CHAPTER III
PROFILE OF TNPL
Introduction
The management of business has the task of conducting business
Performance analysis. The modern corporate business looks for not only
financial performance also Technical performance analysis. The present
study is to fulfill the modern corporate business performance ambition by
conducting the study of financial and Technical performance of the company.
Industry profile
The word paper derives from the word papyrus and is a substance
composed of fibers 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 we depend on this Paradoxical material. Little can happen
in modern life without paper or board (a particular form of paper) and
millions of tones of it are made and used each year.
Paper is incredibly versatile: it can be permanent or transit, 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.
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Paper may be impregnated, enameled, mealiest, made to look- like
parchment, creped, waterproofed, waxed, glazed, sensitized, bent,
turned, folded, twisted, crumpled, cut, torn, dissolved, macerated, molded
or embossed. It may be colored, 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 fire-resistant. It may be used as a carrier, a barrier or a filter. It may
be tough enough to withstand acid or soft enough for a baby's skin. It can
be from, laid on or worn as a garment. It may disintegrate or it may be
reused, but it is, over all, 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. The millennium will be dominated by the
progress that has been made in computer science, thus triggering a
complete change in our commercial and private communication and
information behaviour.
Clearly there will be 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.
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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.
Newsprint: Paper mainly used for printing newspaper. It is made largely
from mechanical pulp and/or waste paper, with or without a small amount
of filler. Weights usually range from 40 to 52g/m2 but can be as high as
65g/m2. Newsprint is machine-finished or slightly calendared, white or
slightly colored and is used in reels for letterpress, offset or flex- printing.
Magazine Paper: This is uncoated mechanical paper, suitable for printing
or other graphic purposes where less than 90% of the fiber furnishes
consists of chemical pulp fibers. This grade is also known as ground
wood or wood-containing paper and magazine paper, such as heavily
filled super-calendared paper for consumer magazines printed by the
rotogravure and offset methods.
Writing Paper: This is uncoated wood free paper, suitable for printing or
other graphic purposes, where at least 90% of the fibers furnish consists
of chemical pulp fibered. Uncoated wood free paper can be made form a
variety of furnishes, with variable levels of mineral filler and a range of
finishing processes such as sizing, calendaring, machine-glazing and
watermarking.
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About TNPL
TNPL is an acknowledged leader in India's paper industry. Guided
by the principle of environment responsibility, the company manufactures
paper and newsprint using a raw material (baggase) and a technology
that protect the earth's resources and bio-diversity for generations to
come. Each TNPL product is also a result. of customer-focused research
and development across six major product segments: premium printing,
computer stationery, business stationery, writing paper and newsprint.
TNPL possesses a rich pedigree.
Its milestone project was
promoted by the Government of Tamil Nadu with financial assistance
from the World Bank in 1979.
TNPL globally pioneered the manufacture of newsprint from
bagasse (a renewable resource obtained as a residue from the
manufacture of sugar). In doing so, the company redefined the technology
of the manufacture of printing and writing paper from bagasse.
The company commissioned a 90,000 tpa plant in 1985, proactively
doubled its capacity in 1996 and enhanced its capacity through machine
up-gradation in 2002. As a result, TNPL'S installed capacity of 2,30,000
tpa represents the world's capacity among non-wood based mills today
and is the largest single-location integrated paper mill in India. TNPL's
investment in state-of-the-art machines and the consequent technology
edge have translated into a high quality and large volume of finished
paper, customized closely to user requirements. TNPL's investment in
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state-of-the-art machines and the consequent technology edge have
translated into a high quality and large volume of finished paper,
customized closely to user requirements. TNPL's swing capacity enables
its paper machines to switch from the manufacture of newsprint to
printing-writing paper and vice-versa, in line with market requirements.
DISPERSED MARKETS
TNPL's products are well received in the global market. The
company markets its products within India and over 20 countries including
Sri Lanka, South East Asia, Middle East, Africa and the Mediterranean
region. TNPL exported in excess of 25,000 tonnes for the fourth
consecutive year in 2002-03, emerging as the largest exporter of woodfree printing and writing paper from India.
