Case study of pulp-paper-industry


Published on

TNPL is a company in Tamilnadu that manufactures pulp & paper and this write up is about it; presented as a case study, thanks to their info bulletin.

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Case study of pulp-paper-industry

  1. 1. EXAMPLE CASE STUDY OF A PULP & PAPERINDUSTRY IN TAMIL NADU THIS IS PRESENTED WITH THANKS TO M/S TNPL Citizens Charter Department of Industries TAMIL NADU NEWSPRINT AND PAPERS LIMITED ( )OUR COMPANY  Tamil Nadu Newsprint and Papers Limited (TNPL) was formed by the Government of Tamil Nadu in April 1979 as a Public Limited Company under the provisions of the Companies Act,1956. The primary objective of the company is to produce newsprint and printing & writing paper using bagasse, a sugarcane residue, as the primary raw material. The Registered Office of the company is situated at 67, Mount Road, Guindy, Chennai – 600 032.OUR BUSINESS  The company is in the business of manufacturing and marketing of Newsprint and Printing & Writing Papers. The products are being marketed throughout the country and also being exported to 20 countries around the world.  The factory is situated at Kagithapuram in Karur District of Tamil Nadu. The initial capacity of the plant was 90,000 tpa of Newsprint and Printing & Writing paper which commenced production in the year 1984. The capacity was doubled to 1,80,000 tpa in January 1996 after implementation of the first expansion project. Recently, the capacity has been further enhanced to 2,30,000 tpa in April 2003 through upgradation of both the paper machines.Some of the key features of the Mill are listed below:  The largest bagasse based plant in the World and a mill with largest production capacity in India, at a single location.  Appropriate for India, which is one of the largest sugarcane producers in the World.  The only paper mill in India assisted by the World Bank  Doubled the capacity within a period of 10 years from inception  State-of-the-Art paper machines with built in flexibility for manufacturing both newsprint and printing & writing papers in the same machine.  Unique arrangement with the sugarmills for sourcing the raw material. in the form of exchange of steam / fuel for bagasse.
  2. 2. OUR VISION“To be the market leader in the manufacture of world class eco-friendly papers by adopting innovative technologies forsustainable development”.OUR MISSION  Attain leadership in Paper Technology  Promote the usage of bagasse in the manufacture of Newsprint and Printing & Writing Paper  Minimise environmental impact and become an environment friendly organisation.OUR COMMITMENTS(A) ON QUALITY:Quality Policy : “TNPL is committed to manufacture and supply eco-friendly papers to customers‟ satisfaction with emphasis on continualimprovements in its quality management system”Meeting customer requirement with Eco friendly raw materials (vizbagasse) for paper making, through continuous processimprovements is the aim of TNPL‟s Quality Policy. Qualitystandardization without compromise on environment is beingaccomplished with online quality control at various stages ofproduction. Despite opening-up of Indian markets for imports, TNPLhas been consistently recording increase in exports year by year,which demonstrates the company‟s commitment to Quality. Directinteraction with the customer through customer service cell has helpedthe company in meeting the customer satisfaction with CustomerSatisfaction Index (CSI) ranging from 7.01 to 7.50. Customizedproducts are also being manufactured by TNPL to meet the customerdelight.TNPL has obtained the ISO 9001 certification from RWTUV ofGermany for development, manufacture and supply of Newsprint andPrinting & Writing Paper. Steps have been initiated to move furthertowards ISO 9001-2000 series standards.The Online Integrated Information System (OIIS) a mini ERP packagedeveloped by CMC Ltd for TNPL integrates the flow of informationfrom all the sections of the company covering production, materials,finance, marketing etc. This OIIS has greatly improved informationtransfer for faster and timely decision making for assured productquality. The automated process control facilities ensure complaint freeproducts at various stages up to the final packing and despatch.TNPL‟s in-house Research and Development facility is recognised bythe Department of Scientific and Industrial Research (DSIR) NewDelhi. The R&D department has sophisticated state-of-the artinstruments and equipments.(B) ON ENVIRONMENTENVIRONMENT POLICY OF TNPL
  3. 3.  Produce eco-friendly quality papers adopting innovative technologies  Provide a cleaner environment by sustained R&D efforts and continued process improvements  Comply with all relevant environmental legislation and regulation  Conserve and optimise the usage of resources viz., power, water, fossil fuels and raw materials like bagasse and wood  Impart training to promote and motivate our human resources to be environmentally responsiveThe above Environment Policy has been approved and adopted bythe Board which clearly demonstrates the commitment of the companytowards genuine sustainable development and the “ Minimum impact–best process ” philosophy.ENVIRONMENT PROTECTION  By using bagasse as the primary raw material instead of wood, TNPL is saving deforestation of about 30000 acres of forest land every year.  Due to the usage of bagasse the chemical consumption in the pulp bleaching process is lower  TNPL‟s effluents completely comply with the norms set by Tamil Nadu Pollution Control Board. TNPL is adopting state- of-the-art activated sludge treatment system. Further the treated effluent water is being used to irrigate 1500 acres of land abutting the factory. The farmers are cultivating cash crops such as sugarcane, groundnut etc using TNPL effluent water. By this process “ A full Cycle is completed “ as depicted below:THE FULL CYCLE  The company has never used wood from natural forests. Wood is being sourced only from Farm forestry.  