PETAL Paper Mills
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Transcript of PETAL Paper Mills
Team: St. Aloysius College
Industry: Paper Industry
Paper Industry Name: Petal Paper Mills Ltd.
Punch line: “Feel the Difference”
ABOUT PETAL PAPER MILLS
PAPER MANUFACTURING (Process)
MANAGEMENT (Organization Chart)
In a constantly changing business scenario, maintaining a niche becomes even more challenging. In such a situation only with innovative leadership, state-of-the-art technology and committed people can a company steal the lead over competitionA company can lead by making quality a continuing reality, lead by being a profit-making concern, lead by being a committed corporate citizen, lead by moving ahead into the future-confidently.
And that is the story of PETAL Paper Mills Limited – which is one of the biggest, integrated pulp and paper manufacturing plant internationally which has now set up a plant in Andhra Pradesh.
The word ‘paper’ derives from the word ‘papyrus’ and is a substance composed of fibres interlaced into a compact web, which can then be macerated into pulp, dried and pressed. Today, paper includes a wide range of products with very different applications: communication, cultural, educational, artistic, hygienic, sanitary, as well as for storage and transportation of all kinds of goods. It's almost impossible to imagine a life without paper.
PAPER AND ITS USES
We depend on this paradoxical material. Little can happen in modern life without paper or board (a particular form of paper) and millions of tonne of it are made and used each year.
Paper is incredibly versatile: it can be permanent or transient, delicate or strong, cheap or expensive, abundant or scarce. It can be preserved in a museum or thrown away. It can decompose in water and yet, when suitably treated, it can be used to make maps that withstand the weather and even the hulls of boats.
Paper may be impregnated, enamelled, metallised, made to look like parchment, crêped, waterproofed, waxed, glazed, sensitized, bent, turned, folded, twisted, crumpled, cut, torn, dissolved, macerated, moulded or embossed. It may be coloured, coated and printed. It can be marked and then the mark erased. It can be laminated with itself or with fabric, plastic or metal. It can be opaque, translucent or transparent. It may be made to burn or be made fire-resistant. It may be used as a carrier, a barrier or a filter. It may be made tough enough to withstand acid or soft enough for a baby's skin. It can be read from, laid on or worn as a garment. It may disintegrate or it may be reused, but it is, overall, biodegradable and comes from an infinitely renewable resource.
All around us paper has been used as part of our everyday life. The range of possible uses for paper is almost limitless and new ways of using it are being devised daily
EXAMPLES OF PAPER USESAgriculture Sacks, seed packets.
BuildingWallpaper, damp-proof courses, roofing, flooring, flame resistant papers, plasterboard, and decorative laminates for furniture.
Business Computer tapes, print-out sheets, advertisements, circulars, catalogues, filing systems, sales and service manuals, brochures, shop-till paper.
Money, Finance and SecurityMoney, insurance forms, cheque books, travellers' cheque, postal orders, cash bags, papers that contain special markings which are only visible when subjected to ultra-violet light.
Photocopying paper, graph papers, paper twine and string, blotting paper, carbonless paper, box files, folders.
Cars Fascia boards, door and roof liners, filters, the Highway Code.
Writing, typing, printing, envelopes, publishing, accounts, receipts, stamps, newspapers, magazines, greeting cards, calendars, diaries, telephone directories.
Wrapping and boxes for cleaning materials, domestic tissues, paper plates and cups, kitchen towels, table napkins, lampshades.
Books, exercise books, instruction books, maps, wall-charts, report cards.
Entertainment and Sport
Menu cards, paper hats, crackers, fireworks, programmes, playing cards, board games, kites, model aircraft, football coupons, race cards.
Wrapping for bread, flour, tea, sugar, butter, margarine, sweets, deep frozen food etc., milk cartons, egg boxes, foil wrappings, tea bags, sausage skins.
Gummed labels, identity cards, tamper-proof labels for supermarkets.
Presentation, wrapping, packaging and protection for all manufactured goods, transfer sheets for decorating chinaware.
Special insulating boards, electrolytic condenser paper, wrapping and identification for electrical cables, printed circuits, battery separators.
Filters for water air, coffee, medicine, beer, oil and for mechanical uses.
Polishing, waxing, cleaning.
Grease proof and corrosion-resistant products, sleeves for compact discs.
Packaging to keep instruments and equipment sterilised, bandages, plasters, clothing for nurses, face masks, surgeons' caps, disposable bed pans, sheets, pillowcases.
Personal Facial and toilet tissue, towels, sanitary products, tableware, sheets, disposable nappies, confetti, carrier bags, gift wrapping.
Photographic Films, photographs, enlargements, mounts, lens cleaners.
Record keeping and other documentation
Legal documents, birth, marriage and death certificates, wills, history, scientific data.
Tickets, passports, maps, charts, luggage labels, timetables, fibre for suitcases.
PAPER AND ENVIRONMENT
Based upon wood, a natural renewable resource, paper is biodegradable and recyclable and a source of energy after use. The pulp and paper industry is, therefore, well fitted to meet the challenge of sustainable development, from the forest, through the production of pulp and paper, to its use and finally through recycling.
The sun drives the pulp and paper eco-cycle: with water, nutrients and carbon dioxide, photosynthesis transforms solar energy into wood fibres in growing trees. This endless process means that the forest is a renewable source of raw material that provides wood fibres to produce timber products, pulp and paper, and energy as a biofuel. The carbon dioxide released by burning the biofuel is essential for the growth of wood and in this way the eco-cycle is closed and balanced.
