Care for Tomorrow

APP’s (Asia Pulp & Paper) corporate vision is to become the 21st century’s number one Pulp and Paper Company with the highest international standards in world, and with the strongest commitment to providing superior value to customers, shareholders, employees and the community. We present here the synopsis of APP Group, its sustainable operations, presence in India and various manufacturing facilities.

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APP

Today, APP is a fully integrated pulp and paper company producing Bleached Hardwood Kraft Pulp (BHK) and a wide range of paper and packaging products, from commodity-grade base paper to value-added art paper, cast coated paper, tissue, speciality papers, carbonless, stationery and office products including cut size photocopy papers.

The company has also developed digital coated and pre-print papers that are gaining fast recognition and are widely accepted in the printing industry.

From a very humble beginning, APP has now evolved into an industry leader with a combined pulp, paper and packaging grades capacity of over 15-16 million MT/annum in Indonesia/China. As APP expands its interests and outreach, the company is continuously building from its base of core competencies. The company has taken steps to reinforce and build on its regional market position through the introduction of higher quality products and enhancements, marketing initiatives, process and productivity improvements as well as investments in new technology.

APP’s future depends on expanding economies worldwide and hence has strengthened its efforts to protect and preserve the environment. Through its exclusive fiber suppliers, the company reforestation programs have to date, seen approximately 440,000 hectares replanted with more than 550 million fast maturing Acacia trees. All the group pulp and paper mills in Indonesia have already started using environmentally friendly manufacturing procedures that are in line with APP’s high internal standards of pollution control and environmental safety.

The company has launched a group-wide performance improvement effort dubbed ‘Reaching the Sky’ which is driven by high performance vision and ‘Olympic’ performance targets set by the management, internally termed ‘Management By Olympic Standards’ (MBOS). These systems set clear measurable targets at various operating subsidiaries for areas such as service and efficiency improvements and cost reductions. These include competitions held at its exclusive fiber supply companies to further improve cost saving and increase quality and quantity yields at both plantation and harvesting operations. The management is committed to increasing long-term value rather than focusing on short-term gains at the expense of future growth. The company will continue to focus on expanding its profitable businesses, improving profit margins and effectively managing its asset base.

Sustainability in all Operations & Action Plan

APP, in line with its commitment to sustainability – is stepping up and further improving the effective and long standing programs it has in environmental protection, conservation, and community relations & development. To achieve this, the company is developing strategic partnerships, improving raw material chain-of-custody and conservation management under the management of Forestry Division.

APP sources its raw material for pulp from sustainable plantations and residues of plantation development in degraded forest / wasteland. APP is committed to be socially, environmentally and economically sustainable in all its operations. For the purposes of implementation, the company utilizes the definition of sustainability, which consists of three pillars – social, environmental and economic. Following improvements to, and expansion of, its programs, the Company has achieved several significant milestones.

APP has since released its Sustainability Action Plan (SAP) which is a stepped, time-bound plan for achieving sustainability in all operations. The key initiatives included creating a contiguous conservation park in Riau Province, Sumatra, and establishing new operating procedures. The SAP also provides a blueprint for the company’s fiber procurement and explains how the company will meet its market commitment to source all wood supplies from plantation-grownforests.

APP’s Fiber Supply

To fulfill APP’s commitment to use plantation-grown fiber, APP established additional renewable sources of fiber supply in 2004. Those new sources, totaling 222,425 ha of plantation forests, will increase the total planted area of APP’s exclusive fiber suppliers (as of December, 2009) to 900,000 ha.

Mr. Rohit Raina, Director, APP India

APP in India

APP in India has been marketing and selling its products since last 15 years and we have seen a tremendous growth in terms of paper consumption and also change in customer mindset. The printing industry is one of the biggest and fastest growing sectors in India, after China and keeping in view this amazing growth in literacy and continuous demand for printing and packaging requirements of a rapidly progressing trade and industry, we have planned opening up of more branches in major metros so as to service the customer and understand the challenging trends in the consumer preferences, as said by Mr. Rohit Raina.

He also mentioned “we need not to compare with products supplied from other international or domestic mills. APP has maintained and expanded aggressive quality assurances programmes to ensure that the product meets the promise, which has made APP grow into “force to reckon with” in the pulp & paper industry. India is moving up the value chain. Price is important but it is not the only thing. As you move up the value chain, cost becomes less important quality determines the edge in competitiveness”.

One of the cornerstones of APP’s Sales and Marketing operations is its product development and customer service. The ability to specialize also includes the ability to produce high quality products. The focus on product development and customer service is giving APP a strong competitive edge in the market. With demand expanding as market conditions improve, the company is well placed to deliver customer needs.

In a free market economy, consumers including both trade as well as end user-the printer have a wider choice, as APP has to offer more in terms of quality, price and more so technical support, which has lead to a fierce competition and demanding market conditions.

Further Mr. Raina added “the India market is becoming increasingly attractive to global producers, given its size and growth rate. Indian paper producers will witness stiff competitions from international paper producers in their efforts to build their share in a growing market, by 2012”.

PT Indah Kiat Pulp & Paper Tbk

PT. Indah Kiat Pulp & Paper Tbk. (Indah Kiat) is one of the largest pulp and paper manufacturers in Asia outside Japan with a very long operating history. The company has three plants located in Tangerang, Serang and Perawang, producing pulp, woodfree writing and printing paper, industrial packaging boards, brown grades, corrugated boxes and speciality.

Indah Kiat – Perawang

All of Indah Kiat’s pulp production capacity is located at its facility in Perawang, Riau Province, Sumatra. The mill commenced pulp production in 1984 with an annual production capacity of approximately 100,000 MT and today has four pulp lines, all capable of producing ECF pulp. Series of de-bottlenecking and expansion projects have increased the annual production capacity to approximately 2 million MT. In line with the group’s commitment to environmental protection, the mill produces Elemental Chlorine Free pulp and is also using plantation fiber. Part of the pulp production is converted into paper at the same facility and the rest is supplied to the group paper mills. Paper production started in 1989 with an annual capacity of approx 254,000 MT and has since grown to approximately 600,000 MT with a capacity to convert approximately 400,000 MT into cut-size photocopy paper. State-of-the-art technology is used for all production processes including the continuous digester for pulp production. Strict measures ensure that the wood fiber entering the log yard are from certified sources with proper chain of custody protocols. Environmental and quality management system certifications have been in place and have become the norm in day to day operations of mill.

Indah Kiat – Serang

Indah Kiat’s container board and folding box board facility is located in Serang, Banten Province. The mill commenced production in 1993 with an annual production capacity of approximately 3,00,000 MT of liner board and approximately 2,80,000 MT of corrugating medium. Additional capacities to produce ivory and duplex boards were added later to bring the capacity to approx 1 million MT. Converting facilities to make corrugated boxes and paper tubes were also added. In the line with its commitment to preserving the environment, waste paper is used extensively in the production of its major grades. The mill has achieved the ISO 9001:2000 and ISO 14001 for quality and environmental management systems respectively.

Indah Kiat – Tangerang

The production facility at Indah Kiat Tangerang started commercial production in 1979 producing photocopy paper and a wide range of coloured speciality papers. The Tanerang Mill has also achieved the ISO 14001, BS7720 and the Swiss Certification from SGS International Certification, becoming the first paper mill in the world to be awarded such certifications at the same time. These awards certify the mill’s commitment to comply with the highest standards of environmental management systems and user guidance.

PT Pabrik Kertas Tjiwi Kimia Tbk

PT. Pabrik Kertas Tjiwi Kimia Tbk. (Tjiwi Kimia) manufacturing facilities are located in Sidoarjo, near Surabaya in East Java, Indonesia. The mill started with a caustic soda plant and now boasts many state-of-the-art paper and converting machines making it the world’s largest stationery manufacturer, under one roof. The annual paper and board production capacity is approximately 1 million MT with an additional stationery converting capacity of approximately 2,50,000 MT.

The product range includes value-added products such as coated art paper, cast coated paper, carbonless and a wide range of school and office stationery. Exercise books, pads, spirals, hard back books, drawing books, shopping bags, fancy stationery, envelops, continuous forms, file folders and others make up the range of converting stationery products.

PT Pindo Deli Pulp & Paper Mills

PT. Pindo Deli Pulp & Paper Mills (Pindo Deli) is situated at two locations in Karawang, West Java, Indonesia. The combined annual capacity of the two facilities is approx 8,50,000 MT of uncoated woodfree, coated art paper and board, carbonless paper, tissue paper and other specialty grades including embossed boards.

