Overview of Paper Industry

The Indian paper industry has been historically divided on a three dimensional matrix
identified by size, grades manufactured and raw material utilized. Generally, tariff rates
have protected smaller units utilizing “unconventional” raw material. Over the years, the
growth of various segments, investments levels in specific segments, technological
changes, industry fragmentation and intensity of competition have been significantly
influenced by the Government tariff policy. The present Excise duty on Paper is 12 %.
The Government of India from time to time has given some benefits to small industries
in order to protect them i.e. the first 3500 tones produced by a mill is chargeable only @
8 % and thereafter it is @ 12 %.
The three main grades of paper manufactured in India are :-
1. Newsprint
2. Writing and printing.
3. Industrial Variety ( Craft paper and Duplex Board )
Over 550 players currently populate the industry and the estimated capacity is about
7.00 million Metric Tones Per Annum (MTPA). Fragmentation is severe in the “industrial”
(packaging) grades, which rely on “unconventional” raw material such as waste paper
and partly agro residues. This division generally comprises of units with an average size
of about 10000 MTPA and contributes to 45% of the output of paper and paper boards
in the country. Although the other divisions in the Indian paper industry are also
fragmented by international standards, the degree of fragmentation is less severe.
“Newsprint” till about 1995, was the sole preserve of large public sector units and was
well protected by high import tariff barriers. Nevertheless, imports contributed to about
50% of the domestic consumption. Since then, new domestic capacity with private
investment has been allowed to be created. This growth has relied namely on De-inked
waste paper as a source of raw material. Currently import duty on newsprint is about
5% and domestic manufacture of newsprint is exempted from excise duty. This tariff
structure for newsprint has seen Indian newsprint price closely mapping

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international prices. Imports still constitute about 30% of consumption and newsprint
contributes about 10% of the total production of paper and paperboards. The number of
players in the newsprint segment is relatively limited and manufacturing capacities are
larger than in the packaging grades segment. Historically, the bulk of the output of
“Cultural” grades – comprising of writing, printing, office stationery paper and specialty
paper has been the preserve of “large” producers, who use forest based raw material in
integrated pulping facilities augmented by imported pulp. This segment has been
consistently taxed at higher rates due to its size and use of “conventional” forest based
raw material. Investment in plant has also been higher. With relatively smaller number of
players and high import tariff protection, prices of end products, generally perceived to
be higher quality, have been high.
Import tariff levels, although much lower now, still continues a significant barrier to
imports. The high investment levels required and limited “conventional” fiber resources
are the major deterrents to growth in this segment for both existing players as well as
new entrants. “Lower end cultural grades” manufactured by smaller players using
unconventional raw materials in low investment, low tech plants cater to consumers in
the price sensitive sub segment of this market. This sub segment depends significantly
on the tariff differential based on size and raw material for its viability.
The Indian Paper industry is going through substantial changes. Global demand for
paper is expected to grow by about 4% p.a. over the next 5 years. The domestic
demand is expected to grow at about 8% which will result in increase of demand by 30
Lakh tones approximately over the next 5 years. It is expected that customs duty on
import of paper will decrease from the current level to the level of 10% over a period of
time due to WTO compulsions.
The import of raw material for paper including pulp, waste paper and news print is likely
to increase by at least 15% to 20% in 2005-06 to keep up with growing demand for
paper in the domestic market. Despite to the constraints like over crowded market and
limitation in procuring the desired quality of waste paper, there are indicators of a revival
in the Indian Paper Industry. In the current year, selling price has marginally increased
and enabled the industry to partially offset the rise in cost of inputs, fuel & labour.
The paper industry has an important social role to play for the country. Use of paper is

considered as an index of cultural growth. Key social objectives of the Government like

eradicating illiteracy, making primary education compulsory etc. are very much related

to the paper industry. The paper industry is also contributing towards fulfillment of

various requirements of the industry as a whole like information dissemination, publicity

etc. which in turn stimulate industrial growth of the country. The paper industry has,

thus, a catalytic role to play not only for the overall growth of the industry but also for the

living standards of the people. The new millennium is going to be the millennium of the

knowledge. So demand for paper would go on increasing in times to come. Because of

paper industry’s strategic role for the society and also for overall industrial growth, it is

necessary that the paper industry performs well.

FUTURE PROSPECTS
The globalisation of Indian economy has lead to a healthy growth of 6 to 7% industry
and that is growth happening in all the sectors. Moreover the Per Capita consumption of
paper in India is going up with the advent of packaging in the food industry. Due to
environmental concerns, the use of plastics is likely to be banned by the Government of
India within a short span of time. Hence within 2 to 3 years we will be witnessing an
explosive growth of packaging in India mainly in food, textile and export segments.
The exposure to foreign packaging technology and the need to satisfy the export
customers has led to a drastic change in the industrial packing sector. The corrugators
have started using high BF, high GSM paper instead of the regular grades and shifting
from 7 ply and 9 ply boxes to 5 ply and 3 ply boxes. The above change has resulted in
more aesthetic and cost effective packing solutions. There is a very good potential
market developing for such grades of paper in India. The market of high quality Kraft
paper is now catered only by few manufactures from western and northern parts of the
country. With the above changes in the industry it would be in the best interest of our
company to put up a Kraft paper plant of 100 MT per day producing high B.F., higher
GSM paper and exploit the emerging market situations better. The company envisages
the following advantages by going for such a plant as follows:
l) Most of the existing paper mills in South India operate with single wire machine, which
can produce up to 24 BF only, whereas the new plant intended to be set up by SSPML
is a twin wire machine which can produce high quality Kraft paper of 24 BF to 40 BF
which is sold in the market at a premium. l By making high end paper in south India the
company stands to gain a lot in terms of logistics costs when compared to the
competition. l SJPML got the advantage of cost benefit while importing raw materials
and exporting finished product. l The possibility of exporting substantial quantity of the
production to near by countries like, Sri Lanka and eastern African countries is also
bright. This may also be substantiated from the fact that paper exports have risen at a
CAGR of 14 % pa from 105000 tonnes in the year 2000 to 179000 tons in the year
2004. As a strategic measure to expand the international operations of the company, the
company has already started a new business division – International Business Unit to
handle the international marketing operations of the Company.
2) The company intends to manufacture the paper by using Twin Wire Technology and
also plans to incorporate all latest equipments to have a cost effective production. The
twin wire technology employs two wires drawing pulp stock from two separate head
boxes. The arrangement is in such a way that the wet webs come into contact before
going to the press.
3) At present the Company is employing single wire technology wherein the pulp stock
flows from the head box and gets distributed uniformly for further dewatering, pressing
and drying to form a sheet of paper.

The twin wire technology is superior than the single wire technology due to the following
factors:
1. Improves formation of paper.
2. Improves strength properties of paper namely, Burst factor, Tear
factor, Tensile strength and Ring crush test values.
3. Reduces Cost of Production.
The company will be able to derive the synergies of the existing plants and position
itself as a largest Kraft paper manufacturer in south India by the installation of the plant.
The market expectation for the increased production

Capacity, Production, Raw Material and Import

Government has completely de-licensed the paper industry w.e.f. 17th July, 1997. The

entrepreneurs are now required to file an Industrial Entrepreneur Memorandum with the

Secretariat for Industrial Assistance for setting up a new paper mill or substantial

expansion of the existing mill in permissible locations.

The industry is a priority industry for foreign collaboration and foreign equity

participation up to 51% receives automatic approval by Reserve Bank of India. Foreign

investment even up to 100% is approved by FIPB on case to case basis. Several fiscal

incentives have also been provided to the paper industry, particularly to those mills

which are based on non-conventional raw material.

There are, at present, about 515 units engaged in the manufacture of paper and

paperboards and newsprint in India. The country is almost self-sufficient in manufacture

of most varieties of paper and paperboards. Import, however, is confined only to certain

specialty papers. To meet part of its raw material needs, the industry has to rely on

imported wood pulp and waste paper. The production of paper and paper board during

the year 2001-02 is 31.62 lakh tonnes.

The proportion of non-wood raw material based paper is increasing over the years. At

present about 60.8 per cent of the total production is based on non-wood raw material

and 39.2 per cent based on wood.

The performance of the industry has been constrained due to high cost of production

caused by inadequate availability and high cost of raw materials, power cost and

concentration of mills in one particular area. Several policy measures have been

initiated in recent years to remove the bottlenecks of availability of raw materials and

infrastructure development. To bridge the gap due to short supply of raw materials, duty

on pulp and waste paper and wood logs/chips have been reduced. The capacity

utilization of the industry is low at 62% as about 194 paper mills, particularly small mills,

are sick and/or lying closed. Several policy measures have been initiated in recent

years.

Imports of paper and paper products were growing over the years. However, it has

decreased during 2000-2001.

Demand and Supply gap in Paper Industry

Indian paper industry is the 15th largest in the world and provides employment to 1.3mn
people in the country contributing Rs.25bn to the Government. The industry has
recorded a volume growth of CAGR of 5.47% over the last 3 years. In 2003-04, it
recorded a volume growth of 6%, in line with the GDP growth. Indian paper industry has
a 1:1 correlation with the economy. The demand for paper is linked to the GDP Growth.
The government is planning to target a GDP Growth of about 10% in 2-3 years. With
this increase in the GDP growth the paper sector is expected to record a similar growth
rate.
The Indian paper industry has an installed capacity of 6.7mn tons while, the effective
capacity is estimated to be lower at 6.15mn tons. The industry produced 5.26mn tons of
paper in 2003-04. Newsprint capacity in India is estimated at 1.12mn tons however,
domestic production is only 0.59mn tons, while consumption of newsprint is 1.1mn tons.
Favorable demand - supply scenario to keep prices firm
The demand for paper is influenced by various macro-economic factors like national
economic growth, industrial production, promotional expenditure, population growth and
the Government’s allocation for the educational sector. Domestic demand for paper is
expected to grow at a CAGR of 6-7%. India’s paper demand is expected to touch 8mn
t.p.a by 2010. A leading global paper industry consultant projects a shortage of about
0.7mn tpa by 2010.
Proposed capacity expansions:
Capacity expansions (which cost 50% less than new capacities) have been announced
by most players, but would take 1-2 years to be operational. Capacity expansions of
over 600,000 tons have been announced by the 7 large players in the sector

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

GOVERNMENT REGULATIONS, PERMISSIONS & TAXES

1. Central Excise:
Central Excise is levied @8% for the first 3500 MT production and thereafter @12% on
the value of the invoice. The Company is availing permitted Modvat benefits as per
Central Excise regulations. For import duty paid on waste paper procured from
overseas the Company is entitled to adjust the entire duty paid component as that of
Modvat credits.
2. VAT (Value Added Tax):
VAT replaces the existing multipoint taxes levied by various states with effect from April
‘05. As that of other industries, the paper trade is also covered under VAT for domestic
sales done in the state of Kerala. However for interstate sales CST is continued to be
levied as per existing Government regulations.

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

4. Factory Licenses:
All the licenses required under Municipality Act, Factories Act are obtained and duly
renewed.

5. Pollution Control:
Necessary permission under effluent discharge Act is obtained and the facilities
required to maintain the permission are in place.

AVAILABILITY OF DOMESTIC WASTE PAPER

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

Waste Paper Examples

Source
Domestic refuse Newspaper, magazines, board cartons.

Industrial refuse Corrugated boards, duplex & other packaging board, paper
sacks etc.
 Office refuse Ledger files and papers from Govt. offices,
Universities & large business organizations.
Trade refuse Boards trimmings from converters & packaging
manufactures, paper savings from printers
Road Sweeping Newspapers and magazines are usually recycled directly as
wrapping and packaging papers by the grocers and pretty
traders and therefore they are not available for mills in their
first rejection. Other fibrous domestic refuse probably find their
way as road sweepings.
In India, collection of office refuse has not been very high mainly due to unavailability of
a viable collection system. In practice, more than 80% of the paper consumed in India
is being collected, of which only 20% is being made available to paper industry and
the rest 60% is usually diverted for other diversified / secondary uses such as
wrapping, packing etc.
The developed countries, which are the major players in paper recycling business, have
a well defined and planned waste paper grading system in place, which facilitates the
collection of recovered paper sorted in grades with a limited mixture of fiber types. Due
to limited capacities of landfill sites and (municipal) incineration plants, increasing waste
disposal costs and environmental awareness a wide range of legislation / directives in
various countries have been imposed which has promoted material recycling and
reduced further , the generation of waste that requires disposal in appropriate facilities.
These regulations set responsibilities for taking back used paper products and
packaging material independent of the public disposal system and recycling them.
In India, however, no such regulations / law / directives are in force to promote use of
recyclable resources, as a result of which the recovery of used paper is also low. As per
the statistics available ,the Indian paper industry is using more than 70% of imported
waste paper in its total waste paper consumption . The general issues related with
use of importedwaste paper in Indian Paper Industry are:
Ø Inconsistency in quality and varieties of waste paper grades.
Ø High level of contamination i.e. prohibitive & out throws.
Ø Price fluctuation in the international market.
Ø High price for good quality waste paper i.e. low to negligible contamination
level.
Ø High ash content in paper leading to low fiber yield / tpaper and generation of
inorganic sludge.

ISSUES RELATED TO WASTE PAPER BASED MILLS

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

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

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

OBESRVATION & REMARKS :

Generally the waste paper being imported in the country arerecovered in segregated
form as per the request of the importer. However, some cases have been reported
wherein municipal solid waste constituting of plastics, metal cans and cloth / rags etc
(technically defined as prohibitive and out throws) have been illegally imported in grab
of imported waste paper This has led to the need of defining / formulating the
permissible limits for the contaminants like plastics, metal cans and cloth / rags etc.
inthe imported paper . At present, no data /guideline is available on this issue
Therefore; it is recommended to undertake an indepth study on this issue so as
to evolve permissible limits for prohibitive and outthrows in the imported waste
paper consignments entering into the country.
 CORPORATE PROFILE

M/s Shree JagdambePaper Mills Limited(SJPML), incorporated in July, 1980 as a

private limited Company, commenced its commercial production of Semi Kraft Paper

on single production line in March, 1982 with an installed capacity of 1950 M.T. per

annum based on agro residue. In the year 1985-86 the capacity was increased to

3000 M.T. per annum & later in 1987-88 to 5000 M.T. per annum by adding certain

balancing equipments. In 1990, SJPML added another production

Line and increased the capacity to 10000 M.T. per annum. In 1993-94 the plant has

been operated at 95% capacity utilization to give a production of 9587 M.T. SJPML

has been promoted by Shri Man Mohan Kumar Goyal, Shri Ramesh Kumar Goyal,

Shri Surender Kumar Goyal, Shri Anil Kumar Goyal and Shri Parveen Kumar Goyal

who have professional background. SJPML has been converted into a Limited

Company on 28.12.94 and also enhanced its production capacity from 10000 M.T. At

present to 20000 M.T. per annum through Modernization- cum-Expansion Scheme.

 During the year 1994-95 an other sister unit of

SJPML for manufacture of Kraft Paper was incorporated as Shree Sita Ram Paper

Mills Ltd., at Village Nanasanja Taluka Jagadia, Distt Bharuch(Gujarat) with installed

capacity of 20000 MT per annum. As product of the company is well accepted in open

market, but due to Government policies of liberalisinginternational trade, Import duty

on Kraft Paper was reduced resulting dumping of Paper in India by multinational

Companies and same also became a reason for down in production for the year 2001

to 2003. Similarly Excise Duty was also increased between 1994-95 to 2000-2001

from 0% to 5% and then to 8% and 16 %( 2002-2003).

BRIEF PARTICULARS OF THE COMPANY

The Company was incorporated under the name & style of M/s Jagdambe Paper
Industries(P)Ltd., vide certificate of incorporation No.H-10725 dated 31.07.1980,
with Registrar of Companies, Delhi & Haryana, (New Delhi). The name of the
Company was changed to Shree JagdambePaper Mills (P) Ltd., on 10.02.1994. Now
Company’s constitution has been changed to that of a Limited
Company on 28.12.94.The Company has registered itself with Directorate General
of Technical Development, Delhi, Ministry of Industry, Government of India for
manufacturing of Paper & Paper Board vide Registration No.1020(89)DLR dated
17.11.1989 for 10000 M.T. And memorandum for expansion of capacity to 20000
M.T. Has been filed with SIA as per acknowledgement dated 23.08.94.

BRIEF PARTICULARS ABOUT PROMOTERS OF THE COMPANY

The Project was promoted by Shri Murli Dhar Jhuthran and Shri Ramesh Kumar Goyal.

Shri Murli Dhar Jhuthran retired as Director in 1982. After then promoters were Shri

Man Mohan Kumar Goyal, the Chairman of the Board of Directors, Sh Ramesh
Kumar Goyal, Managing Director, Sh Surender Kumar Goyal, Director(Sales), ShAnil

Kumar Goyal, Director(Production), Sh ParveenKumar Goyal, Director (Personnel).

Shri Man Mohan Kumar Goyalstarted his career at the age of 17

years by joining his father's Brick Kiln business. Being the eldest son of late Sh Ram

Saran Dass Goyal, he was involved in planning and managing all business activities of

the family. He has hands-on experience in running brick kilns,

Manufacturing of steel utensils, ice, managing agency, business of cement & match

boxes, petrol filling station and all properties. In 1980, he came into the

manufacturing of paper and now he is an established Industrialist with a 14 years

of experience in paper manufacturing. Sh Man Mohan Kumar Goyalresigned from

director ship of the company w.e.f. 15.12.2001 & shifted to Gujarat to look after day

to day affairs of sister company Shree Sita Ram Paper Mills Ltd.,

Shri Surender Kumar Goyal, B.A., started his career by joining family business. Later

he was instrumental in setting up of M/s AggarwalIce Factory. In 1982, he joined the

captioned company as Director (Sales). He has been instrumental in developing

network of dealers/agents and monitoring sales.

Shri Anil Kumar Goyal, Chartered Accountant started his

career by joining SJPML in the year 1984. Being an Accountant by profession he

could read, analyze and plan the business to make the operations cost effective.

Shri Parveen Kumar Goyal, B.A.started his career in 1981 at

the age of 18 years and joined SJPML. Due to his strong human relation trits he was

also given the responsibility of handling personnel functions and inducted as Director, in
1984. Sh Parveen Kumar Goyal resigned from director ship of the company

w.e.f. 15.12.2001 & shifted to Gujarat to look after the day to day affairs of sister

company M/s Shree Sita Ram Paper Mills Ltd., Bharuch

LOCATION OF MANUFACTURING PLANT AND ITS BRANCHES

SJPML has free hold land measuring 126 kanal 13 marla, situated at Begu Road,
Sirsa. Site is on metalled road about 2 K.M. from Sirsa. City in the municipal limits
nearest railway station is 3 K.M. at Sirsa.

Works sector: Begu Road, Sirsa (Haryana) :

Sector: Medium Scale Industry
Registered Office : 161, Deepali, Pitampura, Punjabi
Bagh, Delhi
Branch : Shree Jagdambe Paper Mills Ltd.,
11, Jeet Building, Phase Ist,
Ashok Vihar,
Delhi

NAME OF THE SISTER COMPANIES/CONCERNS

a) Shree Sita Ram Paper Mills Ltd.,
Taluka Jagadia, Village NanaSanjha,
Distt. Bharuch (Gujarat)
Shree Sita Ram Paper Mills Ltd., incorporated in the year 1995 is sister company of
Shree JagdambePaper Mills Ltd., involved in manufacturing of Multi Liner Craft Paper
having production capacity of 20000 MT per annum.

b) Shree Amba Paper (P) Ltd.,

73/4, Village Ghavera,
Delhi
c) Ahmedabad Chemical Trading (P) Ltd.,
44, Ekjot Apartments,
Maduban Chowk,
New Delhi

Both of two companies are the sister companies of Shree JagdambePaper Mills Ltd,
based at Delhi, involved in trading for various types of paper and paper board.

OUR CUSTOMER
A loyal customer base is SJPML biggest quality endorsement. The institutional
customers comprise brand-enhancing names like Action Shoes, Micro Teck, Lakhani
Shoes Ltd., among others.

CUSTOMER SERVICE
The SJPML takes a holistic approach in the business of making paper and customer
relationship enjoys a priority in this. The SJPML customer service stands for
dependable quality, every possible choice and anytime product availability.

Convenience : We provide customers the benefit of staggered delivery so that they

do not need to keep a large inventory at their end; this maximises working capital
efficiency
Customer service : We weave the marketing and manufacturing functions together.
Quick and punctual delivery has added to customer convenience

PROCUREMENT OF RAW MATERIALS

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

RAW MATERIAL MANAGEMENT

Director (Purchase) after considering lowest quotations along with sample of raw
material, place order for supply of raw material.

TESTING/CHECKING OF RAW MATERIAL

After receipt, consignment of raw material is weighted at company’s own weighing
bridge. Weight as per company’s weighing bridge is tallied with the weighing slip as
produced by the supplier of raw material. Bill of the material is also collected by the gate
office for their necessary inward material entries. Weight of the raw material is tallied
with the weighing slip/bill of the supplier. If the weight is not tallied with the weighing
slip/bill due to shortage, it is immediately informed to supplier/driver. A written consent
on the back side of bill is taken for information of shortage to supplier. Vehicle is then
allowed to go to raw material godown for unloading with prior intimation to quality
checking supervisors.
Raw Material Quality Supervisor got unloaded the material in his presence. Sample
from different bundles of raw material is taken for checking of quality/moisture etc. If,
moisture is found in any bundle, sample of same is handed over to laboratory
technician, who tested the percentage of moisture in the material. A report is being
prepared by Lab. Technician for moisture and other prohibited contents like plastic
strips, kaccha material, reel core material etc. present in the lot of raw material. Report
is also signed by Lab. Incharge as well as supplier of material. Weight of moisture/other
prohibited contents present in the material is deducted from the total weight of material.
Lab. Report so prepared, is forwarded to Director (Purchase) for his information and
signature purpose. Copy of the report is then given to supplier of raw material. If,
supplier does not accept weight of moisture/prohibited contents he is allowed to take his
material back.

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

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

2. Corrugated Cartoons (used) Rs.7000/- ,,
3. Corrugated Cuttings (Fresh) Rs.6800/- ,,
4. Corrugated Cuttings (Old) Rs.6500/- ,,
5. Media (Kaccha Material) Rs.5500/- ,,
6. Media (Core Pipes) Rs.5000/- ,,

MANUFACTURING PROCESS ;

Paper is manufactured usingcorrugated cartoons/waste paper, Chemicals and water.

The manufacturing process can be bifurcated in to four stages.

A) PULPING :

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

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

C) PAPER MAKING :

Prior to going in to the paper making machine the stock which has gone through
necessary treatments, is diluted in the mixing box, down to the required consistency
with the use of back water generated in the paper making process. Similarly
speaking, the paper making machine performs its function in this way :-
In thepulp stock which goes over travelling wire the fiber is separated from water &
sheets of paper is formed. The wet sheetis pressed dried and smoothened by going
through several sets of roll machines. To get M.G.Kraft Paper, the sheet is then
passedthrough M.G.Dryer which imparts glaze to the paper. Paper isfinally wound up
by means of pop-reel machines. The out put of a paper machineis determined by the
trimmed width of paper, the speed of machine and grammage of paper.

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

DISPATCHES

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

QUALITY CONTROL :

SJPML has got a well equipped laboratory with all the latest equipments for test cobb
value, Tear Factor, Burst Factor, Consistency, Degree SR and Grammage etc.

NET WORK OF SALES

SJPML has a wide range of net work of dealers spread all over the India, which covers
mostly all the states of India.
CLIENTS

SJPML keeps stringent control over quality for consistent quality which has helped it
have clients like :-
a) Micro Tek, Parwanoo
b) Action Shoes, Delhi
c) H.P.Cotton Textiles Mills Limited, Hissar
d) Baldeo Mange Lal, Ujjain
e) Patel Paper Box, Udaipur
f) Perfect Pack Ltd., Faridabad
g) Lakhani Group of Industries, Faridabad
h) Ravi Sons, Chandigarh
i) Kamal Boxes, Jalandhar
j) Jay Ambe Overseas, Surat
k) Industrial Packers, Daman
l) Meiyappa Paper, Chennai

EMPLOYEES CAPACITY

Details of employees are as under :-

1. Repair & Maintenance Staff 15
2. Engineering & Manufacturing Staff 18
3. Clerk 10
4. Supervisors Connected with Process 5
5. Supervisors Connected with Production 5
6. Supervisor Connected with Despatches 5
7. Supervisor Quality Checking 5
8. Officer Staff 5
9. Security 5
 SHREE JAGDAMBE PAPER MILLS LTD., SIRSA
PROCESS FLOW DIAGRAM

Waste Paper

Along with 12% Normal Moisture,

Stapple Pins & Adhesives)

 Solid Waste to Boiler/ETP

REMMUNERATION OF WHOLE TIME DIRECTOR

Sri Surinder Kumar Goyal
Sri Surinder Kumar Goyal a Post Graduate in Commerce and has been in the services
of the Company as Director (Sales) since the incorporation of the Company. He will be
entitled to the following remuneration as fixed at the Board meeting Committee and as
approved at the Annual General Meeting of the Shareholders of the Company , in
accordance with the provisions of Section 311, 198, 269 and 309 read with Schedule
XIII and all other applicable provisions if any of the Companies Act, 1956 or any
statutory modifications or re-enactment thereof.
1. Salary Rs. 30000/- per month
2. Commission : N.a.
3. Perquisites House rent allowance at the rate of 50% (fifty
percentage) of the Salary
Medical expenses:-Medical expenses for the Director
and his Family subject to a ceiling of one month’s salary in a
year or three month’s salary over a period of three years
Personal Accident insurance – an amount of the annual premium of which does
not exceed Rs. 12000/-
Gratuity payable – Not to exceed half a month’s salary for each completed year
of service. Provision of Car for use on Company’s business and Telephone at
residence Perquisites shall be evaluated as per Income tax rules, 1962 wherever
applicable.
Sri Anil Kumar Goyal
Sri Anil Kumar Goyal a Chartered Accountant is in the services of the Company as
Director (Finance) since the incorporation of the Company. He will be entitled to the
following remuneration as fixed at the Board meeting Committee and as approved at the
Annual General Meeting of the Shareholders of the Company , in accordance with the
provisions of Section 311, 198, 269 and 309 read with Schedule XIII and all other
applicable provisions if any of the Companies Act, 1956 or any statutory modifications or
re-enactment thereof.
1. Salary Rs. 30000/- per month
2. Commission : N.a.
3. Perquisites House rent allowance at the rate of 50% (fifty
percentage) of the Salary
Medical expenses:-Medical expenses for the Director
and his Family subject to a ceiling of one month’s salary in a
year or three month’s salary over a period of three years
Personal Accident insurance – an amount of the annual premium of which does
not exceed Rs. 12000/-
Gratuity payable – Not to exceed half a month’s salary for each completed year
of service. Provision of Car for use on Company’s business and Telephone at
residence Perquisites shall be evaluated as per Income tax rules, 1962 wherever
applicable.

Sri Rakesh Kumar Goyal

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

1. Salary Rs. 25000/- per month

2. Commission : N.a.
3. Perquisites House rent allowance at the rate of 30% (fifty
percentage) of the Salary
Medical expenses:-Medical expenses for the Director
and his Family subject to a ceiling of one month’s salary in a

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