Environmentally, the industry’s sustainability assets are numerous. It is based on truly renewable resources with recovered fibres now representing some 46.5% of the industry’s raw materials, it relies heavily on biofuel (about 50% of its primary energy) and it is highly energy-efficient. Once consumed, most forest-based products start a new life as recycled material or biofuel.
Commitments have been made for the next decade to provide for a more sustainable use of natural resources. A key element is ‘de-coupling’ the environmental impact caused by the consumption of natural resources (space, soil, forests, water etc.) from economic growth, which will place European forests at the forefront of new environmental challenges. More generally, sustainability has moved from being an issue purely concerned with resource management (sustainable forest management, certification, nature-orientated management etc.) to embracing forest utilization, as well as taking
into consideration new developments in energy production and climate change mitigation.
Pulp and paper production is an energy-intensive activity and energy costs can represent up to 25% of the total manufacturing cost. This has always been a serious incentive for the industry to invest in improved energy efficiency, as the significant progress achieved over the last decade shows.
The industry’s specific primary energy consumption has decreased by 16% and the specific electricity consumption has decreased by 11%, due to measures such as improved process technology and investment in combined heat and power (CHP).
Specific carbon dioxide emissions from fossil fuels decreased by 25% due to process-related measures and the increased use of low-carbon and biomass fuels.
The pulp and paper industry is the single largest producer and user of biomass fuels. These include wood residues, residues from forestry operations, bark, black liquor and production residues. Pulp and paper mills also recover energy from their waste stream by using biomass as a primary energy source in the manufacturing process. Today about 50% of the total energy consumption of the European pulp and paper industry comes from biomass fuels which are carbon dioxide neutral.
Co-generation, or combined heat and power (CHP), is increasingly recognized as a key technology to save energy, thereby reducing carbon dioxide emissions: CHP installations allow savings of some 30-35% of primary energy compared to conventional boilers. Some 90% of the energy produced at mills is produced through CHP technology.
CLIMATE CHANGE AND PAPER INDUSTRY
At the United Nations Framework Convention on Climate Change in Kyoto in December 1997, industrialized countries committed themselves to a quantified reduction of their greenhouse gas emissions (GHGs) over 2008-12 against 1990 levels. The EU committed itself to a reduction of minus 8%.
However, the growth in greenhouse gas emissions since 1990, especially from the transport sector, suggests that the Kyoto targets are much more ambitious than was envisaged in 1997.
THE PAPER INDUSTRY IS PART OF THE SOLUTION
The paper industry makes a positive contribution towards counteracting climate change. The carbon-based products manufactured by the industry and its increased production and use of biofuels further prove that it has the potential to become one of the first truly sustainable industries.
WATER AND THE PAPER INDUSTRY
Water is a key element in the production of paper. It is used in nearly every stage of the pulping and papermaking process, and it inevitably picks up effluents as a result.
To reduce the environmental impact, the effluents from the papermaking process are collected and treated before being returned to surface waters or estuaries. The volume of effluents is also reduced by the reuse of processed water and additives. Interestingly, the water taken from rivers or lakes often has to be purified before it can be used at the mill and, as a result of enhanced treatment techniques and internal changes in the manufacturing process, it will be returned in a cleaner state than when it was taken.
Waste water effluents from pulp and paper mills contain mainly solids, nutrients (nitrogen and phosphorus) and organic substances. The concentration of organic substances in effluent water is expressed as the amount of oxygen it takes to degrade these substances through either biological processes (biological oxygen demand - BOD) or chemical reactions (chemical oxygen demand). Since the mid-1990s there has been a major decrease of over 70% in the discharge of BOD per tonne and this helps to combat the problem of oxygen depletion of surface waters.
Effluents from chemical pulp mills also contain organic chlorine compounds (AOX). Some of these substances are naturally present in wood and some come from the chlorine bleaching process. Chlorine gas was once the primary bleaching agent used by the industry but has now been abandoned in favour of more environmentally sound bleaching techniques that use chlorine dioxide and ozone, resulting in a massive reduction of AOX in the effluents.
Prior to this known as "PETAL Paper Mills", it was a more than three decades old 10 MT per day plant in Russia which has vast natural resources that provide raw materials for the country’s industrial and commercial economy. Large mineral deposits feed energy production, and tracts of forests supply the wood and wood products industry. Here, a worker oversees paper production at a mill in the republic of Komi in northwestern Russia.
The present plant is producing 300 MT per day. There are five paper machines installed in the mill which produces paper of different M.F & M.G varieties in the range of 21 to 250 GSM.
The new plant will help to increase the standard of living for locals of the area. While providing direct employment to over 4000 families, the company provides ways and means to over 10,000 families to earn their bread and butter through indirect job opportunities.
Industry Scenario - Why Priority ?
The challenge for the Indian paper industry to meet the ever increasing demand of paper, board and newsprint is getting crippled due to shortage of fibres in the country. The future demand of paper is expected to grow from 5.6 MT at present TO 9.5 MT in 2010 and 13 MT in 2015. Demand for cream woven paper is expected to increase by 7-8%. Demand for different kinds of coated paper has increased by 8% in 2002, duplex board has recorded increase by 6.5%, kraft paper has registered a 6% rise in demand and newsprint an impressive 10%.
Indian paper industry can be broadly classified into paper and paperboards and newsprint. The paper and paper board segment constitutes of cultural paper, industrial paper, specialty paper. We will be treating newsprint as a separate type of paper. The Indian paper industry, reeling under liberal imports, price cuts and rising
input costs for the past three years, seems to be on a comeback trail. With the firming-up of international pulp and paper prices, the domestic paper market registered an upward trend.
MissionOur mission is to be a powerful force in the world economy in paper technology through productivity and excellence, a shared vision for which shared responsibility lies with all stake holders.