Pindo Deli’s products are very well accepted in the printing and packaging industry for their superior and consistent quality. The converted tissue product range of facial, toilet, handkerchief, kitchen towel, napkin etc. enjoy very good acceptance by the end consumers, domestically and in the overseas market.

PT Lontar Papyrus Pulp & Paper Industry

The PT. Lontar Papyrus Pulp & Paper Industry (Lontar Papyrus) mill in Jambi is located in South Sumatra and was built with modern equipment manufactured by Scandinavian, North American and Taiwanese equipment suppliers. The mill has a continuous production output, lowers energy requirements and reduces production costs.

The mill commenced commercial production in 1994 with an annual production capacity of 4,10,000 MT. Additional dryers were installed to increase the production capacity to 6,80,000 MT of Elemental Chlorine Pulp. Lontar’s paper mill in Aceh Province, North Sumatra, commenced production in 1977 and currently has an annual production capacity of approx 7,500 MT of uncoated freesheet. Lontar has since added tissue production at its facility with an annual production capacity of 60,000 MT.

Gold East Paper

• Gold East Paper is a Greenfield Mill and currently the single largest-scale Art-Paper-Mill in the world.

• Located on a 5.33km2 site in Dagang, Zhenjiang city, Jiangsu province. Gold East Paper is at the vicinity of modern Shanghai at the east and the ancient capital city Nanjing at the west.

• Incorporated on May 18, 1997, the total investment is USD 2.123 billion, and the annual production capacity is over 2 million MT.

• It has three coated woodfree paper production lines from Voith and Metso.

• Possess power station, GCC (Ground Calcium Carbonate) plant, PCC (Precipitated Calcium Carbonate) plant as well as dock, which can handle two 20,000DWT vessels at the same time.

• Major product ranges cover C1S Art Paper, C2S Art Paper/Gloss, C2S Art Paper/Matt, C2S Art Paper (HSWO Heat Set Web Offset).

• Brand: NEVIA/Art Tech

Ningbo Zhonghua Paper

Ningbo Zhonghua Paper Co. Ltd. and Ningbo Asia Pulp and Paper Co. Ltd are located in the Ningbo city which is near the Beilun port. Beilun is one of the largest ports in China. The total production capacity of these two mills is more than 1.25 million tons.

Ningbo Zhonghua Paper Co. Ltd.

Established in July 1992, it is located at Haishu Industrial Zone, Ningbo, Zhejiang Province, covering a land area of 0.63 square kilometers. With more than 1300 employees, it has total assets of USD 700 million and annual output of a variety of high quality coated white board amounting to 500,000 tons. Ningbo Zhonghua Paper invested over USD 21 million for environmental protection. It became the first paper making enterprise to achieve the 14001 environment Management System Certification by SGS International certification Institute in March, 1999. It was awarded honors such as Top 10 Environmental Protection Enterprise of Ningbo, Environmental Protection Model Enterprise, Garden Enterprise, Enterprise of Quality and Contribution and Green Enterprise of Zhejiang Province, etc.

Brands such as NB Star (Art board), Nevia (Art board), and Zenith (GC1 Hi bulk Ivory baord) are produced in this mill.

Ningbo Asia Pulp and Paper

Ningbo Asia Pulp & Paper Co., Ltd. is located in Qingzhi industrial Park of Beilun District Ningbo, Zhejiang. The company is an extension of Ningbo Zhonghua Paper with over 1,000 employees and total investment of USD 1.5 billion, wherein about USD 800 million was invested on the completed phase-I project. This mill was started building in Oct, 2002 and commence production in Dec, 2004. The company occupies an area of 1.7 square kilometers and produces top-grade coated white board with an annual capacity of 750,000 tons. Ningbo Asia Pulp & Paper Co., Ltd has adopted cutting-edge technology and equipment together with the most advanced QCS and DCS quality control systems internationally where the breath of paper-making machines is 8.1 meters and the designed machine speed is 900m/minute. This machine has made a world record of producing 2823 MT/day.

While developing its production capabilities, the company placed emphasis on environment protection. Ningbo Asia Pulp & Paper Co., Ltd. has designed and built a waste water treatment plant with a daily capacity of 40,000 tons and introduced the deep-sea discharging approach of 10 meters below sea level to ensure that the discharge of treated waste water reach the national grade A standard. The company has invested USD 5.5 million to put up a circular coal stock that provides closed-up operation of coal barging and transportation so as to avoid negative influence on the environment. In addition, the company set up a power plant equipped with 2 sets of 300T/H CFB boilers and two 62.4 MW i.e. total of 125 MW steamer generators to provide steam and power needed by the mill. The cutting-edge dust proof and desulfurization technologies of its CFB cycling sulfur boiler have resulted in discharged gas of containing sulfur and nitrogen oxides that are much lower than the national standard.

Brands like as Chieftain Green art board, Ningbo Fold Ivory board also know as Chieftain Ivory board and Blue centered playing card board are produced in this mill.

Gold HuaSheng Paper Co.

Gold HuaSheng Paper Co. (Suzhou Industrial Park) established in May 1996 is a USD 1.4 billion investment by Asia Pulp and Paper, making it one of the largest paper mill in China, occupying 260 hectares of China and Singapore’s joint venture industrial park. GHS is blessed with a beautiful landscape convenient traffic, and more than 3000 people strong workforce. GHS is located in China’s most bustling triangle area of Jiangsu-Zhejiang-Shanghai. Further enhanced by the many water channels and well constructed roads to service the industrial area.

GHS also boasts a privately owned coal power plant, making the mill self sufficient and also a private harbor area for raw materials transportation. As of current, GHS’ production capacity is 550,000 MT, and plans area already underway to bring, this number to 1.1 million MT by 2011. GHS’s products which include carbonless paper, office paper, uncoated and coated woodfree have achieved international standards relying on excellent personnel and most advanced research and development.

Jinhai Pulp & Paper Co. Ltd.

Jinhai Pulp & Paper Co. Ltd. is located in Yangpu Economic Development Zone of Hainan Province, covering an area of 8,000 acres. It is the thirteenth large scale pulp and paper enterprise invested by APP group in mainland China, orientated with the business strategy of forestry-pulp-paper integration. The first phase of the project is to build up a bleached Eucalyptus Kraft pulp production line with an annual capacity of 1 million tons and the total investment was 10.5 billion RMB. The production started on March 28, 2005. The second phase of the project is to install a paper machine, with an annual capacity of 1.6 million tons of fine paper. The total investment was RMB 13.6 billion at phase two. The paper machine operation started in September, 2010.

JHPP pulping process is of super large scale, running single fiber production line only. The core equipment of operation units are all supplied by world-class machine manufacturers, along with most advanced pulping technology.

The 1.6 million ton fine paper project is in line with the national development strategy of forest-pulp-paper integration. The integrated pulp and paper process brings along not only improved overall efficiency for the company but also a striking social effect to the local economy. The launch of this new project creates more than 2000 jobs, also promotes the development of other industries such as paper converting, printing, transportation, and service industry as well.

All the fiber materials used for pulp production, self forested or purchased, are from plantations or commodity forestry. We commit to “Green Production with Environment Friendly Practice”. Ever since the beginning of the project, the company has invested accumulatively RMB 2.7 billion for environmental management to achieve the goals of cleaning production, energy conservation and pollution control. All the discharge levels reach as low as or even lower than government regulatory limits.

The no. 2 machine of JHPP is fabricated by VOITH, Germany. The paper machine with online coaters is of 428.18 meters long. The width of web on reel is 10.96 meters. The operation speed is 1800m/min with the designed speed up to 2000m/min. The second phase of JHPP project, makes coated grades including coated matte, the basis weight ranging from 150 gsm to 250 gsm, depending on customer’s satisfactions.

Mr. Vikas Kothari (Country Manager)

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Mr. Vikas Kothari (Country Manager)
ANDRITZ OY, India Liaison Office, New Delhi.

A son to a first generation paper technologist Late Mr. P.S. Kothari who held various managerial positions in the paper mills at the time when people didn’t even know what paper technology is all about. Vikas did his chemical engineering from BITS Pilani, and carries along a strong experience on the technological front. He has experience of over 4 decades with world’s foremost engineering companies like A. Johnson & Co (Sweden), A. Ahlstrom Corporation (Finland) and currently ANDRITZ OY (Finland) – “triple AAA” company.