Engaged the services of Tamil Nadu Agricultural University (TNAU), Coimbatore for continuous monitoring of land irrigated with TNPL effluent water.  Comprehensive Environmental impact assessment study is undertaken once in 5 years, through National Environmental Engineering Research Institute (NEERI).  Water consumption per tonne of paper has been brought down from 124 KL in 1999-2000 to 105 KL in 2002-03. During the current year 2003-04, this has been further reduced to 73 KL. 80% of the water drawn from the river is being supplied back for irrigation as treated effluent water.  Solid Waste Management:  Fly ash generated at the power boilers is being sold to the cement plants  Effluent sludge is being sold to the Board manufacturing units
  4. 4.  Lime sludge generated is being recycled in the Lime KilnTNPL has obtained the prestigious ISO 14001 Certification fromRMTUV, Germany for “Successfully establishing and applyingenvironmental management system for development, manufactureand supply of paper”.This certification duly acknowledges TNPL‟s commitment forenvironment protection and sustained efforts to minimise the overallenvironmental impact.(C) ON ENERGY CONSERVATIONENERGY MANAGEMENT POLICY OF TNPL  Maximise the usage of eco-friendly agro waste fuels for generation of energy  Continue improvements in processes and equipments for efficient generation and usage of energy  Involvement of all employees for cost reduction in generation of steam and power and efficient utilisation of the same  Contributing to the energy needs of the State and export the surplus power  Reduce the specific energy consumption by 2% every year for 5 years through various energy conservation measures.TNPL is 100% self sufficient in power generation through the 61.18MW Power Generation Capacity (TG Sets) installed at the paper millsite. The surplus power generated is being exported to the State Grid.TNPL also generates green power through the 18 MW wind farminstalled at Devarkulam and Perungudi of Tirunelveli district. Theentire power generated at the wind farm (about 270 lakh units perannum) is being exported to the State Grid.TNPL also believes in prudent utilisation of bio fuels. Entire pithgenerated while depithing the bagasse, is being fired in the boilers asfuel. Besides the company is also using many agro fuels such ascoconut shell, rice husk, saw dust, coffee husk etc. The usage ofabove agro fuels has substantially reduced the consumption of fossilfuel.Installed a Bio-methanation plant to generate methane gas from theeffluent water (bagasse wash water) and use it as fuel as substitutefor furnace oil in the lime kiln saving 10 KL of furnace oil every day.Energy Conservation measures:Energy conservation is an ongoing process at TNPL. Some of themeasures taken in this regard are given below :  Installed Variable Frequency Drives where the process requires variation in speed of the drive.  Installed energy efficient motors and reduced the motor capacity in many areas after continuous review.
  5. 5.  Installed high efficiency pumps in key areas.  Enhanced the economizers‟ capacity in power boilers to reduce flue gas temperature and improve the boiler efficiency.(D) ON HUMAN RESOURCES DEVELOPMENTTNPL realises that the continued success of any organisationdepends on a healthy human resources policy. TNPL‟s HumanResources policy focuses upon enthusing the human resources to beinnovative to keep ahead of competition. As an enlightened employerthe company has always been concentrating on optimizing the labourproductivity and continuous efforts have been taken to improve thesame. Some of the initiatives by the company in line with the aboveobjectives are given below:In-house training programmes are conducted on topics like TeamBuilding, Personality Development, Safety, Inter-personnel skills,productivity and so on. Besides the employees are also beingsponsored for training programmes in the relevant areas organised byreputed Institutions.Performance Appraisal plays a significant role as a tool and techniqueof Management development and growth. Key Result Areas (KRA)have been identified and responsibility, accountability, objectives andtargets are defined for these KRAs. The results of these KRAs arereviewed on continuous basis and corrective measures initiatedappropriately.The philosophy of Total Quality Management (TQM) integrating allactivities of the organisation coupled with a customer-centered focushas been taken-up. Suitable projects have been identified andimplemented.Company is nurturing a participative atmosphere of redressing thegrievances of the employees for ensuring peaceful workingenvironment.Amicable Wage settlements are reached with the Trade Unions andharmonious industrial relationship is being maintained.TNPL is providing direct employment for 1788 persons and indirectemployment for about 5000 persons(E) ON SOCIAL DEVELOPMENTThe Company has taken several steps for promoting the overallbetterment of the abutting villages. Providing drinking water facilities,construction of retaining walls in the irrigation channels, laying &improving the road & culverts, provision of lighting facilities, parkdevelopment, supply of equipments & instruments to Fair Price shops& schools are some of the projects completed by the company in thisregard. TNPL is also conducting free medical camps in thesurrounding villages on a monthly basis. TNPL functions in harmonywith the local community.(F) ON SAFETYTNPL has a clearly defined Safety Policy. The policy specifies indetail the responsibility for implementation of safety measures,prevention of personal injury, accident reporting and statutoryreporting system. The Safety committee consists of members fromManagement and workmen. Periodic committee meetings are
