“AN ASSIGNMENT ON SMALL SCALE INDUSTRY MODULE”

ESTABLISHMENT OF PAPERBOARD COMPANY

(STUDENTMATES Pvt. Ltd)

SUBMITTED TO: SUBMITTED BY:

Dr. D.K Garg Dilip Kumar

Chairman ENR No. 15043
IIMT, Greater Noida. Batch: 15th PGDBM

ISHAN INSTITUTE OF MANAGEMENT &TECHNOLOGY

2, KNOWLEDGE PARK - I, Greater Noida, Distt. G.B. Nagar (U.P)
Website www.ishanfamily.com, E-Mail : student@ishanfamily.com
 ESTABLISHMENT OF PAPERBOARD COMPANY

(STUDENTMATES Pvt. Ltd)

INTRODUCTION OF PAPER INDUSTRY

The new millennium is going to be the millennium of the knowledge. So demand for paper
would go on increasing in times to come. In view of paper industry's strategic role for the
society and also for the overall industrial growth it is necessary that the paper industry performs
well.

Government has completely delicensed the paper industry with effect from17th July, 1997. The
entrepreneurs are now required to file an Industrial Entrepreneur Memorandum with the
Secretariat for Industrial Assistance for setting up a new paper mill or substantial expansion of
the existing mill in permissible locations.

The Paper industry is a priority sector for foreign collaboration and foreign equity participation
upto 100% receives automatic approval by Reserve Bank of India. Several fiscal incentives have
also been provided to the paper industry, particularly to those mills which are based on non-
conventional raw material.

Capacity, Production, Raw material and Import

There are, at present, about 515 units engaged in the manufacture of paper and paperboards and
newsprint in India. The country is almost self-sufficient in manufacture of most varieties of
paper and paperboards. Import, however, is confined only to certain specialty papers. To meet
part of its raw material needs the industry has to rely on imported wood pulp and waste paper.
Production of paper & paperboard during the year 2002-03(upto December, 2002) is 24.52 lakhs
tonnes. At present about 60.8 per cent of the total production is based on non-wood raw material
and 39.2 per cent based on wood.
Performance of the industry has been constrained due to high cost of production caused by
inadequate availability and high cost of raw materials, power cost and concentration of mills in
one particular area.

Several policy measures have been initiated in recent years to remove the bottlenecks of
availability of raw materials and infrastructure development. To bridge the gap of short supply of
raw materials, duty on pulp and waste paper and wood logs/chips have been reduced. The
capacity utilization of the industry is low at 60%. About 194 paper mills, particularly small mills,
are sick and /or lying closed. Several policy measures have been initiated in recent years.

Imports of paper and paper products was growing over the years. However, it has increased
during 2001-02 after a fall in 2000-01. About 1,40,000 tonnes of paper was exported in 2000-01
mainly to the neighboring countries.

India's per capita consumption of paper is around 4.00 kg, which is one of the lowest in the
world. With the expected increase in literacy rate and growth of the economy, an increase in the
per capita consumption of paper is expected.

The demand for upstream market of paper products, like, tissue paper, tea bags, filter paper, light
weight online coated paper, medical grade coated paper, etc., is growing up. These developments
are expected to give fillip to the industry.

Indian paper industry needs the following for being globally more competitive.

i. Sustained availability of good quality of raw materials (forest based) and bulk import of
waste paper to supplement the availability of raw materials.
ii. Adequate modernization of the manufacturing assets.
iii. Improvement of the infrastructure.
iv. Quality improvements and reduction in cost of production
v. Import policy conducive for import of material, equipment, instruments, raw materials &
technologies which are bearing of the quality and environment.
Based on the recommendations made in the Report and in consultant with the industry
Associations, action plans are being finalized in consultation with other Ministries/Departments
concerned. The Main Action Points proposed are as under:

The Indian paper industry has been historically divided on a three dimensional matrix identified
by size, grades manufactured and raw material utilized. Generally, tariff rates have protected
smaller units utilizing “unconventional” raw material. Over the years, the growth of various
segments, investments levels in specific segments, technological changes, industry fragmentation
and intensity of competition have been significantly influenced by the Government tariff policy.
The present Excise duty on Paper is 12 %. The Government of India from time to time has given
some benefits to small industries in order to protect them i.e. the first 3500 tones produced by a
mill is chargeable only @ 8 % and thereafter it is @ 12 %.