ValuesEmployee Empowerment for commitment to total quality: team efforts and increased productivity; Ethical Management Practices for esteem , credibility,life and public Image
Guiding PrinciplesIntegrity of management, union, staff, workers and all people associated with us.
Ecofriendly Process, Innovative Value Engineering, Human Engineering, Technology for better Quality and cost effectiveness,Customer satisfaction for untainted growth and business.Consistently increased Profitability for prosperity and growth of the individualand industry. Corporate citizenship for meeting societal objectives.
We have introduced a simple set off values, coined into one phrase – ‘Quest for change’. Quest is defined as:Q - Quality – “We will succeed in our role only by being so passionate about our service that it becomes a differentiating factor in every industry we operate. We will establish consistently high standards across the whole group and constantly seek new opportunities to enhance our customer service”U - Urgency – “We will approach our work with a great sense of urgency, ensuring that we respond quickly to the market place, in a well thought manner.”
E - Excellence – “We will stretch ourselves to be truly excellent in whatever we do. This excellence will permeate every aspect of our working life, whether it is the letters we write, the strategy we formulate or the manner in which we deliver supplies to our customers.”S - Strength Of Character – “Honesty, integrity and respect will be underlining personal qualities in all our transactions.”T- Teamwork – “We will have a culture that shares knowledge and experience: that communicates face to face, regularly discusses strategy and key issues within the group and solicits contribution and buy-in at all levels.
The finest papers were made with cotton. Cotton rags were chopped up, typically by women, and sent to the pulper where the cotton fibers would be further broken down.
Pulp is purchased in dried sheets, otherwise is would be too costly and heavy to ship. Dry sheets are 10% moisture. The Beater men put the sheets in the beater to create slurry. Slurry is lumpy; the pulp beater can only smooth out the slurry to a certain point. Then slurry is sent through a " Jordan" refinery machine to "de-lump" or "Jordan" the mixture, dispersing fibers evenly and breaking up longer fibers
It is necessary to cook wood fiber to turn it into pulp. High temperatures, pressure and chemicals are used. The man in this painting is controlling the pressure with steam. The cookers are round and have internal agitators to keep the pulp moving.
The mixing tank is where additives such as dye, wet strength chemicals, moisture retention chemicals and other substances are combined with the stock. From here the stock goes to the Machine Chest and then to the Head Box.
This painting illustrates the forerunner of the head box where stock is sprayed onto the wire. This man is adjusting valves in order to adjust the amount of stock sprayed. In the background a couch roll can be seen (where the sheet is "picked" off the wire and transferred to the felt.)
These men are putting on a dandy roll to help create evenness and place watermarks in the sheet. The sheet is moving left to right. A pressure stream of water, called a "pisser," cuts off the edge of the sheet as it passes, creating a nice straight edge.
The dry end of the paper machine is the end where the finished sheet comes off. The man is checking the feel and transparency of the sheet for its thickness and formation. The paper has moved from right to left in this painting, passing through the dryers, calendar stack and reel.
The rewinder shaft (with the lighter colored paper core) rides between two rolls to even out the sheet using tension, pressure and speed. Edges of the paper are trimmed and then recycled.
This illustration shows the wind-up at the dry end of the sheet coming off the paper machine. The foreman and machine tender are shown.
The reels of paper are being "calendered ." This is a process that smooths out surfaces and "densifies" the sheet so that a sheet is thinner but just as heavy per ream.
The quality control testing laboratory is usually built into or adjacent to the actual paper mill. The lab technicians test the paper and pulp to make sure it remains consistent with the specs of a particular product line. The man looking into the box is using a microbalance and is testing paper weight to 1000th of a gram; the balance is in a box to keep the paper free from air movements, temperature and humidity changes. The woman in the back is a tear tester, testing the strength of
the sheet, fiber length and its wood source. Various distillation columns and other devices are shown .
MACHINE PAPER MAKING
Although the essential procedures of papermaking by machine are identical with those of hand papermaking, machine papermaking is considerably more complex. The first step in machine papermaking is the preparation of the raw material. The materials chiefly used in modern papermaking are cotton or linen rags and wood pulp. Today more than 95 percent of paper is made from wood cellulose. For the cheapest grades of paper, such as newsprint, groundwood (mechanically processed) pulp alone is used; for better grades, chemical wood (pulp in which undesirable materials are chemically removed), pulp, or a mixture of pulp and rag fiber is employed; and for the finest papers, such as the highest grades of writing papers, rag fiber alone is used.
Rags used in papermaking are first cleaned mechanically to remove dust and foreign matter. Following this cleaning, the rags are cooked in a large rotary boiler. This process involves boiling the rags with lime under steam pressure for a period of several hours. The lime combines with greases and other impurities in the rags to form nonsoluble soaps, which can be washed away in a later process, and at the same time reduces any colored dyes present to colorless compounds. The rags are then transferred to a machine called a beater, or Hollander, which is a long tub divided longitudinally so as to form a continuous channel around the tub. In one half of the tub, a horizontal cylinder carrying a series of knives revolves rapidly close to a curved bedplate, which is also provided with knives. The mixture of rags and water passes between the cylinder and the bedplate, and the rags are reduced to fibers. In the other half of the tub, a hollow washing cylinder covered with fine mesh screening is arranged so that it scoops water from the tub, leaving the rags and fibers behind. As the mixture of rags and water flows around the beater, the dirt is removed and the rags are gradually softened until they are finally resolved into individual fibers. The half stuff is then passed through one or more secondary beaters to break up the fibers still further. At this point are added coloring matter, sizing material such as rosin or glue, and fillers such as sulfate of lime or kaolin, which give added weight and body to the finished paper. In many American paper mills the second beater is of the type known as a Jordan engine. This machine consists of a stationary cone fitted with knives mounted
outside a revolving cone also equipped with knives. The fiber material flows between these two sets of knives, and the cones can be adjusted relative to each other with great accuracy to regulate the fineness of the fibers.
The preparation of wood for papermaking is accomplished in two different ways. In various chemical-solvent processes, wood chips are treated with solvents that remove resinous material and lignin from the wood, leaving pure fibers of cellulose. The oldest of the chemical-solvent processes, the soda process, introduced in 1851, employs a solution of caustic soda (sodium hydroxide) as a solvent. The wood is cooked or “digested” in this solution under steam pressure. The fibers produced by this process do not have great strength but are used in mixtures with other wood fibers. The process most generally employed in the United States is the sulfate process, which is named for the solvent used either sodium sulfate or magnesium sulfate.
In the ground wood process, blocks of wood are held against a rapidly revolving grindstone that shreds off short wood fibers from the block. The fibers produced by this process are used only in the production of cheap newsprint and for admixture with other types of wood fiber in the making of high-quality paper. To produce white paper from this pulp, paper mills have historically bleached the pulp with chemicals such as chlorine. Chlorine removes lignin, which gives paper an often undesired brown color. However, because bleaching paper with chlorine produces a carcinogen (cancer-causing compound) called dioxin; in 1998 the United States Environmental Protection Agency (EPA) published the pulp and paper industry Cluster Rule which will require U.S. paper companies to eliminate chlorine from the bleaching process by 2001. Instead, the mandate will require the companies to switch to safer compounds such as chlorine dioxide or sodium hydroxide.
Most paper today is made on Fourdrinier machines, which are patterned after the first successful papermaking machine, developed in 1803 by the British brothers Henry Fourdrinier and Sealy Fourdrinier. The heart of the Fourdrinier machine is an endless belt of wire mesh that moves horizontally. A flow of watery pulp is spread on the level belt, which passes over a number of rolls. A shallow wooden box beneath the belt catches much of the water that drains off during this stage. This water is remixed with the pulp to salvage the fiber contained in it. Spreading of the sheet of wet pulp on the wire belt is limited by rubber deckle straps moving at the sides of the belt. Air
suction pumps beneath the belt hasten drying of the paper, and the belt itself is moved from side to side to aid the felting of the fibers. As the paper travels along the belt it passes under a turning cylinder called a dandy roll. The surface of this cylinder is covered with wire mesh or single wires to impart a wove or laid surface to the paper. In addition, the surface carries words or patterns worked in wire; these are impressed on the paper and appear as watermarks that identify the grade of paper and the maker. In handmade papers, the watermark patterns are fixed to the surface of the mold.
Near the far end of the machine, the belt passes through two felt-covered couching rolls. These rolls press still more water out of the web of paper and consolidate the fiber, giving the paper enough strength to continue through the machine without the support of the belt. The function of these rolls is the same as that of the felts used in couching handmade paper. From the couching rolls, the paper is carried on a belt of cloth through two sets of smooth metal press rolls. These rolls impart a smooth finish to the upper and lower surfaces of the paper.
After pressing, the paper is fully formed. It is then carried through a series of heated rolls, which complete the drying. The next step is calendering, pressing between smooth chilled rolls to produce the smooth finish known as machine finish. At the end of the Fourdrinier machine, the paper is slit by revolving cutters and wound on reels. The manufacture of the paper is completed by cutting into sheets, unless the paper is to be used on a continuous press that employs rolls of paper. Special papers are given additional treatment. Supercalendered paper is subjected to a further calendering process under great pressure between metal and paper-covered rolls. Coated paper, such as is used for fine halftone reproduction, is sized with clay or glue and calendered. Paper is also made on cylinder machines. Much of the tissue paper manufactured is made on Yankee machines, which have a single steam-heated cylinder for drying. Equipment used in pulp making and papermaking is constantly being improved and modernized. For example, the Inverform machine, which was invented in England in the 1940s, is a high-speed machine that produces a range of box board used by the food packaging industry. Paper is usually sold by the ream in sheets of standard sizes. A ream of paper usually contains 480 sheets, but reams of drawing paper and handmade paper contain 472 sheets. Book paper and newsprint for flat-plate printing are sold in reams of 500 sheets and in perfect reams of 516 sheets. The most common book-paper size is octavo (112 by 168 cm/44 by 66 in). Newsprint for rotary-press printing comes in rolls of varying sizes; a typical roll of newsprint, as used by large
metropolitan newspapers in the United States, is 168 cm (66 in) wide and 7,925 m (26,000 ft) long, and weighs about 725 kg (1,600 lb).
Name Metric Imperial
large post 419 × 533 mm 16 1/2 × 21 in
demy 444 × 572 mm 17 1/2 × 22 1/2 in
medium 457 × 584 mm 18 × 23 in
royal 508 × 635 mm 20 × 25 in
double crown 508 × 762 mm 20 × 30 in
A Series (Books, Magazines, Stationery)
A0 841 × 1,189 mm 33 1/8 × 46 3/4 in
A1 594 × 841 mm 23 3/8 × 33 1/8 in
A2 420 × 594 mm 16 1/2 × 23 3/8 in
A3 297 × 420 mm 11 3/4 × 16 1/2 in
A4 210 × 297 mm 8 1/4 × 11 3/4 in
A5 148 × 210 mm 5 7/8 × 8 1/4 in
B Series (Posters, etc.)