  6. 6. conducted and suggestions are implemented. Safety Audit isconducted to ensure the effectiveness of the safety systems inposition.(G) ON ACHIEVING EXCELLENCE  Achieve full capacity utilisation following the latest productivity techniques and developed technologies. Continuous upgrade of the technology.  Improve the quality of the paper to that of international standards.  Develop new products with good quality at reasonable prices by adopting innovative and persistent R&D efforts.  Build brand equity with branded value added products  Become globally competitive in terms of cost, pricing and quality  Provide cleaner environment by following the best practices of ISO 14001 Environment Management SystemsTNPL MARKETINGThe broad product range of TNPL is given below:  NEWSPRINT  PRINTING & WRITING PAPER:  Creamwove  Superprinting  Hitech Maplitho  Excel Maplitho  Ultawhite Maplitho  Magazine Printing  COPIER PAPER  TNPL Copier  TNPL OS 2000  TNPL Eco-Friendly Note BooksNewsprint is normally manufactured in 49 Gsm reels and directly soldby the company to the various newspaper establishments such as TheHindu, Malayala Manorama, Ananda Bazaar Patrika and so on.Printing & Writing paper (PWP) is manufactured in reel and sheetforms with the Gsm (Grams per square meter – basis weight of thepaper) varying from 50 to 80. Various sizes of reels and sheets arealso cut to suit the customer requirements. Some of the major end-usesegments of PWP are printing applications, note books, computerstationery, office stationery, etc. The major distribution channels forPWP are given below:  Sale through Indentors  Direct Sales  Export
  7. 7. TNPL is having the Indentor network covering the length and breadth of the Country. The indentors procure order from a customer and are responsible till the payment is received by the company. TNPL is also making direct sales to certain major customers. Some of the major direct customers are Navneet Publications, Tamil Nadu Text Book Corporation, Director of Stationery & Printing etc. Apart from the above, TNPL is also exporting about 15% of the PWP production to 20 countries around the World. 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 TNPL is having marketing offices at the major cities of the Country to regulate the marketing activities. Regular customer meets are arranged for continuous customer feed back and corrective action. During 2002-03 the company has produced and sold 20496 tonnes of Newsprint and 147349 tonnes of Printing & Writing Paper. Of this, 25932 tonnes of Printing & Writing Paper was exported valuing Rs 76.88 crores. TNPL has been maintaining “Zero Stock” status of finished product ie paper at the end of the respective Financial Years for the past 13 years. Symbolic of TNPL‟s commitment to the environment, the World Wide Fund for nature (WWF) has entered into a pact with TNPL to use the „Panda‟ logo in TNPL‟s branded products. The quality complaints on paper manufactured by TNPL are received at Corporate Office and Factory Office at the following address:Corporate Office Factory OfficeThiru S Krishnamurthi Thiru C SubramanianDy General Manager (Mktg.) Manager (Marketing)TNPL TNPL67 Mount Road Kagithapuram-639136Guindy Karur DistrictChennai -600 032 Tel No.04324- 277001 to 20Tel No.22354415-20 Fax No.-04324- 277028 to 29Fax No.22350834 / 22354614 The quality complaints are attended within a maximum of two weeks. Wherever necessary, the company deputes its marketing and quality control personnel for attending the complaints and redressing the customers grievances. TNPL NET WORK IN INDIA
  8. 8. AWARDS AND ACCOLADES“BEST PAPER MILL 2001-02”TNPL has been given the prestigious award “Paper Mill of the year2001-2002” for TNPL‟s overall performance, approaches for meetingsocial obligations, ensuring global competitiveness, sustainabledevelopment & technology options by the Indian Paper Manufacturers‟Association, New Delhi.“ENVIRONMENT PROTECTION”Recognising TNPL‟s concern for the environment, the Rotary Club ofChennai (East) and Earth Care, bestowed the “Dr M.S. SwaminathanAward for Environment Protection 2002” on TNPL.“EXPORT AWARD” & STATUSTNPL has bagged the CAPEXIL “SPECIAL EXPORT AWARD” forthe fourth consecutive year, for its outstanding export performanceduring the year 2001-02.The Government of India has given “TRADING HOUSE” status toTNPL recognising the export performance.TNPL has been bestowed the “ Niryat Shree Award” by Federation ofIndian Export Organisation (FIEO) for the high degree of excellence ithas demonstrated in exports.RATING UPGRADE BY CRISILCredit Rating Information Services of India Ltd (CRISIL) has upgradedthe rating of TNPL‟s Fixed Deposit Program from FAA to FAA +indicating the high degree of safety .SAFETY AWARDTNPL was awarded the commendation award on “CII Leadership &Excellence Award in Safety,Healthy & Environment (SH&E) year2002” during the month of February 2003.ENERGY AWARDTNPL has bagged the National Energy Conservation Award for theyear 2001 from Government of India, recognition of its outstandingachievement 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 recognising its  Outstanding social commitment  Exploring eco-friendly technology  Professional Management  Customer friendly and community caring enterprise.
  9. 9. CONTACT:For more details about the company, products profile and otherdetails, please browse the company‟s web site at or contact through the company‟s e-mailaddress: