a project report on distribution and channel management in Hindustan paper corporation limited(cachar paper mill)

3. PREFACE
This report is submitted in partial fulfillment of MASTER OF BUSINESS
ADMINISTRATION curriculum of Punjab technical university.
The tittle of the project is “Distribution and Channel management practices with
respect to CACHAR PAPER MILL (HPC). It studies the Distribution and channel
management and factor that effects Distribution and Channel management like
production, raw material in the context of HPC and effectiveness of marketing
channels with special reference to barak valley.
The preamble of the project report includes a brief report about the whole project.
That is why it should be designed in such a way that one must be able to understand
the whole project by having a glance on it.
The study is basically done to develop the Distribution and channel management
practices of the HPC through the study undertaken in it’s Cachar paper mill unit. It is
always true in present day’s context to maintain an efficient distribution channel in
this age of cut-throat competition.

6. DECLARATION
I.Mr. BASUDEB DAS hereby declare that this project report is the record of
authentic work carried out by me during the period from 20th june to 3rd
August 2013 and has not been submitted earlier to any university or institute
for the award of any degree/diploma etc.
BASUDEB DAS.
DATE: 08/11/13

7. Acknowledgement
One opportunity a management student gets when doing a project is to think like a manager. Project
is done in a organisation to understand it’s business culture.This is the opportunity for me to think
like a Marketing Manager. Survey is an excellent tool for learning, an exploration no classroom
routine can substitute, which is possible while working in real situation.Application of article
knowledge to practical situation is the bonanzas of this survey.
Without a proper combination of inspection and perspiration,it’s not easy to achieve anything.There
is always a sense of gratitude which we express to other for the help and the needy service they render
during the development of the project.
First of all I wish to express my profound gratitude and sincere thanks to my esteemed learned
Director who allowed me to conduct the survey. I would like to thank my lecturerers Deepraj
chakrabarty and Subhankar Deb ,they were always there to help and guide me when i needed
help.Their perceptive criticism ,kept me working to make the project more full proof .
In the Organisation, i would like to thank Mrs Susmita Sen,(HR &ES) for giving me the chance to
conduct servey.I would specially like to thank Mr. Ranjit Biswas(Dy manager) Distribution for his
kind help.I would also like to specially thank Sougoto Deb of Distribution for helping me specifically
throuhgh his professionalism and all the staffs of Distribution Department.My deep sense of
gratitude also to Mr. Siddharta Gupta (transportation) superviser who among his busy schedule was
always there to help me responsibly whenever I needed his help.I would also like to thank Partha P
Roychoudhury (Fin excecutive) for his suggestion and help.Expressing gratitude will be incomlete
without thanks to all other facilitators and Data providers in this Project including Paper
machine,Forest deptt and the technical library. No words can adequately express my overriding debt
of gratitude to my parents Whose support helped me in all the way above,I shall thank all my freinds.

8. EXCECUTIVE SUMMARY
The project report is prepared at Hindustan paper corporation limited and the project
tittle is Distribution and channel management with respect to cachar paper mill(hpc)
as a part of curriculam of Master of Business Administration.
The objective of the study is to understand the distribution and channel management
practices of cachar paper mill and factors that affect it in HPC(cpm) like raw material,
production, logistics etc from generalised and holistic point of view.
Methodology used and emphasized was not necessarily quantitative
orientation,rather qualitative and emphasis was not on statistical representation of
everything.research area was firm’s inside environment and traders under stockists in
barak valley.

9. CONTENTS
Page No
Chapter – I 1-5
Introduction
Chapter – II 6-33
Company Profile
Chapter – III 34-35
About CPM
Chapter- IV 36-37
Literature Review and Survey
Chapter – V 38-42
Research Methodology
Chapter – VI 43-68
Conceptual Frame-work and Distribution and Marketing
Channels of Cachar Paper Mill
Chapter – VII 69-91
Data Analysis and Presentation of Major Findings
Chapter – VIII 92-93
Suggestion and Conclusion
Chapter – IX 94-95
Limitations and Further scope of study
Chapter – X 96-97
Learning Occurred Through my MBA and Project
Literary Sources

10. CHAPTER - I
INTRODUCTION

11. 1.1 What is project?
A project is a scientific and systematic study of real issue or a problem intended to resolve
the problem with application of management concepts and skills. The study can deal with a
small or big issue in a division of an organisation. The problem can be from any discipline of
management. The essential requirement of the project is that it should entail scientific
collection, analysis and interpretation of data to valid conclusions.
1.2 Why project work?
Project work is the best way to practice what we have learnt.The purpose of the including
project report in the programme is to provide us an opportunity to investigate a problem
applying management concepts in a scentific manner .It enables us to apply our conceptual
knowledge in a practical situation and to learn the art of conducting a study in a systematic
way presenting it’s findings on co-herent report.As managers we are constanly seeking
information to base our decision.How will we collect ,synthesise and make the data
meaningful is what we learn through the process.
(Source:-Directorate of Distance and continuing education-Utkal university)
1.3 Introduction to the topic
The topic “AN ANALYSIS OF DISTRIBUTION AND CHANNEL MANAGEMENT
PRACTICES WITH RESPECT TO CACHAR PAPER MILL” will study marketing from a wide
perspective.Marketing is such a discipline which is related more with the external
environment of a firm than with internal.Based on it’s overall organisational design ,the
HPCL has decided to set its MARKETING DEPARTMENT in corporate headquarter kolkata.
It has two manufacturing unit viz-one at Nagaon paper mill and other is Cachar paper mill.It
has three subsidiaries also, viz-kerala newsprint limited,Nagland pulp and paper
corporation,Jagdishpur pulp and paper mills private limited. In it’s marketing channel it has

12. got 14 marketing depots also. These depot looks out for new stockist ,supplies product to the
ultimate customer,collects order,forwards the orders to CHQ.
In any organisation,whether it is big or small, government or non-government which is
dealing with any kind of product or services to the ultimate customer or consumer through
proper allocation,in this regard ,the importance of sales and marketing cannot be ignored
and CPM is no exception.Marketing is not only a matter of departmentation but also
orientation.Lot of other Branches facilitates marketing in order to create,communicate and
deliver value to the ultimate customer in the chain process.
Distribution department of CACHAR PAPER MILL plays a very important role as blood plays
in human body. Effective distribution depends on lots of factors like availability of enough
raw material,production etc.
In the whole marketing services,LOGISTICS plays a very important role from the point of
origin to the point of delivery.We will study the logistics ,product warehouse and distribution
in the supply chain process.we will also reflect at the Channel management process of
CACHAR PAPER MILL.
1.4 Objectives of Study
Whatever we do in life should be backed by some clear cut objectives. Regarding this study
also there is no exception.Every research study should be backed by well defined
objectives.However easier said than done, a research student can very easily list out long list
of objectives and end up fulfilling few.It is always better to display your objectives generally
and then display some numberwise and leave the judgement of fulfillment to audience.In one
shot it is not a easy task for any researcher to fulfill all objectives.There is always scope for
further improvement especially in marketing where there is no department and the next
researchers can always highlight that area and go on the process of improving.

13. Primary objective
The primary objective of this study is to assess the Distribution and marketing related
practices with respect to CACHAR PAPER MILL in terms of it’s production and distribution
trends and also to throw a reflection on the stockists of Barak valley.
Point wise statement of objectives is as stated under
To get a overview of the process involved in production and find it’s relation with CHQ
marketing
To have a breif look at the Supply chain and Logistical process of Cachar Paper Mill.
To study the production trend of last 5 years.
To analyse the Dispatch record of CPM as for production.
To know the product of CPM
To have a critical look at strategies adopted by the organisation for ensuring long term
growth.
1.5 Reasons for choosing this topic
Other topics were running through my mind.Reasons for choosing this topic is that it will be
the best reflection of overall business environment and organisational culture, considering in
this age of Globalisation and Cuthroat competition,the inability of the HPCL(Cachar paper
Mill) to take adequate marketing strategy and the production problem it is facing.
1.6 Why study this topic at Cachar Paper Mill and why choose this industry
Summer internship and live projects are practical learning experience for students,no matter
in which organisation you get yourself in to.You are there for learning it’s business
environment and orgabnisational culture.Doing a project in marketing , the first question
that came in to my mind ,is it worth doing a Project there since in Cachar paper mill ,

14. there is no marketing department.The Divison is in Head office kolkata.I decided to surf websites
extensively and found that the organisatinal structure of paper vindustry is such that most prefer to keep
their marketing in Head office simply because the organisation structure is vast,marketing is such a
activity which relates more itself with the external environment of a firm, than with internal,the
performance of the all the branches are measured collectively from the company point of view,and depots
extended over a vast geographical area collects orders,forwards them to CHQ, and the marketing
department from the head office controls all the Ps like product, price, place, promotion and
packaging.This in general is the scenario of paper market and paper industry.
The conclusion I reached was that A student does a project in the organisation not necessarily to enrich
and know more in his functional area,the real purpose of the doing the project is to know the business
environment and organisational culture and then find a relation of it with your functional area. Needless
to say this happens practically also with a management student, when after completion of degree, he is
recruited as management trainees, he gets trained in to various departments and then he actually sort of
relates his training with understanding of organisational culture and the link with his or her area of
specialisation.
Moreover with in marketing there are some subjects which can take shape of its own area of specialisation
like supply chain management and Logistics.A marketing student can often fit in to a shoe of Logistics
manager. it was always easy to walk out with a project in some other company like some franchisees
studying it’s Distribution and Sales pattern. Some of the problem of todays some B-school teaching that i
discovered in my MBA is that it neither gives you enough general management theories to perform at a top
level holistically nor gives you that cutting edge specialisation. Doing a project in HPC/CPM will give me a
chance to study supply chain and logistics, these subjects are becoming cutting edge side of marketing and
at the same time these subjects are multidisciplinary and highly related with top level strategies. This skill
of depth and breadth, horizontal and vertical is probably not unique, bt it will give me a chance to study in
a lot more unique and intense fashion and will be able to explore myself.

15. 1.7 Scope of study
The above study is done on Hindustan Paper Corporation Ltd (Cachar paper Mill) with regard
to it’s distribution and marketing channels. As we have mentioned early marketing is not only
a matter of Departmentation but also orientation. There are other departments in the
organisation which facilitates marketing and directly linked with operational level and
responsible along with marketing to provide best service to the ultimate king Consumer.
As we know there are 4ps in marketing. One of the vital p is Product. Marketing itself starts
with product development process and production planning and control, especially in a
manufacturing company and after that comes various tools and techniques like distribution,
effective management of channels etc to promote the product and push it to the ultimate
customer. This project will throw light on Cachar Paper Mill’s production and marketing
strategy.
The scope of the study can be briefly summarised as under
In the marketing arena it helps the organisation to explore and think about new marketing
strategies for revival of the firm.
It assesses the production and rawmaterial collection trend of previous five years and
reflects on the raw-material problem.
It helps the organisation to make it’s logistics, distribution and channel management more
effective.