B0 1,414 × 1,000 mm 55 5/8 × 39 3/8 in
B1 1,000 × 707 mm 39 3/8 × 27 7/8 in
B2 707 × 500 mm 27 7/8 ×19 5/8 in
B3 500 × 353 mm 19 5/8 × 13 7/8 in
B4 353 × 250 mm 13 7/8 × 9 7/8 in
B5 250 × 176 mm 9 7/8 × 7 in
C Series (Envelopes)
C4 324 × 229 mm 12 3/4 × 9 in
C5 229 × 162 mm 9 × 6 3/8 in
C6 162 × 114 mm 6 3/8 × 4 1/2 in
DL 220 × 110 mm 8 5/8 × 4 3/8 in
PRODUCT INFORMATION FOR EXPORTS Wood free Writing & Printing Drawing catridge S.S.Color Cards Copier MG White Poster MG Color Poster MG White & Color Cover Papers MG Ribbed Kraft MG Plain Kraft Plain Paper (White Writing)
PRODUCT INFORMATION - DOMESTIC VARIETIES
MG White Poster 48-90 gsm. MG Ribbed kraft 48 to 90 gsm. MG TD Poster 50 gsm. MG Poster (Coating Base) 60 & 70 gsm. MG White Poster (NS) 50-70 gsm. MG pink Manilla 50, 58 & 80 gsm.
Paper Machine – II
MG White Cover 100 to 230 gsm MG Color Cover Paper 100 / 230 gsm (Pink, Yellow, Blue & Green) MG Coating Base (Natural & Tinted White Shade) 100-200 MG White Cover Paper (Full Lamination) 200 & 230 gsm. MG Plain Kraft (NS) 100 / 240 gsm. MG Plain Kraft (Regular Shade) 100 / 240 gsm. MG Plain Kraft (Textile tubes & Cones) 180-240 gsm. MG Plain Kraft (Battery Jackets) 100-150 gsm
Paper Machine – III
S.S Graphics Paper 60 gsm. (Varnishable Grade) S.S Maplitho Paper 70-140 gsm (Varnishable & Non-Varnishable grades) S.S Pulp Board 175-250 gsm. S.S Coating Base (Cast Coating Shade) 60-200 gsm. S.S Copier 70/75/80 gsm. Andhra Copier 75 gsm.(Cut Size, Brand item) Azure Laid 70,80,90,95 gsm. S.S Envelope Paper 70,80,90,120 gsm. Carbon less Paper 45 / 47 gsm.
Paper Machine – IV
MG Delux White Poster 28/32/38/45 gsm. MG Color Poster 28/38/40 gsm. MG Violet Poster 32 gsm.
Paper Machine – V
Cream Wove 47,52,54,58,60 gsm. Publication Paper 52,54,58,60 gsm. Coating Base (NS & Cartridge Shade) 58 to 175 gsm. Deluxe Maplitho (Primary) 58,64,70,80,90,100 gsm. S.S Multi Print (Varnishable) 60/70/80/90/120 gsm Eco Copier 75 gsm (Cut Size - Brand Item)
Printing & Writing Paper
MF Cream Wove 50-60 gsm. MF White Pulp Board 110-180 gsm. MF Azure Wove 52-60 gsm. MF Azure Laid 70-90 gsm. MF Duplicating > 60 gsm. MF Colour Printing 45-56 gsm. DLX Cream Wove 50-60 gsm. Eco Cycle Office Paper 75 gsm.
DLX News Print (R) 45-48 gsm. DLX News Print (S) 45-48 gsm.
Industrial Packaging Grades
MG Plain Kraft 16BF to 24BF 90-180 gsm.
MG Core Liner 15BF 280-300 gsm.
Estimated Cost Sheet of Petal Paper Ltd for the period from 1-01-2005 to 1-07-2005
Particulars Quantity Total CostCost Per
UnitDirect Materials 80,000 5,62,40,000 703.00Direct Wages (Productive Wages) 2,81,60,000 352.00Direct Expenses (Chargeable Exp) 1,12,80,000 141.00
Prime Cost 9,56,80,000 1196.00
Factory Overheads 11,24,80,000 1406.00Gross Works Cost 20,81,60,000 2602.00Less Closing Work in Progress (10% on Gross works cost) 2,08,00,000 260.00
0 2342.00Add Administration Overheads 3,76,00,000 470.00
Cost Of Production 80,00022,49,96,00
0 2812.00Less Closing stock of Finishes Goods (20% on Cost of Production) 4500 1,26,54,000 2812.00Production Cost Of Good Sold 75,500 21,23,06,000 2812.00Add Selling Overheads 25,20,19,000 3338.00
0 6150.00Profit To The Manufacturer (9.14%) 1,39,67,500 185.00
Total Cost Before Excise Duty 47,82,92,500 6335.00Add Excise Duty 13,43,90,000 1780.00
Selling Price Of Manufacturer 61,26,82,500 8115.00Add Profit Of The Distribution 1,43,45,000 190.00
Selling Price Of Distributors 62,70,27,500 8305.00Add Profit Of The Retailers 2,80,86,000 372.00
Selling Price Of The Retailers 65,51,13,500 8677.00Add Sales Tax 2,43,86,500 323.00
Price To The Consumers 75,50067,95,00,00
Projected Balance Sheet Of Petal Paper Mills Ltd for period 1-01-2005 to 1-07-
Liabilities Amount Asset Amount
Authorised CapitalAuthorised Capital Fixed AssetsFixed Assets 5,00,000 Shares @ Rs100 each 5,00,00,000
Land & Buildings 75000000
Less Depreciation 7500000 6,75,00,000
Subscribed & Paid UpSubscribed & Paid Up Plant & Machinery 60000000
5,00,000 Shares @ Rs100 each 5,00,00,000
Less Depreciation 12500000 4,75,00,000
Electrical Installation 30000000
Reserves & SurplusReserves & Surplus Less Depreciation 3000000 2,70,00,000
P & L Account 3,07,10,625
Secured LoanSecured Loan Furniture 25000000
Term Loan 4,00,00,000Less Depreciation 2500000 2,25,00,000
Short Term Loan 4,00,00,000 Investments 2,00,00,000Less Fall in market value 1,20,00,000 80,000
Debentures 1,50,00,000Current AssetsCurrent Assets Finished Goods 1,73,00,000Unsecured LoanUnsecured Loan 1,00,00,000Raw Materials 89,00,000 Work In Progress 2,08,00,000Current Liablilities & Current Liablilities & ProvisionsProvisions Sundry Debtors 45,00,000Current Liabilities 50,00,000Cash In Hand & At Bank 50,00,000Provision for Tax 1,47,25,375 Proposed Dividend 50,00,000Loans & AdvancesLoans & Advances 2,70,00,000 Outstanding LiabilitiesOutstanding Liabilities Taxes 2,18,38,500 Salaries 1,92,25,500