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ANDRITZ in India started off with a flier by supplying a new fiberline to APPM in 2004 which was a success. They continued their journey by supplying small orders like bleach plant systems, screening plant systems, mill pumps, agitators, etc. over the past two decades. Mr. Kothari said “Technologically we have excellent offerings, which are proven worldwide. We understand that we have competition, and this inspires us to continue to develop our technologies and services. If a customer does not choose us, then there are perhaps other commercial elements at play. We are in a very strong position, and as a leading company, others will try to emulate our success. And with the recent prestigious orders from TNPL and JK Paper we certainly have our foot on the accelerator. We are here to serve the Indian paper industry having long term and sustained growth potentials.” Taking the conversation further he explained us about ANDRITZ pulp & paper operations, the Indian journey so far, recent major orders, and closed the conversation by highlighting the strength of ANDRITZ Group.

About ANDRITZ Group

The ANDRITZ group is globally a leading supplier of plants and services for the hydropower, pulp & paper, metals and other specialized industries (solid/liquid separation, feed and biofuel). The Group is headquartered in Graz, Austria, and has approximately 16,100 employees worldwide. ANDRITZ operates over 180 production & service sites worldwide with a total order intake of 4132 million Euros in 2010. The business areas of the ANDRITZ Group are:

Hydro: a global supplier of turnkey electromechanical equipment and services for hydropower plants. The product range also covers pumps for the pulp and paper industries.

Pulp & Paper: technology and services that enable the industry to produce practically all grades of pulp for the manufacture of paper, board, and fibreboard, and also specialized machines for tissue production.

Metals: plants for the production of cold-rolled and hot-rolled, surface-finished carbon steel, high-grade steel and non-ferrous metal strip. This includes plants for the regeneration of pickling acids and for metal oxides. In addition, the business area builds plants for punching and metal forming.

Environment & Process: comprehensive range of technologies, products, and services for mechanical and thermal solid/liquid separation for municipalities and major industries (e.g. mining, steel).

Feed & Biofuel: systems and machines for industrial production of conventional mixed animal feed and high-quality, special animal feed. In addition, the business area holds the leading position in equipment for wood pelleting.

ANDRITZ Pulp & Paper

ANDRITZ Pulp & Paper is a leading global supplier of turnkey systems and services for the production of all types of pulp, paper, tissue paper, board, fiberboard (MDF), nonwovens, and plastic films, as well as of biomass boilers and gasifiers for energy production. The technologies available are employed for the processing of logs and annual fibers, the production of chemical and mechanical pulps as well as recycled paper fibers, recovery and reuse of chemicals, generation of energy from biomass, preparation of paper machine furnish from virgin or recycled fibers, production of paper, tissue paper and board, calendering and coating of paper, and the handling of reject materials and sludges. Services include complete mill maintenance, equipment upgrades and rebuilds, engineered wear products, and spare parts.

Indian Pulp & Paper Journey of ANDRITZ

ANDRITZ is the only company who has secured to deliver two complete pulp mills (i.e. from wood yard to bleached final pulp and complete recovery island) to APPM in 2004, which was commissioned in 2006, and JKPM ordered in January 2011 to be commissioned in late 2012. Enmas Andritz Pvt Ltd is the JV between ANDRITZ and Enmas, who have been the market leaders in supplying recovery boilers, evaporator plants, lime kilns, and recausticizing systems.

Their first major stride in Indian pulp & paper industry began in the year 2004 with the execution of order of a new fiberline at Andhra Pradesh Paper Mills (APPM) consisting of down flow lo-solids cooking system, brown stock washing with DD washers, two-stage oxygen delignification, deknotting/screening and ECF bleaching with DD washers and wood yard up-gradation with pulp capacity of 625 TPD based on mixed hard wood. It also included recovery boiler and evaporation plant from JV Enmas Andritz Pvt Ltd. Delivery also included CD- filter for white liquor, an LMD-filter for lime mud and lime kiln burner as part delivery from Andritz, Finland.

In the year 2005 they supplied systems for washing, oxygen delignification, screening and bleaching to produce 300 TPD pulp from mixed hardwood & bamboo to Sirpur Paper Mills Ltd.

In the year 2007 they delivered recausticizing plant, including an X-filter for green liquor handling and a CD-filter for white liquor filtration to West Coast Paper Mills.

They have also successfully installed recycled fibre preparation and DIP technology in India and the major breakthrough for them was the DIP line at Malu Papers Ltd and a retrofit/upgrade of an existing DIP line at ITC-Kovai.

Tamil Nadu Newsprint & Papers Ltd (TNPL)

ANDRITZ will supply a three-loop deinking plant for the TNPL mill in Kagithapuram, Tamilnadu. This will be the first three-loop deinking plant to be commissioned in India. The deinking plant reflects the latest state of the art in terms of environmental protection, as well as energy and water consumption. The supply of this first three-loop DIP line to India is an important step for ANDRITZ in this growth market. Start-up is planned for the first quarter of 2012. The deinking plant, with a three-loop and two-disperser configuration, has a capacity of 300 TPD and was part of a program to extend the paper production capacity of the TNPL mill from 245,000 to 400,000 TPA. The raw materials used in the DIP line are 80% sorted office waste and 20% magazine grades. The deinked pulp will be used to produce high-quality writing and printing papers.

JK Paper Ltd

They will supply a fiberline and recovery island for the pulp mill (design capacity: 635 BDTPD) of JK Paper Ltd in Rayagada, Orissa. The scope of supply covers equipment delivery of:

• Woodyard: chipping line and chip storage systems with chip screening
• Complete fiberline including continuous cooking, washing, oxygen delignification, screening, and EFC bleaching as well as instrumentation
• Recovery boiler
• Evaporation plant
• White liquor plant: lime kiln and a recausticizing plant with lime green, lime white and lime dry filters as well as green dregs washing and dewatering with lime free centrifuge.

Start-up is scheduled for autumn 2012. This delivery will be the largest mill-wide scope of equipment from ANDRITZ in India.

ANDRITZ Strength

The growth of ANDRITZ is mainly through research and development. On an average 3% of the sales are invested in research and development every year and over 300 employee works in the Group’s research centers. Research and development activities focus on making ANDRITZ a technologically preferred supplier that enhances the productivity of customer’s plant, minimizes operating costs, and maximizes energy efficiency and environmental protection. ANDRITZ tailored solutions for all its business areas help them to deliver products according to the customer requirement.

Mr. Y. Shivaram Prasad

In the year 1976-77 Mr. Ramaswamy started off with a small foundry. Gradually, he started importing second hand machines from abroad on behalf of his customers. Amaravathi group was his first customer and from there it was no looking back. Presently, they provide solutions from Concept to Commissioning. Specializing in turnkey projects, their strategy is to provide latest technology at affordable cost whether in Asia or Europe. They constantly strive on their strengths in terms of quality, cost and decent technology. To explore more about Servall’s Philosophy, Infrastructure & Investment, Present business, Future prospects etc. we had an interaction with Mr. Y. Shivaram Prasad, MD here are the excerpt of the same.

Philosophy & Strategy

Briefing us about the philosophy and strategy Mr. Y. Shivaram Prasad said “One of the key assets of the company’s philosophy is that the management and discipline has been inculcated within the employees and entire staff down the line. Our value is whatever it may be; we don’t compromise on our quality, even if we have to lose couple of orders. We have certain standards with regards to design and quality; where we don’t want to compromise”.

Our strategy is to provide the best quality equipment of latest technology at an affordable cost to the Indian companies and the same thing applies, even for European markets”. Further he informs that due to difficult market scenario Europeans have also become very picky and choosy about the cost and if they get the same quality equipment from Asia at cheaper rates they will go for the same.

Infrastructure & Facility to Serve the Indian Paper Mills

Today Servall can make 3 paper machines, 200-250 drying cylinders, 100 press rolls in a year. The infrastructure is styled & managed to be an integrated medium & heavy engineering facility including a large foundry – possibly biggest in the region.

• State of art design & engineering facility with latest version of 3D modeling software & sufficient number of licenses.

• Large database with equally strong knowledge base.

• Three and half decades of paper domain experience with participation in over 65 paper mill projects.

• Having four paper mills in the group gaining opportunity for in-house extensive research & development.

Investment in R&D and Newer Technologies

Servall Engineering possesses all the technical knowhow to manufacture paper machine up to 7 meters in width and speed up to 1300-1400 mpm. In fact they had identified R&D, engineering infrastructure & adaptation of international technologies to be the core strengths for the natural healthy development of the organization.

• The company is one of the few medium & heavy engineering industries that can boast of having 6 meter wide 800 tons Hydraulic CNC press brake.

• Many of the existing machine tools have been retrofitted with CNC & servo technologies.

• The design & engineering department has been armed with new designing & 3D modeling engineering software that can meet with present day technological demands.

