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A REPORT ON INSTITUTIONAL TRAINING AT

“TAMILNADU NEWSPRINT AND PAPERS LIMITED”
Submitted to
Hindusthan College of Arts and Science, Coimbatore in partial fulfilment of the requirements for
the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
By
BALACHANDAR A

(Reg. No: 19MBA033)

MARCH – 2021

PG AND RESEARCH DEPARTMENT OF MANAGEMENT STUDIES

HINDUSTHAN COLLEGE OF ARTS AND SCIENCE

An Autonomous College – Approved by AICTE and Affiliated to Bharathiar University

Accredited by NAAC – An ISO Certified Institution

Hindusthan Gardens, Behind Nava India

Coimbatore – 641028

2019 -2021

CERTIFICATE

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This is to certify that this report on institutional training at TAMILNADU NEWSPRINT AND
PAPERS LIMITED submitted by BALACHANDAR A Reg no: 19MBA033 is Bonafide
record of the work done by the candidate during December 2019 under my supervision and
guidance in partial fulfilment of the requirement for the award of the degree of MASTER OF
BUSINESS ADMINISTRATION, in PG and Research Department of Management Studies,
Hindusthan College of Arts and Science, Coimbatore.

DIRECTOR FACULTY GUIDE

VIVA-VOICE HELD ON: __________________

INTERNAL EXAMINER EXTERNAL

EXAMINER

DECLARATION

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I, BALACHANDAR A (19MBA033) hereby declare that the report on institutional training at "

TAMILNADU NEWSPRINT AND PAPER" submitted in partial fulfilment of the

requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is

record of original and independent work done by me during December 2019 under the

supervision and guidance of professor, PG and Research Department of Management Studies,

Hindusthan College of Arts and Science, Coimbatore

Date: Signature of the Candidate

ACKNOWLEDGEMENT

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First of all, we would like to express our gratitude to our principal Dr. A. PONNUSAMY,
MBA, M. Phil., PhD, Hindusthan college of arts and science for providing the facilities for
carry out this institutional training.

I wish to thank the Director of PG and Research Department of Management Studies Dr.
D.SUDHAKAR for his valuable suggestions.

We also take immense in conveying our thanks to Associate Professor, PG and Research
Department of Management Studies, guided for the successful completion of this institutional
training.

I also express my gratitude to all the faculty members of our Department for their timely support
and encouragement.

I thank my beloved parents, brothers, sisters and my friends who have helped me to complete
this institutional training successfully.

TABLE OF CONTENTS

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Chapter no
TITLE PAGE NO

I.
INTRODUCTION ABOUT COMPANY 6

a. I.1 INDUSTRY PROFILE

6

b.
1.2 COMPANY PROFILE 7

II.
DEPARTMENT IN ORGANISATION 9

a.
2.1 PRODUCTION 9

b.
2.2 MARKETING 13

c.
2.3 HUMAN RESOURCES MANAGEMENT 18

d. 2.4 FINANCE
27

e. 2.5 QUALITY CONTROL MANAGEMENT 31

CONCLUSION 35

CHAPTER-1

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1.1 INDUSTRY PROFILE

The Tamil Nadu Newsprint and Papers Limited (TNPL)[2] was established by the
Government of Tamil Nadu[3] to produce newsprint and writing paper using bagasse, a
sugarcane residue.

The Government of Tamil Nadu listed the paper mill in April 1979 as one of the most
environmentally compliant paper mills in the world under the provisions of the Companies
Act of 1956.

The factory is situated at Kagithapuram 11.0488°N 77.9977°E in the Karur District of

Tamil Nadu.

The registered office of the company is located in Guindy, Chennai.

Paper is a material made in thin sheet as an aqueous deposit from linen rags, wood pulp
or other form of cellulose which is used for writing, printing and wrapping etc..,

Paper plays a vital role in communication purpose. Paper was invented by TSAI-LUN in
LEI-YANG province of china. The first paper machine was invented by a French man,
NICOLOUS-LOUIS ROBERT in 1799. In India the first paper machine was set up at Scrampore
in West Bengal.

Ts'ai Lun seems to have made his paper by mixing finely chopped mulberry bark and
hemp rags with water, mashing it flat, and then pressing out the water and letting it dry in the
sun. He may have based his idea on bark cloth, which was very common in China and also made
from mulberry bark. Ts'ai Lun's paper was a big success, and began to be used all over China. By

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the 400's AD, people in India were also making paper. People all over the Islamic world soon
began using paper, from India to Spain. By 1250 AD, the Italians had learned to make good
paper and sold it all over Europe. In 1338, French monks began to make their own paper. Once
they had learned to make paper, they became more interested in also learning about Chinese
printing, and a man called Gutenberg produced the first printed Bible in 1453. By this time,
people in the country of the Aztecs (modern Mexico) had also, independently, invented paper.
Their paper was made out of agarve plant fibers, and people used it to make books.