The three main grades of paper manufactured in India are :

1. Newsprint

2. Writing and printing.

3. Industrial Variety ( Craft paper and Duplex Board )

Over 550 players currently populate the industry and the estimated capacity is about 7.00 million
Metric Tones Per Annum (MTPA). Fragmentation is severe in the “industrial” (packaging)
grades, which rely on “unconventional” raw material such as waste paper and partly agro
residues. This division generally comprises of units with an average size of about 10000 MTPA
and contributes to 45% of the output of paper and paper boards in the country. Although the
other divisions in the Indian paper industry are also fragmented by international standards, the
degree of fragmentation is less severe. “Newsprint” till about 1995, was the sole preserve of
large public sector units and was well protected by high import tariff barriers. Nevertheless,
imports contributed to about 50% of the domestic consumption. Since then, new domestic
capacity with private investment has been allowed to be created. This growth has relied namely
on De-inked waste paper as a source of raw material. Currently import duty on newsprint is
about 5% and domestic manufacture of newsprint is exempted from excise duty. This tariff
structure for newsprint has seen Indian newsprint price closely mapping

international prices. Imports still constitute about 30% of consumption and newsprint contributes
about 10% of the total production of paper and paperboards. The number of players in the
newsprint segment is relatively limited and manufacturing capacities are larger than in the
packaging grades segment. Historically, the bulk of the output of “Cultural” grades – comprising
of writing, printing, office stationery paper and specialty paper has been the preserve of “large”
producers, who use forest based raw material in integrated pulping facilities augmented by
imported pulp. This segment has been consistently taxed at higher rates due to its size and use of
“conventional” forest based raw material. Investment in plant has also been higher. With
relatively smaller number of players and high import tariff protection, prices of end products,
generally perceived to be higher quality, have been high.

Import tariff levels, although much lower now, still continues a significant barrier to imports.
The high investment levels required and limited “conventional” fiber resources are the major
deterrents to growth in this segment for both existing players as well as new entrants. “Lower
end cultural grades” manufactured by smaller players using unconventional raw materials in low
investment, low tech plants cater to consumers in the price sensitive sub segment of this market.
This sub segment depends significantly on the tariff differential based on size and raw material
for its viability.

The Indian Paper industry is going through substantial changes. Global demand for paper is
expected to grow by about 4% p.a. over the next 5 years. The domestic demand is expected to
grow at about 8% which will result in increase of demand by 30 Lakh tones approximately over
the next 5 years. It is expected that customs duty on import of paper will decrease from the
current level to the level of 10% over a period of time due to WTO compulsions.

The import of raw material for paper including pulp, waste paper and news print is likely to
increase by at least 15% to 20% in 2005-06 to keep up with growing demand for paper in the
domestic market. Despite to the constraints like over crowded market and limitation in procuring
the desired quality of waste paper, there are indicators of a revival in the Indian Paper Industry.
In the current year, selling price has marginally increased and enabled the industry to partially
offset the rise in cost of inputs, fuel & labor.

The paper industry has an important social role to play for the country. Use of paper is
considered as an index of cultural growth. Key social objectives of the Government like
eradicating illiteracy, making primary education compulsory etc. are very much related to the
paper industry. The paper industry is also contributing towards fulfillment of various
requirements of the industry as a whole like information dissemination, publicity etc. which in
turn stimulate industrial growth of the country. The paper industry has, thus, a catalytic role to
play not only for the overall growth of the industry but also for the living standards of the people.
The new millennium is going to be the millennium of the knowledge. So demand for paper
would go on increasing in times to come. Because of paper industry’s strategic role for the
society and also for overall industrial growth, it is necessary that the paper industry performs
well.

FUTURE PROSPECTS

The globalization of Indian economy has lead to a healthy growth of 6 to 7% industry and that is
growth happening in all the sectors. Moreover the Per Capita consumption of paper in India is
going up with the advent of packaging in the food industry. Due to environmental concerns, the
use of plastics is likely to be banned by the Government of India within a short span of time.
Hence within 2 to 3 years we will be witnessing an explosive growth of packaging in India
mainly in food, textile and export segments.