• The company has always believed in adopting advanced technologies by partnering and sharing for which they recently collaborated with Walmsleys Ltd., UK to manufacture, supply & commission medium & high end paper machines.

• The infrastructure is built in such a way to handle rolls up to 60-70 tons as they are the heaviest part in the paper machine. If tomorrow anybody wants to put up bigger machine in India, they have the infrastructure to handle that and the machine tools to manufacture such big rolls.

Synergies from Servall – Walmsleys tie-up

Servall – Walmsleys tie up has multipronged benefits both to the segment as well as to the company.

• First time in the country to engineer, indigenously manufacture, supply & successfully commission 5 meter wide 800mpmWriting&Printing Paper machine.

• Gaining confidence of paper segment majors like ITC, JK, BILT etc. to get the technologically challenging paper machine rebuild contracts against stiff competition from international giants like Voith & Metso.

New Product Development

The company since its inception has maintained a policy to deliver, new products & technologies to the Indian paper industry. Few results of its efforts in this direction can be listed like first time top former & triplenip press for a 5 meter, 800 mpm fine paper machine, 4.5 meter wide, 2500 mpm winder, 1500mpmwinder for a minimum slit width of 65mmetc

Recent Major Orders

• Pragati Papers – 4.16 meter wide, 600 mpm & 140 TPD newsprint paper machine with Combi Binip press executed in 2002 whose present operating speed has surpassed its design speed.

• Bindal Papers – 5 meter wide, 800 mpm & 300 TPD writing & printing paper machine with first time Servall – Walmsleys top former & triple nip press executed in 2009.

• ITC, PSPD – Bhadrachalam PM7 3.16 meter wide & 350 TPD duplex board machine rebuild, retrofit & refurbishment Servall – Walmsleys project under execution

• Supply of new shoe press, size press, combi blade coater etc. by Servall – Walmsleys to ITC Ltd for their order of rebuild of PM7 being installed in Bhadrachalam.

•Press section modification at Shreyans Industries Ltd. – binip being converted in to binip with shoe press at second nip position by Servall – Walmsleys.

Advice to the Industry

For a sustained future Mr. Y. Shivaram Prasad advised: “One must be efficient, competent and quality is must. For viability you need to increase your scale, demand is there but the only point is you need to be careful about the raw material, which is a major concern. The industry has to collectively take measures like reduction in energy consumed & emissions, adaptation of newer advanced technologies – automation & instrumentation, adherence of international housekeeping practices like cleanliness, maintenance, quality etc. Ultimately the per capita consumption will grow providing huge growth potential for the industry”.

Mr. Ashish Mukhejree, a post graduate in paper technology & marketing and Mr. Naveen Shrivastava a BE in paper technology with an MBA, realized the importance of bringing higher technology to paper industry along with local technical services and started a company Foresight International in 1993. With their experience of visiting paper industry all over the world in their previous job and Mr. Mukherjee’s hard core work experience of paper making at BILT gave them a wide spectrum of experience in various markets which they have used effectively for Indian paper industry. An aggressive providence of technical services locally has done all the magic.

They have a strategy to work right from paper machine to finishing house with focus on consumable products. This gives them the opportunity to work very closely with line managers and take their regular feedbacks on existing equipment. This feedback is translated into providing solutions through their capital equipment business. The main foundation is then provided with the aggressive service assistance to customers.

Foresight services are backed by the world class experienced principals who keep providing them the back up 24X7. They keep their portfolio dynamic so that to keep flexibility for providing technological solutions as per fast changing needs of paper industry at economical levels as far as possible. Their principals main focus is on paper industry and all born to die for paper industry as most of them have a very long experiences varying form 250 years to 25 years. Foresight has served more than 100 mills of India with their focus on 55 industries.

Paper Mart: One common market attribute is affordability (which at times leads to compromise in technology). How do you think about that, and how do you ensure that right technology/ solution is fit-in at right place?

Foresight International: It is good to talk about affordability but the real thing that leads to decision making about technology is its payback. Now despite the payback can be done in figures, it is subjective because everyone’s perception on payback differs. We greatly feel that Indian paper industry has been very receptive to the technological upgradations all over the world. To provide you with an example our paper industry uses same technology of paper machine clothing what is being used all over the world. We feel from the point of view of all suppliers they we must flood our industry with the latest available technology in the world and that will be our contribution to paper industry. The right technological application is ensured by world class team of experts who supports us fully from various position to see that customer requirements are met.

PM: What innovations & practices you undertake to address the issues of Accessibility and Services?

FI: We ensure that we must spend time at all the levels along with the concerned personnel in the industry. This provides us good level of friendly feedback and what they need and when. Then, we translate this into technological offers and ensure that the offer has a high level of service back-up. This provides confidence to line managers to incorporate the solutions and products into their main stream giving industry an overall boost. This acts like a snow ball effect and a very close rolling of our structure along with paper industry requirements. We have a fully trained team of service executives who are capable of providing technical audit service to full paper machine and other parts of finishing house. Our services even include the specific technical audit of wire part, top former drainage, shoe press audits with complete press part material balance, full dryer part and hood balance survey. This can only be provided at this moment by big machinery builders at a fortune price.

PM: According to you what are the areas of improvement for the Indian paper manufactures when it comes to the technical capabilities and its know-how?

FI: We feel industry has an excellent level of technical capabilities. Industry engineers do not fear at all to explore and access new technologies and equipments. This we are comparing with a lot of other countries where most of the engineers stick to the existing routines and do not know what next hand is doing. But many times our paper industry investors resist going for newer technology and just taking decision on price basis. Nevertheless our engineers are smart enough to run it to success despite all odds but, sometimes in process of achieving to work within limitation the focus towards the quality is lost. To give you an example we have introduced the enzyme conversion of Starch Patented kitchen for size press, the response for this was tremendous and we have substantial inquiries and order just in beginning of introduction. We feel the investors should be courageous enough to invest in big or even bigger capacities and better quality of equipments and re-write the book of economics. The investors should go for the discipline investment rather than going for opportunistic & haywire investment decisions in order to provide future to Indian paper industry. Right now the focus of government of India is towards infrastructure building, but the whole of infrastructure is build up on paper, hence the paper industry should also be made priority industry for India. Then only it can grow to required levels. We can take example of China who has registered paper industry as their focus industry along with infrastructure.

PM: You’ve created and put together a terrific product portfolio for Indian paper industry. What aspirations of consumers are you trying to meet and surpass?

FI: We have a simple objective to meet consumer’s aspirations that “whatever has been said should be done”. In other words, the true assessment of customer objective and providing exact solution is what serves the ultimate purpose. We deal with a very wide spectrum of consumers with varied objective requirements. It is indeed a challenging task to keep up with our customer’s objectives but we are trying to do our best.

Product Portfolio

Consumables:

• BTG, Switzerland for Coating and sizing requirements

• Heimbach, Germany for Paper machine clothing

• IKS, Germnay for Knives.

• Johnsonfoils, USA for Ceramic dewatering elements

• William Kenyon, UK for Carrier ropes & roping systems.

Capital Equipments:

• ABK Machinery, France for full paper machine and its parts.

• Andritz Rollteck, Germany for Rewinders

• BVG Germany, for coating and sizing kitchen.

• Milltex Italy, for sheet cutting machines

• RCS Switzerland for Reel handling and reel packing systems.

Asia Pacific Resources International Limited (APRIL) approach to sustainability is guided by  the Triple Bottom Line principle of responsibility to People, Planet and Profit and the company believes in environmental

sustainability for long-term success. APRIL is a leading producer of fibre, pulp and paper, and one of the largest producers of bleached hardwood kraft (BHK) pulp in the world, with manufacturing operations based in Kerinci, Indonesia, and Rizhao, China. Both the mills in Indonesia and China are certified under ISO 9001, ISO 14001 and OHSAS 18001 for quality, environment, and health and safety management respectively.

According to RISI, APRIL is ranked the fourth largest Uncoated Woodfree (UWF) paper producer in Asia, led by its flagship TM brand, PaperOne . For pulp, APRIL is ranked the largest bleached hardwood kraft market pulp producer in Asia and the second largest worldwide according to Hawkins Wright.

APRIL operates out of China as APRIL SSYMB. The integrated pulp and paperboard mill is located in Rizhao, Shandong province. APRIL SSYMB is the first pulp and paper company in China to be certified under ISO 9001, ISO 14001 and OHSAS 18001. In 2009, the mill became one of the first three food packaging board manufacturers in China to receive the National Quality Service Certificate for Food Quality & Safety. Today, the mill in Rizhao is producing quality commercial pulp of over one million tonnes in production volume sold primarily in China. In Indonesia, APRIL’s annual production capacity is 2.3 million tonnes for pulp and 750,000 tonnes for paper. About 400,000 trees are planted daily and 150 million trees planted annually.

