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Market analysis and the buying behavior of buyers of paper industry

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The major objective of the research is to find out the market potential of century industries product line. This will help to know that what are the prospective of century as a whole & will also give an idea about its credibility, customer’s point of view & stability, apart from all these it will help me to analyze the upcoming future of the company.
To study & analyze the buying behavior of consumers, dealers, retailers towards CPP brand as compared with similar product of some other companies, thus understanding the consumer acceptance of the products.

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Market analysis and the buying behavior of buyers of paper industry

  1. 1. A STUDY ON MARKET ANALYSIS AND THE BUYING BEHAVIOR OF BUYERS OF THE PAPER INDUSTRY : A SPECIAL CASE OF CENTURY PULP AND PAPER MILLS 1
  2. 2. TABLE OF CONTENTS S.No. CONTENTS PAGE NO. Chapter 1 Introduction 7-14 1.1 Introduction 7-10 1.2 Objective 11 1.3 Scope of the Study 12-13 1.4 Research Limitations 14 Chapter 2 Review of Literature 15-17 Chapter 3 Research Approach 18-21 3.1 Universe 19 3.2 Research Design 19 3.3 Sampling Size and Sampling Technique 20 3.4 Data Source 21 Chapter 4 Industry Profile 22-33 4.1 Industry Overview 23 4.2 History Of Paper Industry(Worldwide-India) 24-26 4.3 Major Players In The Indian Paper Industry 26-28 4.4 Latest Development in the Paper Industry 28-29 4.5 Contribution in Economy and Exports By Paper Industry 29-30 4.6 Future Prospects Of The Paper Industry 31-32 4.7 Paper Industry Trends 32-33 2
  3. 3. Chapter 5 Company Profile 34-42 5.1 Historical Background 35-36 5.2 Vision,Mission and Objective of the Company 36-37 5.3 Organisational Structure 38 5.4 Product Profile 39-40 5.5 Growth Prospects of Century Pulp and Paper Mill 41 5.6 Swot Analysis 42 Chapter 6 Dealers/Satisfaction Efforts By Century Pulp And 43-45 Paper Mills Chapter 7 Analysis and Findings 46-71 Chapter 8 Conclusion and Suggestions 72-75 Annexure 76-82 Bibliography 77 Sample Questionnaire 78-82 3
  4. 4. CHAPTER 1 (INTRODUCTION) 4
  5. 5. 1.1 Introduction Indian Paper Industry India first Machine-made paper was manufactured in 1812. During this time there were 15 mills with a total production of lakh tones. In India the Soft wood is the principal raw material used for making paper especially newsprint and high class printing papers. With rise in population and broadening of education the demand for paper has been constantly escalated. Owing to very narrow forest resources wood pulp is in a shortage. As soft woods grow in temperate climate India is in short supply of such woods. Thus, in such circumstances the Bamboo became the major raw materials for the manufacture of paper in the country as it grows very quickly even after cutting. Paper industry in India is mainly plantation based and is essential that more land must be brought under plantations of eucalyptus and other trees apposite for the making of papers. The paper industry also requires huge amount of soft water and paper utilized for newspapers is called newsprint. Its requirement is bound to grow noticeably. The Nepanagar Newsprint plant in Madtiya was set up to meet these aforementioned demands. The capacity of Indian Paper Industry has been raised to 75,000 tonnes a year. West Bengal and Maharashtra are the leading states for the industry. The total newsprint production has now reached well over 400,000 tonnes. A large number of expansion programmes & expansion of capacities with an outlay of Rs. 10,000 crores have been announced covering the various sectors like paper, paperboard, newsprint, etc. Indian paper industry is a vast industry comprising more than 157 paper-producing divisions all over India. These 157 functional units manufacture handmade paper worth around Rs.21 cores and provide employment to approximately 10,000 people. Sanganer village is the biggest center in western India humming on the rhythm of the sound of paper making activities. The new millennium is going to be the millennium of knowledge.So the demand for paper would go on increasing in times to come.In view of the paper industry’s strategic role for the society and also for the overall industrial growth, it is necessary that the paper industry performs well. 5
  6. 6. Government has completely delicensed the paper the paper industry with effect from 17th July,1997.The entrepreneurs are now required to file an Industrial Entrepreneur Memorandum with the Secretariat For Industrial Assistance for setting up a newer 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 self sufficient in manufacture of most varities of paper and paperboards. Import, however,is confined only to certain speciality papers. to meet the part of its raw material needs the industry has to rely on imported wood pulp and waste paper. 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 is increased during 2008-09 after a fall in 2006-07.About 1,40,000 tonnes of paper was exported in 2006-07 mainly to the neighbouring countries. India’s per capita consumption on paper is around 4 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. 6
  7. 7. Indian Paper Industry needs the following for being globally competitive: (1) Sustained availability of good quality raw materials(forest based) and bulk import of waste paper to supplement the availability of raw materials. (2) Adequate modernisation of the manufacturing assets. (3) Improvement of the infrastructure. Raw Materials (1) For Wood Based Industry Revision of forest policy so that plantation can be raised by industry/co operatives of farmers/state government.Degraded forest land can be made available to the industry for raising plantations. (2) For Waste Paper Based Industry Import of waste paper at minimum import duty. Introduction of ecolabeling system where in products made from recycled fibre are rated higher than the products made from virgin fibre.Introduction of modern and effective collection and grading system. (3) For Agro Based Industry Funds to be made available for technology upgradation for handling and processing of agro residue fibre,in small and medium scale industries. 7
  8. 8. 1.2 Objectives of the Study The major objective of the research is to find out the market potential of century industries product line. This will help to know that what are the prospective of century as a whole & will also give an idea about its credibility, customer’s point of view & stability, apart from all these it will help me to analyze the upcoming future of the company. To study & analyze the buying behavior of consumers, dealers, retailers towards CPP brand as compared with similar product of some other companies, thus understanding the consumer acceptance of the products. To know about the demand & consumption of the products manufactured in the Century Pulp And Paper Mills and thereby getting an idea about market forecast. The paper market is huge & variety of product mix has been found which serve the purpose industrial users & the ordinary customers like us as well. Through this knowledge about the varities of products & their demand in the scenario can be identified. To study the various promotional offers which are offered by the Century Pulp and Paper Mills to its various dealers and industrial buyers so that much effort towards the promotion of their product is done. 8
  9. 9. 1.3 Scope of the Study The scope of market study of CENTURY PULP & PAPER MILLS. It has helped to provide a knowledge about the market trend, demands & consumption patterns, future prospects in terms of potential growth, consumer taste & buying behavior for the CPP product & other aspects related to channel & network i.e. -distribution, at the same time some bottlenecks & loopholes in the entire process could also be taken into consideration for the solutions as well as betterments, Also the following few aspects could be taken care off through this research study:- To study & adjudge the relationships & association among the dealer & company: This is mainly related to the inter relationships on which the company has a bond with the various buyers so that a smooth and co-ordial relationship exists between them. Identifying those attributes on the basis of which the dealer selects the products of CPP: This is mainly concerned with the preferences which the company offers to its buyers in terms of discount or attractive hampers which they receive on the fulfillment of its targets that it has to cater. Popularity of company products among customers: This refers to the image which the company has been able to create among its esteemed customers and buyers through its enormous quality services that they are able to provide. Customer satisfaction is one of the most important priorities as it is the foundation for the growth of a strong industrial unit.It also helps to build up its brand image among its competitors that operates in the market. To analyze the order quoted by the dealer & its fulfillment made by the company: This refers to the features which are required by the dealers in the products which they purchase from the company. They also see whether the requirements quoted by them to the company have 9
