With an annual capacity of 250,000 tons of paper and 150,000 tons of coated packaging board, Khanna Paper has emerged as one of the leading companies in sustainable paper and packaging production. Operating as a waste paper-based plant equipped with advanced de-inking technology, the company processes approximately 350,000 tons of waste paper or secondary fiber each year. Guided by the motto “Proud to be Green,” Khanna Paper underscores its dedication to environmental sustainability, business viability and continuity, with every by-product being repurposed to create something valuable for the society. In an exclusive interview with Paper Mart, Mr. SVR Krishnan, COO, Khanna Paper Mills discusses increasing demand for their packaging solutions in the FMCG sector, with the company’s portfolio expanding by 12-15% in this segment over the past 4-5 years.
Paper Mart: Please tell us about your manufacturing setup. What technologies have you integrated into the system to enhance product quality & operational efficiency?
SVR Krishnan: We, at Khanna Paper, have two coated packaging board machines with the capacity of 150,000 tons per annum and two high speed paper machines manufacturing all the grades of writing & printing papers, copier paper and newsprint, with the capacity of 250,000 tons per annum.
These machines are supported by two dedicated deinked pulp lines with the capacity of 290,000 tons per annum, supplied by Lamort and Andritz, with all the automation systems built in. In addition to this, we also have the pulping facility for about 125,000 tons per annum and the secondary fiber treatment plant with the capacity of 100,000 tons per annum to supply to the board machines. All these lines are fully automated and integrated to the mainstream operations. The plant is supported by the fully equipped and automated effluent treatment plant.
PM: How much has the range diversified over the years?
SK: We manufacture all the grades of writing, printing, high bulk and copier grades in the paper range and also offer various grades of grey back & white back coated boards for the packaging segment. Additionally, we manufacture good quality Folding Box Boards (FBB) under the brands of ‘Dzire’ and ‘Shine FBB’.
Over the years, we have developed ‘Diamond’ brand grey back boards for very discerning customers, who require exceptionally high bulk, stiffness and superior performance in the packing & filling lines. We developed the Shine FBB for a very special application, which requires snow white appeal with the silky finish on the coated surface. This has been developed for a very high-end packing, especially for personal care, toiletries and hygiene products packaging.
Watch: In Pursuit of Lesser Water Footprint
PM: What features make your products different from your competition?
SK: The unique selling points of our products include high brightness and whiteness, lightfastness, and color stability, along with a uniform and consistent visual appeal. Our coated packaging boards offer outstanding smoothness and gloss, paired with a high level of functional performance. Designed with good bulk and stiffness, we ensure excellent lay-flat properties that are essential for efficient downstream conversion processes, ultimately enhancing our customers’ productivity.
We recycle almost 80% of the process water in the plant operations. We use 100% of our solid waste or sludge internally by installing a sludge dryer plant of 200 TPD.
PM: In what sectors do your products find significant use and where do you see stronger demand? What new sectors are you eyeing?
SK: We find significant uses of our products in the FMCG sector, for the mono cartons or secondary packaging. Though the packaging demand has come down a bit in the recent past, with the E-commerce and Q-commerce booming, we expect the growth rate will steadily increase in the coming year.
As the Indian economy is still at a better pace compared to many countries, we are optimistic that the paper and paperboards would play a very pivotal role in the educational, cultural and packaging segments.
The stronger demand is emerging in the food packaging segments. With the growing urbanization and less free time available for the working-class youth, RTC and RTE food packaging are in great demand. Also with the stringent regulations, in many of the states and countries, on the single use plastics and/or plastic laminates, there is a good potential for the barrier coated or treated paper and board substrates in food courts and fast food joints.
We are keeping a close tab on the developments in various segments and will come out with the most suitable alternative for the sustainable packaging substrate, based on the treated recycled fibers.
PM: Who are your major clients in the packaging industry? How has the portfolio grown over the years?
SK: There are various renowned printing and converting houses like Khemka, TCPL, Parksons and ITC etc that do the conversion jobs for the end clients like Nestle, Britannia, Hindustan Unilever, ITC and more, packing their end products. This FMCG portfolio has grown by 12-15% in the last 4-5 years and we feel happy and proud about it.
Also Read: Genus Paper & Boards: Eyeing 35,000 TPM Production with Sustainable Packaging Solutions
PM: How is sustainability intertwined with your operations? What initiatives are undertaken for better waste and water management?
SK: Our tag line itself is “Proud to be Green”. Our every capex initiative and the new plan taken up, keeping in mind the environmental sustainability, business viability and continuity. At Khanna Paper nothing is called as waste, everything is a by-product for making some other useful products for the society. When we attach a value to the waste stream, the perception changes and you start working on how to reuse the same and recover whatever is possible to make something useful. This is how the so-called waste becomes a by-product.
We recycle almost 80% of the process water in the plant operations. We use 100% of our solid waste or sludge internally by installing a sludge dryer plant of 200 TPD. DIP plant plastics are now being considered for the shredder and to dry and then fire in the boiler for generating steam. Waste water of writing & printing stream is reused in the board machines and the waste water from board machines are further used in the newsprint machine, resulting in the very low fresh water intake.
PM: Given the scarcity of raw material in the Indian market, how do you intend to save yourself from raw material volatility?
SK: Ours being a waste paper-based plant with the good capacity of de-inking lines, giving superior grades of de-inked pulp. We slush and use almost 350,000 tons of waste paper or secondary fiber per annum.
No doubt, it is a big challenge for getting the consistent supply of good quality raw material, for all the machines and for all the grades. And we at Khanna Papers, have a solid robust weekly S & OP (Sales & Operational plan) meeting which helps us in better planning of the raw materials and related logistics.
PM: What are your production and sales revenue expectations for this year?
SK: Our production is 250,000 tons of paper and 150,000 tons of coated packaging board per annum. At Khanna Papers, we only make orders, and nothing for stocks till now. This year, due to the sluggish market demand, total mismatch and unbalanced scenarios, and drastic turn of geo-political situations, we expect much lower revenues compared to the previous year and it may fall by 10-12 % on a total basis.
The stronger demand is emerging in the food packaging segments. With the growing urbanization and less free time available for the working-class youth, RTC and RTE food packaging are in great demand.
PM: According to your observations, what is the current market scenario and how much the market will evolve in the next 5 years?
SK: As mentioned, the current market trend and the scenario are very fluid and unpredictable. By looking at the stability and economy of our country, growing literacy levels, growing youth population , E-commerce and Q-Commerce, and fast catching urbanization, I expect that the situation is approaching for some recovery, from the current rock bottom level, with respect to demand and realization as well. In the given situation, our Indian pulp and paper mills are putting their best efforts and trying to stay afloat. Let us pass through this cautiously and I am sure that there is a light at the end of the tunnel.
