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Employee involvement is based upon the recognition that the success of any organization

is determined to a significant extent by the contribution of its employees. Employee involvement

programmers therefore seek to facilitate the involvement of employees in the company.

If one were to analyze the work patters, nothing much separates’ on individual from

another, and an employee is as good or as bad as the opportunity and the environment t he gets towork. A conducive work environment, where every individual employee is seen as a leader,

actually helps build better organization.

Today most of the organization have realized that a satisfy employee is not necessarily

the best employee in terms of loyalty and productivity. It is and engaged employee who is

intellectually and emotionally bound with the organization, feels passionately about its goals and

is committed towards its values. KCL conducts such activities to engage or involve its

employees and provides a good work environment so that its people can be happy and most

important satisfies. People get equal chance to participate in the activities. They are involved in

the activities other than work. A comfortable work environment is there where every employeefeels comfortable

. 1.2 ABOUT THE INDUSTRY

1.1 Historical Background of the Paper Industry:

The paper industry occupies an important place, as paper can be put to many uses. It

contributes not only to economic development but also to cultural development. The spread of 

education and literacy is bound to increase demand for paper.

Paper has a long history beginning with the ancient Egyptians and continuing to the

present day. For thousands of years handmade methods dominated and then during the 19th 

century paper production became industrialized. Originally intended purely for writing and

printing purposes, a wide variety of paper grades and uses are available to the consumer.

The art of making paper was first discovered in China, 2nd

Century B.C. From there it

traveled slowly towards Europe. The end of 14th

century gave birth to number of paper mills in

Italy, France and Germany. In the year 1837, Dr. Charley established a paper mill at ‘West

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Bengal’. Unfortunately, it was closed in a few years. In 1967, the royal paper mill was set up in

West Bengal again.

1.2 INDUSTRY STRUCTURE

The per capita consumption of paper in our country has grown marginally from5 kg to 6

kg against Asian average of 28 kgs and the world average of 58 kgs. The growth in paper

consumption is directly related to the GDP growth in our country. The growth in our country’s

GDP in 2007-08 was about 9.6%. The rate of growth in paper consumption in the country in the

last few years has been 6.7%.

Currently there are about 525 paper mills in the country with an installed capacity of 78

Lakh MTs, out of which there are about 32 mills with a capacity in the range of 100 to 600 MTs

per day, 110 mills in the 30-100 MTs per day and 383 mills in the 3-30 MTs per day. During

2006-07, the production of writing, printing, packing paper & board was approx. 72 Lakh MTs

against 68 Lakh MTs in 2005-06 (5.9% growth). The demand for paper in the country went up

from 65 Lakh MTs to 69 Lakh MTs (6% growth). Though the overall import (mainly

newsprint(7 Lakh MTs) coupled with smaller quantity(3 Lakh MTs) of specialty papers) was in

the range of 9.5 to 10 Lakh Tons during 2007-08, the import of newsprint grew marginally from

7.0 to 8 Lakh Tons. The export of paper from the country continued to be in the range of 3-4

Lakh MTs in 2007-08.

1.3 CONSTRAINTS FOR PAPER INDUSTRY

1.  Scarcity of Raw Material such as Wood, Agrobased residue, waste paper etc., coupled with high

cost of raw material as compared to other countries.

2.  Fragmented capacity and Market volumes of each grade of paper are very low  – do not justify

setting up of large single grade mills.

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3.  Low economy of scale.

4.  Steadily increasing state administered cost and infrastructure cost.

5.  Cost of inputs like electricity, coal, chemicals increasing year after year while paper prices are

pegged at international parity.

6.  Strict environment regulations have forced the industry to go in for new chlorine free

technology, reduce water and energy consumption and invest heavily in lime kiln and NCG gas

burning.

The biggest constraint for the paper industry in the next few years will be the availability

of wood in the country. As per the estimates of IPMA, the wood requirement for the paper

industry would go up from 60 lakh tons to 130 lakh tons by 2020. The plantation land required

for this, however, can be easily allocated by government out of the vast degraded forest land and

the waste land available in the country. However the dependence on imported Pulp will continue

along with usage of imported waste paper, as there is no proper collection of waste paper in our

country.

1.4 GROWTH AND DEVELOPMENTS

Considering the present low level of consumption of paper (6Kgs) and the anticipated

growth in population, literacy level and living standards; growth in the

packaging/printing/publishing industries; and the environmental restrictions on the usage of 

plastics vis-à-vis paper, there is a vast scope for increasing the consumption of paper in the

country.

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As the growth in consumption of paper is directly related to the GDP growth of our

country, it is expected that the industry would grow at a rate of over 8% in the coming years.

The demand for both WPP (Writing and printing paper) and Newsprint paper would grow.

However, in the case of WPP the maximum growth would be in the speciality papers. With

growth in literacy by about 10% in the 3-4 years, the demand for paper would increase. In the

case of Newsprint the consumption would grow with the increased circulation of most of the

Newspaper publications. However, the price war among various publications would continue

along with the fight for getting the largest share of the advertisement pie. Advertising in the

print media is expected to go up along with advertising on TV and other media

Following are the new developments in the Paper Industry that are taking place:

1.  Continuous up-gradation of the existing machinery by Mills coupled with introduction of newer

technologies of production of paper at lower costs.