16. CHAPTER – II
COMPANY PROFILE

17. PAPER FROM THE PAST TO PRESENT
An Overview:
Paper is symbol of material illumination. It communicates our ideas colorfully, figuratively and
preserves of thoughts for the posterity. Paper is more than an industry product. It is cultural barometer
if a nation. It is vital input to accelerate the process of human civilization.
The new millennium is going to be the millennium of the knowledge. To increase the literacy rate,
paper is indispensible, so the demand for paper would go on increasing in near future. To meet the
demand, paper industry has to expand perform well.
The name "paper" has come from the name of an aquatic plant called "papyrus" wage blue abundantly
in the Egyptian delta. The barks and leaves or the plant were used as writing material by ancient
Egyptian. It is generally belief that the Chinese did create a sheet of paper in the second century
B.CTs'ai Lun, an official in the Chinese royal court in 105 AD paper was made from rags, used finishing
nets, hemp and Chinese grass. For the next few centuries, paper making reminded a Chinese till the
Arabs learnt the craft of paper making from Chinese prisoners. Gradually paper making spread to other
part in Asia, Middle East and Europe.
The notion of paper is being used as a practical everyday item did not occur until the 15th century till
Gutenberg's invention of printing press. Printing technology rapidly developed & created an ever
increasing demand of paper. The early European paper were made from recycled cotton & linen & a
huge trade quickly developed around the trading of old rages. Experimentation with fibers such as
straw, cabbage, wasp nests finally wood resulted in expensive & replaceable material for paper making.
Today, the long soft fiber of softwoods have become the most suitable source of pulp for mass
production. The demand for paper also created the need for greater efficiency of production.

18. In the late l8th century Nicholas Luis Robert created a machine that could produce a seamless length of
paper on a endless wire mesh with squeeze rollers at one end. Improved upon & marketed by Fourdinier
brother, the machine made paper soon replaced traditional single sheets made by hand.
PAPER INDUSTRY IN INDIA
Paper making is believed to be brought in India in the 15th century A.D by the Mughals; although there are
stay accounts of its existence even earlier. William Carey, Christian Missionary is credited with starting the
first paper mill in India at Shrirampur, West Bengal in the year 1812. By 1832, the first "Fourdiriner" type
machine was introduced but the effort did not succeed in the face apathy of weeping out paper making in
India in 1840, when it was ordered that all paper to be brought from Great Britain. It was only after the
independence on India that industry showed some progress, but too was also at a very low rate business of:-
1) High cost of investment,
2) The reluctance of private investors to take risk.
3) Uncertainty about raw material in Forest areas.
4) Lastly, the price of the paper started to decline and competitively priced.
This was indeed, very difficult time for Indian paper industry. It was in the end of 1960, when the govt. of
India feels that they should have their own paper industry to meet daily requirement directly to consume at
reasonable price.
After plan of development of paper industry in India in 50's and 60's the growth slowed down because of
reluctance of private sector to invest in paper industry and due to the escalation of cost and scarcity of raw
materials. This situation led to shortage of writing and printing paper particularly, causing hardship to
common consumers. So, to meet daily requirement of paper, the government finally decided to established
HISDUSTAN PAPER CORPORATION LTD (HPC) on May 29th, 1970. HPC, a wholly owned government of
India enterprise was, thus, outcome of genuine national concern for having paper in plenty, employing the
state of the art production process know-how and utilizing the forest based raw materials.

19. While small questions of handmade paper were produced in the l8th and 19th centuries,
commercial production of paper began only in 20th century in private sector. The plan
development of Indian pulp and paper industry began only in the L950's with
commencement of Syears plan. Hindustan Paper Corporation Ltd(HPC) is today
synonymous with the quest quality paper, especially for mass consumption. HPC has four
paper mills two which are directly managed units of Assam, namely Cachar Paper Mill(CPM)
and Nagaland paper mill(NPM) and two managed through subsidiary companies, namely
Hindustan Newsprint Ltd(HNL),Kerala and Nagaland pulp and paper Company
Ltd(NPPC),Nagaland.
ABOUT HIDUSTAN PAPER CORPORATION LIMITED (HPC)
HINUSTAN PAPER CORPORATTION LTDIHPC) was launched on 29th May, 1970 when the
century was plagued by a pervasive paper famine which did affect the supply of quality
textbook and other commonly used product for the education sector. HPC, a wholly owned
government of India enterprise was, thus, outcome of genuine national concern for having
paper in plenty, employing the state of the art production process know-how and utilizing
the forest-based raw material available in the North Eastern Region and Kerala.
HPC has four paper mills two of which are directly managed units of
Assam, namely Cachar Paper Mill (CPM) and Nagaland Paper Mill (NPM) and two managed
through subsidiary companies, namely Hindustan Newsprint Ltd [HNL), Kerala and
Nagaland Pulp and Paper Company Ltd (NPPC), Nagaland. While NPM, CMP and HNL are
operating at more than 100 percent installed capacity NPPC which has remained non-
operation for 15 years is now under revival through implementation of a BIFR sanctioned

20. Rehabilitation Scheme. The establishment the two of its production units in the state of
Assam, one at Jagi Road of Morigaon district and another at Panchgram of Hailakandi
district. Cachar Paper Mill and Nagaon Paper Mill are HPC's own units, functioning directly
under HINDUSTAN PAPER CORPORATION LTD. Hindustan newsprint Ltd (HPL), News
print Nagar, Kottayam, Kerala, Nagaland Pulp and Paper Co. Ltd (NPPC). Paper Nagar,
Mokokchung, Nagaland are subsidiary companies. Both the units of Cachar Paper Mill &
Nagaon Paper Mill are identical in nature having installed capacity of 1,00,000 MT each per
annum, including 20,000 MT of news print each. Besides these HPC has one registered office
at New Delhi. One corporate office at Kolkata, five regional offices and 1.2 marketing depots
spread over the different corner over the country.
HPC at present is a scheduled a company and was first incorporated in 1970 as a wholly
owned government of Indian Enterprise with main of manufacturing paper, brands, craft
paper & news print, it was because of government policy also because of the availability of
Bamboo as raw material that the company need, HPC decided to established their own mills
in North eastern region.

21. OFFICES:
Registered office:
Delhi
4th Floor, South Tower
Scope Minar
Laxmi Nagar District center
Corporate office:
Kolkata
75-c Park Street
Kolkatta-700016
UNITS OF SUBSIDAREIS:
Units
Cachar Paper Mill
P.O-Panchgram
Distrct-Hailakandi
Assam-788802
Noagson Paper Mill
P.O.- Kagajnagar
District-Morigaon
Assam-782413

22. Subsiadries:
Hindustan Newsprint Limited
P.O-Newsprint Nagar
Dist. Kottyam
Kerala-686616
Nagaland Pulp and Paper Company Ltd
P,O-Papernahar
Dist.- Mokokchung
Nagaland- 798623
At Jorhat:
Post Box No. 18
Jorhat
Assam-785001
Jagishpur Paper Mill Ltd.
Registered office
214 A & 215 Ansal City
Center tower
China Bazaar Road
Lucknow- 226001

23. Jagishpur Paper Mill Ltd.
Registered office
214 A & 215 Ansal City
Center tower
China Bazaar Road
Lucknow- 226001
Marketing Head Office
75-C Park Street 5th floor
Kolkata- 700016
Regional Marketing & Sales Office:
SOUTHERN REGION:
Bangalore
Swiss Complex, 3rd Floor
33 RaceCourse Road
Banglore-560001
NORTHERN REGION--- Delhi
4th floor, South Tower
ScoPe Minar
Laxmi nagar District Center

24. Delhi
4th floor, South Tower
ScoPe Minar
Laxmi nagar District Center
Delhi-110092
Jaipur
16 Purohitjit-Ka-Bagh
Gopinath Marg, road no-5
Rajendra nagar
Jaipur- 302001
Lucknow
214A81275, Ansal city Center Tower
China Bazar Road
Lucknow-22600L
EASTERN REGION:
Kolkata
75-C Park Street, 5th Floor
Kolkata-700016

25. Kolkata
75-C Park Street, 5th Floor
Kolkata-700016
Patna
Parwati Kunj
Near Rajendra Nagar Hospital
Patna-800016
NORTH EASTERN REGION:
Guwahati
House No-5
8 Bye Lane
R.G Barua Road
Guwahati-781024
Regional Marketing & Sales Office:
WESTERN REGION—
Mumbai
Priyadarshini, 1st Floor
RCF News Office Complex
Sion- Chembur Road
Mumbai-400022

26. Indore
174Subhas Marge
1st Floor
Ram Bag Corner
Indore-452004
Kochi
G103 Newsprint house
Panampally Nagar, Ernakulam
Kochi-82036
Hydrabad
3010, 3rd Floor
Emeraland House Sarojini Devi road
Secunderabad- 500 003

27. LIAISON OFFICES/TRANSIT HOMES:
Delhi
4th floor, South Tower
Scope Minar
Laxmi Nagar District Center
Delhi-110092
Guwahati
House No-5
9 Bye Lane
R.G Barua Road
Guwahati-781024
Kochi
G103 Newsprint house
Panampally Nagar, Ernakulum
Kochi-682036
Thiruvanthapuram
T.C.15/145(1) Devi
Behind Althara Junction
Vellaamangalam

28. P.O -Thiruvanathapuram
AIMS AND SERVICES RENDERED BY HPC
HPC plays a dominant role in paper manufacturing and distribution a company
for national importance. The aim and service of the corporation include:
To produce sustainable quality of different varieties of writing / printing paper
and newsprint.
In domestic market, HPC has market share to the tune of 30% in newsprint and
10% in writing/printing paper in approximate.
To balance the price of paper in domestic market. The corporation is really
maintaining the stability of price in the changeable market.
To encourage national economy through the saving of the foreign currency.HPC
has emerged as major exporter of paper and newsprint to the Southeast, Middle
East and African Country.