  10. 10. been fulfilled or not.This helps to sort out problems that might occur later due to non fulfillment of its requirements. To find out the response of the dealers towards the brand: This refers to the study that is carried out later through the findings and analysis which helps them to incorporate the changes that are required. 10
  11. 11. 1.4 Research Limitations 1. The responses may be biased, as some of the respondents may not have revealed the true pictures. 2. The Company officials also too tend to give biased answers, as they always want to give a rosy picture of their company product. 3. The company workers were reluctant to give information about the product. 4. The sample was restricted to the Century Pulp And Paper Mills. 5. There were time and money constraints. 6. This project was limited to a span of two and a half months and so had to restrict it to certain areas of Uttaranchal. 7. Due to money constraints the study was restricted to a sample of 50 dealers and buyers. 8. Transportation and viability of staying there was also a major constraint. 11
  12. 12. CHAPTER 2 (REVIEW OF LITERATURE) 12
  13. 13. 1) By Engel Cynthia : Taking Note Of Paper Industry : Vol 120 , 1997 : Consumer participation in recycling , improvements in technology , increased consumption of paper products , and liberalization of international trade together have had an enormous influence on employment on paper related industries.This is having a great influence on the economic prosperity of the country. With the rise of awareness among people and spread of knowledge among the masses , this industry has been a driving force. Demand by consumers and buyers on buying pattern are affected by the governmental rules and regulations also.These factors have led to an exhorbitant increase in the prices of paper products.It has thus made it costly , but necessary investments in new equipments have led to a major change in its structure….. 2) The Assocham Paper on “ Growth Of Paper Industry” in India : June 16,@010 , said that India has emerged as the fastest growing market when it comes to consumption posting 10.6% growth in per capita consumption of paper in 2009- 2010 Indian paper industry can be more competitive by adding improvements of key ports , roads and Indian railways and communication facilities , revision of forest policy is required for wood based paper industry so that plantation can be raised by industry co operatives of farmers and state government. This is very important as the the impact of government policy have a direct bearing on the buying pattern of consumers. 3) Zeefer : Paper and paper based Industry : December 08 ,2010 : This report provides by data and concise analyses ,presents a comparative analysis for the development of other articles of paper and paper board industry in 31 provincial regions and 20 major cities in visiualised form. This report says that the investment in these sectors is growing and hence more effort should be laid in this field.Thus keeping in mind the bright prospect of this sector more investments have been laidd so that this contributes to the gdp of the country. 13
  14. 14. 4) Reddy Elander M , Reddy Anji M, Jayachandra K : The IUP Journal On Environmental Science Vol IV No 3 : August 2010 : tells about a protected forest and implementing management for the protection of the forest because this is the base for the paper industry.This is utmost essential for the supply of raw materials to the papere industry .This source is where one has to be very careful for the survival of its related industries too.The forest has always been a major source of employment for many people related to the paper industry. 5) Gourville T John And Soman Dilip : Extremes Seeking when and why buyers or consumers prefer Extremes: May 31 2007: When can variety be harmful and when can it be helpful? Conventional wisdom suggests that a product provider enhances the overall alternatives of a set o options by adding more alternatives to the mix.By contrast ,Gourville and Soman’s research indicates that in certain predictable cases , adding more alternatives to an assortment leads buyers to choose either the most basic or the most fully loaded product.Thus when a dealer or a buyer has to buy a bulk of paper rolls from the industry the go on analysing on the quality and the promotional offers which they are given by the different sellers of the paper industry.This leads to a choice for the product which the have to buy. 14
  15. 15. CHAPTER 3 (RESEARCH APPROACH) 15
  16. 16. 3.1 Universe Present study is empirical in nature and based on mainly primary data collected from field survey in certain parts of Nanital. Besides collection and analysis of primary data, secondary data and pertinent literature has been compiled from published and documented sources. Previous studies, surveys, reports and research work have been consulted while concerned persons have been approached to get insights and relevant statistics on the topic of investigation. The objective of the research is to find out the marketing potential of the century paper pulp industry and its growth in the Indian paper industry. 3.2 Research Design Research design has been done by carrying out surveys and filling up of questionaries by the buyers and dealers.This was mainly an explanatory sort of a research so that the idea behind the project can be carried out.The research was carried on by judgemental sampling and snow ball sampling as well as the population to be studied is difficult to locate or if some members are thought to be better (more knowledgeable, more willing, etc.) than others to interview. Relying on the judgement of some knowledgeable experts may be far more productive in identifying potential interviewees than trying to develop a list of the population in order to randomly select a small number. 16
  17. 17. 3.3 Sampling Size and Sampling Technique Sampling Size So as to conduct the study on market & distribution network system of CPP (Century Pulp & Paper Mills) some regions of Uttarakhand (Kashipur, Haldwani, Rudrapur) were selected, and also sample size taken is 50(in all) (retailers+ dealers),who resided in Delhi. Sampling technique: Snow ball sampling has been used for the purpose of studying the dealers and retailers as it helped in locating the dealers who were presently engaged in the sales of CPP products. Convenient sampling method was used for dealers in distant places as accessibility emerged as a problem in these locations. 17
  18. 18. 3.4 Data Source Primary data: These are the first hand information collected via some source or through observation, the primary data may be collected through conducting any survey, interviewing sample units directly through questioners, or conducting a telephonic or electronic survey. Secondary data: Secondary data is the data which is readymade i.e. data which is already available in usable form. Such as blog reports, magazines, newspapers etc. Various types of secondary data’s used during the study includes: Literature of century pulp & paper. Literature from published magazines of B.K Birla Group Of Companies. Literature on (CPP) website. 18
  19. 19. CHAPTER 4 (INDUSTRY PROFILE) 19
  20. 20. 4.1 Industry Overview With the emergence of the open market economy which lead to reduce tariff barriers & the promulgation of free trade agreement with thriving neighboring economies, the competitiveness of the Indian paper industry has come to sharp focus on the front of costs & quality. The industry has been in turbulent state since the company was opened & the paper import was allowed under open general license scheme. Face with various issue & changes like, availability of fibrous raw material, technological obsolescence, cost, quality & environment, the industry has taken steady steps to enhance its competitiveness by way of addressing these issues. The demand for paper, paperboard, & news print has been rising in the recent past & the domestic market has been registering growth rate of around 6% against the world average of about 2.8%. The present paper highlights the status of the Indian paper industry with respect to key market indicators. Data has been presented for production, import, export, demand, & consumption of paper, paperboard & newsprint covering technological status of the Indian paper industry. Discussions have been made on the basis if issues related to raw materials scenario keeping in view the present & future demand. 20
