22%

34%

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Preferences of attributes towards packaging:

a) Attractive b) Protective c) Both

1. Any suggestions to protect against future threats?

a) Advertisement b) Quality improvement c) Promotional offers.

DEALERS

97

1 godown 2 godowns

43%

57%

1

2

1. Allocated size of quota by the CPP industries to dealers: (D denotes dealer)

1250

MT 1150MT 700mt 350MT 100mt 300MT 400MT

D1 D2 D3 D4 D5 D6 D7

2 .Approximately more than 50 % dealers were having at least 1godown & at maximum

2 godowns.

Type of godowns available with dealers:

a) Personnel b) Hired

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Personnel Hired.

29%

71%

1

2

3. How do you receive the order from customer’s /retailers? how

frequently?

a) Weekly b) Fortnightly c) Monthly d) Once (in a whole year).

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weekly monthly 43%

57%

1

2

Direct Visit.

Telephone43%

57%

1

2

4. How do you keep in touch with retailers? What is the mode of

Solving retailer queries & receiving feedback?

a) Via-telephone b) Direct visit c) Others.

5. Are you satisfied with the services provided by the company?

a) Yes b) No

100

NO

YES. YES

80%

20%

1

2

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THE INDIAN PAPER INDUSTRY

INDUSTRY SALES OPERATON NO.OF MILLS PRODUCTION

SHARE %

Large integrated 101-108(avg.300) 33 36

Wood based

Medium agro based 50-100(avg.60) 165 29

Small waste paper 05-15(avg.15) 510 35

Total 708 100

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ANNUAL POTENTIAL OF AGRO BASED FIBERS IN INDIA

AGRO RESIDUE AVAILABILITY

MILLION TONS

White straw 22

Rice straw 15

Bagasse 12

Jute, Mesta 2

TOTAL 51

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TOP SEVEN PLAYERS OF PAPER IN THE INDUSTRY:

CAPACITY(MILLION TON)

BALLARPUR INDUSTRIES LTD.(BILT) 0.45

ITC BHADRACHALAM 0.23

TAMILNADU PAPER LTD. 0.20

HINDUSTAN PAPER COMPANY. 0.20

CENTURY PULP & PAPER 0.19

JK PAPER LTD. 0.1

RAMA NEWSPRINT LTD.(RNPL) 0.13

Total 1.5

Financial Highlights of comp

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Value in INR (Crores) Value in US$ (million)

Year (2002 – 03)    

Turnover 463.78 103.06

Profit 4.43 0.98

Year (2003 – 04)    

Turnover 497.66 110.59

Profit 30.53 6.78

Year (2004 – 05)    

Turnover 556.35 123.63

Profit 30.41 6.75

FINDINGS & CONCLUSIONS

105

During our training we found an amazing world of big machineries & their process

which were in continuous operation to deliver the final product.

We never thought that developing a small sheet of paper would require such immense

& arduous tasks of both men & machinery.

Mr. Manoj Gupta, manager (quality control lab), made a statement that “we are

ultimately No 1 in the paper market in India”. So to find out that how strong enough

was his statement we decided to explore the dealers & retailers in the market.

Also, apart from processes we made some major findings on behalf of my data

collected from in and outside the paper industry as follows:-

1- The new era of upcoming generation is going to be knowledge based, so demand for

paper would go on increasing in upcoming years. In view of paper industry’s strategic

role for the society & also for the overall industrial growth it is necessary that the paper

industry performs well.

2- The demand for upstream market of paper products like: TISSUE PAPER, FILTER

PAPERS, LIGHT WEIGHT ONLINE COATED PAPER, MEDICAL GRADE

QUOTED PAPER, etc, is growing due to increase in population & more & more

facilitation. These developments are expected to give fill up to the industry.

From the entire survey & the report formulation through data analysis I came to

know about various aspects of modern paper industry with regard to the title of my

project “MARKET ANALYSIS & STUDY OF DISTRIBUTION NETWORK TO

ENHANCE BRAND POTENTIAL”.

3- Due to industrialization & globalization there is huge demand & potential of paper &

allied products.

106

4- Corporate sector, computerization in banks, financial & other institutions has opened

a great market opportunity for a new sector that is COPIER PAPER.

5- As per the information collected through the sales & marketing department of the

company, a major consumption & demand is seen in Delhi & NCR region, where

therefore are maximum number of dealers that too with very high allocated size.

6- Paper industry is very risky & tough growth business as the raw material consists of

hazardous chemicals like cl 2,so2,hcl,clo2 etc & therefore performance is the only key

to success.

7- Average consumption per year of copier paper in Delhi &NCR region is

approximately 5000mt while that of writing & printing paper is 40000mt.

8- Transportation to these high consumption areas is quick,& authentic but what I

found was that availability of contingency plans is not that strong ,as far as the planned

transportation is up to its schedule its ok,but what I adjudged in the sales department

was that sales employees were frequently observed busy in arranging for the transport

at the final moment of order dispatchment,as a consequence both time & work

suffered.

9- Less number of small intermediaries are involved in the distribution channel, thus

helping in checking the malfunctioning & corruption involved into.

10- Talking to the dealers it was observed by us that relationships among dealers &

consumers of CPP industries reflects the companies policy of relationship building, but

it could be further increased by providing some sale or motivational schemes &

policies.

11- We found that Century pulp & paper industries is very prompt in providing product

variety at a time, most of the orders of CPP are full filled in time and as per specific

requirements.

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12- Company emphasizes lot on packaging methods undertaken, so as to ensure safety

of product during transit.

13- Century could be thought of a market leader at the present scenario as it is the only

industry which has variety of processing plants for different raw materials via which the

paper is manufactured it includes- paper manufacturing through baggase,wood,R.G.P.

Also the new tissue paper plant has already started to work this year & installation

of a new combined plant is in progress.

As the production in the unit goes on 24*7, so the employees work on basis of shifts.

The maintenance of the heavy machineries is a compulsion in this case,& thus company

has qualified engineers & technical staff which is well trained, they all work hard &

their endeavor’s have lead the company to the no.1 position in the paper industry.

SUGGESTIONS & RECOMMENDATION

108

After we completed up with the major findings related to the company, weather it was

process, sales or market study, being a MBA student we found some positive & good

aspects of the company as well as minor loopholes also.

Thus, here by on the basis of my understanding & observation, we would like to put

forward few suggestions & recommendations as follows:

The company should sustain the availability of good quality of raw material (forest

based) & bulk import of waste paper to supplement the availability of raw material.

Also with respect to above statement I would like to recommend the company to

encourage afforestation,in the nearby locations such as Rampur from where the

major source of raw material is supplied i.e. eucalyptus & popular trees, for

w.p.p(wood based paper plant) (major paper manufacturing plant).

R&D technological absorption should be emphasized upon to enhance the

productivity by maintaining the quality of copier/writing/printing paper.

The company should make good profile investments in advertisements which are

directly linked with customers.

We would also like to recommend the company to hire a brand ambassador for the

advertisement purpose, it may be any celebrity,

However if the company feels like that this investment would be a cost burden they

can look for some socially renowned face who has a premium image & is available at

cheaper rates.

The company should achieve optimum energy conservation, better availability of

quality coal, more uniform energy policy by state.

The employees in the quality control lab we found were busy in selection of a new

packaging carton, they were in a mood of changing the older packing & were

109

deciding to make it more colorful & attractive, with respect to it I saw the sample of

new packaging & being a customer I also found it attractive.

But If in future if the company’s marketing department again decides to change the

packaging, it should keep in mind their primary colours i.e.(blue, white).because talking

to the ordinary customers such as peons of various organization’s & institution we

found that they recognize the brand much more as-(“vo nile packet vala kagaz”.).

The company can also try to increase the capacity & quality of machine no-3&4, to

have an edge over “B” grade mills such as “SIDHHARTH PAPER MILL” in

kashipur who produce same product in less cost & sale it in less prices in the

market.

During our t to dispatch location from where the rims of paper are finally packed &

forwarded to the godowns I found two mens who were busy in final packing of the

paper rims ,one of the worker busy in packing told me that at the end of the day he

earns around 500 rupees,& there are other workers of similar

Category who are busy in the same work.

So I would suggest that company should look in for assembled machinery

Which packages the rims rather than humans, it might also help them to curtail

Down production cost.

Mr. Malik a ( supervisor) in the baggase process discussed with us out the use of

water in the paper industry, he told me that water is used almost in every process of

paper production i.e. from moisturing the baggase to load it in the conveyor belt up

till the final washing.

But a major problem of water shortage might hinder the working of the CPP

industries, because the land water level in the lalkuan region has declined at an

110

alarming rate, if it continues declining at such pace the problems might soon start to

occur, therefore we would suggest the company to make necessary

Arrangements for saving the rain water, & make sure that there shouldn’t be

unnecessary wastage of water.

SWOT ANALYSIS OF CENTURY PULP & PAPER

INDUSTRIES:

111

STRENGTH:

Well integrated & networked distribution channel.

Backup support of recovery unit.

Usage of waste paper.

Good & certified quality of products

An ISO-9001:2008 Certified (QMS) & ISO-1400(EMS) certified company.

High grade” baggase” based technology.

On line mixture & program control (at sheeting & paper machines.)

Involved in export as well as government sector like postal, banking, railways etc.

Continuous Research & development in the R&D labs, thus improving the product

mix by innovation.

Delivery of goods at a short notice.

WEEKNESSES:

Lack of advertisement of the paper products.

Logistic management is to be improved further.

More appropriate measures to be taken by the company to preserve the natural

resources such as wood, water.etc.

Lack of cent percent co-ordination between executive & ground staff.

OPPORTUNITIES:

Increase in demand of paper in the countries like Egypt & Singapore has given the

opportunity to the company to export more.

112

Agro based waste material in India is sufficient, as India is an agriculture based

nation ,so the company has the opportunity to produce more & more in the

upcoming years.

Significant demand in pattern & better quality paper & industrial varieties of paper

are much more in demand.

Special drive for awareness of literacy & increase in mass education by

government.

Increase in FDI’S (foreign direct investments) via which various MNC’S have

entered into business in India, & consume a good quantity of paper & stationeries in

their workings.

Opportunities opened for the technologically superior, upgraded better managed

mills to go value added product range, fetching higher realization.

THREATS:

Stiff competition.

Illegal distribution done by some distributors. Changing of consumer preferences.

ASSUMPTIONS OF THE STUDY

113

Respondent’s responses have been collected through various sources & it is assumed

that they are correct.

DATA ANALYSIS:

Data becomes useful only after it is properly analyzed .Data analysis involves

uncovering the information from a series of recorded observations i.e. data into

descriptive statement & inferences about relationship. This task was helpful thereby in

identifying the areas where the company can improve further; collected data was

analyzed by the use of simple statistical tools like percentage & average.

Results thereby have been represented by using Bar graphs, column graphs, tables &

pie charts.

ANNEXURE-II

114

REFERENCES

1. Indian paper market.

2. Wood & recycled fiber

(www.fao.org)

3. Company journals

4 www.centurytentind.com

5. www.acmesurplus.com .

6. www.century paperindia.co.in.

7. www.job street.com

8. www. Indubusinessline.com

ANNEXURE –III

115

CENTURY PULP & PAPER

(SUMMER TRAINING)

QUESTIONARE-FOR THE RETAILERS.

(FOR ACADEMIC PURPOSE ONLY)

2. Since how long are you associated with the dealers of CPP Industries?

a) >4 years b) >8 years c)>12years d)>16 years.