FUNDS FLOW STATEMENT
Particulars AmountProfit To Manufacture 1,39,67,500 x 2 2,79,35,000Less: Interest On Term Loan,
Add: Interest on short term loan1,20,00,000
Interest On Debentures 21,37,500 4,20,72,500
Less: Provision For Tax @ 35% 1,47,25,375 2,73,47,125Less Proposed Dividend 50,00,000 3,23,47,125
Funds from Operators
Profit before Tax & Dividend 4,20,72,500Add Depreciation 3,75,00,000 7,95,72,500
Funds Flow StatementSources Of Funds: Share Capital Issued, Subscribed & Paid Up 5,00,00,000
Term Loan 4,00,00,000
Short Term Loan 4,00,00,000Debentures 1,50,00,000
Unsecured Loans 1,00,00,000Funds From Operations 7,95,72,500 23,45,72,500
EXPECTED FINANCIAL PERFORMANCE OF PETAL PAPER MILLS LTD FOR THE YEAR 1-01-
2005 TO 1-07-2005
A] INSTALLED CAPACITY AND UTILISATIONInstalled Capacity (Tonnes) 98,500Production(Tonnes)
Utilisation (%) 76.65%
[B] FINANCIAL INFORMATION
OPERATING RESULTSTurnover 67,95,00,000Profit before Depreciation and Tax 4,20,72,500Depreciation 3,75,00,000Provision for Tax @35% 1,47,25,375Profit after Tax (-)
1,01,52,875SOURCE OF FUNDSShare Capital - Equity 5,00,00,000Reserves & Surplus 3,07,10,625Shareholders Funds NilBorrowings 9,50,00,000Deferred Credits (Unsecured) 1,00,00,000Total 18,57,10,625
APPLICATION OF FUNDSNet Fixed Assets 19,00,00,000Investments 2,00,00,000Working Capital 19,00,00,000Loans & Advances 2,70,00,000Total 28,40,00,000
FINANCIAL RESULTS FOR THE HALF YEAR ENDED 30-06-2005
Particulars Half Year
1. Sales 67,95,00,000
2. Other Income 5,86,500
3. Total Expenditure46,43,25,000
4 Other Expenses 15,95,51,5005 Interest 1,41,37,500
6 Depreciation 3,75,00,000
7Profit before Tax but after depreciation
8. Net Profit(-) 1,01,52,875
9.. Paid-up Equity Capital (Face Value - Rs.100/- per share)
Category No. of shares held Percentage
A) Promoter’s holding
- Indian Promoters
- Foreign Promoters
-Petal Paper Co Ltd
2. Persons acting in Concert Nil 0.00%
B) Non-Promoters Holding Nil 0.00%
3. Institutional Investors Nil 0.00%
a. Mutual Funds and UTI 1000
b. Banks, Financial Institutions, Insurance Companies (Central/ State Govt. Institutions/ Non-government Institutions)
c. FIIS 2100 0.42%
a. Private Corporate Bodies 34,650 6.93%
b. Indian Public 72,150 14.43%
c. NRIs/ OCBs 150 0.03%
d. Any other (Please specify) - TRUST
GRAND TOTAL 5,00,000 100.00%
STATEMENT OF FIXED AND VARIABLE COST
Fixed Cost Statement
Factory Overheads: -Factory Overheads: - Depreciation On Plant 1,25,00,000 Consumable Stores 66,18,000 Welfare Expenses (E.S.I, P.F) 1,29,32,000 Wages Of Works Manager, Foreman 73,79,000 Research & Development 7,24,84,000 Depreciation On Factory Furniture 2,28,000
Depreciation On Electrical Fittings 3,39,00011,24,80,00
Administrative Overheads: -Administrative Overheads: - Legal charges 72,88,000 Depreciation On Land & Building 75,00,000 Depreciation On Furniture 25,00,000 Depreciation On Electrical Fittings 30,00,000 Salary to Administrative Staff 1,20,26,000 Office Rent 52,86,000 3,76,00,000
Selling & Distribution Overheads: -Selling & Distribution Overheads: -
5 Traveling Expenses 2,86,000 Warehouse 1,31,00,000
Total Fixed Cost 36,51,53,01
Variable Cost Statement
Direct Materials 5,62,40,000Direct Wages 2,81,60,000Direct Expenses 1,12,80,000 9,56,80,000
Selling & Distribution Overheads: -Selling & Distribution Overheads: -
Packaging Charges 3,69,45,985 3,69,45,985Total Variable Cost 13,26,25,985
BREAK EVEN ANALYSIS
Sales 67,95,00,000Less: Variable Cost 13,26,25,985Contribution 54,68,74,015
Contribution Per Unit = Contribution
Number Of Tonnes
Break Even Tonnes = Fixed Cost
Contribution Per Tonne
= 50,412.10 tonnes
M = 50,412.10 tonnes
Level Of Output (Sales Volume)
Break Even Sales = 45,37,08,900
TC = TOTAL COSTTR = TOTAL REVENUEB.E.P = BREAK EVEN POINTB.E.P = M = [TR = TC]
MARGIN OF SAFETY = ACTUAL SALES – BREAK EVEN POINT X 100 ACTUAL SALES
= 33.23 %
WHAT A MARKETING STRATEGY HAS TO INCORPORATE
1. Define the target buyer, demographically and by Lifestyle, if appropriate2. Translate the company mission into a measurable Annual objective3. Tell how the goals will be accomplished in terms of:
– Marketing spending vs. competition in the category– Brand positioning– Pricing actions– Product qualityToday the complicated wheels of industry are moved and propelled because of the external motive power of satisfying needs. The process of production sets in motion an action to serve one’s ultimate objective, which is to satisfy the countless needs and desires of the human race. It is here that marketing strategies play a quintessential role in deciding the fate of a product.
THE INFORMERCIAL EXPERTISE:
Selling products or services directly to the consumer via television and the Internet is a cost effective and exponentially
growing sales medium. In order to take full advantage of this powerful and cutting edge vehicle, you need the expertise of professionals who are up to date on the latest electronic and direct marketing opportunities. Whether you are an experienced marketer or an entrepreneur looking to finally unlock the full potential of your product, the 1st Approach team has the knowledge, skills, talent, experience, and track record to make your success a reality.
Petal Paper Mills Ltd has launched a local web site, which will provide users as well as the customers the provision of getting quick hand information on its product – lines. This will help our company to get the necessary feedback and build up the goodwill of our company.
RetentionPeople learn through their senses. The combined power of sight, sound, motion and emotion creates a synergistic effect that is more effective than when individual senses are stimulated. In order to create marketing and merchandising support, Petal Paper Mills advertises on TV, radio and print media, distributors, stationery, .
Television provides the ability to communicate sight, sound, motion and emotion. If a picture is worth a thousand words, a moving picture is worth ten thousand words. The viewer can instantly see the product, view it in a variety of situations, determine how it can be of benefit to their application and leave them with a lasting impression of the business. Television gives a product a "larger than life" image and by virtue of being on television it is sometimes enough to set a business apart from its competitors. Television reaches virtually every home in India. It is set apart from competing media by its ability to offer sight, sound and motion to generate an emotional response.
1) Advertisements broadcasted by means of jingles.
2) Promoting Petal through print media such as newspaper and magazines. This gives a chance for Petal Paper to prove its difference compared to other papers.
3) Hoardings will be put up in important areas located around the city.
4) Word of a mouth is the most common strategy, which will help Petal Paper attain a great reputation.
Key Strengths of Television AdvertisingTelevision has the highest daily and weekly reach of any medium in India. Television has an aura of importance. It is a prestigious medium, enhancing the advertisers' image by its use. Television appeals to more of the consumers' senses than any other medium. With television, a powerful, emotional impact can be created. Television can create high impact with viewers by offering dynamic and visual messages. Moods and images can be created for brands.
Brand ImageAdvertisers can generate trust, emotion and excitement that cannot be created as well through any other medium. This can help to create a long lasting and memorable brand and corporate image.
Consumers' PerceptionsIndians enjoy television. The average Indian adult spends almost 24 hours per week watching television. This study also shows that 62% agree television commercials provide useful information about products and services.
CostSome advertisers believe that TV commercial production costs prohibit their use of the medium. A big idea, wit, focus and clarity of message can make the advertiser a winner in consumers' minds despite a very small production budget.
Our Marketing Strategy:
Petal wants to place specific attention to ensure that the Petal Paper brands have been positioned in the correct outlets and that promotional support is in line with the outlets image and identity in the market. In addition the provision of relevant branded materials to the outlets in order to ensure that an outlet can serve our products in the correct branded environment has also been a focus of the Petal sales team. The main marketing campaign is Petal wants to make something unique which will stand out and which nobody has ever done before. So it is going to make the largest paper boat and enter into the world famous Guinness Book of world Records.
Concern for the end consumer has been the core of the marketing philosophy of the company. A nation wide presence of the company through a network of strong dealers encompasses all the markets. Giant strides have also been made and will be made in exports to Sri Lanka, Australia, U.K., Middle East, Malaysia and many other parts of the world. The company has made a strategic shift from retailing to industrial consuming base in a short span of time. This has resulted in a tremendous confidence in the markets that "the Petal Paper Mills Limited is the reliable supplier." This reliability comes through:
Order ServicingTailor Made ProductsAfter Sales ServiceCustomer Service CellDealer Conference
By making a series of folds in a sheet of colored paper, origami artists can create a wide variety of shapes, from animals and insects to abstract forms. Japanese origami master Akira Yoshizawa, who created the models shown here, invented a method for indicating the various folds in written diagrams. His origami instruction books helped origami gain worldwide popularity. So Petal will promote itself through Origami.
We at Petal Industries have conducted a survey and based on information collected in various ways like questionnaires and interviews conducted in various segments of the society we found that the paper industry in India The present domestic paper demand is 5.6 million tpa . Indian per capita consumption of paper is 5 Kgs with an expected growth rate of 6-7% per annum over the next 5 years. Paper consumption in India is expected to reach 9.5 million tonnes by the year 2010 and 13 MT by 2015.