29. To land impetus to the socio economic development of the country. HPC set up the
paper mill in North East section of the country as an instrument of social development
through industrial development in the North East.
Moreover HPC is contributing to the relentless crusade of the govt. national literacy by
providing paper to the educate boards/institution at a reasonable price.
CUSTOMER BENEFICIARIES AND PUBLIC PARTICIPATION
As accompany of national importance, HPC is catering to the needs for cultural paper
and news print of customers all over country. With the motive of ensuring satisfaction
of the customers. The corporation striving consistently to the highest the "Quality"
production through the up gradation of the "System" and production of value added
paper to meet the need of specialty of paper customers. The strategy of the,
corporation's production and marketing aims at understanding the customers' and
fulfilling their expectations at all stages. News as & "lSO 9002 company" HPC has
consolidated its position to made the challenges of the competitive market.

30. The meet the customer need for paper HPC involve in its activities in local community,
in addition to its regular human/force. Local people in mill areas and encourage in the
forestry operation and indirectly employed in raw materials in handling, transportation
services etc. Local communities also encouraged to build ancillary industries in green
field areas. Mills' activities ion social overhead including healthcare and education
facilities and supply of safe drinking water local areas.
CUSTOMERS GREIVANCES:-
Complained from value customer are attends promptly by quality control and
finishing personal of the mills of marketing people as well.
TECHNOLOGY MODIFICATION ACHIVEMENT:-
Model technology has been adopted in HPC mills due emphasis on energy
conservation and environment management.
At Hindustan News print (Ltd Kerala) camo-mechanical pulping process, a modem
process is adopted which has enable utilization of hardwood pulp (Eucalyptus Grand)
to the extent of 70% . It is major achievement.
Modern high capacity continuous Digester (make of kanyr of Sweden) are installed for
pulping at Nagaon and Cachar paper mills.

31. Help bim, imported technology from Finland, installed at CPM 1994 to charge
bamboo chips to digester after installed at this technology improvement chips
charging rate and unbleached pulp rate have been made.
Measure system for basic weight and moisture control installed in both paper
machine in 1996 in paper machine with size press (Utmal) and in 2001 paper without
size press (Jessop).
THE TEN PRINCIPLE OF GLOBAL COMPACT:-
HPC Ltd is member of global compact and is therefore, committed to en principle of
global compact:-
Human Right
BUSINESS SHOULD:-
Support and respect the protection of internationally proclaimed of Human Rights.
Make sure they are not complicit in Human Right abuses.

32. BUSINESS SHOULD:
Upload freedom of association and effective recognition of the right to
collective bargaining.
Ensure the elimination of all force of form and compulsory labour.
Ensure the effective abolition of child labour.
Elimination of discrimination in respect of employment and
occupation.
Environment:
BUSINESS SHOULD:
Support a precautionary approach to environmental challenges.
Undertake initiatives to promote greater environmental respectly.
Encourage the development of and diffusion of environmental friendly
Technologies.
Anti- Corruption:
BUSINESS SHOULD:
Work against in all form of Corruption including extortion and bribery.

33. QUALITY POLICY:
HPC's quest for quality received major fill up with a quality management system (QMS)
getting accredited with ISO-9002 certification by Det Norke Veritas (DNS) of
Netherland in July l988. Afforts are afoot to get the companies environment
management System (EMS) acceredited with ISO-14001 certification by March 2003 at
Cachar Paper Mill has already got ISO-14001 certification.
The quality policy of HPC is quoted below:
WE PLEDGE TO:
Understand customer expectation and ensure their satisfaction at all stages to attain
remain in the position of market leader.
WE STRIVE TO:
Maintain quality and its continuous up gradation through value addition.
WE ARE DETERMIND TO:
Achieve higher productivity at a competitive price with participation of all employees
and vendors.

34. WE ARE COMMITED TO:
Preserve safe, clean orderly production environment as a social obligation.
HPC's Business mission:
HPC strives continuous to maintain a leading position in the paper and newsprint
industry in terms of production quality, customer services and continuous absorption of
more environment friendly technology. However, in the new globalize environment,
understanding customer expectation and ensuring customer satisfaction at all stages
have been identified as the key strategy for continuous growth.
MARKETING INFORMATION:
HPC- Marketing Objectives:
Making paper for educational requirement at competitive prices.
Reasonable price without exploitation of customer.
Prompt customer service.
Special drive to meet the requirement of Govt Dept/ Institution.

35. HPC EXPORTING PAPER TO:-
Bangladesh
Sri Lanka
Myanmar
Jordan / Nigeria
Egypt
COMPETITORS OF HPC:-
HPC has many competitors some of them are as follows:-
Orient Paper & Industries Ltd.
The West Coast Paper Mill Ltd.
J.K Paper.
Khanna Paper Mill Private Ltd.
Jejani Pulp & Paper Mills Private Ltd.

36. Sl No. HPC Products GSM Range
1 Cream Wove 45 – 90
2 Surface Sized Maplitho 58 – 120
3 Computer Stationery Paper 52 – 80
4 Computer Stationery Deluxe Paper 58 – 80
5 Deluxe Maplitho 58 – 120
6 Copier Paper 75 – 80
7 White Offset Printing 60 – 75
8 Newsprint 52
9 Duplicating (Full Size) 60 – 63
10 Duplicating (Cut Size) 60 – 63
11 Coloured Printing 45 – 54
12 Offset Cartridge 110 - 130
13 Telephone Directory Printing Paper 40
14 Typewriting Paper 40 – 45
15 White Cover 110 – 130
16 Caustic Flake .Purity - 98%
17 Caustic Lye .Concentration - 48 - 50%
HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-HPC PRODUCTS:-

37. A CATALYST FOR GROWTH:
HPC was entrusted with the task of producing substantial volumes of cultural
varieties of paper and newsprint to maintain stability of price in a volatile market.
Besides, it was designed to be a catalyst for industrial growth in the North-East. It
was also engaged in the task of developing indigenous expertise for setting up large
newsprint and paper mills.
HPC MILLS:
HPC group has four paper mills, two of which are units and two are subsidiary
companies. HPC is the holding company for Hindustan Newsprint Ltd. (HNL) and
Nagaland Pulp & Paper Company Ltd. (NPPC). Nagaon Paper Mill (NPM) and
Cachar Paper Mill (CPM) function directly under HPC’s control and their
performance is reflected in HPC’s operating results. Over a period of three decades,
HPC has built up a total capacity of about 3.35 lakh tonnes of paper and newsprint.

38. ABOUT CACHAR PAPER MIL
The planning of Cachar project was originally made in 1965 for an appropriate quantity
of 30,000 MT of writing and printing paper per annum capacity, since then, techno-
commercial feasibility reports were made by various organizations. The government of
India gave the financial clearance to build up Cachar Paper Mill in July 1977 at
Panchgram with a capacity of 100000 MT of paper per year. The raw material of mill is
Bamboo.
LOCATION OF CPM
CPM is located at Panchgram, Dist: Hailakandi Assam is one the operating three large
integrated mills. CPM is located the Barak Valley of Assam, in bank of river Barak near
Silchar near the border of Bangladesh. The mill was located at a distance of 25 km from
Silchar. The place Panchgram is 350 KM from Lumding, connected rail through meter
gauge and 350 KM from Guwahati by road via Shillong (through Meghalaya). One
airport at Silchar is 50 KM from mill site.

39. Mission of CPM:
To be a major contributor to the cultural segment in paper industry in terms of volume
as well as quality, production standard, customer services, R&D and technology up
gradation.
ENVIRONMENT POLICY OF CPM
Adopt an environment friendly approach in all activities related to its product and
services.
Ensure compliance off all relevant legislative enactment, statuary regulations and
order.
Evolve eco-awareness amongst its members, affiliates and the community at large.
Minimize the use of non biodegradable substances

40. Upgrade process controls and fine tune operating practices to contain and counter the
pollutants at source.
Reduce the consumption of natural resources especially fibre, fossil fuels, water
through conscious effort to reuse and recycle wherever possible.
Promote compensatory forestation through community initiative.
Disseminate information through frequent exchange and interaction with, internal
and external constituents on the progress in implementation of Environmental
Management Plants (EMP).
STEPS IN PAPER PRODUCTION PROCESS:
The process of making paper starts from staking of Bamboo in the Bamboo yard.
CHIPPER HOUSE:
Bamboo from bamboo yard is carried to chipper to flume and conveyer to cut it into
chips. The chips thus produce are conveyed to vibrating screen Acceptable chips are
then conveyed to chips silo for storing. From silos chips are extracted by means of Para
Screw and send to chips washing unit where dirt Silica etc are removed.

41. PULP MILL:
Chips from chips silo are taken to chips washing unit. The washed are then fed in to
designer along with calculated ratio of cooking Liquor. With the help of large
pressure feeder and high pressure feeder. The cooking is done in a suffocated
pressure vessel known as a Digester. It is the modern continuous digester.
BLEACHING:
Pulp coming out of digester is brown in colour. Multistage bleaching system is used
to bleach the brown pulp. Bleaching is carried out as per brightness require
depending up on the type manufactured.
PAPER MACHINE:
CPM has modern paper machine supplied by "Utmal- VOLTH’’ (West
Germany) and by JESSOP Beloit (United Kingdom). The diluted stock containing
all required chemical and activities follows on fast.

42. Continuous moving along endless wire through the slice of the hesd box. Then weight
sheet of paper into a series of dryers where it comes in contract with hot surface of
stream heated cylindrical dryer and gas evaporated. Paper sheet then passes through
calendar nips where it get smooth finish. Paper get continuous wound on the tambour
roll.
REWINDING AND FINISHING HOUSE:
The rewinding section, the present roll is "Rewinded" as per customer
requirement on the electronically controlled reminder. The slit rills are also cut in
various sizes on modern sheet cutting machine as per order receive. Then finisher then
counts the packs. Level the material then send through product warehouse in a ready to
dispatch condition.

43. CMP has four different which has run along with paper making process.
The plans are Soda-Recovery plan, Caustic and Chlorine-Dioxide plan, utility plant.
SODARECOVERYPLANT:
Soda recovery plant recovers the chemical from black liquor and reconstitutes these
chemicals to form fresh cooking liquor. This is again used into paper making process
for cooking bamboo chips.
CAUSTICAND CHLORINE PLANT:
Convention paper mills requires substantial quantity of caustic soda and
chlorine for cooking and bleaching operation. In CMP, 50 tones of caustic of caustic &
44 tones of chlorine is produce per day.