Road to Sustainable Operations from Seedling to Pulp & Paper

APRIL’s Indonesia concession areas cover about one million hectares, of which an average of approximately 26 per cent are earmarked as conservation areas and 20 per cent are set aside for community enclaves and essential infrastructure. Being a leader in forest conservation in Sumatra, the conservation forests within APRIL’s concessions represent a 50 per cent addition to the government-managed conservation areas currently existing in Riau Province. Protection of these forests is critical for the future to maintain wildlife habitat, biodiversity, genetic variability, clean water and cultural heritage that these natural forests represent.

APRIL also has a long track record of engaging independent third party experts to ensure transparency in its efforts. Recent collaborations in this area include conducting HCV assessments with Tropenbos, a Netherlands-based NGO, as well as measuring APRIL’s carbon footprint with IVL (The Swedish Environmental Research Institute). Since 2002, APRIL has conducted timber-tracking audits, independent third-party verification of legal rights to harvest and the origin of its wood supply. These audits of both mixed hardwood and acacia ensure that no illegal wood enters APRIL’s supply chain.

Approach towards using renewable sources

• Self-sufficient in energy: In order to manufacture pulp and paper, APRIL produces electricity to power its facilities: ü70 per cent of the power is produced from black liquor which is a by-product from the pulping process ü20 per cent of the power is from renewable resources such as bark from trees harvested in the plantations ü10 per cent is from other sources such as coal üAPRIL is self-sufficient to power its mill and the company town site. It also provides power to the surrounding local communities.

• Plantation: Debarking is part of the harvesting process where the bark is removed from the acacia trees. At least 60 per cent of the acacia trees have the bark removed in the plantation area. Bark, small branches and leaves are good source of natural fertilisers for the soil and are therefore left in the plantation as natural compost. For the trees that arrive at the mill with the “bark on”, this is removed in the drum debarking machine before entering the wood chippers. This bark is used to generate power, contributing 20 per cent of the total power generated in the mill.

A CSR Initiative: Giving back to the community

APRIL is committed to many community development programmes in areas where it operates. These are designed to help the communities meet their needs and fulfil their aspirations; overcome poverty and achieve economic stability through sustainable livelihoods; promote education and provide access to medical services and good health.

Community development programmes include:

• Community tree farms

• Integrated Farming System (IFS)

• Advancement in education

• Scholarship programmes

• Employment opportunities within the company

• Vocational training

• Funding of small and medium entrepreneurships (SMEs)

• Construction or renovation of social and religious infrastructures

• Contribution to community religious affairs and youth development programmes

• Provision of better community health

Employee Volunteering Programme

APRIL started the Employee Volunteering Programme (EVP) where the management and employees of APRIL regularly participate in the implementation of community development programmes. This has resulted in building better relationships and developing mutual appreciation between APRIL employees and members of the communities. By enabling the people to work together, APRIL helps to foster social inclusion and equality, as well as mutual respect.

Working closely with the communities, common concerns are identified and programmes created to provide the people with opportunities to learn new skills. APRIL helps to initiate the desired programmes for the communities by providing the means, resources and training for them to have a good start.

The Journey

Tamil Nadu Newsprint and Papers Limited (TNPL) was promoted by the Government of Tamil Nadu during early eighties to manufacture Newsprint and Printing and Writing Paper using bagasse as primary raw material. TNPL commenced operations in the year 1984 with an initial capacity of 90,000 tonnes per annum (TPA). At that time, the technology of manufacturing newsprint from bagasse was not well established and there were doubts about the feasibility of producing newsprint from bagasse. With the concerted efforts, TNPL perfected the technology and produced newsprint and printing and writing paper consistently at over hundred percent of the capacity and made the project a ’success story’.

Having gained confidence in producing newsprint from bagasse, in the year 1992 TNPL drew up plans for doubling the capacity to 1,80,000 TPA. For which, a new higher capacity machine was selected as an exclusive newsprint machine with specific features to support bagasse pulp to run at a speed of around 900 mpm. The mill was able to install the machine by January 1996 and attain full production within a very short span.

Thereafter, TNPL looked into the avenues for increasing the machine productivity through upgrading the Paper Machines and installed Shoe Press for the first time in the country in both the machines. The consequent increase in operating speed enhanced production from 1,80,000 TPA to 2,30,000 TPA with minimum capital investment.

Then in the year 2003 the Company looked into the possibility of increasing the capacity and finally decided to implement the expansion scheme in two phases. Under the first phase named Mill Development Plan, a new 300 TPD Hard Wood Pulp line with Elemental Chlorine Free (ECF) bleaching and a 550 TPD ECF bleaching plant for Chemical Bagasse Pulp were installed with recovery boiler, Evaporator and Turbo Generator. The MDP was completed in May 2008. This has made the company more environmental friendly and more cost effective. Under the Second phase named Mill Expansion Plan, a new Paper Machine with a production capacity of 1,55,000 TPA and a new power boiler is being installed. Along with backward integration of Chemical Bagasse Pulp line was done to increase the pulping capacity. The project is expected to be completed by October 2010. This will enable the Company to reach the capacity of 4,00,000 TPA from November 2010.

Thus, there has been continuous investments and consistent growth. TNPL will take up implementation of four new projects namely – setting up a 300 TPD De-inking Plant, Revamping of steam and power system, setting up a 600 TPD Mini Cement plant under the lime sludge and fly ash management system and a 160 TPD PCC plant through Omya, Switzerland. All the four projects will be taken up for implementation during the current year and completed by December 2011.

TNPL believes in the saying that there is no finishing line in the race of Excellence.

Challenge the Challenges

TNPL uses bagasse as primary raw material. Bagasse availability in the open market is very negligible. To meet the requirement of large quantity of bagasse, TNPL entered into barter arrangement with sugar mills in neighbouring area for procuring bagasse in exchange of steam. This barter arrangement is in operation right from inception till date as a standing example for ‘Inter-Industry co-operation’. Currently, TNPL requires 1 million tonne of depithed bagasse and TNPL procures bagasse through tie-up arrangements with 7 sugar mills. To supply steam to the sugar mills, TNPL has to put up multi-fuel boilers in the sugar mills involving additional capital investment. Transportation of coal from TNPL factory to the sugar mills and transportation of bagasse from sugar mills involves huge logistics & recurring cost.

Now, the Government is encouraging the sugar mills to go in for co-generation using bagasse as fuel. Higher tariff is allowed for bagasse based co-generation. Consequent to this, the sugar mills are more interested in setting up bagasse based co-generation plants rather than giving bagasse for paper manufacture. This is increasing the bagasse cost as the sugar mills have to be compensated for tariff differential.

Adopting New Technologies

With the continuous ploughing back of profits, TNPL has implemented latest available technologies. Introduction of size press & shoe press in the paper machine in the year 2002 were the “first of its kind” in the industry in India. Many of the most updated versions of the process control systems introduced, is reflected in the high quality of the products manufactured. The ushering-in of ECF bleaching technology, introduction of biomethenation plant to generate methane gas from effluent etc are developments towards environment improvement. TNPL’s biomethenation plant was considered as an “Innovative Project” by CII and it was registered with United Nations Framework Convention for Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) Project, a first project from the Indian Paper Industry. A Precipitated Calcium Carbonate plant is being proposed on a BOO basis. The 15 tpd fully integrated Chlorine di-oxide Plant installed in TNPL in the year 2005 is another “first of its kind in India”.

Quality – R&D

TNPL R&D has been spearheading the development of several products based on market requirements with bagasse as major raw material. Some of them worth mentioning include Pink Newsprint, Copier, Copy Crown, Ultrawhite Maplitho, Elegant Maplitho, Ace Marvel. The products not only achieved domestic acceptance but also satisfied export market demands. Quality Control department ensures that the products which satisfy the strict in-house rules alone are dispatched to the customers otherwise the product is marked as retree or repulped, as the case may be.

Product Portfolio

In the initial years, TNPL was producing mostly newsprint and non-surfaced sized printing and writing paper. Over the years, TNPL has switched over to hundred percent printing and writing paper and introduced many high quality surfaced sized and non-surfaced sized papers to suit the requirements of hi-tech printing machines in a wide spectrum of GSMs for various end applications.

On-line process control system in the manufacturing process helps maintain the critical parameters on-line. Currently, TNPL exports about 25% of its production to over 40 countries across the globe mainly due to its product quality and diversed product portfolio. In the new PM 3, to be operational from November 2010, TNPL will be producing pigment printing paper which can be a paper of printers’ choice meant for multi-colour high end applications.

Sustainable Development

Sustainable development has always been in the fore front of TNPL business activity. The commitment to the environment is reflected in its minimum impact best process technology making TNPL one of the most environmentally compliant paper mill in the World. Usage of 1 million tonne of bagasse saves cutting of trees in about 35,000 acres of land every year.

The introduction of ECF bleaching and various other water conservation measures have resulted in substantial reduction in water consumption and effluent discharge. The effluent discharge which confirms to pollution control standard norms in all respects is one of the lowest in the industry at about 42 m3 per ton of paper produced. The entire effluent discharge is used for on-land irrigation which has transformed the once dry land into a lush green area with cultivation of sugarcane, coconut, groundnut, sunflower, etc., Harnessing green energy through setting up wind farm of a capacity of 35.5 MW, setting up the climate change and CDM cell for monitoring of CDM projects installation of bio-methanation plant and using the methane gas generated in the bio-methanation plant

in replacement of 16,962 KL of furnace oil in lime kiln upto 31.03.2010 are some major gains in the path towards sustainable development. Planting of 50,000 trees on a single day on 31.10.2008 in thesurrounding areas, growing Pulpwood plantation in 51,220 acres in just 5 years, increasing the plantation by 15,000 acres per annum to reach the target of 1 lakh acres by the year 2012-13 are some of the ongoing measures being taken by the Company in achieving a sustainable development.

TNPL has received FSC Chain of Custody (C-o-C) and controlled wood certificate for complying with FSC-STD-40-004 and FSC STD-40-005 standards. TNPL as a first mill in paper industry has introduced ozone treatment in the final treated effluent water as tertiary treatment to bring down the colour.

Corporate Social Responsibility

TNPL’s CSR activities pertaining to social and inclusive development covers different sectors viz., infrastructure works and basic amenities for the neighbourhood, construction of drainages and retaining walls, improvement schemes for providing drinking water supply, education, career development and training, medical camps and cattle care camps, sports and games for rural youth, agriculture and environment, promotion of art and culture, assistance for differently abled and other community welfare activities.

Since inception, TNPL has been implementing community development measures in the negihbourhood regularly. TNPL has ingrained the philosophy of CSR deeply into its value system. The emphasis has increased in the last three years. During the year 2009-10, the Company spent 2.52 Crore on CSR activities. The CSR budget for the year 2010-11 has been increased to Rs.3.78 Crore equivalent to 3% of the profit earned during 2009-10. TNPL got the CSR Award for the year 2007-08 for the exemplary services rendered in rural development.

Customer Oriented Strategy

In a competitive environment, the manufacturers cannot fix the price on the basis of cost plus margin. The customers have the option to source their requirements from different sources. The customers also expect high quality products from the manufacturers to meet their hi-tech printing machine requirements and their customers’ expectations. Therefore, it is necessary for manufacturers to find means for producing thegoods at low cost through investments in technology, productivity improvement, process improvements, sustained growth, efficient cost management innovation, and optimum utilization of resources. TNPL examines all the above aspects on a regular basis through constant internal discussions and reviews and availing the services of experts whenever necessary to keep the cost at the optimum level. The lessons learnt in the past and best practices adopted in the industry are taken for guidance in every endeavour. TNPL has been successful in keeping its cost at optimum level over the years and remain as one of the lowest cost producers in the country.

Metso: The Indian Perspective

Mr. Jorma Eloranta, President & CEO, METSO

“India is one of the fastest growing economies in the world and, hence, very much on focus for the global business society. For Metso, India a strategic market place, not only the pulp & paper industry, but also our other customer segments: mining & construction, energy industry, metals and solid waste recycling stated by Mr. Jorma Eloranta”. Metso has operations in India since 1993. Today, they have six sales and engineering offices, 19 service locations and five warehouses, one foundry and two factories.

Mr. Jorma Eloranta (President & CEO Metso Corporations), Mr. Ilkka Hiirsalmi (Senior VP, Marketing & Communications Paper & Fiber Technology), Ms. Ulla-Kaisa Aho (Manager, Press Relations), Mr. Jingwei Liu (VP, Marketing and Communications, Asia-Pacific ), Mr. N.K. Jain (Director Sales & CRM). They enlightened us about the philosophy & expertise of Metso Paper, their commitment & strategy towards India and their outlook on the challenges, competition and the change in Indian paper industry.

Philosophy & Expertise

“Our philosophy starts from the commitment to our customers. This means winning the customer’s trust and holding onto it by exceeding all expectations. This will lead to a deeper business relationship and, eventually, a bigger share of the business. With greater flexibility and customized solutions for the local market, we are confident that we can bring results and be partners in success of our Indian customers.”

India: What a growth opportunity?

The Indian market place can be seen twofold. The optimist would point at two key parameters: the total paper production capacity is about 8.5 million tons and the annual per-capita consumption is only about eight kilograms. The more pessimistic view could be based on the fact that there are some 670 paper and board machines in India, most of which are neither state-of-the-art nor environmentally sustainable by international standards. To continue on the positive side, the annual consumption of paper and board in India is set to double its value by the year 2020 at the latest, stated Mr. Jorma Eloranta

The general trend in the paper industry is that the environmental issues are getting more and more important. At Metso Paper, we are committed to bring our globally acclaimed energy efficient and environment friendly technology that extends from wood handling to paper finishing including recycled fiber for stock preparation to the Indian market, he smiled.

Challenges: Raw material & Environment Sustainability

“The expected growth is creating big opportunities along with some challenges for those pulp and paper makers who set out to increase domestic production in a sustainable and environmentally sound way. The main bottleneck in increasing production is the lack of fiber resources. Besides wood-based pulping, annual fibers still remain an important raw material source locally”, he highlighted.

“The share of recycled fiber in paper making in India is over 40%, and it will most likely to remain as the most important fiber resource for paper making. Waste paper recovery rate is, however, not yet on the level of global average. So, to decrease the dependability on the imported recycled fiber, it would be beneficial to organize the waste collection in India.”

When talking about bagasse , “it has its challenges as raw material, too. As sugar mills are scattered across the country, the collection, transportation and storage of residues proves costly. Hence, most of bagasse is used as fuel for the sugar mills themselves”.

What comes to wheat straw, “it also implies to high cost of collection, storage and transportation. This is due to the long distances between the wheat growing areas and suitable mill locations. Hence, large amount of surplus straw is left behind and burnt on the fields.”

Another big challenge he highlighted was that people are opting for second hand machine which could be better with the point of capital investment but it is compromising over the environmental issues.

One cannot avoid discussing the in conjunction with annual fiber. Small and old- fashioned pulp production units which are currently in operation are clearly posing a challenge in face of new environmental attitudes. Furthermore, the aim to increase the use of agro-based raw materials in paper and board production requires special technologies to meet the demands of modern society and legislation. But, this does not mean that the installation of totally new production lines is the only answer. Significant process improvements can also be made by upgrading and boosting the existing installations with new innovative solutions. The targets should be typically set to save energy, improve quality and lower the level of emissions.

Competitive Strategy for India

The environmental issues in the context of paper industry are getting more and more important. This, in turn, will result in closures of smaller and environmentally unsafe production lines. And, in the long term it will result in the, permanent closures of old production lines which will be prerequisite for improving environmental sustainability as well as improving competitiveness.

The shortest and safest route to competitiveness and profitability is having better cost-efficiency compared to t h a t of the competition. This sometimes requires investments in removing productivity bottle-necks.

In regard to paper making, cost-efficiency has traditionally been associated with large-capacity machines. In India however, the focus lies on medium size production lines, giving a special flavor in the development of paper making machines.

For a couple of years now Metso have proved that modularity works in tissue machines. It is their strong belief that the modular concept and design also works for paper and board machines, regardless of size. The issue here is that in India the machines need to be sized for the Indian market place, in order to reach cost-efficiency in every respect.

In pulp production, the global trend is to strive for the economies of scale, i.e. by building as large production units as possible, and using mostly plantation wood as raw material.

However, in spite of the trend of building large pulp facilities, Metso have also focused on the development of environmentally sound pulping processes that are especially suited for locally available raw materials, such as varying quality of wood and annual fibers.

This work has been appreciated especially here in India, where Metso has been awarded with orders to supply main processes for several recent modern installations, such as TNPL, ITC Bhadrachalam , Abhishek Industries, Century Pulp and Paper and the recently started installation at West Coast Paper.

Change: A Need for Improvisation

Looking from the global perspective, the Indian pulp and paper industry is in many respects, is less technically efficient. Thus one needs to develop the base to create a realistic road for the industry for its survival and success and find the solutions that are applicable to the Indian surroundings.

Strategy & Commitment towards India

This year, Metso Pulp and Paper Customer days 2010, the biggest customer event for the pulp & paper industry is being organized in India during the second half of the year. The event will encompass presentation of Metso’s latest technology and case studies on the success stories. Historically the event has been instrumental for Metso in getting their customer’s feedback and providing them solutions that best satisfy their needs. Metso board of directors, during a recent fact finding mission in India, confirmed Metso’s strategy and commitment to India:

Metso is ready and able to meet the challenges of the Indian pulp and paper industry, in supporting it in the spirit of Growth of the Indian paper industry.

In pulp production, Metso has a wide experience and has supplied over 300 complete fiberlines globally. Due to shortage of wood and fiber in India, annual fiber is going to play a big role in Paper making. And, using its best available technology, Metso is dedicated to bring its superior non-wood technology to India and to produce high quality pulp from annual fiber in a competitive manner.

Metso has extensive experience and references in recycle fiber processes including deinking solutions which offers innovative and cost-effective processes with efficiency.

Metso has supplied some of the largest and the fastest paper machines globally. But for India they are focusing on medium size production lines suited for the local market. “To succeed in the Indian markets, we need to think out of the box. We have been very successful in the fiber side and we have to repeat that success in the paper and board machines.” , he said with a proud smile.

In addition to this, Metso also aims to establish itself as the most efficient service provider to the Indian Paper Industry.

“I think we together with our customers need to develop solutions which are really proliferating to the Indian environment and society”, he concluded.

“Metso certainly has ‘Best in Class’ technology for end-to-end applications in paper industry. It combines robustness of design with user-friendly operation which allows high productivity. Metso has proactive approach to training of Paper Mill personnel, both onsite and offsite, with their initiatives like Board Machine Days etc. There is senior management commitment to results achievement. We have enjoyed mutually beneficial relationship with Metso whose technology has been one of the factors in our emerging as a formidable force in paperboards industry. Metso needs to indigenise more proportion of their supplies taking advantage of machinery manufacturing capacity and expertise available in India.”

Mr. Pradeep Dhobale, Chief Executive, ITC – PSPD

“As part of Mill Development Plan (MDP) implemented during 2006-08, TNPL installed and commissioned a Hardwood fiberline and one Elemental Chlorine Free (ECF) Bagasse Pulp Bleach plant supplied by Metso. Both these lines are energy efficient, environmentally sustainable. The benefits to TNPL include substantial reduction in AOX generation, specific water consumption, effluent generation, steam, power and chemical consumption besides odour-free environment. Presently, Metso is involved in backward integration of the ECF bagasse pulp bleach plant. The services rendered by METSO in implementation of the above projects have been very good.”

Mr. AVelliangiri, Deputy Managing Director, TNPL

“Metso is a global leader in the engineering and technological excellence for the Pulp and Paper industry. With their support we have successfully commissioned the world’s largest wheat straw project and are manufacturing superior quality products that are now creating a niche in the market. Their commitment and drive towards our partnership encouraged us immensely at all times. It has truly partnered in our success.”

Mr. Rajinder Gupta, CEO, Trident Group

ITC has built its reputation on a commitment of providing quality products and value-added services while rapidly responding to domestic and international needs for high performance products – helping customers to increase productivity and profitability. A primary strategy is enhanced customer intimacy. ITC constantly analyzes the needs of key customer segments around the world to develop a wide range of products for business, industry, and educational uses.

ITC has always placed the nation at the heart of its priorities. It has been proactive in managing environmental issues. Today, ITC continues to lead the market with sustainable product offerings and is the leader in eco-responsible products spanning both virgin and recycled grades of paper and paperboards.

Corporate Overview

ITC Limited, a 5 billion dollar diversified conglomerate operates in 4 main business areas mainly FMCG, Printing and Packaging, Agri-business and Hotels. In addition, ITC has two subsidiaries ITC InfoTech India Ltd, a 100 million USD company concentrating on high-end IT solutions, and Wimco Ltd. – a manufacturer and marketer of safety matches.

The Paperboards, Paper and Packaging businesses, comprising the Paperboards and Specialty Papers Division and the Printing and Packaging Division, account for a gross turnover of more than Rs. 2800 crores in the year 2008-09.

Under the FMCG umbrella, Cigarette business is the largest, with brands like Insignia, India Kings, Classic and Gold Flake. Branded Foods is the second largest, with brands like Aashirvaad, Sunfeast and Bingo, followed by Lifestyle Retailing with the Wills Lifestyle, John Players and Miss Players brands. The Personal Care portfolio boasts of brands like Fiama Di Wills, Vivel, etc. ITC also operates in other FMCG business like Agarbattis with Mangaldeep, and Educational and Stationery Products with Classmate and Paperkraft.

Strategic Intent:

Ist Approach- Customer oriented Focus

PSPD’s insights, drawn from close customer interactions, help it to develop innovative products. The traditional approach of papermakers is that they produce paper and supply papers to different industry segments. But PSPD’s approach is different. Through frequent interactions with the trade and the market, PSPD understands the different segments or applications and identifies the needs of this segment. These needs are then addressed through customized products. Take the Playing Card segment for example. By analyzing the preferences and special requirements of this industry from printing, die-cutting and finishing up to usage of the product by the card players, PSPD developed a specific product to meet these needs. They also carry out a value analysis and assess the critical components of value to the end user, to the brand owner, to the printer/converter and uncover the gaps in the existing market offerings. The entire focus is on meeting the customer value chain requirements and the product with added services is designed around this concept. Likewise, there are a few customers with whom PSPD has developed the product together (co- created) to meet customer specific requirements - like Tetra Pak for liquid packaging boards.

IInd Approach: Sustainability Plank

ITC PSPD is also the leader on the sustainability and eco-friendly planks. They have positioned themselves on a very high deck, and are setting a benchmark for the Indian Paper Industry. ITC PSPD implemented ECF technology 7-8 years ahead of legislation, and has now progressed to an even more advanced Light ECF(with ozone bleaching) technology.

Climate change is an important consideration for ITC and the environmental footprint of its businesses is a key focus area. ITC PSPD ensures that its operations consume lower energy per ton of paper/boards and increasingly uses more biofuels. ITC PSPD is also the leader in clonal technology and plantations in India having pioneered the same as early as 1990. ITC PSPD is growing trees beyond their wood requirement – having already covered over 100,000 hectares. These plantation activities help ITC as a whole become a carbon positive organization – sequestering more CO2 than they emit.

Future expansions

Even during the economic slowdown, paper consumption in India hasn’t come down. It has grown though at a comparatively lower rate. Today, the growth rate is around 5-6%p.a. While when the economy was booming, the paper industry grew at 10% p.a.

At present, the production is 10 million ton (approx). Considering the average growth rate of 8% p.a., the Indian market would require additional production of 800,000 ton every year. So certainly ITC is looking at enhancing capacities informed Mr. Dhobale.

As of now they have projects of around Rs 4000 crores in the pipeline scheduled for next 2-5 years. The only limitation to their growth plans is the availability of the land, as their flagship location Bhadrachalam is almost saturated for an integrated project. The expected allocation of this investment would be in the high growth segments i.e. Packaging Paperboard, Paper grades like Copier Paper and Digital Printing with a planned capacity of 3 lac tons and would be an integrated facility with a new Pulp Mill but the Paper/Board Machine could be a second hand one meeting their requirements as they have the expertise to upgrade second-hand machines to their requirement.

Wealth Out of Waste

This latest PSPD initiative has just begun by collecting waste paper from household, offices etc. At present the collection is around 3000 TPM of waste paper and this could become a separate line of business in the future. Traditionally, rag pickers collect, segregate and supply waste paper to the trade etc. PSPD is working to make them more efficient. They provide them tricycles to which they can attach different bags and bins. They have also made central collection points to minimize the travel time. This activity creates an economic surplus which benefits the mill because this will ensure indigenous availability of raw material which will reduce imports. With this ITC is creating employment and reducing the problems like solid waste disposal.

Triple bottom-line approach

All the businesses of ITC are internally evaluated on the triple bottom line approach. “We not only have to produce surplus for our stakeholders which means our financial profits but we also need to have positive environment and social footprint” states Mr Pradeep Dhobale the Chief Executive.

ITC not only creates economic surplus and addresses climate change through activities like plantations and energy efficient operations, but also through the WOW initiative creates jobs at the bottom of the pyramid – a social benefit.

Mantra of success

ITC is a transparent and employee-centric organization. There is an environment of friendliness rather than superior-subordinate relationship. At a corporate level, constant support is provided by the Board of Directors and the Management Committees as it is a very capital intensive business. ITC PSPD constantly benchmarks its performance against Indian as well as overseas companies on different parameters. They were among the top 10 paper companies in India five years ago but today taking the Paper, Paperboard and Packaging together ITC is probably the number one in India.

Art of motivation

At ITC, people are provided with space to perform, set objectives and allot required resources. There is complete freedom of execution and strategy formulation, as the people are directed towards result oriented performance. Training of resources is the highest priority. Middle and senior managers at ITC get stock options i.e. shares depending on some proportion, which is all performance linked. ITC provides a healthy workplace environment which fosters creativity and initiative with performance and accountability.

ITC has a lot of in-house management programs. Identified managers are routinely exposed to customized training programs devised by IIMs and ISB. Internal training programs conducted by the Corporate and Divisional HR like the MDP (management development programs) ensure that employees and managers are upto date on skill levels with their global contemporaries.

Challenges for the Indian paper industry

Talent management is very important for the industry. As Mills upgrade their production facilities by commissioning additional machines they will need a skilled workforce to make quality products and attain efficiencies. While the industry is working a lot in areas of technological advancements and commercial issues, not enough has been done for talent management.

With the non-availability of fresh talent, senior managers are stretching their work span, considerably, and average age at this level is going up.

With growth rate expected to be around 8%-10% for the coming decade, raw material availability will also be of great concern and will need bold initiatives between Government and Industry to harness wastelands and induct biotechnology to meet fibre requirements.

Sustainable development needs will have to be met and the industry will have to invest in energy-efficient operations and develop the right footprint in terms of carbon emissions, AOX and BOD/COD signatures, water usage and meet increasingly stringent legislative requirements relating to food safety and hygiene norms.

ITC’s:

Pioneers in the ECF technology and Ozone bleaching treatment.

Installed NCG (non condensable gas burning), to get rid of the foul smell from pulping operations MBBR technology for the water treatment.

High level automation for defect free products.

Competent and trained manpower resources with global exposure.

High degree of sensitivity to customer requirements and customer satisfaction.

Mr. Basantt Khaitan, CMD, Wires and Fabrcis

Technical fabric is a vital aspect of the papermaking mechanism, as it is the birthplace of paper. The erstwhile leader of technical fabric, Wires and Fabriks has served every paper mill in India, and as an allied company, has given great value to the paper industry.

Wires and Fabriks recently undertook an expansion of over 40 crores. Paper Mart interviewed Mr. Basant Khaitan, CMD, Wires and Fabriks (S.A. Ltd.) at their Jaipur facility. We present the perspective of a supplier to the paper industry, and a man who foresees rapid growth.

What key innovations have Wires and Fabriks pioneered, and what kind of infrastructure do you have for R&D? And further, what innovations can we expect in the future?

We have always introduced India to new products. We have introduced three generations of synthetic fabrics to the industry. Though we had been doing triple weft, since last year we have been supplying the true triple layer fabric, a new generation fabric. We are the only ones to do so. Since paper is born on our fabric, it influences the paper quality to a large extent. This is why we focus so much on innovation. In our quality policy, we have stated our commitment to an environment of teamwork, which fosters innovation, leadership and constant improvement, thus creating a strong technological base. We usually invest 3% of our turnover in R&D.

What were your initial products and how your product palette been increased?

Initially we started with metal wire, i.e. bronze wire mesh used for the formation of paper. But since the 1970s, this has been converted to synthetic, and we marketed this product in India after introducing it in 1989. Our product palette has increased considerably over the years. Besides forming fabrics, we have added stainless steel mesh, pulp fabrics, dryer screens and sludge presses.

Can you tell us about your market share and market penetration (including exports)?

We have supplied to every mill in India. Regarding exports, we have to target certain export markets, because of our limited capacity. At the moment we are targeting the Middle East and the Far East. In the Indian market, we have neared about 55 % market share in forming fabrics and a substantial share in dryers.

Being an integral part of the Indian paper industry as a supplier, comment on its growth?

The paper industry has no way to go, except up. And not just inching up, it will be a leap in terms of technology, capacity and quality.  If 3 small countries, Finland, Sweden and Indonesia, can control over 35 % of the world’s pulp production, if Japan can be the world’s 3^rd largest paper producer, and source 90% of its pulp requirement from outside, and, if China in 20 years can increase production from 5 million tons to 65 million tons, then by 2020, I can also see India amongst the top 5 paper producing countries, with a per capita consumption close to Asia’s average of 35 kg per person, with integrated paper mills of over 1 million TPA.

Considering the scarcity of pulp that India faces, if the world is a global market for sellers, then why not for buyers? Why does something have to be produced in India in order to be used in India? We can buy pulp or create pulp mills overseas, like BILT has strategically done. That is how all Indian industries who want to grow, will act. By becoming consolidated, they will bring in scales of economy and feed the market with products required in terms of quality, cost and other logistics.

What are your views on future practices in the paper industry?

After the next 5-10 years, nobody will think about small or secondhand machines. This concept will be outdated, as modern technology is the only way to cut costs. There is tremendous cost and compromise in trying to revamp and then run a secondhand machine. Presently, it is a good way. The economic environment and infrastructure has to be suitable for larger capacities and new machines.

Considering the recession, what do you think are the challenges ahead for the paper industry?

I think this ‘recession’, is rather a cycle which was bound to happen. We tend to add capacity when things are great. Due to speculations of further market highs before this lull period, the dip in the economy comparatively seemed like a major crisis. Recently, new capacities are being added, which will create pressure on prices for the industry.

Do you think the Indian paper industry has important aspects which need immediate attention?

It is of immediate concern for the Indian paper industry to have qualified people. Without them, there can be no innovators or ideas. However, I am sure the industry is creating an environment conducive to recruiting dynamic professionals. Moreover, I feel that the big players are keen on catalyzing the industry’s growth. With regard to new technology, paper mill owners are very much aware of it, and soon they have to adopt it, without which they will not be able to survive.

How does Wires and Fabriks add value to their customer’s experience?

Our success depends on what can we do different for the customer. Cutting price, faster delivery, quality are now expected norms of business. We provide a lot of technical services, help customers use our products better, find out how to optimize their processes, and encourage them to share their information. Our vast library of technical data and documentation has received huge appreciation from our customer base. Our monthly newsletter Snippets is an additional effort to make our customers’ experience a cherished one.

Can you tell us about Wires and Fabriks’ CSR?

We fully sponsor DISHA, a resource centre for mentally challenged children. Our employees are encouraged to give personal time to the institution. We have created awareness in our state government about their plight.

Can you comment on your expansion, especially about the acquisition of your new loom?

We have invested dramatically to expand our capacity. Recently, we purchased a new Jäger loom from Germany. This loom will enable us to develop new designs and products. It runs at 115 picks a minute, which is 30% higher than the fastest machine until now. This is the only loom of its kind in the world. We have made a total investment of about 40 crores.

What is your mission and vision?

Our mission is to make this company global, not necessarily in terms of size, but definitely in international standards of quality. We are passionate about this, and our vision is to create it.

The Indian Potential

“We resolutely believe that the Indian market will continue to grow even if other industrialized economies are in deficit. The strategic location of the country will also help in accessing the neighbouring countries in future. Moreover, there is huge potential of growth in the packaging & tissue paper consumption in India along with the development of other grades of paper”, informs Mr. Baldaccini.

Product range, Services & key focus areas

The main activities of Tecno Paper are engineering, development and construction of new paper machine sections. They will be focussing more on tissue and packaging paper machinery. As these are two fields in which the company has got long experience along with qualified and expert staff.

The company plans to offer tailored solutions for paper machine sections like fourdrinier and crescent former, conditioning felt, press section, drying section and pope reel in the finishing part. They also have an imperative experience in producing re-winders, un-winders, tissue coupling and shaft and reel handling equipments just in special circumstances.

Value Addition to Indian Paper Mills

“We would like to co-operate with Indian paper makers not just for selling our technology, rather would like to help them in increasing the quality and quantity of their production, understanding their problems during the process of production and identify the causes of these problems in order to propose them suitable solutions”, affirms Mr. Baldaccini

Marketing Strategy

“We intend to make the Indian paper industry aware about the expertise and experience of Tecno Paper in engineering, development and assistance in new projects and rebuilds of paper machine. This propagation will help us in promoting the company in India and thereby generating new orders”, believed Mr. Agarwal.