In 2001-02, it was accredited with the 'Nirayathshre' award and the
'CAPLEXIL' award for the fourth successive year. The Government of
India conferred the 'Trading House' status on the company for its
outstanding export performance.
ECO-FRIENDLY PRACTICES
TNPL employs responsible, environment-friendly manufacturing
practices. Its manufacturing technology utilizes renewable raw material,
conserves resources, minimizes waste and generates power for captive
use through eco-friendly means. Its mill effluent water is treated using
world-class technology that conforms to exacting standards.
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CONFIDENCE-ENHANCING CERTIFICATIONS
TNPL's design excellence, quality commitment and system
compliance have been validated by the ISO 9001:2000 certification, while
its environment management system has been endorsed by the ISO14001 certification. The most significant contribution of TNPL to the
country has been that it conserves about 360,000 tones of wood annually,
thereby saving 30,000 acres of forestland from commercial exploitation.
TNPL believes that substantial investment in environment compliance is
inevitable for long term success.
FEATURES
o TNPL is a company with vision, pioneered the manufacture of newsprint
from bagasse, a sugarcane waste.
o TNPL has most modern paper mill in the country with unique bagasse
procurement, storing, preserving, handling, processing and pulping
system.
o TNPL “3 Leaf-Green Rating” award in appreciation of Environmental
Management system.
o TNPL has been consistently recording increase in exports year by year.
o TNPL has demonstrated its leadership in evolving a plethora of products
for a range of needs resulting in value for money.
o TNPL’s customer-focused R&D has been instrumental in improving
quality, ensuring consistency and introducing new products based on
market-feedback and needs.
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Overview (Profile)
o Promoted by the Government of Tamil Nadu in 1979
o Loan assistance extended by World Bank twice
o Largest producer of Bagasse based paper in the world. Annual
consumption of bagasse stated to touch 1 million tones per annum.
o Installed capacity 2,30,000 tonnes p.a
Vision
To be the market leader in the manufacture of world class eco-friendly
papers, by adopting innovative technologies for sustainable development.
Table 3.1 Rupees in lakhs
Financial Year
Operation Income
Operation profile
2001-02
55906
3531
2002-03
52885
5204
2003-04
58290
5280
2004-05
66823
3795
2005-06
80141
8055
Turnover of TNPL
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
80141
66823
55906
3531
2001-02
52885
5204
2002-03
58290
5280
2003-04
3795
2004-05
8055
2005-06
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TECHNOLOGY: Tomorrow’s technology today.
TNPL is acknowledged as the world leader in technology for the
manufacture of newsprint from bagasse. TNPL has the most modern paper mill
in the country with an unique bagasse procurement, Storing, preserving,
handling, processing and pulping system. The key areas of operation have been
innovatively designed and developed by a superb technical team.
TNPL has two high speed paper machines from Beloit Walmsley and Voith
Paper. They have the unique flexibility to produce Newsprints as well as printing
and writing paper. Today TNPL uses the Voith machine as a swing machine
producing newsprint and printing writing paper.
Together they produce 700 tonnes of paper every day. Amply supported
by online process and quality control systems TNPL ensures uniform and
consistent quality without compromising on efficiency. Currently TNPL is
implementing a Mill Development Plan (MDP) at a capital outlay of Rs.565
Crores. Under the MDP the in-house Chemical bagasse pulp capacity will be
increased from 400 tpd to 500 tpd with Elemental Chlorine Free (ECF)
bleaching. A new 300 tpd capacity state of Art Hardwood pulp line with ECF
bleaching will be installed with recovery boiler and other facilities. The MDP will
enable the company to become environmentally complaint, operationally
efficient and cost effective and continue to be the net exporter of energy to the
State Grid. Besides the paper production capacity will be increased from
2,30,000 tpa to 2,45,000 tpa. The MDP has been completed by September
2006.
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TNPL has established a full – fledged finishing house for automated
conversion of reels into sheets and a cut-pack line to have finely cut and
wrapped A4,A3 & folio size sheets
TNPL derives its strength from its dedicated in-house R&D team, one of
the best in the country. TNPL’s customer-focused R&D has been instrumental in
improving quality, ensuring consistency and introducing new products based on
market feed back and needs.