3. Are advertisements required to serve the purpose better?

a) Yes b) No

4. Type of function you are performing?

a) Retailer b) Supplier

5. Which type of consumer responses forwards the products of CPP?

a) Highly positive b) Positive c) Moderate d) Negative.

6. Which of the quality attributes for writing & printing paper you

prefer most in terms of customer preferences?

a) Smoothness b) Brightness c) Bulk d) Opacity.

7. From where do you purchase the paper?

a) Dealer b) Directly firms the mill.

8. Which problem have you generally faced with w.p.p papers?

a) See thoroughness b) Poor ink absorbancy c) Creasing d) Other.

9. Who are your frequent consumers?

a) Corporate professionals b) Govt. officers c) schools&institutions

d) Students.

10. Which w.p.p. you prefer most

a) Cpp b) JK paper c) Andhra papers d) Orient

e) Ballapur f) Others.

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11. Do the CPP dealer provide you with some discount policies or

schemes sometimes?

a) Yes. b) No.

11. What is your expectation from CPP dealers?

a) Incentive b) Discounts c) Credit d) Others.

12. Do you receive motivational sales scheme from CPP dealers?

a) Yes b) No

13. Is the current packaging of CPP products attractive & safe?

a) Yes b) No

14. Last but not the least that, do you feel like that hiring a brand

Ambassador & then advertising for the paper products would

be helpful in generating more volume of sales for the company?

a) Yes b) No c) Sale would remain approx.same.

ANNEXURE V

INDENT FORM

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CENTURY PULP & PAPER

Propritor name & address:

Indent No: Date:

Dealer Name & Address:

C.S.T NO: Date:

L.S.T NO: Date:

Documents in use-

Documents of sale-

Banker’s name & address:-

Document No: - Issue No:-

Head office address (KOLKATA):

Order confirmation no: - Date:-

Invoice to be raised on (address of party):-

Detail of mode of transportation:-

-----Destination-----------

Details of cheque/ draft/advance payment:

Probable date of us

QUESTIONARE – (FOR DEALERS)

1. How many godwns do you have?

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a)1no b)2no c)3no d) 4no. e)more than 4

2. Weather the godowns are:

a) Hired b) Personnel.

3) During which period of year you register maximum sales?

a) 1st qtr. B) 2nd qtr. c) 3rd qtr 4) 4th qtr.

4. Who are your major customers?

a) Printers b) Govt.sector c) Industrial customers.

5. How do you receive the order from customer’s /retailers? & how

frequently?

a) Weekly b) Fortnightly c) Monthly d) Once (in a whole year).

6. How do you keep in touch with retailers? What is the mode of

Solving retailer queries & receiving feedback?

a) Via-telephone b) Direct visit c) Others.

7. Despite CPP what are the other brands you deal with?

a) None other brand. b) Jk papers c) Punjab d) Ballapur e) Orient

f) Others.

8. Are you satisfied with the service provided by the company?

a) Yes b) No

9. How is the packaging?

a) Very good b) Good c) Satisfactory d) Others

10. What according to you are the possible threats to CPP from competitors?

a) Incentives b) Sales & distribution network c) Price d) Others.

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Name of dealer-

Address-

Contact no-

DECLARATION

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I hereby declare that project work entitled “MARKET ANALYSIS & STUDY OF

DISTRIBUTION CHANNEL TO ENHANCE BRAND POTENTIAL”. In century

pulp & paper, Lalkuan Nainital (uttarakhand), submitted in partial fulfillment of the

requirements of our M.B.A programme, is our original work & is not submitted for

the award or any degree, diploma or other similar title or prizes.

BIBLIOGRAPHY

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BOOKS

Marketing management(kotler Philip)

Research methodology (Kothari C.R)

Magazines/annual reports of CPP.

BUSINESS TODAY.

ANNUAL REPORT OF CENTURY INDUSTRIES.

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