The industry is characterised with a closed or dead capacity of 1.1 million. In the last few years, imports have increased substantially from 102,000 ton in 1996-97 to 450,000 ton in 2000-2001, leading to increased pressure on domestic production margins.
We believe that consumers are the kings and it is the consumer who determines what a business is. Our business is based on understanding the consumer and providing the kind of products that the consumer wants. We place enormous emphasis on our product development area and our marketing area, and on our people knowing the consumers requirements.
A consumer buys a particular product because he is influenced by certain motives. Motive is a strong feeling, urge, desire or emotion that makes the buyer to react in the form of a decision to buy
Criteria for successful segmentation1) Substantiality (it refers to the size of the segmented market)2) Measurability3) Accessibility4) Represent ability5) Nature of demand 6) Response rates.
The bases for our company’s segmentation are based on demographic factors. Under this method, the consumers are grouped into homogenous groups in terms of demographic similarities such as age,
sex, educational standard, income level etc… It ultimately rests on the customers.
The new Millennium will be dominated by the tremendous progress that has been made in computer science, thus triggering a complete change in our commercial and private communication and information behavior.
Does this mean that the paper era will come to an end? The answer is most definitely "No".
Clearly there will be a huge amount of data being generated electronically, but the issue is how to preserve it. The difficulties of data storage over a long period of time are well known (for example, the durability of disks; frequent changes of hard and software, electronic breakdowns etc.). Once again, paper offers the most convenient and durable storage option. The advance in technology will affect only the printing of items like short-lived handbooks and encyclopedias.
Reading a book will remain a great pleasure into the future and paper, as a ubiquitous material with its many uses, will continue to play an influential role. Many artists will continue to express themselves by using this most versatile material.
Strong Financial BackgroundResearch & DevelopmentEco FriendlyStringent Quality controlHuge paper market potential
Utilization capacity is Coalition Government at the center
Future Market ExpansionPaper consumption in India is expected to reach 9.5 million tonnes by the year 2010 and 13 MT by 2015.
Cut throat competition to tap the local market.Electricity, Power failures a constant hindrance.
Petal Paper Mill Ltd has set up in Rajahmundry where most of the national and state highways pass through. A railway station is located in the vicinity and it has a direct link to the main railway station in Hyderabad. Petal Paper Mill will export its reams of paper by sending it by rail to Kakinada which is situated on the coast and is prominent for its port. All storage cost and transportation cost will be borne by Petal Paper Mills.
RājahmundryRājahmundry, city in southern India, in eastern Andhra Pradesh, state located at the head of
the Godāvari River delta. Rājahmundry is a commercial center; rice, cashews, salt, and lumber
are traded here. Manufacturing activities include the production of cotton textiles and paper.
Bamboo is used as a raw material in the paper mills; it grows extensively in the Godāvari
Delta. Rājahmundry is also a transportation hub. It is served by a major rail line and is
connected by national and state highways to Chennai (formerly Madras), Cuttack, Vijayawāda,
and Vishākhapatnam, where the nearest airport is located. Population in (2001) 408,341.
Petal Paper Mills Ltd
Keeping abreast of the management potential within a firm can be done by the use of an inventory chart, which is simply an organization chart of a unit with managerial positions indicated and keyed as to the promo ability of each incumbent. Petal Paper Industries has an organization chart, which is depicted as under: -
In the above organization chart it can be seen that both presidents manage the working of the firm. There is one office assistant to assist the partners in the clerical job involved in the firm. The Production engineer, Purchase engineer, Production-in charge and Quality and Stores-in charge are all directly answerable to the
Sr. Vice President
Jr. Vice President
In Charge Production
In Charge Quality Stores
presidents. The Production-in charge has a Production Supervisor under him and operators themselves. The Quality and Stores-in charge has Stores assistant and a Quality Inspector under him.
Without authority – the powers to exercise discretion in making decisions – properly placed – in managers, various departments cannot become smoothly working units harmonized for the accomplishment of enterprise objectives. Authority relationships, whether vertical or horizontal, are the factors that make organization possible, facilitate department activities, and bring co-ordination to an enterprise. The responsibilities chart of both the presidents individually can be explained.
SALES, ENGINEERING & MARKETING DEVELOPEMENT
At the Petal Paper Mills Limited, excellence begins with the raw materials. For the major raw material, the company will switch over from forest based wood and bamboo to the self cultivated subabul and other mixed hard woods. This has eliminated dependence on natural
PETAL PAPER INDUSTRIES LTD
PRESIDENT 1 PRESIDENT 2
PRODUCTION PLANNING &
ACCOUNTS & ADMINISTRATION
forests. As the source of raw material is now through the social and farm forestry, raw material is no more a problem. Thousands of hectares of farmers own lands situated with in close proximity to the Mill, have been put to make under farm forestry to ensure uninterrupted supply of raw material while providing excellent opportunity in rural employment. With the use of biotechnology and clonal propagation of wood species, the company ensures excellent quality of fiber, which produces quality paper, on a sustained basis.
Regarding Farm Forestry, themain plank for companys raw material requirment
In all the projects, the farmers and the tribals of the area play a key role. Every year the Petal Paper Mills Limited will distribute millions of polypot and naked seedlings of casuarina and subabul seeds virtually free of cost to the farming community, stretching from Ongole to Srikakulam in the coastal Andhra Pradesh. This helps in increasing the availability of raw material year after year. The R & D team ensures that only the best seeds reach the farmers. Because the Petal Paper Mills Limited believes that for every tree felled, two should rise.
And it is being done........