  21. 21. 4.2 History of Paper Industry (World wide – India) Paper manufacturing and book printing mark the beginning of the knowledge revolution. In ancient India knowledge spread verbally but with the discovery of scripts, written records gradually replaced the verbal transmission of thought. The mutual East-to East technological exchanges among Asian nations were frequent. The Silk Road also have played a significant role in the spread of early technologies. It seems that the Chinese were the first to make paper, from where the technology went to Samarkand. From there it eventually reached India. Soon the Indian paper was being exported to West Asia, Europe and Turkey. In India, the available writing materials were generally of two types: hard and soft. Embossing, painting and scratching were used for writing. Soft materials were wooden board (pati), dust (dhuli), birch-bark (bhurja-patra) and paper. Paper, as a writing material, was hardly known in India before the 11th century AD. Al-Biruni writes, "it was in China that paper was first manufactured, Chinese prisoners introduced the fabrication of paper in Samarkand, and thereupon it was made in various places, so as to meet the existing want". Paper In India The Chinese prisoners of war, brought to Samarkand after the battle of Atlakh near Talas, first introduced (AD 751) the technique of paper making from linen, flax or hemp rags based on methods used in China. After the paper technology reached the Arabs, the Arabians improved the technique and supplemented linen with flax and other vegetable fibres. With the conquest of Sind by the Arabs, Khurasani paper was first introduced in India early in the eighth century AD, and it continued to be imported for several centuries. In India, the first paper industry was developed in Kashmir, established by Sultan Zainul Abedin (Shahi Khan) of Kashmir in 1417-67 AD. "During his stay at Samarkand he acquired knowledge. 21
  22. 22. When he returned to Kashmir he brought with him a number of artisans skilled in different trades such as paper-makers, book-binders, carpet-makers, harness-makers and well trained midwives." Soon, because of its quality, the Kashmiri paper was much in demand in the world and the rest of the country for writing manuscripts. With the rapid demand of writing materials the paper making centers were established in different parts of the country like in Sialkot (Punjab); Zafarabad in district Jaunpur (Oudh); Bihar Sharif in district Azimabad (Patna) and Arwal in district Gaya (Bihar); Murshidabad and Hooghly (Bengal) ; Ahmedabad, Khambat and Patan (Gujarat) ; and Aurangabad and Mysore in the south. Out of these, the Punjab was the leading center. Sialkot paper was white in colour and very stout. It was used throughout Punjab. In Uttar Pradesh, Zafarabad is a famous town of district Jaunpur. It was known as Kaghdi Shahar (paper city) in olden times. It produced a very fine, glossy and strong variety of bamboo paper. Bihar had two major papermaking centers in medieval times. Arwal town in district Gaya, and second was Bihar Sharif in district Azimabad (Patna). In Bengal, Murshidabad and Hooghly were the major papermaking centers in the medieval times. After some time, Gujarat developed as the largest producer of paper. It supplied paper to rest of India and also exported to the West, other Asian countries and Turkey also. In Gujarat, Ahmedabad was the largest papermaking center, it produced white and glossy paper. During the Mughal period, Daulatabad, with Aurangabad as its capital, emerged as an important papermaking center. The most remarkable feature of Daulatabadi paper was its durability and glossiness. Daulatabad was the chief supply center of paper to south India. Other big paper making centers of medieval India were: Sanganer (in Jaipur, Rajasthan), Kotah (Rajasthan), Tijarah (in Alwar, Rajasthan), Kannauj (in Farrukhabad, Uttar Pradesh), Kalpi and Pukharayan in Kanpur (Uttar Pradesh), Maler-Kotlal (Punjab), Dharangaon and Erandel town (in district East Khandesh, Maharashtra) and Poona. According to Bansal and Kumar (2001), "the handmade paper industry was in full bloom until the early part of the 19th century and enjoyed a very special status under state patronage. The British who were now ruling India completely banned the use of hand-made paper in all government offices and they started the import of machine-made paper from Britain. A few 22
  23. 23. paper mills were established in India by the end of the 19th century, as a result of which a lot of cheap machine made paper appeared in the market for public use. This further caused a severe blow to the industry and made it difficult to survive. Many people engaged in it lost their jobs. This was a rough time for the Indian hand-made paper industry. Swadeshi movement under the leadership of Mahatma Gandhi played a positive role in reviving the handmade paper industry. Hand-made paper was also included in the list of village industries, which needed financial support and patronage for its products. Since there was a competitive market of cheap machine made paper of almost all varieties, it was imperative to improve the quality of indigenous products. In 1924, more and more paper mills of India began to use bamboo as main raw material. In 1925, Bamboo Paper Industry (Protection) Act and in 1931, Indian Finance (Supplementary and Extending) Act came into existence which provided the protection, and some more mills appeared on the scene. Rohtas Industries Ltd., Dalmianagar; Orient Paper Mills, Brajraj Nagar; Mysore Paper Mills Ltd., Bhadravati; Star Paper Mills Ltd., Saharanpur; and Sirpur Paper Mills, Kagajnagar, Sirpur; were set up just before the outbreak of the Second World War. Indian paper Industry made remarkable progress during the war period. In 1925, Punjab Paper Mills was started with an annual capacity of 6000 tons. By 1930-1931, the total capacity of paper production in India was increased to 45,600 tons as against 33,000 tons in 1925. The share of indigenous production in national consumption was now 71 % as against 54% in 1925. 4.3 Major Players In The Paper Industry(India) The Andhra Pradesh Paper Mill Ltd: - Incorporated in 1964, the company has two manufacturing units and an off-site conversion center with a total capacity of 153, 500 TPA. 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 mill is manufacturing largest range of papers and boards. Annual sales volume is around USD 82 million. 23
  24. 24. Ballarpur Industries Ltd – BILT: - BILT is India's largest paper company and the only Indian company to rank amongst top 100 paper companies in the world. BILT is India's largest manufacturer and exporter of paper, with a strong presence in all segments of the usage spectrum that includes Writing & Printing Paper, Industrial Paper and Specialty Paper. ITC Limited: - ITC is one of the world's most modern and contemporary manufacturers of packaging and graphic series of boards. ITC's Paperboards business has a manufacturing capacity of over 360,000 tons per year and is India's market leader across all carton-consuming segments including cigarettes, foods, beverages, pharma, personal care & toiletries, durables and match shells. JK Paper Ltd.: - JK Paper Ltd., India’s largest producer of branded papers is a leading player in the Printing and Writing segment. The company operates two plants in India, one in the East – JK Paper Mills (JKPM) in Rayagada, Orissa with a capacity of 125,000 tons per year, and the other in the West – Central Pulp Mills (CPM): - Located in Songadh, Gujarat with a production capacity of 55,000 tons per year. The aggregate annual output is over 180,000 tons per year of Paper and Pulp, using contemporary technology. Pudumjee Pulp & Paper Mills Limited (PUDUMJEE): - A Pune (Maharashtra, India) based Company engaged in the manufacture and sale of Specialty Papers is a flagship Company of the M.P.Jatia Group of Companies. Starting with a capacity of 6,000 MT of paper per annum in 1968, PUDUMJEE has now reached a capacity of 38,500 MT per annum of Specialty Papers. Seshasayee Paper and Boards Limited (SPB): - Incorporated in 1960, the company was promoted by Seshasayee Brothers Pvt. Ltd., in collaboration with Parsons and Whittemore, USA. The plant capacity was expanded to 35,000 tpa in 1967-68, and in 1976 to 55,000 tpa. The current installed capacity of the company stands at 1,15,000 tons per year. Tamil Nadu Newsprint and Papers Ltd.(TNPL): - Promoted by the Government of Tamil Nadu in 1979, and with an installed capacity of 2,30,000 TPA. TNPL is the largest producer of bagasse based paper. 24
  25. 25. The West Coast Paper Mills Ltd.:- Promoted by Shree Digvijay Cement Company Limited, Sikka, Gujarat in 1955 and located at Dandeli in Karnataka, the mill manufactures writing, printing and wrapping papers. Annual Production capacity is 157,750 TPA. 4.4 Latest developments in paper industry The US government’s recent move to clamp anti-dumping duty against the paper imports from China and Indonesia has affected the Indian paper manufacturers.The Indian Paper Manufacturers Association (IPMA) has urged the Centre to raise tariff walls or at least retain the 10% current level of import duties. Indian paper and newsprint industry has a huge potentials and prospects in coming future. In our, country, demand for paper and newspaper is rapidly increasing. There are vast demands in the area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated paper, etc. Indian paper industry is one of the underestimated industries for quite some time because India's per capita consumption of paper is just about 5 kg. Whereas it is 337 kg in North America, 110 kg in Europe and 30 kg in China. Compared to this scenario, India' par capita consumption is one of the lowest in the World. The Rs. 22000-crore paper industry in India, rated 15th largest in world engages about 1.5 million people with the help of Rs. 2500 crore Government subsidy. Government has given paper industry as one of the 35 high-priority lists. There are about 515 manufacturing units of processing and production of paper. Newsprint and paperboards in India which have the annual capacity of 8.3 million tonnes, is likely to be 16 million tonnes by 2014. There are few state owned and private players in the emerging paper 25
  26. 26. industry like Hindustan Newsprint Ltd (HNL), Tamil Nadu Newsprint and Papers Ltd (TNPL), Ballarpur Industries Ltd (BUILT), Seshasayee Paper & Board Ltd. (SPBL), ITC Paper. Virtually paper industry is decontrolled and there is no price control on finished product. As a result entire cost has shifted upon the end-users. Newsprint prices increase sharply by 24% in a short span of three months to touch a high of $760 per ton, an increase of $145 since December 2009. India also, imports bulk of newsprint from foreign countries. From North America we have imported 18.9 lakh tonnes in 2007 to 26.45 lakh tonnes in 2009, a CAGR of 11.9%. Domestic consumption move up by 6.40 lakh tonnes to 9.70 lakh tonnes, a CAGR 14.9%, while import went up by 12.50 lakh tonnes to 16.75 lakh tonnes, a CAGR of 10.3%. Indian handmade paper industry is a vast industry comprising more than 157 handmade paperproducing divisions all over India. These 157 functional units together manufacture paper worth around Rs. 21 crores and provide employment to 10,000 people. 4.5 Contribution in Economy and Exports by Paper Industry The Indian Paper Industry accounts for about 1.6% of the world production of paper and paperboard. The estimated turnover of the industry is Rs 25,000 crore (USD 5.95 billion) approximately and its contribution to the exchequer is around Rs. 2918 crore (USD 0.69 billion). The industry provides employment to more than 0.12 million people directly and 0.34 million people indirectly. The industry was delicenced effective from July, 1997 by the Government of India; foreign participation is permissible. Most of the paper mills are in existence for a long time and hence present technologies fall in a wide spectrum ranging from oldest to the most modern. The mills use a variety of raw material viz. wood, bamboo, recycled fibre, bagasse, wheat straw, rice husk, etc.; approximately 35% are based on chemical pulp, 44% on recycled fibre and 21% 26
  27. 27. on agro-residues. The geographical spread of the industry as well as market is mainly responsible for regional balance of production and consumption. With added capacity of approximately 0.8 million tons during 2007-08 the operating capacity of the industry currently stands at 9.3 million tons. During this fiscal year, domestic production of paper and paperboard is estimated to be 7.6 million tons. As per industry guesstimates, over all paper consumption (including newsprint) has now touched 8.86 million tons and per capita consumption is pegged at 8.3 kg. Demand of paper has been hovering around 8% for some time. During the period 2004-09while newsprint registered a growth of 13%, Writing & Printing, Containerboard, Cartonboard and others registered growth of 5%, 11%, 9% and 1% respectively. So far, the growth in paper industry has mirrored the growth in GDP and has grown on an average 6-7 per cent over the last few years. India is the fastest growing market for paper globally and it presents an exciting scenario; paper consumption is poised for a big leap forward in sync with the economic growth and is estimated to touch 13.95 million tons by 2015-16. The futuristic view is that growth in paper consumption would be in multiples of GDP and hence an increase in consumption by one kg per capita would lead to an increase in demand of 1 million tons. As per industry estimates, paper production is likely to grow at a CAGR of 8.4% while paper consumption will grow at a CAGR of 9% till 2012-13. The import of pulp & paper products is likely to show a growing trend. Foreign funds interest in the Indian paper sector is growing. IFC, the investment arm of the World Bank is already associated with at least three of the IPMA member mills. 27
  28. 28. 4.6 Future prospects of paper industry Indian paper and newsprint industry has a huge potentials and prospects in coming future. In our, country, demand for paper and newspaper is rapidly increasing. There are vast demands in the area of tea bags, filer paper, tissue paper, medical-grade coated paper, lightweight online coated paper, etc. Indian paper industry is one of the underestimated industries, because India’s per capita consumption of paper is just about 5 kg. whereas it is 337 kg in North America, 110 kg. in Europe and 30 kg. in China. Compare to this scenario India’ par capita consumption is one of the lowest in the World. The Rs. 22000-crore paper industry in India, rated 15th largest in world engaged about 1.5 million people with the help of Rs. 2500 crore Government subsidy. Government has given paper industry as one of the 35 high-priority lists. There are about 515 manufacturing units engaged in production of paper, newsprint and paperboards in India with have the annual capacity of 8.3 million tones, which likely to be 16 million tonnes by 2014. There are few state owned and private players in the emerging paper industry like Hindustan Newsprint Ltd(HNL), Tamil Nadu Newsprint and Papers Ltd(TNPL), Ballarpur Industries Ltd (BUILT), Seshasayee Paper & Board Ltd. (SPBL), ITC Paper. Indian Government has completely delicensed the paper industry under the Industries (Development & Regulation) Act. The interested entrepreneurs or existing players now require to file an Industrial Entrepreneur’ Memorandum (IEM) with the Secretariat for Industrial Assistance(SIA) for setting up a new paper mill or substantial expansion of the existing mill in permissible locations. The foreign direct investment is allowed upto 100% in paper industry except those who require industrial license with prior approval from Reserve Bank of India. The future outlook of the domestic paper industry remains bright. An annual growth of newsprint papers, printing grades and carton boards by 13%, 6% and 11%, respectively offers a competitive advantage to the Indian paper industry. It is anticipated that the industry will witness a CAGR growth of 7-8% over the next decade. This growth will be spurred by two major factors namely growth industrial output and increased spending on education. Further the Indian print and packaging industry, which is one of the most developed in the world, is one of the biggest consumers of paper in the country. Low labour charges and establishment of 28
  29. 29. several engineering institutes producing qualified personnel to run the machines will also propel the growth of the industry. In order to remain globally competitive, the Indian paper industry will require a continuous supply of good quality raw material, both forest-based and recycled fibre which can be achieved through higher plantations and better fibre recovery. The industry also needs to upgrade its infrastructure in order to compete with its global counterparts. To tread on growth path our paper industry needs to identify factors (both macro and micro economic), which will have a solid impact on the economy and help it to sustain growth over a long period of time. 4.7 Paper Industry Trends: Paper Industry trends show that the paper manufacturing companies are adopting a strategy which is directed towards globalization. These companies will benefit immensely in the next few years to come. In an era of the World Wide Web, e-filing, email, pod cast etc., and several options to choose from the electronic saga pose a big threat to the paper industry. According to the law of natural selection, the strongest will survive and lead. However, as per paper industry trends increase, the consumption of paper related articles is expected to escalate. There are several companies in the paper market industry aiming at a particular group of people, having a particular type of lifestyle. As particular segments of people are being targeted at, this trend has led to the atomization in the market of consumers. Great stress is being laid on the believability and companies with healthy brand reputation in the paper market. Much importance is being given to retailing and the different policies adopted in the multinational consumer goods 29
  30. 30. market. The paper industry trends also show that the companies which were able to adapt themselves promptly to the need of any situation thrived in the long run. There are several points which one ponders over and those which determine the paper industry trends. Environment friendly articles are given more importance these days. The use of recycled paper is on the rise. Better facilities of customer support and other value added services is gaining importance. Efforts to render better quality service to the customers and enhanced interaction between suppliers and consumers are on the rise. Paper industry trends also show that several strategies are being adopted to improve the paper industry. In this context, efforts are being made to improve the paper industry by adopting some measures. Stress is being laid on excelling in operation related spheres and also from the business point of view. The paper industry ought to rethink, re plan, rework on the strategies depending on the needs of the time. Policies should be adopted to handle competition and changes required from the commercial point of view. The Indian Paper Industry is a booming industry and is expected to grow in the years to come. The usage of paper cannot be ignored and this awareness is bound to bring about changes in the paper industry for the better. It is a well known fact that the use of plastic is being objected to these days. The reason being, there are few plastics which do not possess the property of being degradable, as such, use of plastic is being discouraged. Excessive use of non degradable plastics upsets the ecological equilibrium. 30
  31. 31. CHAPTER 5 (COMPANY PROFILE) 5.1 Historical Background 31
  32. 32. Century pulp & paper industries ,a unit of top Indian corporate conglomerate-B.K Birla group of companies is one of the leading integrated pulp & paper plants .Established in the year 1984 at Lalkuan, a township near the foothills of Himalayas in Distt. Nainital (Uttarakhand), the company after expansion & modernization, presently operates four fiber lines at the following installed capacities: Rayon grade pulp : 31320 TPA Writing & printing papers(wood) : 37250 TPA Writing & printing papers(bagasse) : 84600 TPA Writing & printing papers(DIP) : 75960 TPA MANAGEMENT AND SR. EXECUTIVE OF THE COMPANY AT LALKUAN: Mr. Deepak Tandon DIRECTOR Mr. A.K Bisarya JT. PRESIDENT (Works) Mr. A.C Mittal SR.VICE PRESIDENT (production) Mr. R.K Sharma CHIEF ENGINEER. Mr. S.K Aggarwal SR.VICE PRESIDENT (Commercial) Mr. A.K Sharma VICE PRESIDENT (P&A). Nearly 2700 peoples are working as a team to achieve the objective of the organization. There is an excellent harmony between the employees union & the management. The company has established a strong brand image in the domestic & oversees market with excellent quality of its products & services & caters to diversified sectors like note books & diaries, continuous stationary, copier, envelopes, offset printing, security papers, industrial papers & viscose filament yarn & cellophane paper. 32
  33. 33. The company has been awarded golden status by DGFT. Govt. of India as golden star trading house at the corporate level. The bagasse based papers are eco labeled. Company’s main raw materials are Eucalyptus, poplar, bamboo, Bagasse & waste paper. Company’s marketing policy is targeted to meet customers’ need & satisfaction. Presently the company is also exporting its paper to various countries. The head office of the company is at Kolkata. 5.2 Vision, Mission and Objectives of the Company Commitment to Quality & Service: At century, quality is an all-pervasive commitment. We strive to continually improve the quality of our products & services, which have been, affirmed in the form of ISO 9001:2008 certifications to the company for its quality management system. The company has been responsive to the changing market requirement & has developed new quality products to care to the varying end uses. Care for Environment: Preserving & protecting the environment is a top priority at century. We are always sensitive to our bio-diversity of the soil, water & air around us. CPP’S power plant maintains an efficient system for reducing air emissions. Electrostatic precipitators have been installed to remove particulates from recovery boilers, coal fired boilers & lime kiln fuel gases. In strict adherence to the standards & guidelines, the effluents are treated in a modern ETP, which is recognized as a model plant for its efficiency & performance. Company’s adoption of a systematic approach to the environment matters including waste minimization, water recycling & re-use programs of by products has facilitated the company in getting the ISO-14001:2004 certification for its environment management system. 33
  34. 34. Company’s friendship with Environment has also reflected in its bagasse based paper being licensed for eco labeling, a distinct honor to be attained. Towards Sustainable Development: Caring for the Community: Century cares for the community at large & strives to be a good corporate & social citizen. We actively contribute to the community development of the areas in our surroundings & regularly conduct medical camps, undertake construction work of schools, drinking water facilities, selfemployment schemes etc. Marching Ahead: The company has embarked on a prestigious expansion program to install a modern 450TDP fiber line (ECF) & 500TDP multilayered board plant along with 44 MW turbine & chemical recovery boiler. 5.3 Organisational Structure 34
  35. 35. ORGANIZATION –STRUCTURE (CENTURY PULP & PAPER INDUSTRY) CHAIRMAN SR.PRESIDENT JOINT PRESIDENT VICE PRESIDENT SENIOR GENERAL MANAGER GENRAL MANAGER DY.GENRAL MANAGER MANAGER SR.SUPREINTENDENT OFFICER ASSISTANT.OFFICER GRADED STAFF 5.4 Product Profile: 35
  36. 36. CPP range of products includes finest varieties of writing & printing paper, industrial papers, specialty papers, security papers & copier papers from diversified range of raw materials. Century parchment, NCR base, Overlay tissue, wax match tissue, century index, MICR cheque paper, buff pulp board, Railway bond, Azure-laid (ivory),MF book cover(UV Fiber), ss maplitho, super white map litho, super shine printing ,base paper for coating, sticker Base paper, Copier paper 75 gsm (ECO-MARK) are some of the varieties that have wide range of applications. CPP also manufactures high quality dissolving rayon grade pulp, raw material for viscose filament yarn/staple fiber & bleached hardwood paper grade pulp. Rayon Grade Pulp/Paper Grade Pulp: This fiber line manufacturers wood pulp with eucalyptus & popular furnish for dissolving grade as well as paper grade application. Century is one of the leading suppliers to rayon industry for viscose filament yarn manufacture. The pulp also finds application as filler in melamine formaldehyde /urea formaldehyde for making melmo ware/ electrical switches. Writing & Printing Papers (Wood based): The integrated plant incorporates eucalyptus & bamboo furnish to produce papers ranging from 40 to 210 gsm .The plant is equipped with two paper machines with a total capacity of 110 TDP & manufactures some of the finest qualities of specialty papers. Baggase-based papers: The plant incorporates modern, state of art machinery & technology & is based on a completely environment-friendly concept. The salient features are a unique bleaching sequence with chlorine–dioxide, oxygen enriched extraction stage along with enzyme pre-bleaching, biotechnology application that the company has pioneered to implement; & a comprehensive computer-aided control system. The high speed paper machine is equipped with film press for 36
  37. 37. on-line coating applications. The product range includes fine varieties of writing & printing papers of 53-130 gsm including copier. Recycled Fiber Based Paper: A secondary fiber based plant manufacturing writing printing paper, DIP plant is equipped with two stage flotation & two-stage bleaching. Latest technology incorporated in this plant facilitates production of finest paper quality in this category. The product range includes writing & printing papers of 52-130 GSM. Tissue Plant: Prime grade tissue plant of 100 TDP with hi-speed machine (2000 mpm) supplied by Metso is equipped with latest technology to produce finest quality in this category. The product range will include Facial, Napkin, Toilet, C-fold, & kitchen Towel etc, in the range 13-40 gsm. 5.5 Growth prospects of the Century Pulp And Paper Mills 37
  38. 38. The future outlook of the Century Pulp And Paper Mills remains bright. An annual growth of newsprint papers, printing grades and carton boards by 13%, 6% and 11%, respectively offers a competitive advantage in the Indian paper industry. It is anticipated that the company will witness a growth of 7-8% over the next decade. This growth will be spurred by two major factors namely growth industrial output and increased spending on education. Further the Indian print and packaging industry, which is one of the most developed in the world, is one of the biggest consumers of paper in the country. Low labour charges and establishment of several engineering institutes producing qualified personnel to run the machines will also propel the growth of the industry.Thus the (CPP) has a bright future ahead to grow. In order to remain globally competitive, the Century Pulp And Paper Mills will require a continuous supply of good quality raw material, both forest-based and recycled fibre which can be achieved through higher plantations and better fibre recovery. The industry also needs to upgrade its infrastructure in order to compete with its global counterparts. To tread on growth path the company needs to identify factors (both macro and micro economic), which will have a solid impact on the economy and help it to sustain growth over a long period of time. 5.6 SWOT Analysis: Century Pulp and Paper Mill 38
  39. 39. Strengths: o Large, diversified and potential market. o Cheap labor rates that result to competitive price. o Need low capital investment. o There is flexible production flexibility. o Low barriers of new entry. o It has strong, diversified and supportive retail infrastructure. Weaknesses: o Inadequate information of new technology. o Inadequate information of current market trends. o Less interest of young people in craft industry. o Lack of skilled labor. o Lack of promotion of products. Opportunities: o Rising demand for paper products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc. o Developing newspaper industry requires paper products. o Development of domestic and international journalism and news agency sector. Threats: o Competition in domestic market. o Balance between high demand and supply. o Quality products produced by competing competitors. o Increased and better technological support and RandD facility of the competitors. 39
  40. 40. CHAPTER 6 (DEALERS/SATISFACTION EFFORTS BY CENTURY PULP AND PAPER MILLS) The Century Pulp and Paper Mill is a well established company. They have a good network of chains through which they sell their products to dealers and other clients of their business. The 40
  41. 41. Century papers have been in the market for a long time and as because of their quality and standards they require very less promotion of their products. They adopt certain marketing strategies in order to promote their product among customers – The basic product strategy adopted by Century Pulp and Paper Mills is the suitable product bundling within which it divides its products into different sizes and packets. These packaging includes A2, A4, B2, B4 and even rolls. This approach of product bundling helps the company to achieve its price performance. The company also focuses on effective product segmentation so as to cater different markets with different prospective buyers. The Company also tries to be a first mover all the time. Any new approach or idea is instantly gained by the company in order to achieve the advantage of being a first mover. The Company takes the market segmentation approach dividing broad markets such as kraft line board, into customer groups based on common needs that a company can profitably meet, then developing and executing segment specific plans for sales, marketing and services. Broadly speaking the company entails niche marketing in order to gain market share. The company takes two major things in consideration while evaluating different market segments viz. a) The overall attractiveness of the segments and b) The company’s objectives and resources. The company has realized that the Indian market is price sensitive, hence take approaches to gain price advantage by providing products at reasonable and affordable prices taking in consideration the different segments too. In order to gain price advantage the company takes the market penetration strategy to set prices. This strategy makes the company to stay in the market for a longer period gaining small profits for a large period. Nominal prices are set and much focus is given to match prices or to give better prices than the competitors. 41
  42. 42. Company has started investing in business applications like SAP type technology to better develop and follow client profiles, process control systems are also activated such as PLC and DCS which focuses on the production side which will in future reduce cost and thus will make the company able to set more effective prices. The company has taken considerable steps in promotion part. Channel development gains the advantage. Direct channel marketing is done where the company effectively handles the distribution, maintains records and level check of channel partners. Appropriate training is also provided to the executives of the channel. Brand recognition is also taken into consideration but much focus is on distribution channel. The company monitors the requirements of channel partners and coordinates with stores. The company takes steps to settle area of concerns such as incentive claims of channel partners. There are steps to call customers and generate leads. The company handles corporate accounts and also forecasts sales. Mapping of accounts takes place and feedbacks are given to the marketing department regarding requirements of the market. Selective and intensive distribution approaches are considerably encapsulated in the activities of the company to promote its product and generate sales. . 42
  43. 43. CHAPTER 7 (FINDINGS AND ANALYSIS) Data Analysis and the Findings 43
  44. 44. RETAILERS. DEALERS. A sample size of 50 respondents were taken which includes both retailers and dealers in the nearby cities such as Haldwani, Kashipur, Rudrapur, Moradabad, and certain areas of Delhi. For the purpose of analysis graphs and tables has been used so that a conclusion can be drawn from the following inferences. o Data of respondents based on their type. Whether the respondent is a retailer, dealer or both? Table 1.1 Type Retailer Dealer Both Respondents 23 18 9 Chart 1.1 44
  45. 45. Respondent Type Respondents, Retailer, 23 Respondents, Dealer, 18 Retailer Dealer Both Respondents, Both, 9 Interpretation: Most of the respondents were found to be retailers though as compared to retailers the number of dealers were also not much less. However some of them were in both the businesses. o Data of respondents based upon their term in the business. 45
  46. 46. Responses are based on the number of years the respondents are in paper business. Table 1.2 Years 4 years 8 years 12 years 16 years Respondents 10 14 16 10 Chart 1.2 Years in Business Respondents, 4 years, 10, 20% Respondents, 16 years, 10, 20% 4 years 8 years Respondents, 8 years, 14, 28% Respondents, 12 years, 16, 32% 12 years 16 years Interpretation: Most of the respondents were in business for a long time, this shows that the quality that the company maintains with its business clients is very healthy hence makes the clients to retain in the market for a longer period. o Data of respondents according to the number of go-downs they possess. 46
  47. 47. How many go-downs do the respondent have? Table 1.3 No. of Go-downs Respondents 1 19 2 10 3 9 4 7 More than 4 5 Chart 1.3 Number of Godowns Respondents, More than 4, 5, 10% Respondents, 4, 7, 14% Respondents, 1, 19, 38% 1 2 3 4 Respondents, 3, 9, 18% More than 4 Respondents, 2, 10, 20% Interpretation: As there were large numbers of retailers hence the numbers of go-downs used by them were less nearly about 1 or 2. Again dealers also had go-downs but were having large number of go-downs compared to retailers. o Data of respondents based on the type of go-downs they used: 47
  48. 48. Are the go-downs personally owned by the respondent or is a hired one? Table 1.4 Type of Godown Respondents Personal 21 Hired 29 Chart 1.4 Type of Go-down Respondents, Personal, 21, 42% Respondents, Hired, 29, 58% Personal Hired Interpretation: This shows that approximately half of the respondents owned their own go-downs and the other half were using hired ones. Retailers were found to be using hired go-downs when compared with the dealers who were basically using their personal go-downs. o Data of respondents based on products they offer to the customers. 48
  49. 49. Whether the respondents deal exclusively with paper products or in stationery also? Table 1.5 Products Offered Respondents Paper Products 18 Stationery 24 Books and stationery 8 Chart 1.5 Products Offered Respondents, Books and stationery, 8 Paper Products Respondents, Stationery, 24 Stationery Books and stationery Respondents, Paper Products, 18 Interpretation: This shows that most of the products offered by the respondents deal with stationery products out of which paper products also hold a good proportion. 49
  50. 50. o Data of respondents based on the type of market they approach. Whether they operate in local market only or have spread their business in outside markets as well. Table 1.6 Markets Used Respondents Local Market 18 Local and Outside Market 32 Chart 1.6 Markets Approached Respondents, Local and Outside Local Market Market, 32 Local and Outside Market Respondents, Local Market, 18 Interpretation: This above data shows that they mostly cater to both the local and outside markets, but to a some extent they also operate solely in local markets in some areas. 50
  51. 51. o Data of respondents on the basis of the number of staffs they have at their store. The number of staff kept in the store for operations. Table 1.7 Number of Staff Respondents 1 15 2 18 3 9 More 8 Chart 1.7 Number of Staff Respondents, More, 8, 16% Respondents, 1, 15, 30% 1 2 Respondents, 3, 9, 18% 3 More Respondents, 2, 18, 36% Interpretation: This shows that most of the respondents have a 2 staff member to assist them in their work. However there are instances where they have more or less than 2. 51
  52. 52. o Data of respondents based on the quality preferred in papers. What quality preference do they require in papers provided by the company? Table 1.8 Preferred Quality Smoothness Brightness Bulk Opacity Respondents 15 18 11 6 Chart 1.8 Preferred Quality Smoothness Respondents, Smoothness, 15 Brightness Respondents, Brightness, 18 Bulk Opacity Respondents, Bulk, 11 Respondents, Opacity, 6 Interpretation: This analysis shows that most of the respondents do prefer for brighter quality papers. A certain percentage of which do prefer for smoothness also. A very less percentage do prefer for opacity. 52
  53. 53. o Data of respondents based on their problems faced in paper quality. What problems do the respondents face in the quality of papers provided by the company? Table 1.9 Problems Faced Thoroughness Poor Ink Absorbency Creasing Other Respondents 10 21 7 12 Chart 1.9 Problems Faced Respondents, Thoroughness, 10, 20% Respondents, Other, 12, 24% Thoroughness Poor Ink Absorbency Respondents, Creasing, 7, 14% Creasing Respondents, Other Poor Ink Absorbency, 21, 42% Interpretation: The above analysis shows that most respondents do have problems with the poor ink absorbency. While a certain percentage do get problems with thoroughness also. Creasing is also a problem faced by a certain percentage. 53
  54. 54. o Data of respondents based on their frequency of orders. How often do the respondents place orders? Table 1.10 Frequency of Orders Respondents Weekly 18 Fortnight 14 Monthly 12 Once in a Year 6 Chart 1.10 Frequency of Orders Respondents, Once in a Year, 6 Respondents, Monthly, 12 Weekly Fortnight Monthly Respondents, Once in a Year Fortnight, 14 Respondents, Weekly, 18 Interpretation: The analysis shows that respondents with weekly orders have the highest frequency. However fortnight orders also have a high range. 54
  55. 55. o Data of respondents based on where from they buy paper products. Do they buy from the supply channel or directly from the paper mill? Table 1.11 Place of Purchase Channel Direct from the mill Respondents 30 20 Chart 1.11 Purchase Place Respondents, Direct from the mill, 20, 40% Channel Direct from the mill Respondents, Channel, 30, 60% Interpretation: The analysis shows that respondents do prefer from mills as the number of respondents were more indulged in retailing. This also shows that the channel of paper and pulp industries is strong. 55
  56. 56. o Data of respondents based on the numbers using advertisements. Whether the respondent take the use of advertisement or not? Table 1.12 Use of Advertisements Yes No Respondents 12 38 Chart 1.12 Use of Advertisements Respondents, No, 38 Yes No Respondents, Yes, 12 Interpretation: This analysis shows that there is very less of advertising strategy and the industry stresses more on channel. 56
  57. 57. o Data of respondents based on preference of brand ambassador. Whether they prefer a brand ambassador or not? Table 1.13 Preference of Brand Ambassador Respondents Yes 18 No 32 Chart 1.13 Preference of Brand Ambassador Respondents, Yes, 18, 36% Yes No Respondents, No, 32, 64% Interpretation: This analysis shows that respondents were less interested in appointing a brand ambassador. This was obvious as ther was very less advertising in this industry. Hence no brand ambassador was preffered. 57
  58. 58. o Data of respondents based upon type of customers served. What type of customers do the respondents serve? Table 1.14 Frequent Consumers Corporate Professionals Govt. Officers Respondents 8 14 School Institutions Students 18 10 Chart 1.14 Customers Respondents, Corporate Professionals, 8, 16% Respondents, Students, 10, 20% Corporate Professionals Govt. Officers School Institutions Respondents, Govt.Students Officers, 14, 28% Respondents, School Institutions, 18, 36% Interpretation: This analysis shows that major requirements of paper comes from the school institutions. Moreover government offices and corporate also require a considerable amount of paper. 58
  59. 59. o Data of respondents based on their satisfaction with packaging. Whether the respondent is satisfied with the packaging provided by the company? Table 1.15 Satisfied with Packaging Respondents Yes 32 No 18 Chart 1.15 packaging satisfaction Yes Respondents, Yes, 32 No Respondents, No, 18 Interpretation: This analysis shows that most of the respondents were satisfied with the packaging of the product. This is because the industry focuses much on packaging as a marketing strategy. 59
  60. 60. o Data of respondents based on the responses of customers. What response do the respondents get from their customers? Table 1.16 Customer Responses Highly Positive Positive Moderate Negative Respondents 16 22 8 4 Chart 1.16 Respondents, Customer Responses Negative, 4, 8% Respondents, Moderate, 8, 16% Respondents, Highly Positive, 16, 32% Highly Positive Positive Moderate Negative Respondents, Positive, 22, 44% Interpretation: This analysis shows that the respondents were satisfied with the product. But there were a part of them who suggested certain feedbacks regarding the product. 60
  61. 61. o Data of respondents based on their method of sales. What methods do respondents employ to sell their products? Table 1.17 Method of Sales Respondents Phone 16 E-commerce 6 Direct Sales 28 Chart 1.17 Method of sales Respondents, Direct Sales, 28 Phone E-commerce Respondents, Phone, 16 Direct Sales Respondents, E-commerce, 6 Interpretation: This analysis shows that the respondents preferred for direct sales as they were mostly retailers. However certain percentage of sales was done through telephonic calls also. 61
  62. 62. o Data of respondents based on period of maximum sales. Which period according to the respondent is the peak period of maximum sales? Table 1.18 Period of Max. Sales Respondents 1st Quarter 16 2nd Quarter 18 3rd Quarter 9 4th Quarter 7 Chart 1.18 Period of Max Sales Respondents, 4th Quarter, 7 Respondents, 3rd Quarter, 9 1st Quarter 2nd Quarter 3rd Quarter Respondents, 4th Quarter 2nd Quarter, 18 Respondents, 1st Quarter, 16 Interpretation: This analysis shows that maximum amount of sales is done in the second quarter of the year as most closing, audits and financial works are done during that period of the year. 62
  63. 63. o Data of respondents based on their expectations from the company. What does the respondent expect from the company? Table 1.19 Expectations from Company Respondents Incentives 14 Discounts 18 Credits 11 Others 7 Chart 1.19 Expectation from Company Respondents, Others, 7, 14% Respondents, Incentives, 14, 28% Respondents, Credits, 11, 22% Incentives Discounts Credits Others Respondents, Discounts, 18, 36% Interpretation: This analysis shows that most respondents claim for discounts and incentives rather than credits or other benefits. This is because the business is a price sensitive one and discounts would help them. 63
  64. 64. o Data of respondents based on the possible threats. What are the possible threats to the respondents? Table 1.20 Possible Threats Respondents New entrants 16 Sales & Distribution network 24 Price 7 Other 3 Chart 1.20 Threats New entrants Sales & Distribution network Price Other Interpretation: This analysis shows the the main possible threats are due from sales and distribution network. However new entrants also pose a threat for the company. 64
  65. 65. o Data of respondents based on the means of shipment. What means of shipment do the respondents use? Table 1.21 Means of Shipment Respondents Train 16 Road transport 24 Other 10 Chart 1.21 Means of Shipment Respondents, Other, 10, 20% Respondents, Train, 16, 32% Train Road transport Other Respondents, Road transport, 24, 48% Interpretation: This analysis shows that the most means of shipment is done through road transport because they find it more safe and reliable as compared to others. 65
  66. 66. o Data of respondents based on motivational schemes provided. Does the company provide any motivational schemes to the respondents? Table 1.22 Motivational Schemes Provided Respondents Yes 12 No 38 Chart 1.22 Motivationa Schemes Respondents, No, 38 Yes No Respondents, Yes, 12 Interpretation: The analysis shows that the company was not providing any motivational schemes to customers but even then the customers are satisfied with the company’s product and sales techniques. 66
  67. 67. o Data of respondents based on the mode of contact with the company. How the company does contacts the respondent? Table 1.23 Mode of Contact Respondents Via Telephone 18 Direct Visit 22 Other 10 Chart 1.23 Mode of contact Respondents, Other, 10 Via Telephone Respondents, Direct 22 Direct Visit,Visit Other Respondents, Via Telephone, 18 Interpretation: This analysis shows that the mode of contact with the company is through direct visits. This is because the company prefers to visit its clients directly rather than taking feedbacks on phones and mails. 67
  68. 68. o Data of respondents based on the paper preference. What paper do the respondents mostly prefer? Table 1.24 Paper Preference Respondents JK Paper 15 Andhra Paper 12 Orient 11 Ballipur 4 Other 8 Chart 1.24 Paper Preference Respondents, Other, 8, 16% Respondents, Ballipur, 4, 8% Respondents, JK Paper, 15, 30% JK Paper Andhra Paper Orient Respondents, Orient, 11, 22% Respondents, Andhra Paper, 12, 24% Ballipur Other Interpretation: This analysis shows that respondents do prefer JK paper in comparision to others. Hence it would pose a more serious threat to the company. 68
  69. 69. CHAPTER 8 (CONCLUSION & SUGGESTIONS) 69
  70. 70. CONCLUSION: During the research process it was found that an amazing world of big machineries & their process which were in continuous operation to deliver the final product. It can never be thought that developing a small sheet of paper would require such immense & arduous tasks of both men & machinery. Also, apart from processes some major findings on behalf of the data collected from in and outside the paper industry helped in drawing a certain conclusion. It can cited as follows: The new era of upcoming generation is going to be knowledge based, so demand for paper would go on increasing in upcoming years. In view of paper industry’s strategic role for the society & also for the overall industrial growth it is necessary that the paper industry performs well. The demand for upstream market of paper products like: TISSUE PAPER, FILTER PAPERS, LIGHT WEIGHT ONLINE COATED PAPER, MEDICAL GRADE QUOTED PAPER, etc, is growing due to increase in population & more & more facilitation. These developments are expected to give fill up to the industry. Due to industrialization & globalization there is huge demand & potential of paper & allied products. Corporate sector, computerization in banks, financial & other institutions has opened a great market opportunity for a new sector that is COPIER PAPER. As per the information collected through the sales & marketing department of the company, a major consumption & demand is seen in Delhi & NCR region, where therefore are maximum number of dealers that too with very high allocated size. 70
  71. 71. Paper industry is very risky & tough growth business as the raw material consists of hazardous chemicals like cl 2,so2,hcl,clo2 etc & therefore performance is the only key to success. Transportation to these high consumption areas is quick, and authentic. It was found that the availability of contingency plans is not that strong ,as far as the planned transportation is required. Talking to the dealers it was observed that relationships among dealers & consumers of CPP industries reflects the company’s policy of relationship building, but it could be further increased by providing some sale or motivational schemes & policies. It was also found that Century Pulp & Paper industries is very prompt in providing product variety at a time ,most of the orders of CPP are full filled in time and as per specific requirements. Company emphasizes lot on packaging methods undertaken, so as to ensure safety of product during transit. Century could be thought of a market leader at the present scenario as it is the only industry which has variety of processing plants for different raw materials via which the paper is manufactured it includes- paper manufacturing through baggase, wood, R.G.P. As the production in the unit goes on 24*7, so the employees work on basis of shifts. The maintenance of the heavy machineries is a compulsion in this case,& thus company has qualified engineers & technical staff which is well trained, they all work hard & their endeavors have lead the company to the no.1 position in the paper industry. 71
  72. 72. SUGGESTIONS: Thus, here by on the basis of my understanding & observation, I would like to put forward few suggestions & recommendations to the company as well as on the entire topic as well. The company should sustain the availability of good quality of raw material (forest based) & bulk import of waste paper to supplement the availability of raw material. Also with respect to above statement I would like to recommend the company to encourage afforestation, in the nearby locations such as Rampur from where the major source of raw material is supplied i.e. eucalyptus & popular trees, for w.p.p (wood based paper plant) (major paper manufacturing plant). R&D technological absorption should be emphasized upon to enhance the productivity by maintaining the quality of copier/writing/printing paper. The company should make good profile investments in advertisements which are directly linked with customers. I would also like to recommend the company to hire a brand ambassador for the advertisement purpose, it may be any celebrity. However if the company feels like that this investment would be a cost burden they can look for some socially renowned face who has a premium image & is available at cheaper rates The company should take new measures for the promotion of the products. It should make use of more effective marketing techniques in order to sustain its clients. 72
  73. 73. ANNEXURE 73
  74. 74. BIBLIOGRAPHY Books: C.R Kothari “Reseach Methodologies” V. S. Ramaswamy, et al: “Marketing Management”, 4th Edition, 2009, P.No.- 246-295, Macmillan Publishers India Ltd. Web Sources: www.ipma.co.in/paper_industry_overview.asp http://www.indianmirror.com/indian-industries/paper.html http://researchwikis.com/Paper_-india_Marketing_Research www.fao.org www.centurytentind.com www.acmesurplus.com www.google.co.in www.wikipedia.org www.century paperindia.co.in News Papers: Times of India Hindustan Times The Hindu 74
  75. 75. SAMPLE QUESTIONAIRE Dear Respondents, I am working on the project of “A Study on the market analysis and the buying behavior of the buyers of the paper industry(A Special Case of Century Pulp and Paper Mills)”. You are requested to fill the questionnaire to enable me to undertake the study on this project. NAME: SECTION I: GENERAL PROFILE OF THE RESPONDENTS Q1) Age Group: A)20 - 30 yrs B) 31 – 40 yrs C) 41 – 50 yrs D) above 50 yrs Q2) Sex: A) Male B) Female Q3) Marital Status: A) Married B) Unmarried Q4) Educational Qualification: A) School Level B) Graduate C) Post Graduate D) Others Q5) Occupation: A) Business B) Service C) Students D) Home Maker E) Others Q6) Monthly income: A) Below ` 10,000 B) ` 10,000 – 20,000 C) ` 20,000 – 30,000 D) above ` 30,000 7) Type of function you are performing? 75
  76. 76. A) Retailer B) Dealer C) Both 8) Since how long are you associated with the dealers of CPP Industries? A) >4 Years B) >8 Years C) >12 Years D) >16 Years. 9) How many go-downs do you have? A) 1 B) 2 C) 3 D) 4 E) More than 4 10) Whether the go-downs are? A) Hired B) Personal. 11) What type of products do you deal in ? A) Paper Products B)Stationery C) Books and Stationery 12) What market do you operate in? A)Local Market B) Local and Outside Market 13) What number of staff do you have in your store? A)1 B)2 C)3 D)More than 3 14) Which of the quality attributes for writing & printing paper you prefer most in terms of customer preferences? A) Smoothness B) Brightness C) Bulk D) Opacity. 15) Which problem have you generally faced with CPP papers? 76
  77. 77. A) See thoroughness B) Poor Ink Absorbency C) Creasing D) Other. 16) How do you place the order and how frequently? A) Weekly B) fortnightly C) monthly D) once (in a whole year) 17) From where do you purchase the paper? A) Supply Channel B) Directly from the mill. 18) Are advertisements required to serve the purpose better? A) Yes B) No 19) Do you feel like that hiring a brand Ambassador & then advertising for the paper products would be helpful in generating more volume of sales for the Company? A)Yes B) No 20) Who are your frequent consumers? A) Corporate Professionals B) Govt. officers C) Schools institutions D) Students. 21) Is the current packaging of CPP products attractive & safe? A) Yes B) No 22) Which type of consumer responses forwards the products of CPP? A) Highly positive B) Positive C) Moderate D) Negative. 23) What method of sales do you approach? 77
  78. 78. A) Phone B)E-Commerce C)Direct Sales 24) During which period of year you register maximum sales? A) 1st qtr. B) 2nd qtr. C) 3rd qtr D) 4th qtr. 25) What is your expectation from CPP? A) Incentive B) Discounts C) Credit D) Others. 26) What according to you are the possible threats to CPP from competitors? A) New entrants B) sales & distribution network C) Price D) Others 27) What is your means of shipment? A)Train B)Road transport C)Others 28) Do you receive motivational sales scheme from CPP dealers? A) Yes B) No 29) What is the mode of company solving your queries & receiving feedback? A) Via-telephone B) Direct visit C) Others. 30) Which paper you prefer most? A) CPP B) JK PAPER E) BALLIPUR C) ANDHRA PAPERS F) OTHERS. 78 D) ORIENT
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