44. CHLORINE DIOXIDE PLANT:
Chlorine dioxide is very selective bleaching agent and can bleach pulp to highest
degree of brightness of minimum fiber degradation chlorine dioxide bleaching pulp
are resistant to reversion (don't become yellow on storage). At CMP chlorine dioxide
plant is having capacity of producing 1.65 MT per day.
UTILITYPLANT:
For captive power and stream generation for supply to process plant CMP is having
3members of pressure coal fired Boilers having 80MT steam generation capacity for
hour.CMP has also one number recovery Boiler having 90 MT seam generation per
hour.
Steam generation by Boiler is used various section of the mill and generation power by
turbo generators (TG). CMP is having 2 members of TG each having 15 MW
generation capacities. Power generated by TG is utilized is various section of all the
mills including Township.

45. CMP is having water treatment plant (WTP) which treats about 5000 & 60,000 KL
river water acceptable grade for use in the mill for drinking.
EFFLUENT TREATMENT PLANT:
The contaminated water from different process in mill is treated before
discharging in to the river, so that river water pollution eliminated. At CPM
effluents from various sections are segregated into two streams, viz. Low solid
stream & high solid stream depending on the suspended solid content in a
particular drain. Any drain containing more than B5ppm suspended solid in
terms as high solid stream and all other stream are low solid streams. This low and
high solid streams are combined before entering to Effluent treatment plants
CLASS is taken to flesh Mixture while CHSS is first passed through the bar scream
and then to setting basin where chips and other is in cleaning operation
alternatively. Finally over flow of settling basin is taken to clarifier where around
75-80 % of suspended material is settled in the bottom by settling processes. The
over flow of clarifier is taken to flesh mixture where the nutrients viz. Urea and
Super phosphate are mixed in the entire effluent prior to sending it to Aeration
lagoons (2 numbers) having retention time 7-8 days.
2.2 HPCL STOCKIST

46. REGION NAME OF THE STOCKIST
ADDRESS
Northern Region Shyam Traders 3618,Sudarshan Market,Chawri Bazar,Delhi-1100068
Mangal Enterprise 957,chhota Chippiuwara,Chawri Bazar,Delhi-110006
Aggarwal Industries 3714,katra Dhoomimal Churiwalan,Chawri Bazar,Delhi-110006
Lucknow Paper Distributors 10 A,Capper Road,Lalbagh Lucknow-22600 1(u.p).
Nirmal Traders c/d-61,old kavi nagar,Ghaziabad,U.P20 1002
Marvel papers pvt ltd 203,2nd floor,City centre, Sansar Chandra road,Jaipur-302001
Raghav Paper Mart Top floor,SCO-4&5,Sector-17b,Chandigarh-1600025
N-Eastern Region National Co-operative
consumer’s Federation of
India Ltd
II/c,Guha Lodge,M.L Nehru road,Pan Bazar,Guwahati-781001
Nara Narayan Trading
company
Town Kalibari road,karimganj,Assam-788710.
Yash Marketing(INDIA) G.S. Road,Amerigog,Kamrup,Assam-793101
Bhagwan Met Pvt Limited Overnite Express.G.S.road,Bhangagarh,Guwahati-781005
Oriental Paper products 8,Bajrang Bali Market,SRCB Road,Guwahati-781005
Eastern Region Haran Chunder Banerjee &
sons
7-c clive row,Park Street,Kolkata-700001
Western Region Prasant Paper Mart 1st ,Parsiwa,v.p. Road,Mumbai-400004
Rahul Traders 641,Nawa Darwaja Road.Khadia,Ahmedabad-380001
Tirupati Papers 101,Kalyan Chambers,Nawa Darwaja Road,Mumbai-400002
Mangal Impex 507,kakad Market.kalbadevi Road,Mumbai-400002
Southern Region Rajendra Papers G-5,Sri Balaji Complex No-125,Sultanpet,Bangaluru-580053
Desai Brothers 40/7699 C40,1st floor DD Vastra Mahal,Market Road.kochi-682011.
Prabath Industries M G Shopping complex,Kunnamkulam.kerala-680053.
Sunshine Paper & Board 4-8-3125.JD Enclave.Putli Bowli,Hyderabad-500095.
2.2 HPCL STOCKIST

47. Highlights of some other features of HPCL
HPC’s Business Mission
HPC strives continuously to maintain a leading position in the paper and newsprint
industry in terms of production quality, customer services and continuous absorption
of more environment friendly technology. However, in the new globalised
environment, understanding customer expectations and ensuring customer
satisfaction at all stages have been identified as the key strategy for continuous growth.
At The Doorstep Of Consumers
To meet the challenges of an increasingly competitive market, HPC’s marketing
strategy hinges on qualitative improvement and production of value-added items. A
well-knit marketing and distribution network, covering the entire country, has been
established through Corporation’s regional and sales offices, depots, as well as
accredited stockists to make paper available in time at the doorstep of consumers.

48. HPC - Market Positioning
Product portfolio of HPC
-- Common varieties
Cream Wove
Maplitho
Computer Stationery Paper
Base Paper
Copier Paper
Offset printing paper
End Users
-- Education Sector
-- Large Govt. / Instt. Buyers
-- Publishing Houses
-- Text Book printers, Diary and Calender printers
-- Exercise Book Converter
-- Newspaper Establishment
Education Sector – 75%

49. To be a major contributor to the cultural segment in paper industry in terms of
volume as well as quality, production standard, customer services, R&D and
technology upgradation.
To ensure optimum utilization of existing assets to generate maximum internal
resources for renovation, growth and expansion.
To develop professional management culture consistent with the requirement of
the industry to attract, develop and retain committed and skilled workforce with
emphasis on trust and teamwork.
To preserve the ecological balance and explore eco-friendly production process to
strike a harmonious relationship between nature and industry.
To explore and implement technological upgradation of the existing equipment
for improved quality and increasing productivity and for greater cost
effectiveness.
To enlarge market channels for perennial supply of all variety of cultural paper
and to ensure customer satisfaction through value addition and constant
upgradation of quality.
To increase utilization of unconventional raw materials and adopt recycling
method to reduce dependence on forest resources for maintaining ecological
balance.

50. To provide adequate thrust on product diversification and manufacture
value-added items like computer stationery, copier
Paper, S.S. Maplitho, etc. and mission create a brand equity for higher
profitability and greater market share.
Board of Directors

53. Major Institutional Buyers
Newspapers
Assam Tribune Group, Guwahati
Sentinel Group, Guwahati
Daily Desher Katha, Agartala
Dainik Janambhumi, Jorhat
Universities
Guwahati University, Guwahati
Tripura University, Agartala
Bombay University, Mumbai
University of Madras, Chennai

54. M.G. University, Kottayam
Manipur University
Delhi University
T.N. Veterinary & Animal Sc. University
Kamraj University, Madurai
Bardhaman University
IGNOU, Delhi
Education Board
Directorate of School Education, West Bengal
Board of Secondary Education, Orissa, Cuttack
Board of Secondary Education, Guwahati,
Punjab School Education Board, Mohali
Board of Secondary Education, Rajasthan
Assam Higher Secondary Council
Board of Secondary Education, Manipur
Council of Higher Secondary Education, Manipur
School of Correspondence Course
Institute of Company Secretaries of India
Hindi Growth Academy, Jaipur

55. Hindi Growth Academy, Bhopal
H.P. School Education Board, Simla
School of Correspondence AP University
Board of Intermediate Education, Chennai
International Institute of Tamil Studies
School of Distance Education, Chennai
A.P. Balala Academy, Hyderabad
Telegu Academy, Hyderabad
IIT, Kharagpur
Institute of Chartered Accountants of India
Delhi Transport Corporation, Delhi

56. School Book Publishing Houses
Directorate of School Education, West Bengal
Bihar State Text Book Corporation, Patna
Text Book Production & Marketing, Bhubaneswar, Orissa
Assam State Text Book Corpn., Guwahati
Rajasthan State Text Book Board, Jaipur
Gujarat State Board of School Text Book, Gandhinagar
M.P. Text Book Corpn., Bhopal
Tamilnadu Text Book Corpn., Chennai
A.P. Govt. Text Book Press, Hyderabad
Asom Rashtrabhasa Prochar Samity
Delhi Bureau of Text Book
Text Book Corporation Kerala

57. Publishing Houses
 Saraswati Press, Calcutta
Printing & Stationery Department, Tripura
Printing & Stationery Department, Guwahati, Assam
Directorate of Printing, Delhi
Director (Ptg. & Stn.), Gandhinagar, Gujarat
Directorate of Printing & Stationery, Chennai, Tamil Nadu
Director (P&S), Agartala, Tripura
Director of Ptg. Stationery & Publication, Cuttack
National Book Trust
Printing & Stationery, Chandigarh
Secretariat Press, Bihar
Press Forms, Bihar, Gaya
Director Ptg. & Stn., Delhi
Printing & Stn., H.P., Simla
Printing & Stn., Chennai

58. Government Departments
Central Coalfields Ltd., Ranchi
Telecom, Guwahati
Chief Election Officer, Itanagar, Arunachal Pradesh
Chief Election Officer, Imphal, Manipur
Chief Election Officer, Guwahati, Assam
Chief Election Officer, Shillong, Meghalaya
Chief Election Officer, Aizawl, Mizoram
A.P. State Trading Corpn., Hyderabad
N.C.E.R.T., Delhi
Southern Railway
State Election Commission, Assam
Assam State Transport Corpn.
Election Department, Tripura
Police Department, Arunachal Pradesh
Chief Election Officer, Sikkim
Delhi Transport Corpn.
NRDC
Chief Election Commissioner, Delhi
Central Excise & Customs
Punjab & Sind Bank
Pillavam Transport Corpn., Chennai
Director of Hindi Implementation, Delhi
Haryana Vidyut Prasaran Nigam
State Road Transport, Gujarat

59. CHAPTER – III
ABOUT CPM

60. 3.1 CACHAR PAPER MILL SOME BASIC FACTS
The planning of Cachar project was originally made in 1965 for an appropriate quantity of
30,000 MT of writing and printing paper per annum capacity.Since then,techno commercial
feasibility reports were made by various organisations.The government of India gave the
financial clearance to build up Cachar Paper Mill in july 1977 at Panchgram ,which is
approximately 25km distant from Silchar.Project work started at the end of 1979.Name of the
project is “HINDUSTAN PAPER CORPORATION UNIT,CACHAR PROJECT”.
The main location advantages for setting up a Paper mill in Panchgram were as Follows:-
For transportation NH-57,that is placed between Silchar and Guwahati and which is
connecting Panchgram with rest parts of the country.
Nearby railway station for transportation of it’s raw-materials and finished goods.
To meet the demand for water of the mill,the river Barak is there,which flows seven
kilometers from the site.
Bamboo is used as basic or primary raw material in this mill.Types of bamboo species used
are:-
Kako bamboos are found in karbi Anglong in Assam and in Khasi/Garo hills of
Meghalaya.Almost 40% of bamboo requirement for the mill is met from these areas as lease
aggrement with the District authority of Karbi Anglong or govt of Meghalaya in force.
Another specxies Bhaluka is predominantly found in the plains of Assam.It is popularly
known as home grown species.

61. SOME BASIC FACTS
Installed Capacity 1,00,000 MT per annum of writing and
printing paper including 20,000 MT or
newsprint.
Basic Raw Material Bamboo
Other Raw materials used Coal, lime, Alum, Talcum, Rosin, Salt
cake, Caustic sodium chloride, Starch,
Chlorine-oi-Oxide, China clay
Vision of CPM and HPCL:-Earlier the vision of HPCL was maintainance of Socio-
economic environment,now the vision of the HPCL is to earn profit.

62. CHAPTER - IV
LITTERATURE REVIEW AND
SURVEY

63. Practical literature review
1)Research student-Pritam Paul(MIT school of Telecom Management,Pune in 2010.)
Research topic-”working procedure and Despatch performance of Cachar paper mill with
respect to sales and marketing”.
GIST OF THE THESIS :The thesis highlihts the working procedure of Cachar Paper mill
with respect to sales and marketing,how the various departments of cachar paper
mill,especially in the operational level facilitates Marketing department at CHQ,
marketing depots to deliver the product to the customers of HPC/CPM.
It also studies the Distribution department of Cachar paper
Mill and it’s role in desptch and effective distribution, sales promotional strategies of
Cachar Paper Mill and ends up with it’s valuable suggestion and conclusion. (Source:-
Cachar paper mill)
Research student:- Malika Dutta(GLOBSYN SCHOOL OF BUSINESS, KOLKATA) in
2011.
Research topic:-” working procedure and Despatch performance of Cachar Paper Mill
With respect to sales and Marketing”.
Gist:- She decided to take the earlier theme done by Pritam Paul and did some
advancements graphically and also studied the integrative functions of
Distribution Department.
Research student:-Brajen Deka(university of LJUBLJANA) SLOVENIA,FACULTY OF
ECONOMICS AND INTERNATIONAL CENTRE FOR PROMOTION OF
ENTERPRISES.

64. Research topic:-”Issues and Trends of Supply management:The case of Hindustan Paper
Corporation Limited cachar paper Mill(2009).
GIST:- It studies the Supply chain management of Cachar Paper Mill from the operational
perspective and analyses raw material problem of bamboo,coal and B
2B marketing,inventory stock of rawmaterials at the end of Financial year,annual
sales,production trend etc. (Source: Cachar Paper Mill)
(source:-google Type- project report on supply chain management in Cachar Paper
Mill,PDF doc).
Research student:-Pinak Sahu at BILT(Ballarpur Industries limited)
Research topic:-Supply Chain Management.
GIST:He studied the supply Chain from the marketing point of view.As a sample,He took
retailers and Distributors and wholesalers.(source:-google research type-Supply chain
management at BILT.
5)Research student:-Purno Chandro Panda.
Research topic:-Sales and Distribution channel of Jk paper Mill.
GIST:-He studied sales and Distribution of the firm with relation to marketing. He studied
matters like order excecution system, Dispatching system, Warehousing, transportation,
intermediaries in selling and Distribution.
6)Some Doctoral practical literature viewed
Thesis on developments in distribution channels(Timber product Distribution). Source:-
www.diva-portal.org/smash/get/diva 2.389738/full text 101.pdf.
And some other doctoral literature in PDF format on topiclike market orientation, customer
selectivity and firm performance etc.

65. CHAPTER- V
SURVEY TECHNIQUES: RESEARCH
METHODOLOGY

66. The word consists of two terms ‘Research’ and ‘Methodology’. Let us define the term
research- ‘’Research is the work that involves studying something and trying to discover
facts about it’’. Research in common parlance refers to search for knowledge. Methodology
on the other hand is a way to systematically solve any problem on the hand. It may be
understood as a science of studying how a problem is solved scientifically.
The Excitement of Research and why managers should know about research
Modern technology has made research an exciting and a relatively smooth process. Today a
personal computer with a Modem or any means to an internet connection places one with
easy rich of knowledge of what is happening in the global markets and how the world
economy is impacting on businesses. By grasping the fundamentals of research process and
keeping abreast of modern technology such as computers with enormous capability to
store and retreive information ,you as a manager can face the competitive global market
with it’s multitude of complex and confusing factors with greater confidence.
Knowledge of research not only helps one to look at the at the available information in
sophisticated and creative ways in the fast paced global environment that businesses face,
but the knowledge also helps in other ways. For example, you can interact more effectively
with research consultants who work for you and can disseminate between good and bad
studies published in professional journals, and if so desired, you yourself can undertake the
research to solve problem.
(Source-research methods for business by uma seaman)

67. OBJECTIVES OF STUDY
Whatever we do in life should be backed by some clear cut objectives. Regarding this study
also there is no exception.Every research study should be backed by well defined
objectives.However easier said than done, a research student can very easily list out long list
of objectives and end up fulfilling few.It is always better to display your objectives generally
and then display some numberwise and leave the judgement of fulfillment to audience.In
one shot it is not a easy task for any researcher to fulfill all objectives.There is always scope
for further improvement especially in marketing where there is no department and the next
researchers can always highlight that area and go on the process of improving.
Primary objective
The primary objective of this study is to assess the Distribution and marketing related
practices with respect to CACHAR PAPER MILL in terms of it’s production
and distribution trends and also to throw a reflection on the stockiest of Barak valley. Point
wise statements of objectives are as stated under
To get a overview of the process involved in production and find it’s relation with CHQ
marketing. To have a breif look at the Supply chain and Logistical process of Cachar Paper
Mill.
To study the production trend of last 5 years.
To analyse the Dispatch record of CPM as for production.
To know the product of CPM.
To have a critical look at strategies adopted by the organisation for ensuring long term
growth.

68. Thinking like a researcher
Conducting good research requires first retraining your brain to think like a researcher. This
requires visualising the abstract from actual observations, mentally ‘’connecting the dots’’ to
identify hidden concepts and patterns and syntesizing those patterns in to generalizable
theories that apply to other contexts beyond the domain where the initial observations were
conducted. Research involves constant moving back and forth from an empirical plane where
observations are conducted to a theoretical plane where these observations are abstracted in to
generalizable laws and theories. This is a skill that takes many year to develop.
(Source-research methods in social sciences (pdf. doc)www.saylor.org/site/wp-
content/uploa....
Types of research
1) Descriptive vs Analytical:- Descriptive research includes surveys and fact finding enquiries
of different kinds. In analytical research on the other hand, the researcher has to use facts or
information already available.
2) Applied vs Fundamental:- Applied research aims at finding a solution for an immediate
problem facing a soceity, where fundamental research is mainly concerned with generalisation
and with the formulation of a theory.
3) Quantitative vs qualitative:- Quantitative research is based on the measurement of
quantity or amount .Qualitative research on the other hand is concerned with qualitative
phenomenon.
4) Conceptual vs Empirical:- Conceptual related to that related to some abstract ideas or
theory. Empirical research on the other hand relies on observation or experience alone.
5) Other types of research:- All other types of research are variations of one or more of the
above stated approaches like field setting research, laboratory research, clinical research etc.

70. Pre-research before the topic
Before choosing the topic I had literature review in cachar paper mill as mentioned in the
literature review chapter.I also surfed the websites extensively on the topics like supply
chain management, sales and distribution and for various other topics for representing
marketing from holistic point of view.
Problem formulation
“DISTRIBUTION AND CHANNEL MANAGEMENT WITH RESPECT TO CACHAR PAPER
MILL(HPCL).
Research area
Research area selected for this study are surroundings of Cachar paper Mill and Barak
Valley(confined to traders of Naranarayan Trading company,the stockist of HPCL in this
region ).
Purpose of the study
The purpose of the study is to critically evaluate the Distribution and Marketing channels of
Cachar Paper Mill and reflect on the marketing practices of Cachar Paper Mill from holistic
point of view comprising concepts like supply chain,logistics etc.
Data source
Primary data: Primary data are those data which have been collected freshly,like the
questionarrie, interview with the traders under Naranarayan Trading company.
Secondary data: Secondary data are those data which have been collected by someone
else and which are being used for the purpose of this study like production
record,despatch,raw material collection ,and reference from the projects of other
candidates.

71. Sampling unit
The sampling unit under this study are some selected departments or sections as per the
requirement of the study like forestry,Paper machine,Finishing House,Distribution and
Transport and co-ordination and the authorised stockist Naranarayan trading company

72. CHAPTER – VI
CONCEPTUAL FRAMEWORK,
DISTRIBUTION AND MARKETING
CHANNELS OF CACHAR PAPER MILL

73. The role of logistics in supply side to organization Logistics is another important part of supply chain
management. Logistics management is that part of supply chain management that plans, implements,
and controls the efficient, effective forward and reverse flow and storage of goods, services and related
information between the point of origin and the point of consumption. It is necessary to meet
customer requirements.
Companies depend on their logistics system to move goods and materials among supply chain
partners, and to manage the information flows necessary to carry out these tasks (Bozarth and
Handfield, 2006, p.363). Logistics cover a wide range of business activities, including: 1. transportation,
2. warehousing, 3. material handling, 4.packing, 5. inventory management, 6. logistic information
system.
1. Transportation: Large organizations usually have a specified transportation function to manage the
physical and informational links between the supplier and the buyer. For some organizations,
transportation is one of the largest category of single cost especially for process industries requiring
various inputs. Some organizations may have minimal common purchase requirements among its
units. But usually opportunities are available to coordinate the purchase of transportation services.
2. Warehousing: Before a product heads to the customer, it may be stored for a period in a warehouse
or distribution center. This is particularly applicable for big companies that produce according to a
forecast in anticipation of future sales. But if a company produces its product after receiving an order
warehousing is of least importance to them. Otherwise warehouses are normally used for storing
goods before delivery to final customer and they also involve some cost.
3. Material handling: All inbound material must be physically received as it moves from a supplier to a
purchaser. In non just-in-time environment, material must be stored or staged and it requires physical
handling. Receiving the material and storing it in some place requires material handling. It demands
for material management practices to control the physical processing and handling of inventory.

74. 4. Packaging: This activity involves physically getting a product ready for distribution to the customer by
wrapping with something. Packing is done to prevent damage, completing any special labelling
requirements, completing the required shipping document, storage, sale etc. Packaging also refers to the
process of design, evaluation and production of packages. Packaging can be in short described as a
coordinated system of preparing goods to protect, transport, warehouse, preserve, sale and end use.
5. Inventory management: Inventory management is controlling stock levels within the physical
distribution function to balance the need for product availability against the need for minimising stock
holding and handling cost. Inventory control group in large organizations is often responsible for
determining the appropriate quantity to be ordered based on projected demand and then managing
materials required by the suppliers. This also includes release of material purchase requisition, contacting
a supplier directly concerning changes, and monitoring the status of inbound shipments. In large
organizations the purchasing department is responsible for these activities.
6. Logistic information system: Logistic information system is the one that facilitates shipping,
transportation, and warehousing activities. It aims to ensure customer service by getting adequate
quantities of finished products to the proper place in a cost and time-efficient manner. It not only allows
to evaluation of actual data, but also helps in planning data. The information system provides an easy way
to use planning function. It also helps in forcasting.
In logistic information system, sales and operations planning are combined to get one central planning
and forecasting tool. It helps in managing logistic processes effectively by the coordination of orders, stock
status, and shipment as well as to get up-to-date information about the flow of goods etc. Transportation
as a part of logistics is one of the most important determinant of flow of inbound materials and outbound
finished goods. Transportation networks like freeways and interstate highways are the main backbones of
modern society and play an important role in supply chains. Consequently then, the reliability of the
transportation network or the reliability of supply chain is a decisive factor not only in terms of market
out-reach, but also in terms of continuity, to ensure a 24/7 operation of any company. Any threat to the
reliability of the transportation network constitutes a vulnerable spot, a weakness in the supply chain.

75. 4. Packaging: This activity involves physically getting a product ready for distribution to the customer by
wrapping with something. Packing is done to prevent damage, completing any special labelling
requirements, completing the required shipping document, storage, sale etc. Packaging also refers to the
process of design, evaluation and production of packages. Packaging can be in short described as a
coordinated system of preparing goods to protect, transport, warehouse, preserve, sale and end use.
5. Inventory management: Inventory management is controlling stock levels within the physical
distribution function to balance the need for product availability against the need for minimising stock
holding and handling cost. Inventory control group in large organizations is often responsible for
determining the appropriate quantity to be ordered based on projected demand and then managing
materials required by the suppliers. This also includes release of material purchase requisition, contacting
a supplier directly concerning changes, and monitoring the status of inbound shipments. In large
organizations the purchasing department is responsible for these activities.
6. Logistic information system: Logistic information system is the one that facilitates shipping,
transportation, and warehousing activities. It aims to ensure customer service by getting adequate
quantities of finished products to the proper place in a cost and time-efficient manner. It not only allows
to evaluation of actual data, but also helps in planning data. The information system provides an easy way
to use planning function. It also helps in forcasting.
In logistic information system, sales and operations planning are combined to get one central planning
and forecasting tool. It helps in managing logistic processes effectively by the coordination of orders,
stock status, and shipment as well as to get up-to-date information about the flow of goods etc.
Transportation as a part of logistics is one of the most important determinant of flow of inbound
materials and outbound finished goods. Transportation networks like freeways and interstate highways
are the main backbones of modern society and play an important role in supply chains. Consequently
then, the reliability of the transportation network or the reliability of supply chain is a decisive factor not
only in terms of market out-reach, but also in terms of continuity, to ensure a 24/7 operation of any
company. Any threat to the reliability of the transportation network constitutes a vulnerable spot, a
weakness in the supply chain.

76. This vulnerability in the transportation network as a part of the supply chain is of particular interest in
countries or regions with sparsely populated areas, and hence, a sparse transportation network (Husdal,
2008, p.3). Typically traits of such regions are few transportation modes, for example only one railway line
and two roads, no ports, no airport. It should not come as a surprise if the nature of sparse transportation
networks, and thus sparse supply chain, makes them vulnerable to different kinds of risks. With only few
transportation modes and links available between population centers the supply chain becomes
extremely vulnerable to any disruption, since in a worst possible scenario no suitable alternative exists for
deliveries of materials to and from these regions.
Transportation decisions are made on the mode of transportation and the route to use in the transfer of
products from one point to another. However, there is always a trade-off between responsiveness and
efficiency. For example, if an organization uses air transport to transfer its products or components, its
responsiveness increases significantly. But its cost efficiency decreases because of high air transport costs.
Key components in transportation decisions are: selecting the mode of transportation, route and
network. Another decision to consider is that the organization must have transportation infrastructure of
its own or it should outsource the transportation requirements.
Marketing
Marketing is the social process by which individuals and organisations obtain what they need through
creating and exchanging value with others.
Kotler and Armstrong
Marketing is the management process for identifying,anticipating,satisfying customer requirements
profitably .
Chartered institute of Marketing.
Marketing is not only much broader than selling,it encompasses the entire business.It is the whole
business seen from the customer’s point of view.Concern and responsibility for marketing must
thereforepermeate all areas of the Enterprise.

77. Peter Drucker.
It is very important to realise marketing has two kind of definitions,one is official and other
is real world,because marketing gets applied differently in different
industries,organisations,like educare,healthcare ,public sector etc.
Marketing defined in HPC/CPM
Marketing in HPC/Cpm starts with production planning,sales forecasting,maintaining the
supply chain and logistics,and creating,communicating ,and delivering value to it’s stockists
who are customers cum reselleres and it’s industrial customers and delivering value to
soceity at large as a public sector. (source-own definition)

79. INTRODUCTION
Distribution is the all-important link between a manufacturer and his customer. The concern is for designing a
distribution strategy to facilitate the smooth physical flow of products from the manufacturer to the place
from the customer can buy them. Channels of distribution refer to the alternative paths through which the
goods can be routed. The word channel has its origin in the French word for canal. The term “Channel of
Distribution” thus connotes a pathway taken by goods as they flow from the point of production to the point
ultimate consumption.
In the current customer focused and shrinking lead times, business success is derivative of the organization
efforts to transform their resources – tangible and intangible to deliver right product at the right time.
It can also be said as the organization’s growth and success is largely depends upon it’s selling and distribution
strategy.
A channel of distribution some times called, as marketing channels is a group of inters related individuals or
organization that directs the flow of products to consumer. Such a group of organization is called marketing
intermediaries because it facilitates exchange between producers, other intermediaries and the final consumer
of products.
In simple word a channel of distribution consists of specialized marketing institutions that relates to each
other’s as buyer and sellers. It is pipeline for goods flow from manufactures to consumers because the
distribution is often the least flexible elements of the marketing mix, marketing channel decisions are a key
component of the marketing mix.
SOME DEFINITION OF SELLING AND DISTRIBUTION CHANNEL:
“A Distribution Channel is a path traced in the direct or indirect transfer of title to
product as it moves from a producer to ultimate consumer.”
By: Cundiff, E. W., and Still.
A Distribution Channel is the structure of intra company organization units and extra
company agents and dealers, wholesale and retail, though which a commodity, producer service is marketed.

80. The term Channel of distribution is used to refer to the various intermediaries who help in moving the products from
the producer to the consumer.
Channel of distribution are concerned not only with the physical movement of goods but also with their promotion,
selling and marketing control.
IMPORTANCE OF CHANNEL OF DISTRIBUTION:
Channel of distribution is the most powerful element among marketing mix elements.
Through a sound Distribution Network and launching aggressive advertisement campaigns a company can carve out a
niche for itself.
A number of utilities are created by prompt and efficient performance of the function of physical distribution.
Channel of distribution helps movement of goods form one place to another and thus creates place utility.
They make it possible for the consumer to get the goods when he wants them and thus create time utility.
They bring goods to the consumers in a convenient shape, unit size, style and package and thus create convenience
value.
They make it possible for consumer the consumer to obtain goods at a price he is willing to pay and under certain
conditions that brings him satisfaction. And pride of ownership and thus create possession utility.
It helps to build clientele.
It is a promising area for cost reduction.
It provides competitive edge for the organization.
When production places and markets are at distance place, physical distribution acts as an important element of
marketing.
TYPES OF MARKETING / DISTRIBUTION CHANNEL:
Now a days there has been a trend towards a greater presence of intermediaries Because Cost of selling directly to
consumer has rise very rapidly.
Many industries have concentrated on lowering inventory carrying cost by placing inventory when and where it is
needed.

81. Large distribution chains have grown in size in many industries.
Channel of distribution can be grouped under two headings.
Direct selling by manufacturer.
Indirect selling through middleman.
Direct selling by manufacturer :
It means supplying the products to the consumer directly without any intermediaries or
middleman. Here the option available to manufacturer are to use own salesman. Arranging
own decisions using post office or to establish own retail shop.
Indirect selling through middleman and intermediaries :
In the case of manufacturer take the help of middleman or the agencies to research
their ultimate consumer. These middlemen are tow types:
1. Functional Middleman: -
Who performs marketing function with out having title of goods. functional middleman are
mercantile agent, broker etc. Some
2. Merchant Middleman: -
Are those who obtain title of goods to sell them at a profit. They work not for commission but
for a margin of profit. wholesaler and retailer.

83. SELECTING AN APPROPRIATE CHANNEL:
Marketing channel decision is among the most important decision that management faces. A company channel
decision is linked with every other marketing decision. The company’s pricing depends upon whether is uses mass
merchandise or high quality specialty stores. The firm’s force the advertising decisions depend on how much
persuasion training, motivation and support the dealer need. Whether a company develops or acquires certain new
depend on how those products fit the capabilities of its channel members.
As distribution is often the least flexible element of the marketing mix, distribution channel decision is a key
component of the marketing mix. Distribution Channel decisions often involve long-term commitment to other firms.
The management must design its channel carefully with an eye on tomorrow because once a marketing channel is
established it is difficult and costly to change it.
Channel decisions refers to the selection of best routes, paths, for moving goods form product to consumer and it is to
be carefully decided because :
The cost involved in the use of channel enter the price that consumer has to pay.
The channel decision also has a bearing on other marketing decisions linking pricing, product and pricing.
The selection of channel is generally governed by the following factors:
The nature and type of product :-
The factor to be considered while deciding a channel are product’s price, weight, standardization products, nature,
after sale service.
Nature and extent of market: -
Areas to be considered are market size nature of the consumer (according to their use) location of the buyer, number
of consumer etc.
Existing channel for comparable products: -
While taking decisions about the marketing channel the channel operated by the competitors are also to be
considered.
Cost involved in distribution:-
It is the most important factor that determines the marketing channel.

84. Buying habits the consumer: -
While deciding the channel the company must make an expectation of the quantity to be purchased by
the consumers.
Middleman consideration:-
The Company must take into consideration the availability of the middleman, the cost to be incurred and
the benefit to be received etc.
Manufacturer’s considerations:-
The financial position of the company or the manufacturer and the volume of production also matter
while deciding the marketing channel.
In making a choice the manufacturer has to consider his objectives, resources and the channel available to
him after considering the above factor. The most preferable channel of distribution which will produce
the combination of sales volume and costs
that yields him the maximum amount of profit.
Family it may be concluded that a rational decision for marketing channels should
ensure:
Maximum geographical coverage of the market.
Maximum promotional efforts.
Minimum cost.
Criteria for evaluation of channel members:
The task of manufacturer does not end after the channel has been decided. The services performed by the
various agencies are also to be evaluated or reviewed at frequent intervals.
The following criteria may be used for evaluation of channel members:-
Their sales performance.
Their marketing capabilities.
Their motivation to increase the volume of sales.
Competition faced by them.
Their growth prospects.

85. ROLE OF MIDDLEMAN IN INDIAN ECONOMY :-
WHOLESALERS
Through the channel members are an important part of the organization and they
perform certain various functions some complaints made against them are as follows:-
It is very often contended that the charges a made by the middleman are much more than the due to
them and that this is due to their effort to appropriate as much as possible out of the price paid by
consumers.
Sometimes it is also argued that the number of middleman is too high and they are nothing but parasites
thriving at the expenses of the consumer.
During the period of shortage they concern supplies and dictate the price which customer has to pay or
has to go without the product.
Sometimes the services performed by the middleman are not up to satisfaction.
They do not take interest in increasing sales volume. Neither have they born the risks arising out of the
strikes, disturbance, recession etc.
Most of them just work as transfer agents.
As a step towards elimination of middleman, some manufacturer have started opening their known
retail shop. If would thus appear that some manufacturers are trying to perform the functions of
wholesalers themselves and the target of their attack is the wholesaler but not retailers.
RETAILERS
The federation of India Chamber of Commerce and Industry has pointed that retailer in India work on
very low margins varying from 1.5% to 7.5%.
The Indian retailers are able to survive on low margin, due to his remarkable capacity for thrift.
When there is keen competition retailers tend to undercut each other.
They perform various functions such as finance, risk sharing etc.
They compensate themselves by taking higher margin on their products or by increasing their turnover.

86. CHANNEL DESGINING DEVISIOSN:
While designing the channel the following steps need to be followed:
1. Analyzing customers needs i.e. service output levels desired by target customers.
However channel produces 5 services outputs.
Lot size.
Waiting time.
Spatial convenience.
Product variety.
Service back up.
2. Establishing objective:-
The objective should be started in terms of targeted service output level under competitive condition
channel instruction should arrange their functional task to minimize channel costs with respect to
desired level of service output.
3. Identifying the major channel alternatives: - a channel alternative is described by the following three
items:
Type of available business intermediaries.
The number of intermediaries.
Terms and responsibilities of each channel members.
4. Evaluate the major alternatives: - under the light of economic, control, adaptive criteria.
5. Establishing the distribution system.
FUNCTIONS OF MIDDLEMAN OR INTERMIDIARIES:-
Market channel members are critical to the success of any market endeavor because they specialize in
facilitating exchanges. They help in reducing the cost of distribution.
Marketing intermediaries can be divided into two categories such as:
Merchant: are the intermediaries who assume the ownership of products and resell them at a profit.

87. Agents: - the intermediaries under this category do not purchase products and as such assumes no
ownership of products. They negotiated and expedite between the buyer and seller for commission.
Generally the channel members perform the following functions:-
1. SORTING: - It is the process through which the supply of goods and services produced by the
manufacturer is matched with the assortment demand by the consumer. The activities performed by the
middleman, under sorting are:
a. Sorting out: - Classifying the heterogeneous product.
b. Accumulation: - It means combining small groups of similar products into large group of
homogeneous products.
c. Allocation:-It means breaking down large homogeneous stock into small groups.
d. Assorting: - It is combining products into collection or it also refers to the assortment which satisfier
the consumer demand.
2. BUYING:- The middleman purchases a broad assortment of good from producer or the channel
members for selling purposes.
3. CARRYING INVENTORY: - The middleman assumes all the risks lies with the purchase of the
inventory.
4. SELLING: - The channel member performs all those activities, required to sell a product.
5. TRANSPORTATION: - Sometimes the channel members arrange for the transshipment of
production.
6. FINANCING: Middleman provides the funds to cover the cost of the channel activities.
7. PROMOTING: - Middleman or channel members perform all the activities to market the product or
to promote the product in the market.
8. NEGOTYATING: - sometimes the channel member negotiates for the price fixation.
9. MARKETING RESEARCH:- channel members also provides the information about the market.
10. SERVICING: - Middleman provides various services such as credit delivery return etc.

88. RECENT TRENDS IN MARKET:-
In recent times firms have been taking to different kinds of non-traditional channel
arrangement such as:
a. Out sourcing of channel arrangement / marketing logistics.
b. Exclusive retailing.
Out sourcing of channel arrangement / marketing logistics.
Complete out sourcing of channel arrangement is the most striking of non- conventional
attempts. In this kind, firms contract outside logistics specialists to operate as their
marketing channels.
Exclusive retailing:-
Many firms’ have practicing exclusive retailing for the past several years. In recent years
however the idea has proliferated fast. More and more companies are nowrecognizing the
adequacy of the traditional wholesaler, retailers and are going in for exclusive retail and are
going in for exclusive retail network.
The different forms of exclusive retailing are as follows:
Exclusive dealers without franchising arrangement.
Exclusive retailing through showrooms.
Exclusive retailing through shop-in-shop.
Franchising.

90. PROCEDURE OF DESPATCH
Distribution department takes care of all despicable finished products. Basically there are two types of processes for
supplying the goods. These are as follows:
1. Direct Sale:- Any sale can be termed as 'Direct Sales' under CPM, if the party procures the material from mill itself.
Direct Sales again can take place in two ways:-
a) Stockiest Sale (SKT):- In this process, product of CPM is supplied to the parties conducted by the marketing
department. It is a contractual process. If any authorized stockiest lifts the material from mill, then this kind of sale will
be considered to be 'Direct Safes'. Most of the time, the stockiest lifts the finished product from the nearest depot. But if
in any certain case it is found that the stockiest of one region whose actual selling point is somewhere nearby the mill,
then it is assumed that the stockiest will go for direct purchase from the mill.
b) Institutional Sale (lN ST):- It is also a contractual procedure .. [n this process CPM supplies the product especially to
government parties, various institutions such as board, universities, council etc. [n this process, sometimes CPM may
have to face some problems. I f it fails to supply the product to the customer, then they may bear penalty cost. Here, in
this process, customer must pay the advance money before delivery of the paper and once it is delivered they pay the
whole amount of payable money.
2. Stock Transfer Process:-Generally in this process, finished goods are transferred from CPM to depots or change of
location of stock take place and then from depots the
products are sold to the customers according to their orders. If stock transfer is ensued
then it is not considered as sales, rather will be accounted into dispatch. In this process
product is immediately transferred. It is an advantage in favor of customer(s) because
customer(s) is getting their required product (paper) at minimum time. Every depot has got some sales target and
accordingly quality and quantity of paper is dispatched. Depots are given such kind of target so that the marketing
personnel under each depot take some marketing activities of their own to increase the sales. These can be done through
various ways. The marketing personnel sometimes give the stockiest more competitive benefits over the other
competitors so that CPM’s product becomes more preferable to stock. Stock transfer also depends on the preference of
the party concerned, whether they want to collect the material from 'Depots' or 'Mill' depending on actual selling point,
various pricing attributes of CPM and other terms and conditions.
Supply of product from CPM is carried out by two ways. These are:
• By truck
•.By train.

91. PROCESS OF PAPER MAKING AT CPM
CPM produces only one product that is writing and printing paper. Organization produces
paper as par the requirement of customer preferences and quality wise. CPM's paper making
process is as follows:
􀂙 CHIPPER HOUSE:
In the very beginning, bamboos are cut into chips by chippers and fed to screens. On the
screen fine dust is removed. Over sized chips are reshipped and fed back to screens. Chips of
accepted size are fed to silos. From silos chips are extracted by means of Para screw and sent
to chips washing unit where dirt silica etc. are removed.
􀂙 PULP MILL:
􀂙 Washed chips then go to KAMYR Digester where chips are cooked with chemicals like
caustic soda and sodium sulphide at high temperature. The lining portion of bamboo chips
are dissolved into these chemicals and cellulose comes out which is known as pulp. Pulp
blown from digester is screened for uncooked knots and shives etc. Screened pulp is finally
washed on a drum filter and then goes to unbleached pulp storage chest. Chemicals used in
Digesters come out as filtered and is sent to soda recovery plant for recovery of chemicals.
􀂙 Unbleached pulp is then bleached in multi stage bleached plant. The sequence of bleaching
[being followed at CPM] is 'C/Ep/H/E/D where 'C' stands for chlorination by chlorine gas,
'EP' for extraction with caustic along with hydrogen peroxide, 'H' for hypochlorite with
calcium hypochlorite. 'D' for dioxide, where chlorine dioxide is used at CPM. Bleached pulp is
then stored in bleached pulp storage chest.

92. PAPER MACHINE:
Bleached pulp, produced by pulp mill is refined in various refiners. After refining, required
chemicals are added to pulp stock. Various additives/chemicals viz. rosin and alum (to impart
resistance to ink spreading), dyes (for desired shade), optical whitening agent (for. improved
brightness), soap stone powder/china clay (for filling the gap in the paper sheet), starch (to
import strength and stiffness) and various polymers (to increase physical strength properties and
retention on wire) etc. are added in appropriate proportions as per the requirements of the paper
to be produced on paper machines.
'PAPER MACHINE' is consisting of various sections, viz—
Wire part: Pulp of very low consistency is sprayed on wire where water drains out.
Press section: Here the paper is squeezed in between two felts.
Dryer section: Here paper is dried by means of steam heated Drying Cylinders.
Calendar section: Here paper is polished and reeled on pope reels. A big size roll come out from
paper m/c and then goes to Winding section.
Re-winders: The paper is re-winded to convert into smaller size rolls.
Some of the rolls go directly to the market and other papers are cut into sheets in sheet cutters.
Then the paper is packed and sent to the product warehouse before selling to the market.
CPM is having modern paper machines supplied by Utmal-Voith (West Germany) and by Jessop-
Beloit (U.K.). These are foundrinier machines designed for opening at a speed of 600 meter per
minute maximum. In one paper machine (Utmal-Voith make) CPM have "size press" for online
surface sizing used for manufacturing value added paper grades, viz. Map litho and Photo copy
papers.