2.  Most Mills are going in for expansion of their capacities. The additional capacities are in the

production of Writing and Printing Paper and not of Newsprint due to higher realization on WPP

as compared to Newsprint.

3.  More usage of non-wood resources and waste paper by establishment of De-inking plant.

4.  In the production of WPP the trend is towards speciality papers like security paper, high

brightness copier, lightweight coated paper, tissue paper, etc., where the realization is better.

5.  In newsprint, the trend is towards more usage of 45 gsm paper than 49 gsm paper and also high

bright paper (around 67 brightness as compared to 55-56 brightness presently available

domestically).

6. 

Since the demand for WPP paper & Board is lower than the current production, Mills are

resorting to export of the surplus production.

7.  With VAT introduced in most states, Mills have started strengthening their distribution network

to take advantage of the lower VAT(4%) in the states against 8-10% which was prevailing earlier.

8.  Availing Carbon Credit by Afforestation and clean development mechanism processes.

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1.5 LEADING PLAYERS IN PAPER INDUSTRY:

The major players in this sector with their respective production capacity are given below:

Company Name Capacity in Million TPA

TNPL 0.18

Hindustan newsprint 0.11

MPM 0.09

NEPA 0.09

Rama newsprint 0.06

Table Showing leading players in paper industry (source: magazine of MPM)

The public sector units (PSUs) control a major share of domestic production by supplying 60 to

65 percent of total industrial production. Private sector players have very small capacity in comparison

to PSUs.

1.6 FUTURE PROSPECTS OF PAPER INDUSTRY:

  Strong demand from packaging segment will drive demand growth for industrial paper.

  Establishment of new business area such as telecom and power will lead to increasing

literacy levels, thus improving the low per capita consumption of paper (3.2 KGS per

annum). Besides rapid growth in population, enhanced literacy levels, growing quality

consciousness and changing consumer preferences will drive paper demand.

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  In view of the high capital costs, expansion of existing units and revival of sick units

remain the practical option for capacity additions. Also, paper mills in India have to look 

for ways to cut down costs to compete with imports.

  International paper prices are not expected to rise substantially over the short-medium

term. Domestic paper companies will thus continue to reel under the pressure of reduced

margins. However, a app `preciating rupee will marginally protect domestic companies

from imports. Due to increased supply, some of the companies have put their expansion

plans on hold or have reduced their investment opting for lesser capacity expansions.

ORGANISATION PROFILE:

Tamil Nadu Newsprint and Papers Limited (TNPL) 

TNPL was established by the Government of Tamil Nadu to produce newsprint and writing

paper using bagasse, a sugarcane residue. The Government of Tamil Nadu listed the paper millin April 1979 as one of the most environmentally compliant paper mills in the world under the

provisions of the Companies Act of 1956. The factory is situated at  Kagithapuram 11.0488°N

77.9977°Ein the Karur District of  Tamil Nadu. The registered office of the company is located in

Guindy, Chennai. 

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History

The Company commenced production in the year 1984 with an initial capacity of 90,000 tonnes

per annum. TNPL has started the commercial production of newsprint on its new Paper Machine

No. 2 from January 1996. The machine was supplied jointly by Voith Sulzer Paper Technology

and its licensee in India, Larsen and Toubro Limited and has opened up new vistas for newsprint

making. The machine is designed to run with 100% bagasse. Over the years, the production

capacity has been increased to 2,45,000 tonnes per annum and the Company has emerged as

the Largest bagasse based Paper Mill in the world consuming about one million tones of bagasse

every year. The Company is in the process of implementing the Mill Expansion Plan for

increasing the capacity to 4,00,000 tonnes per annum from July 2010.

Technology / Process

TNPL has ventured with nearby sugar mills such as Sakthi Sugar Mills for continued supply of 

Bagasse for the Paper mill where Steam will be provided to the sugar mill in exchange of 

bagasse.

Moisture(52%) Sugarcane(100%)

Dry Weight (48%)

Residual Sugar(3%) Fibre(32%) Pith (13%)

Black Liquor(13%) Loss(5%) Bleached Pulp(14%)

Quality Standards

TNPL has obtained the ISO 9001 - 2000 certification from RWTUV of Germany for

development, manufacture and supply of Newsprint and Printing & Writing Paper. TNPL uses

automated process control facilities for various process till final packing and despatch. It is

implemented by The Online Integrated Information System (OIIS) a mini ERP package

developed by CMC Ltd for integrated flow of information from all the sections of the company

covering production, materials, finance, marketing etc.

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TNPL’s in-house Research and Development facility is recognized by the Department of 

Scientific and Industrial Research (DSIR) New Delhi. The R&D department has sophisticated

state-of-the art instruments and equipments. TNPL has recorded Customer Satisfaction Index

(CSI) of about 7.01 to 7.50.

Environment Protection Measures

TNPL is accredited with ISO14001:2004 certification for an effective environmental

management system. By using bagasse as primary raw material, TNPL preserves over ‘’40000

acres of forest land from depletion every year’’. 

  TNPL Effluent Water Lift Irrigation Society (TEWLIS)

  TNPL Plantation Programme

  Farm Forestry

  Captive Plantation

  Clonal Propagation and Research Centre (CPRC)