TNPL believes and invests in state of art technology. In association with
CMC TNPL has developed a comprehensive online integrated information
system, which provides real time information for quick decision making.
ENVIRONMENT
TNPL
is
an
unfolding
saga
of
commitment
to
sustainable
development. TNPL has carefully formulated and Environment policy keeping
the future firmly minds.
Guided by principles of environmental responsibility, TNPL manufactures
and markets papers using materials as processes that help minimize waste,
conserve resources and protect our Earth’s bio diversity.
Its unfailing commitment to clean production techniques with minimum
pollution load stands out as a bench mark in the industry.
TNPL has established a state of art effluent treatment plant based on
activated sludge process the best of its kind in the country. The treated effluent
totally confirms to the statutory standards. It’s so good that there is a huge
demand for this effluent water to irrigate arid and barren land near the mill. TNPL
has extended effluent irrigation to 1500 acres around the mill where one can see
lush green fields of sugar cane, paddy and eucalyptus.
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TNPL is also credited with the unique innovation of recycling waste into
wealth. The usage of defines the commitment towards its vision of sustainable
development. Bagasse is known to be the most eco-friendly renewable resource
for papermaking.
TNPL uses about eight hundred thousand tones of bagasse every year
instead of wood, thus actually avoiding the felling of trees in about 30,000 acres
of forest land every year.
As part of it commitment to the protection of the environment TNPL has
installed 21.75 MW of capacity in its wind farms in south Tamil Nadu. TNPL’s
plan is to target an internal net zero carbon trade. Provide green energy to the
state grid using renewable resources to the extent it has to rely on fossil fuels.
TNPL is also increasingly rely on, for its fuel requirement.
Recognizing TNPL’s commitment to preserving nature, the World Wide
Fund for Nature – India (WWF) has endorsed TNPL as an Eco-conscious and
has franchised its PANDA logo to be used on TNPL’s branded products.
TNPL in February 2002 has become an ISO 14001 company. This amply
demonstrates it commitment to protect the environment.
PRODUCTS
Paper for premium printing for quality print resolution in flying colours.
TNPL offers a range of high quality surface–sized paper varieties to suit highend printing applications. Surface sizing, imparted through new generation
“speed-flow“ metered size press to give the paper the extra finish typical of a
niche segment product.
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The company’s product range from 60 to 90 GSM, possess an even
profile, high strength and excellent reel quality to cope with the exacting
demand of today’s print rooms.
Paper of computer stationery
A storehouse of computer stationery, TNPL is the only company that
offers quality computer stationery reels across a wide range of grammages and
sixes-tailor-made to the needs of evolving customers. A one–stop paper house
for quality, variety and affordability. TNPL computer stationery reels have userfriendly features that ensure trouble-free runs, Run non-stop to the core,
minimizing wastage. Joint-free and high-diameter reels facilitate greater
productivity, Hi-tensile and bursting strength are the brand hallmarks. Uniform
profile, even surface, bright and smooth finish ensures quality printing
The popular grades
Cream wove, Super printing, Hi-tech plus and Wide GSM range
54/56/58/60/64/68/70/80
The premium grades
Excel Map litho SS, Ultra White map litho SS, Ready to –use sizes 0in
CM) 22/23/25.4/30.5/38.1/46/50.8
Business Stationery
The installation of two of the world’s best-known automated, on-line
sheeting and packing machinery via, Bielomat has elevated TNPL’s paper
conversion facility to international standards
The range comprises one of the widest, ready –to-use, cut-to-size branded
products, tailor-made for a variety of day applications with a capacity of 450 MT per
month. The entire range is endorsed by WWF-1 as environment friendly.
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TNPL Copier
Bright, strong and stiff 80 GSM copier paper in A4,A3 and folio sizes,
excellent dimensional stability for trouble-free copying, Best suited for hi-speed
photocopying, also offered in 75 GSM, TNPL Copy Bright, 80 GSM copier in
American A4 (216 x 279 mm ) and A3 (29.7 x 432 mm) sizes, Compact sizes
that offer great value for money a boon for customers
OS 2000
A premium, multi-functional paper in 80 GSM, Super-Bright with a high
opacity and pleasing shade, A unique 250 sheet economy pack, ideal for multi
purpose segments, designed to suit laser, inkjet, fax and digital printers, deal for
high-end copying documentation, letterheads and general office stationery.
NEWSPRINT
The natural choice of every publishing house, TNPL newsprint is ideally
suited for high-speed non-stop printing, the only bagasse-based newsprint in
India, excellent reel quality, coupled with high tensile strength, ensures troublefree printing joint-free and high diameter reels, suited to hi-speed web-offset
printing. Standard newsprint offered in 49 GSM in the sizes of the customers’
choice, paper for quality printing, true value for money. TNPL presents qualityprinting papers for a range of printing applications. The bright and strong papers
offer excellent surface and optical properties ideally suited for web-offset printing.
They are available in a wide range from 54 to 80 GSM or more than a decade, Hibright with a neutral shade, Economical and ideal for commercial grade printing.
Suitable for quality textbooks, notebooks and continuous stationery
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Distribution Channel
The major distribution channels for PWP are given below:
Sale through Indent or
Direct Sales
Export
INDENTOR Network
TNPL is having the Indentor network covering the Southern Region,
Western Region, Northern Region, Eastern Region of the country. The indentor
procures order from the customers and are responsible till the payment is
received by the company.
Direct sales
TNPL is also making direct sales to certain major customer. Some of the
major direct customers are Navneet Publications Ahmedabad, Tamil Nadu Text
Book Corporation, Director of Stationery & Printing Govt. of Tamil Nadu.
TNPL has recorded the highest production of 37, 645 Mts of TNPL
Copier Paper during 2005-06 (last year 30,248 Mts). TNPL is poised to achieve
42,000 Mts of branded copier production during 2006-07.
Export sales
Apart from the above, TNPL is also exporting about 18% of the PWP
production to 20 countries around the World.
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The Export network
1. Australia
11. Philippines
2. Egypt
12. Singapore
3. Greece
13. Sri Lanka
4. Indonesia
14. Sudan
5. Jordan
15. South Africa
6. Kenya
16. Taiwan
7. Malaysia
17. Turkey
8. Myanmar
18. U.A.E
9. Nepal
19. U.K
10. Nigeria
20. Yemen
Human Resource Development
TNPL realizes that the continued success of any organization depends
on a healthy Human Resources policy. TNPL’s Human Resources profile
focuses upon enthusing the human resources to be innovative to keep ahead of
competition. As an enlightened employer the company has always been
concentrating on optimizing the labour productivity and continuous efforts have
been taken to improve the same.
Company is nurturing a participative atmosphere for redressing the
grievances of the employees and for ensuring peaceful working environment.
Wage settlement
Wage settlements are reached amicably with the Trade Unions once in
four years and harmonious industrial relation is being maintained.
TNPL is providing direct employment for 1725 persons and indirect
employment for an equal no. of persons.
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TNPL –Great places to work
The Business World, a leading business Weekly, which conducted an
employees’ involvement and motivation survey in India jointly with Grow
company Ltd, New Delhi and the Great places to work Insurance of USA has
selected TNPL as one of the top 25 companies as Great Places to work in
India. TNPL is the only one and Public Sector Company from Tamil Nadu to get
this coveted ranking.
Human Capital Management
Waston Wyatt India Pvt. Ltd. A global management consulting firm, which
recently conducted and “Asia Pacific Human Capital Index Survey 2002 has
awarded TNPL an overall score of 76, on a scale of 0-100 for the
effectiveness of the company’s human capital management.
Social Development
The company has taken several steps for the overall betterment of the
abutting
villages.
Providing
drinking
water
facilities,
medical
facilities,
construction of retaining walls in the irrigation channels, laying & improving
roads, culverts, provision of lighting facilities, park development, supply of
equipments & instruments to Fair Price shops & schools are some of the
projects completed by the company in this regard. TNPL functions in harmony
with the local community.
(a) Quality policy
“TNPL is committed to manufacture and supply eco-friendly papers to
customers’ satisfaction with emphasis on continual improvement in its quality
management system.”
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Meeting
customer
requirement
with
Eco
friendly
raw
materials
(viz bagasse) for papermaking, through continuous process improvements is
the aim of TNPL’s quality policy. Quality standardization without compromise on
environment is being accomplished with online quality control at various stages
of production. Despite opening-up of Indian markets for imports, TNPL has been
consistently recording increase in exports year by year, which demonstrates the
company’s commitment to quality. Direct interaction with the customer through
customer service cell has helped the company in meeting the customer
satisfaction with customer satisfaction Index (CSI) ranging from 7.01 to 7.50.
Customized products are also being manufactured by TNPL to meet the
customer delight.
TNPL has obtained the ISO 9001- 2001 certification for RWTUV of Germany
for Development, manufacture and supply of Newsprint and printing & writing paper.
(b) Environment Policy
o Produce eco-friendly quality papers adopting innovative technologies
o Provide a cleaner environment by sustained R&D efforts and continued
process improvements
o Comply with all relevant environmental legislation and regulation
o Conserve and optimize the usage of resources viz power, water, fossil
fuels and raw materials like bagasse and wood.
o Impart training to promote and motivate our human resources to be
environmentally responsive.
The above environment policy has been approved and adopted by the board
which clearly demonstrates the commitment of the company towards
genuine
sustainable development and the “Minimum Impact –best process” philosophy.
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(c) Energy Management Policy
o Maximize the usage of eco-friendly agro waste fuels for generation of
energy
o Continue improvements in processes and equipments for efficient
generation and usage of energy.
o Involvement of all employees for cost reduction in generation of steam,
power and efficient utilization of the same.
o Contributing to the energy needs of the state and export the surplus
power.
o Reduce the specific energy consumption by 2% every year for 5 years
through various energy conservation measures.
(d) Occupational Health and safety policy
o Implementation, maintenance and continual improvement of OHS
management system.
o Adopting appropriate operating practices and procedures to minimize
hazards, risks, accidents and occupational illness.
o Conducting periodical medical check-up to minimize occupational health
hard.
o Training the employees on OHS awareness.
o Providing suitable personal protective equipments as required.
o Compliance with all applicable lager and regulatory requirements related
to OHS. Minimizing usage of Hazardous materials.
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Excellence in Corporate Governance
The Institute of Company Secretaries of India (ICSI), New Delhi has
conferred on TNPL, the “ICSI National Award of Excellence in Corporate
Governance” for the year 2004 in the public sector category. This is the first
time such a prestigious award in Corporate Governance has been given to a
state Public Sector Undertaking. So far in the last two years, only major central
Public Sector Undertaking viz. ONGC and IBP got the award.
Best Paper Mill 2001-02
TNPL has been given the prestigious award “Paper Mill of the year
2001 –2002”
For TNPL’s overall performance, approaches for meeting social
obligations, ensuring global competitiveness, sustainable development &
technology options by the Indian Paper Manufactures Association, New Delhi.
Certificate of Excellence
TNPL bagged, the certificate of Excellence in productivity, quality,
Innovation and Management from the “Institute of Economic Studies”, New
Delhi.
Environment Protection
Recognising TNPL’s concern for the environment, the Rotary Club of
Chennai (East) and Earth Care bestowed the “Dr. M.S. Swami Nathan Award
for Environment Protection 2002” to TNPL.
Export Award & Status
TNPL has bagged the CAPEXIL “Special Export Award” for the sixth
consecutive year, for its outstanding export performance during the year 2003-04.
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The government of India has given “Trading House” status to TNPL
recognizing the export performance.
TNPL has been bestowed the “Niryat Shree Award” by Federation of
Indian Export Organization (FIEO) for the high degree of excellence it has
demonstrated in exports.
Safety Award
TNPL was awarded the commendation award on “CII Leadership &
Excellence in Safety, Healthy & Environment (SH&E) year 2002” during the
month of February 2003.
Energy Award
TNPL has bagged the National Energy Conservation Award for the year
2001 from Government of India, in recognition of its outstanding achievement in
energy management.
Best Corporate Citizen
Loyola Institute of Business Administration (LIBA) Chennai has adjudged
TNPL as the” Best Corporate Citizen 1999” and bestowed the Mother Theresa
Award by recognizing its.
Outstanding social commitment
Exploring eco-friendly technology Professional Management
Customer friendly and community caring enterprise.
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