93. SODA RECOVERY PLANT:-
Chemicals used in pulp mill go back to soda recovery plant in the form of liquor. It concerned to 45-50% at Evaporators.
Semi-concentrated liquor is further concentrated to 65% solid at Cascade Evaporator. The concentrated liquor is them
filled in Recovery Boiler. Initially, back liquor firing is started by furnace oil, but ultimately the organic matter with back
liquor is sustained by their own heat and generates steam. The inorganic contents come out as a smelt from recovery
furnace which is dissolved Dissolver. The liquor thus produced contains sodium carbonate and sodium sulphide.
Sodium carbonate is converted to sodium hydroxide by treatment with lime Causticising plan. Thus 85-90% chemicals
used in plup mill is recovered.
CAUSTIC & CHLORINE PLANT:
In Caustic & Chlorine plant (C & C) caustic, chlorine, and hypochlorite acid are produced for the mill use by electrolysis
of common salt using mercury cells. At CPM, C & C plant capacity of produce 50 MT caustic per day and 44MT chlorine
per day.
CHLORINE DIOXIDE PLANT:
Chlorine dioxide is very selective bleaching agent and can bleach pulp to highest degree of brightness with minimum
fiber degradation. Chlorine dioxide bleached pulps are resistant to colour reversion (don’t become yellow on storage). At
CPM chlorine dioxide plant is having capacity of producing 1.65 MT C120 per day.
UTILITY:-
For captive power and steam generation for supply to process plants CPM is having 3 numbers of high pressure coal fired
Boilers having 80 MT steam generation per hour. CPM has also one number Recovery Boiler having 90 MT steam
generation capacity per hour. Steam generated by Boilers is used in various sections of the mill and for generating power
by turbo generators (TG). CPM is having 2 numbers of TG each having 15 MW power generating capacity. Power
generated by TG IS utilized in various section of the mill including township:

94. CPM is having water treatment plant (WTP) which treats about 5000-6000 KL river water
acceptable grade for use in the mill and for drinking.
EFFLUENT TREATMENT PLANT:-
The contaminated water from different processes in the mill is treated before discharging
into the river, so that river water pollution is eliminated. At CPM effluents from various
sections are segregated into two streams, viz. 'Low solid stream' and 'High solid stream',
depending on the suspended. solid content in particular drain. Any drain containing more
than 85 ppm suspended solid is termed as high solid stream and all other streams are low
solid streams. These low and high solid streams are combined before entering to Effluent
Treatment Plant.
CLASS is taken to Flash Mixture while CHSS is first passed through bar screen and then to
settling basin where chips/knots and other suspended materials are settled. Normally one
settling basin is in operation while other is in cleaning operations alternatively. Finally,
overflow of settling basin is taken to clarifier where around 75-80% of suspended material is
settled in the bottom by settling process.
WORKING PROCEDURE OF CPM IN RESPECT OF SALES AND MARKETING
Now, the purpose of the study is to understand the working procedure of HPCL in respect or
sales and marketing. And the whole process can be better understood with the help of
following diagram:--

95. So the above diagram is explained step wise in the following pages:-

96. Finished product from mills first goes to depot, situated in different region. Depots are basically the
secondary storage house situated in several convenient locations from where the distribution of finished
good becomes easier, except the primary warehouse at mill.
In each depot one or more marketing personnel are appointed. They take care of all the marketing activities
viz.; payment collection, mobilizing stock, maintaining relationship with stockiest so that sales increases
and as well the demand, channelizing
the orders to CHQ etc.
Marketing personnel then appoints stockiest in the respective regions, who stores the
finished product in large quantity and collects the orders from the customers.
But each and every person wishes can't be appointed as stockiest under HPCL.
There are certain criterions, which are strictly followed while appointing any stockiest like, past business
record and performance in that and last but not the least, the market potential of the area where the
stockiest wishes to do the business. Because, if adequate demand potential is not there, a dead stock will be
lying there with the stockiest and which automatically bring effect to the ultimate sales frequency of
HPCL(CPM).
So, the above mentioned points should be given due emphasisation and after deciding upon the aforesaid
points, the said party is asked to make deposit of certain amount of money as security before entering into
a contractual relation with HPCL, which is also termed as EMD[Earnest Money Deposit.
Marketing personnel(s) under each depot then collect & forward the order to the CHQ.
CHQ then consults with both CPM and NPM and tries to find out whether both the mills are having
sufficient stock of finished product to meet the demand. If it is found that sufficient stock is available, then
order is distributed. Among the two mills. But if it is found that the stock is not sufficient to meet the
demand, then the CHQ passes P.P.O.( Production Planning Order) to finishing house.

97. Now, the question is why P.P.O. is given to Finishing house, not to Paper Machine, where
production takes place? Because, the orders of the finished product are of different size and
kind which depend on the end use. So, the finishing house first analyze the order minutely
so that minimum wastage is availed during giving the finishing and cutting to the product
coming out of the paper machine and specifies the size and on that basis paper, machine
operates. Thus it is done through the process of permutation and combination.
Finishing house then prepares Machine Order (M.O.) from the P.P.O. collected and forward
it to the Paper Machine and once products are produced, will be sent to Finishing House for
cutting and finishing the 'Parent Roll' into the required size. Then, it is sent to distribution
after primary packaging.
Now, the distribution department takes care of all' despicable finished products to the depot
and stockiest from where the actual sales will take place. These sales are basically of two
types:--
Direct sale.
Stock Transfer.
These two types of sales have already been explained in the 'PROCEDURE OF DESPATCH'
part.

98. PROMOTIONAL ACTIVITIES OF HPCL (CPM)
A key ingredient in marketing of HPCL is sales promotion, which consists of a collection of
incentive tools, mostly short term, designed to stimulate quicker or greater purchase of its
products by the customer.
These sales promotions offer an incentive to buy. For HPCL these comes as cash refund, offers,
price off, premiums, trade discount, quantity discount, cash discount etc.
CPM uses incentive type promotions to attract the customers, to reward loyal customers and
to increase the repurchase rates of occasional customers. Sales promotions are often
undertaken by CPM (HPCL) to attract brand switchers, who are primarily looking for low
price, good value, or premiums. If some of them would not have otherwise tried the brand,
promotion can yield long term increase in market share.
Sales promotions, in the market of high brand similarity like paper industry, where all the
competitors are coming up with more or less similar kind of product, can produce a high sales
response in the short run but little permanent gain in brand preferences over the longer term.
In addition to brand switching, customer may engage in 'stock-pilling', i.e. purchasing earlier
than usual (purchase acceleration) or purchasing extra quantities. But sales may then hit a
post promotion dip.
A number of sales promotion benefits flow to producers and consumers.CPM, being producer
can adjust to short term variations in supply and demand and tests how high a list price they
can charge, because they can always discount it. Promotions induces customers to try new
products and lead to more varied retail formats, such as everyday low pricing and
promotional pricing.
Promotional pricing helps CPM (HPCL) to sell more than normal at the list price and adopt
programs to different consumer segments.

99. Some of the most commonly used promotional activities by CPM (HPCL) in respect of
price are as follows:--
Ex-Mill price list.
Ex-Depot-NER .
Ex-Depot-ER .
Ex-Depot-Other .
Institutional/Contractual price list.
In respect of 'Rebates and Discounts':--
Trade Discount.
Quantity Discount.
Cash Discount.
Charges [e.g.]:--
Water Mark.
Colouring.
Now, how all the aforesaid promotional activities are followed m monetary form are being
explained one by one.
Ex-Mill Price List:- It is so named because in this kind price is calculated or fixed till the
goods are in the mil. In case of fixation of Ex-Mill price, the freight of carrying the finished
goods to the customer is excluded because this kind of price is fixed mostly in the cases of
direct" sales, where the customers directly purchase paper from the mill and carry it to the
desired location.

100. Ex-Depot-NER:- This is another type of promotional pricing for CPM (HPCL) and is exclusively meant for
North-Eastern Region, i.e. Guwahati depot. In this type of promotional pricing, the price is fixed till it is
reaches to the Guwahati depot, including the transportation cost.
As transportation cost is also added with this kind, so it IS relatively higher than the Ex-Mill pricing.
Ex-Depot-ER:- Ex-Depot- ER means the pricing for the Eastern Region i.e. Kolkata, Patna, Cuttack. In
this type also, price is fixed on the basis, till the goods are reached to the 3 depots of Eastern Region and
which includes transportation or freight.
Ex-Depot-Other:- Ex-Depot-Other basically means the pricing for other regions excluding Eastern and
North-Eastern Region. That means in this kind of pricing, the price is fixed till it reaches to the rest 13
depots and which also includes freight.
One of the notable points, in case of fixation of price other than Ex-Mill price list is that the variation in
price is not solely dependent or varying on the basis of freight but also varies with the frequency of
demand and some other facilities avoided from any particular region.
Institutional/Contractual Price List:- This kind of pricing is slightly different from the rest. In case of
institutional or contractual price list, the price is quoted to the customer while accepting- the order and
deciding on several factors say type and size or freight exclusively specified into the contract.
A part from adopting several pricing technique as promotional measure, CPM also facilitates various
rebates and discounts to its customers. Some of these are:-
Trade Discount [Rs. 2000/MT]:- In this type of discount, CPM gives a rebate of Rs. 2000 on the purchase
of every MT of paper at a time.

101. Reel Rebate [950/MT]:- If the product is sold in reel form, i.e. the paper in a big role form
and which has not gone for cutting and finishing, a flat discount of Rs.950 is given on each
MT purchase. It is so given, because when a reel goes for finishing and cutting, it takes some
time and some extra cost occurs which is not so if it is purchased in reel form. So, it is
possible to give an amount RS.950 as rebate on each MT purchase.
Quantity Discount [3%]:- In case of quantity discount, 3% discount is given based on the
quantity of paper purchased.
Cash Discount [1380/MT ]:- This type of discount can be availed by the concerned party if
goods are purchased in cash. On the purchase of each MT of paper in cash, a flat cash
discount of 1380 (in Rs.) is given to the customer.
All those were various rebates and discounts, which are undertaken by CPM as a
promotional measure. Some other charges are also implied while selling some particular
categories of paper, viz,
In case water marked paper, an extra amount of Rs. 1200 is to be paid for each MT.
It is Rs. 600 per MT in case of colouring paper.