The exposure to foreign packaging technology and the need to satisfy the export customers has
led to a drastic change in the industrial packing sector. The corrugators have started using high
BF, high GSM paper instead of the regular grades and shifting from 7 ply and 9 ply boxes to 5
ply and 3 ply boxes. The above change has resulted in more aesthetic and cost effective packing
solutions. There is a very good potential market developing for such grades of paper in India.
The market of high quality Kraft paper is now catered only by few manufactures from western
and northern parts of the country. With the above changes in the industry it would be in the best
interest of our company to put up a Kraft paper plant of 100 MT per day producing high B.F.,
higher GSM paper and exploit the emerging market situations better. The company envisages

the following advantages by going for such a plant as follows:

l) Most of the existing paper mills in South India operate with single wire machine, which can
produce up to 24 BF only, whereas the new plant intended to be set up by SSPML is a twin wire
machine which can produce high quality Kraft paper of 24 BF to 40 BF which is sold in the
market at a premium. l By making high end paper in south India the company stands to gain a lot
in terms of logistics costs when compared to the competition. l SJPML got the advantage of cost
benefit while importing raw materials and exporting finished product. l The possibility of
exporting substantial quantity of the production to near by countries like, Sri Lanka and eastern
African countries is also bright. This may also be substantiated from the fact that paper exports
have risen at a CAGR of 14 % pa from 105000 tonnes in the year 2000 to 179000 tons in the
year 2004. As a strategic measure to expand the international operations of the company, the
company has already started a new business division – International Business Unit to handle the
international marketing operations of the Company.

2) The company intends to manufacture the paper by using Twin Wire Technology and also
plans to incorporate all latest equipments to have a cost effective production. The twin wire
technology employs two wires drawing pulp stock from two separate head boxes. The
arrangement is in such a way that the wet webs come into contact before going to the press.

3) At present the Company is employing single wire technology wherein the pulp stock flows
from the head box and gets distributed uniformly for further dewatering, pressing and drying to
form a sheet of paper.

The twin wire technology is superior than the single wire technology due to the following
factors:
1. Improves formation of paper.

2. Improves strength properties of paper namely, Burst factor, Tear factor, Tensile strength and
Ring crush test values
3. Reduces Cost of Production.

The company will be able to derive the synergies of the existing plants and position itself as a
largest Kraft paper manufacturer in south India by the installation of the plant. The market
expectation for the increased production

Capacity, Production, Raw Material and Import

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

The industry is a priority industry for foreign collaboration and foreign equity participation up to
51% receives automatic approval by Reserve Bank of India. Foreign investment even up to
100% is approved by FIPB on case to case basis. Several fiscal incentives have also been
provided to the paper industry, particularly to those mills which are based on non-conventional
raw material.

There are, at present, about 515 units engaged in the manufacture of paper and paperboards and
newsprint in India. The country is almost self-sufficient in manufacture of most varieties of
paper and paperboards. Import, however, is confined only to certain specialty papers. To meet
part of its raw material needs, the industry has to rely on imported wood pulp and waste paper.
The production of paper and paper board during the year 2001-02 is 31.62 lakh tonnes.

The proportion of non-wood raw material based paper is increasing over the years. At present
about 60.8 per cent of the total production is based on non-wood raw material and 39.2 per cent
based on wood.

The performance of the industry has been constrained due to high cost of production caused by
inadequate availability and high cost of raw materials, power cost and concentration of mills in
one particular area. Several policy measures have been initiated in recent years to remove the
bottlenecks of availability of raw materials and infrastructure development. To bridge the gap
due to short supply of raw materials, duty on pulp and waste paper and wood logs/chips have
been reduced. The capacity utilization of the industry is low at62% as about 194 paper mills,
particularly small mills, are sick and/or lying closed. Several policy measures have been initiated
in recent years.

Imports of paper and paper products were growing over the years. However, it has decreased
during 2000-2001.
Demand and Supply gap in Paper Industry

Indian paper industry is the 15th largest in the world and provides employment to 1.3mn people
in the country contributing Rs.25bn to the Government. The industry has recorded a volume
growth of CAGR of 5.47% over the last 3 years. In 2003-04, it recorded a volume growth of 6%,
in line with the GDP growth. Indian paper industry has a 1:1 correlation with the economy. The
demand for paper is linked to the GDP Growth. The government is planning to target a GDP
Growth of about 10% in 2-3 years. With this increase in the GDP growth the paper sector is
expected to record a similar growth rate.

The Indian paper industry has an installed capacity of 6.7mn tons while, the effective capacity is
estimated to be lower at 6.15mn tons. The industry produced 5.26mn tons of paper in 2003-04.
Newsprint capacity in India is estimated at 1.12mn tons however, domestic production is only
0.59mn tons, while consumption of newsprint is 1.1mn tons. Favorable demand - supply scenario
to keep prices firm. The demand for paper is influenced by various macro-economic factors like
national economic growth, industrial production, promotional expenditure, population growth
and the Government’s allocation for the educational sector. Domestic demand for paper is
expected to grow at a CAGR of 6-7%. India’s paper demand is expected to touch 8mn t.p.a by
2010. A leading global paper industry consultant projects a shortage of about 0.7mn tpa by 2010.

Proposed capacity expansions:

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

WTO as discussed the implication of Indian Paper and Newsprint Industry as part of its
negotiations and implications. The Indian Paper Industry has important place in the industrial
landscape. The paper industry has a strong backward linkage with forests and environment on
one hand and consumers of a variety of products on the other hand. The manufacture of paper
through pulp of wood or of other fibrous cellulosic material has been discussed at length.
However, recovery of waste or scrap for paper and paperboard manufacture has been looked at
from different angle in the classification of products of Indian Paper Industry. In fact the paper
industry which are eco friendly imports lot of waste paper into the country in the manufacturing
of paper and paper board. Generally WTO implication is applicable to all the industries. How
ever, in respect of paper industry where waste paper is the raw material and which is eco
friendly, the impact is not harsh. SSPML is into manufacturing of paper out of the waste paper
and is an eco friendly project.

GOVERNMENT REGULATIONS, PERMISSIONS & TAXES

1. Central Excise:

Central Excise is levied @8% for the first 3500 MT production and thereafter @12% on the
value of the invoice. The Company is availing permitted Modvat benefits as per Central Excise
regulations. For import duty paid on waste paper procured from overseas the Company is entitled
to adjust the entire duty paid component as that of Modvat credits.

2. VAT (Value Added Tax):

VAT replaces the existing multipoint taxes levied by various states with effect from April ‘05.
As that of other industries, the paper trade is also covered under VAT for domestic sales done in
the state of Kerala. However for interstate sales CST is continued to be levied as per existing
Government regulations.
3. Service Tax:

Being classified as a manufacturing industry, the industry even for Job Work on conversion basis
will not be subjected to Service Tax requirements. A recent notification from Central
Government also confirms such a stand.

4. Factory Licenses:
All the licenses required under Municipality Act, Factories Act are obtained and duly renewed.
5. Pollution Control:
Necessary permission under effluent discharge Act is obtained and the facilities
required to maintain the permission are in place.

AVAILABILITY OF DOMESTIC WASTE PAPER

Waste paper recovery system in India is very unorganized and unplanned . As a result, large
quantities of waste paper get diverted for cheaper packaging and other uses or get destroyed as
rubbish. Bulk of waste paper collected by street collectors in metropolitan cities goes to
household paper bag manufacturers. Due to lack of any grading/ classification system in context
of waste paper, no sorting or segregation is done at source and so most of the waste paper
varieties are collected in commingled form. The probable sources of waste paper collection are
as under:

In India, collection of office refuse has not been very high mainly due to unavailability of a
viable collection system. In practice, more than 80% of the paper consumed in India is being
collected, of which only 20% is being made available to paper industry and the rest 60% is
usually diverted for other diversified / secondary uses such as wrapping, packing etc.

The developed countries, which are the major players in paper recycling business, have a well
defined and planned waste paper grading system in place, which facilitates the collection of
recovered paper sorted in grades with a limited mixture of fiber types. Due to limited capacities
of landfill sites and (municipal) incineration plants, increasing waste disposal costs and
environmental awareness a wide range of legislation / directives in various countries have been
imposed which has promoted material recycling and reduced further , the generation of waste
that requires disposal in appropriate facilities. These regulations set responsibilities for taking
back used paper products and packaging material independent of the public disposal system and
recycling them.

In India, however, no such regulations / law / directives are in force to promote use of recyclable
resources, as a result of which the recovery of used paper is also low. As per the statistics
available ,the Indian paper industry is using more than 70% of imported waste paper in its total
waste paper consumption . The general issues related with use of imported waste paper in Indian
Paper Industry are:

 Inconsistency in quality and varieties of waste paper grades.

 High level of contamination i.e. prohibitive & out throws.
 Price fluctuation in the international market.
 High price for good quality waste paper i.e. low to negligible
 contamination level.
 High ash content in paper leading to low fiber yield / tpaper and generation of
 inorganic sludge.

ISSUES RELATED TO WASTE PAPER BASED MILLS

In spite of the fact that waste paper processing for paper making is considered to be an eco
friendly process , there are certain technological & environmental issues still associated with
waste paper based mills which needs to be addressed to improve its environmental compatibility.

Technological Issues :

The main objective of recycled fiber processing is the removal of contaminants and elimination
of their effects as much as necessary to meet quality requirements. Removal of contaminants
makes recycled fiber processing systems significantly more complex than systems for virgin
fibers. There are several unit operations / stages viz. slushing, screening, cleaning, flotation,
disperger etc. to remove the contaminants from recycled fiber stock. The technology is well
established to produce newsprint, packaging grades and fine papers and most of the mills in
USA, Europe have state-of-art technology for processing of recycled fiber. In India, however,
most of the recycled fiber based mills do not have appropriate system configuration for efficient
processing, as a result the quality of finished paper is low. The level of technology in majority of
mills is obsolete. The operational efficiency of equipments and machines are also considerably
below the optimum level . Due to lack of appropriate configurations, the amount of rejects
generated are also high and is a major source of solid waste generated in such mills .

Environmental Issues :
Among the environmental issues associated with recycled fiber mills , solid waste disposal and
management is the subject of main concern.

Deinkined sludge generated from deinking plants in mills using printed waste paper for
producing writing & printing grade of paper , consists of mainly fillers and coating pigments,
fibers, fiber fines, printing inks and adhesive components. A characteristic feature of the
deinking sludge is its high ash content in the range of 40% - 70%. Traces of heavy metals may
also be present in some cases. In most of the cases the heavy metal content is insignificant and
sometimes even below the detection limit. The another important issue reported recently is the
clandestine importof other waste like plastics, metal and cloth / rags etc (technically defined as
prohibitive and out throws) along with waste paper.

OBESRVATION & REMARKS:

Generally the waste paper being imported in the country are recovered in segregated form as per
the request of the importer. However, some cases have been reported wherein municipal solid
waste constituting of plastics, metal cans and cloth / rags etc (technically defined as prohibitive
and out throws) have been illegally imported in grab of imported waste paper This has led to the
need of defining / formulating the permissible limits for the contaminants like plastics, metal
cans and cloth / rags etc. in the imported paper . At present, no data /guideline is available on this
issue.

Therefore; it is recommended to undertake an indepth study on this issue so as to evolve

permissible limits for prohibitive and outthrows in the imported waste paper consignments
entering into the country 28.12.94 and also enhanced its production capacity from 10000 M.T. At
present to 20000 M.T. per annum through Modernization- cum-Expansion Scheme.

PROCUREMENT OF RAW MATERIALS

Raw Material

(i) For Wood Based material

Revision of forest policy so that plantation can be raised by industry/Cooperatives of
farmers/State Government. Degraded forest land to be made available to the industry
for raising plantations.

(ii) For Waste Paper based material

Import of waste paper at minimum import duty. Introduction of ecolabeling system
where in products made from recycled fiber are rated higher than the products made
form virgin fibre. Introduction of modern and effective collection and grading system.

(iii) For Agro Based material

Funds to be made available for technology upgradation for handling & processing of
agro residue fibre, in small & medium scale industries.

Main raw material for the company is corrugated boxes/waste paper which is purchased through
local suppliers. Company has adopted inventory control system for purchase Raw material.
Decision for making purchase is taken by the Executive Director (Purchase) after considering the
indents for requirement of raw materials, received from the production department. Director
(Purchase) is assisted by team of purchasers, who calls quotations from different suppliers of raw
materials.

RAW MATERIAL MANAGEMENT

Director (Purchase) after considering lowest quotations along with sample of raw material, place
order for supply of raw material.
TESTING/CHECKING OF RAW MATERIAL

After receipt, consignment of raw material is weighted at company’s own weighing bridge.
Weight as per company’s weighing bridge is tallied with the weighing slip as produced by the
supplier of raw material. Bill of the material is also collected by the gate office for their
necessary inward material entries. Weight of the raw material is tallied with the weighing
slip/bill of the supplier. If the weight is not tallied with the weighing slip/bill due to shortage, it is
immediately informed to supplier/driver. A written consent on the back side of bill is taken for
information of shortage to supplier. Vehicle is then allowed to go to raw material godown for
unloading with prior intimation to quality checking supervisors.

Raw Material Quality Supervisor got unloaded the material in his presence. Sample from
different bundles of raw material is taken for checking of quality/moisture etc. If, moisture is
found in any bundle, sample of same is handed over to laboratory technician, who tested the
percentage of moisture in the material. A report is being

prepared by Lab. Technician for moisture and other prohibited contents like plastic strips, kaccha
material, reel core material etc. present in the lot of raw material. Report is also signed by Lab.
Incharge as well as supplier of material. Weight of moisture/other prohibited contents present in
the material is deducted from the total weight of material. Lab. Report so prepared, is forwarded
to Director (Purchase) for his information and signature purpose. Copy of the report is then given
to supplier of raw material. If, supplier does not accept weight of moisture/prohibited contents he
is allowed to take his material back.

Copy of the report, is attached with bill of supplier and handed over to gate department for
entries in their inward receipt register. Rates of different type of raw materials are as under :-

1. Corrugated Cartoons (Fresh) Rs.8000/- PMT

2. Corrugated Cartoons (used) Rs.7000/- ,,
3. Corrugated Cuttings (Fresh) Rs.6800/- ,,
4. Corrugated Cuttings (Old) Rs.6500/- ,,
5. Media (Kaccha Material) Rs.5500/- ,,
6. Media (Core Pipes) Rs.5000/- ,
MANUFACTURING PROCESS ;
Paper is manufactured using corrugated cartoons/waste paper, Chemicals and water.
The manufacturing process can be bifurcated in to four stages.

A) PULPING :
Corrugated Boxes/Waste Paper after cutting and dusting feed in to the pulpers for pulping. The
waste paper can directly be beaten and washed in the beaters for pulping.

B) PREPARATORY TREATMENT OF STOCK:

Pulp, as it, is not fit for being converted in to paper and must undergo some preparatory
treatment depending on the end product. Before going to the paper machine, the stock must be
prepaid uniformly with a fixed thickness and be screened and refined by crushing so that it may
be reduce in to fixed thickness with uniform properties in a uniform speed. The treatment is
carried out in apparatus called refiner and sizing agents like alum, dyes, loading materials are
added in the process to develop its strength. The main flow of pulp which is freed from tailings
in the vibrating screen and fine pulp sieved out from the tailings are put together and sent to the
centricleanerswhich work quite efficiently in removing fine dust.

C) PAPER MAKING:

Prior to going in to the paper making machine the stock which has gone through necessary
treatments, is diluted in the mixing box, down to the required consistency with the use of back
water generated in the paper making process. Similarly speaking, the paper making machine
performs its function in this way :-

In thepulp stock which goes over travelling wire the fiber is separated from water & sheets of
paper is formed. The wet sheetis pressed dried and smoothened by going through several sets of
roll machines. To get M.G.Kraft Paper, the sheet is then passed through M.G.Dryer which
imparts glaze to the paper. Paper is finally wound up by means of pop-reel machines. The output
of a paper machine is determined by the trimmed width of paper, the speed of machine and
grammage of paper.
D)FINISHING OF PAPER :

Paper and board intended for sale in reels and cut sheets is rewound & cut to certain fixed
measurements. Defective paper and board sheets are removed . The rejected produce is returned
to pulping section and mixed into the main flow of pulp stocks.

DISPATCHES

Reels so prepared, is then wrapped by plastic cloth and clipped with the help of plastic strips.
Supervisor on duty mark a serial number, size and grammage on each reel for the purpose of
identification. Wrapped reels are then weighted through electronic weighing scale. Weight as
shown on the display is written in the reel by the supervisor. Supervisor also maintained a
register in which he entered weight of each reel along with serial number of the reel. Reel is then
shifted in finished goods godown from where it is dispatched as per orders received. Complete
record of reels manufactured and reels dispatched are forwarded to account office.

QUALITY CONTROL:
SJPML has got a well equipped laboratory with all the latest equipments for test cobb value,
Tear Factor, Burst Factor, Consistency, Degree SR and Grammage etc.
NET WORK OF SALES
SJPML has a wide range of net work of dealers spread all over the India, which covers mostly
all the states of India.
CLIENTS
SJPML keeps stringent control over quality for consistent quality which has helped it have
clients like :-
a) Micro Tek, Parwanoo
b) Action Shoes, Delhi
c) H.P.Cotton Textiles Mills Limited, Hissar
d) Baldeo Mange Lal, Ujjain
e) Patel Paper Box, Udaipur
f) Perfect Pack Ltd., Faridabad
g) Lakhani Group of Industries, Faridabad
h) Ravi Sons, Chandigarh
i) Kamal Boxes, Jalandhar
j) Jay Ambe Overseas, Surat
k)Industrial Packers, Daman
l) Meiyappa Paper, Chennai

EMPLOYEES CAPACITY
Details of employees are as under :-
1. Repair & Maintenance Staff 15
2. Engineering & Manufacturing Staff 18
3. Clerk 10
4. Supervisors Connected with Process 5
5. Supervisors Connected with Production 5
6. Supervisor Connected with Despatches 5
7. Supervisor Quality Checking 5
8. Officer Staff 5
9. Security 5

REMMUNERATION OF WHOLE TIME DIRECTOR

Sri Surinder Kumar

Sri Surinder Kumar a Post Graduate in Commerce and has been in the services of the Company
as Director (Sales) since the incorporation of the Company. He will be entitled to the following
remuneration as fixed at the Board meeting Committee and as approved at the Annual General
Meeting of the Shareholders of the Company , in accordance with the provisions of Section 311,
198, 269 and 309 read with Schedule XIII and all other applicable provisions if any of the
Companies Act, 1956 or any statutory modifications or re-enactment thereof.

1. Salary Rs. 30000/- per month

2. Commission : N.a.
3. Perquisites House rent allowance at the rate of 50% (fiftypercentage) of the Salary
Medical expenses:-Medical expenses for the Director and his Family subject to a ceiling of one
month’s salary in a year or three month’s salary over a period of three years Personal Accident
insurance – an amount of the annual premium of which does not exceed Rs. 12000/-

Gratuity payable – Not to exceed half a month’s salary for each completed year of service.
Provision of Car for use on Company’s business and Telephone at residence Perquisites shall be
evaluated as per Income tax rules, 1962 wherever applicable.

Sri Rakesh Kumar

Sri Rakesh Kumar a Graduate in Commerce and has been in the services of the Company as
Director since 1996 in other paper comany. He will be entitled to the following remuneration as
fixed at the Board meeting Committee and as approved at the Annual General Meeting of the
Shareholders of the Company , in accordance with the provisions of Section 311, 198, 269 and
309 read with Schedule XIII and all other applicable provisions if any of the Companies Act,
1956 or any statutory modifications or re-enactment thereof.

1. Salary Rs. 25000/- per month

2. Commission : N.a.
3. Perquisites House rent allowance at the rate of 30% (fifty percentage) of the Salary