1.2 COMPANY PROFILE

Tamil Nadu Newsprint and Papers Limited (TNPL), an enterprise promoted by

Government of Tamil Nadu, has precisely followed this adage. The Unit- I of TNPL at
Kagithapuram, Karur district was commissioned in October 1985 with an installed capacity of
90,000 TPA of Newsprint/Fine Paper, in a single machine. Over a period of time, TNPL has
added two more paper machines, besides upgrading the existing Paper machine. The increased
production capacity of 400,000 TPA of writing and printing papers has made TNPL as one of the
largest bagasse- a residue of sugar cane, as primary raw material, in the world. With an increased
demand, the company has expanded the pulping capacity by way of installing new chemical
hardwood line, upgrading the chemical bagasse pulp line and setting up a new deinked pulp line
besides adopting ECF bleaching in all the chemical pulp lines. Simultaneously, the company has
also increased the power plant capacity to meet the steam and energy requirement of the
expanded mill. To be the market leader in the manufacture of world class eco-friendly papers by
adopting innovative technologies for sustainable development.

TNPL was formed by the Government of Tamil Nadu in April 1979. The primary
objective of the company is to produce Newsprint, Printing and Writing paper using bagasse a
sugarcane residue as the primary raw material. The registered office of the company is situated at
Gundy, Chennai.

The products are being marketed throughout the country and also being exported to 20
countries around the world. The factory is situated at kagithapuram in Karur district of

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Tamilnadu. The initial capacity of the plant was 90,000 TPA of Newsprint, Printing and writing
paper, which commenced production in the year 1984. The capacity was doubled to 1, 80,000
TPA in January 1996 after implementation of the first project. Recently the capacity has been
further enhanced to 2, 30,000 TPA in April 2003 through up gradation of both the paper
machines.

All the three modern high-speed paper machines are capable of producing variety of Writing and
Printing papers and are equipped with state-of-the art automation to ensure consistent quality.
The Company has earned a reputation as a pre-eminent player of manufacturing paper from
bagasse having a world-wide creditability in the trade. Today, TNPL Unit-I is self-sufficient in
terms of power and pulp.

TNPL Paper Board

In its quest for expansion and adding additional capacity towards leadership in pulp and paper
industry, TNPL has examined various options. As the existing site is saturated in terms of land
area, TNPL thought of a green field project in a new location. As the Paper Board is recognized
as a growing segment, TNPL thought it prudent to foray into this market segment. Accordingly,
a Paper Board project was conceived, and thus TNPL Unit-II emerged.

A total of 874 acres of land was acquired in Mondi Patti and nearby area in Manapparai Taluk,
Trichy District to set up a Board Plant. TNPL Unit-II was designed to produce 200,000 MT per
annum high grade Paper Board for usage in pharmaceutical, health care, food, cosmetics and
other consumer product industries, in various GSM ranging from 170 to 450. 
Civil construction for the project was started in April 2014. Machinery erection was completed
in December 2015 and the Board was reeled on January 21, 2016, in a record time of 22 months.
The commercial production has commenced from 1.05.2016. The plant was constructed using
cement manufactured by TNPL in its Cement Plant in Kagithapuram. With the completion of
Board Project in January 2016, the total production capacity of TNPL has increased to 600,000
MT per annum.

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CHAPTER -3

2.1 PRODUCTION DEPARTMENT

Production is a sequence of technical processes requiring either directly or indirectly the

mental and physical skill of craftsmen and consists of changing the type, shape, size, and
properties of materials and ultimately converting them into more useful article. Production
means creation of utilities which factors include the activities or procurement and utilization of
production viz., manpower, material, machinery’s and buildings.

Production Department in TNPL headed by the General Manager and has the following
two major areas.

 Paper Machine

 Pulp Mill

The main task of this development is to achieve the target production with good quality
of Newsprint and Writing paper. Chief Managers, Deputy Managers, Engineers and operators
assist him.

PAPER MACHINE
The paper machine area has two machines namely PM#1, and PM#2. The machine 1 was
supplied by Beloit Walmsely, UK. It is twin wire former having a deckle width of 6.8m, which
produces newsprint of 49 GSM paper. The machine is also capable of producing printing and
writing papers between the weight ranges of 40-80 GSMs. The paper machine 2 is designed to
achieve high quality paper. This machine has an on line process basis to weigh moisture and ash.
Converting, finishing and packing lines have been provided for production of finished paper in
reels or sheets of required dimensions. Facilities automatic reel handling and reel wrapping
systems. The sheeting system consists of 3 cutting machines salvage sheeter and microprocessor
based 2 guillotine machines with an aggregate capacity of 180 tpd.

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PULP MILL
The Company produces the following varieties of pulp to manufacture Newsprint,
printing and writing papers.

PULP MAKING PROCESS

PULPING is a process of separation of fibrous-mass from the raw materials. There are three
types,

 MECHANICAL PULPING
 CHEMICAL PULPING
 SEMI CHEMICAL PULPING

For all these process wood is mainly used as raw material. In this process the undesirable
components like sand, stone etc., can be removed.

A) MECHANICAL PULPING
It is a process in which wood pulp is ground well and mixed with steam. The
presence of heat softens the lignin and grinding process pulls the fibre out. This process
is not often used because the paper obtain from this are less strong. They are mainly used
for printing papers such as Newsprints, Telephone Directories.

B) CHEMICAL PULPING
The chemical pulping includes Soda pulping, Sulphate pulping and Sulfite
pulping. The important one among these is kraft pulping.
Soda pulping process is carried out by treating the wood and chips with caustic
soda solution to fibre by cooking them in pressurized vessels. In Sulphate pulping the
wood chips is cooked with Sulfurous acid and salt of this acid. Sulphate pulp is used I the
manufacture of bond writing high grade book and other fine papers.

C) SEMI CHEMICAL PULPING

It is a process involving an essential chemical treatment followed by a treatment in
advanced mechanical fibering equipments. In this pulping process the wood is treated
with mild chemical to soften lignin to loosen the fibers.
It is also known as Sulphate process. It was invented by a French Chemist named

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F.Dhal in Germany in 1884. In this process wood chips and cooking liquor is heated.
Digesters for about 90 minutes at 701-173c. The cooking liquor is aqueous solution
NaoH, Na2s. The other cooking liquor is Na2Co3, Na2So4. Thiosulphate and
Polysulphide which are present with them in a little amount.

COOKING PROCESS

The Cooking process contains two types.

 Batch Process
 The chips are cooked in an individual digester with loading.
Cooking and Dumping done in sequence.

CONTINUOUS PROCESS
The chips and cooking liquor are fed at a constant rate into the top of the digester and
the chips moves downwards in a continuous manner for discharge from bottom.

In both the process the cooked chips are discharged from digester under pressure. The
pulp coming out of the digester is very dark in color and could brow stock. It is thin washed and
further sent to bleaching process. In this industry they follow continuous process.

BLEACHING PROCESS

Bleaching is a process to remove the unwanted particles and to increase the pulp
properties. Chemical pulp bleaching is based on removal on elimination of colored groups.

The bleaching process usually consists of Chlorination treatment followed by an

alkaline extraction after which further bleaching treatments are applied. The Chlorination stage
may be made with chlorine or with a hypochlorite mixture or CIO2. Further the reagents used in
bleaching process and H2o2, CIO2, hypochlorite. So in case of high yield pulp Zn or Na
hydrosulphite can be used. After bleaching the pulp were drawn at different proportions. The
obtained pulp is used for making paper through paper machine.

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VARIOUS STAGES OF STOCK PREPARATION PROCESS:

STAGE OF REFINING
STAGE OF BLENDING
STAGE OF ROSIN
STAKE OF ALUM
STAGE OF MINERAL FILLER OR LOADING
STAGE OF DILLUTION
STAGE OF CLEANING
STAGE OF SCREENING

A) REFINING PROCESS
Refining refer to the action carried out in a continuous conical or disc type refiners
where the fiber flow parallel to the bar crossing. It is develop or modify the pulp fibers in an
optical manner. It increases the surface area of the fiber. It is a process of water absorption
content is more. It is a stage of hydrophobic into hydrophilic.

B) BLENDING PROCESS

Blending is a process of addition of Alum, Rosin and fillers at different concentration.

C) ROSIN PROCESS
Rosin is an amber coloured natural resin detained from southern pine. It provide good
sizing. In practice, the rosin is added to the stock s the solution or emulsion and is predicted into
the fibers by the action of alum.

D) ALUM PROCESS
Alum is the process of hydrated of salt of Aluminium sulphate. It is used as a fining agent.
Both Rosin and alum combine to form Aluminium and rosin ate.

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E) MINERAL FILLER OR LOADING PROCESS

The mineral filler are added to paper making furnishes to improve the optical and the
physical properties of the sheet. The particles serve to fill in the spaces and crevices between the
fibers thus producing a denser, softer, brighter, smoother and more opaque sheet.

The most common paper making fillers are clay, CaCo3, talc and Tio2. Clay is the
most important popular filler because it is cheap, plentiful and stable and provides good
performance. Talk provides the soft silky feel to the paper product.

F) DILUTION PROCESS
The blending process is followed by dilution process. Since the product obtained has
more consistency for about 3-5% it must be diluted to decrease the concentration.

G) CLEANING PROCESS
The dilution is followed by cleaning process. It is done to increase the brightness of
the paper.

H) SCREENING PROCESS
The cleaning is followed by screening process. The pulp which is cleaned enters the
chamber. The pulp of required size enters the chamber for paper making process.

2.2 MARKETING DEPARTMENT

The marketing functions are done at corporate office in Chennai and the factory at
kagithapuram. The company has branch offices at Bangalore, Calcutta, Delhi, and Mumbai. Each
branch office has its own go down and is functioned by the company. It also operates in place
like Cochin, Luck now, and Cut tack, which are not maintained by the company. The marketing
is headed by the director (Finance) the marketing operations are comprised.

There is a good demand for the company’s products, despite the premium prices.
Quality of both Newsprint & printing & writing paper are comparable to imported products
prices much lower.

OBJECTIVES
 Providing technical support to TNPL products.

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 Identifying source and solutions to consumer’s problems apart from quality complaints.
 Assessing general nature of competition.
 Providing more reliable “Feed-Back” for ensuring quality assurance.
 Earning goodwill through better report with actual users.
This has assured that TNPL not only meets requirements of the customer but ensures their
satisfaction also. Online quality control has been the hallmark of TNPL.

TNPL sells its entire production printing & writing paper is being sold through a network
of dealers and distributors speed across the country. The following are the distribution network
for TNPL products.

COMPETITORS FOR TNPL

 JK
 ITC Bhatrachalam
 SPB
 Bathravathy Paper Mills
 Ballarpur Industries SPB Ltd.
 Sirpur Papers

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FUNCTIONS OF MARKETING DEPARTMENT IN TNPL

The marketing functions start from Madras Corporate office and the factory and
pugalur. The company has branch office at Calcutta, Delhi, Bombay, Cuttak, pune, Bangalore,
Cochin, Chandigargh, Visagapatnam, Jaipur. Each branch office has the godown and is
functioned by the company. The marketing department is headed by the Director finance. He
assists the day-to-day affairs at the corporate office by the manager marketing, who in terms
assisted by senior sales officers and sales assistants. The site office is assisted by the chief
manager marketing.

MARKETING PRODUCTS OF TNPL

OUR PRODUCTS

TNPL offers high-quality surface sized and non-surface sized paper to suit the needs
of modern high speed printing machines. TNPL's cutting edge technology backed by experienced
professionals ensures quality products to customers. TNPL’s manufacturing processes are
equipped with state-of-the-art control systems to maintain critical quality parameters on line. The
paper produced by TNPL is eco- friendly as the pulp is manufactured out of renewable raw
material and is subjected to Elemental Chlorine Free (ECF) bleaching. As the paper is acid free,
it has a longer colour stability and enhanced permanency in terms of strength characteristics.

TNPL caters to the requirements of multifunctional printing processes like sheet-fed,

web offset, and digital printers. The paper reels have uniform profile with strength properties to
cope even with high speed machines. TNPL manufactures Printing and Writing Papers in
substances ranging from 50 GSM to 90 GSM.

1. TNPL Ultra White Maplitho 9.Cream wove

2. TNPL Elegant Mapilitho 10. Copy Crown
3. Hi-Tech Maplitho 11. TNPL Copier
4. TNPL Maplitho 12. Students' Favourites
5. Radiant Printing 13. Super Print Maplitho
6. Commander 14. Perfect Copier
7. Hardbound Notebook 15. Ace Marvel
8. TNPL Offset Printing

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DISTRIBUTION NETWORK FOR PRINTING AND WRITING PAPER (PWP)

For printing and writing paper (PWP) TNPL distributes through indentors and through
direct sales.

Manufacture (TNPL) Dealers wholesalers Consumers

A) Direct sales.

Manufacture (TNPL) Consumer

TNPL is also making direct sales to certain major customers. Some for the major direct
customers are Navneet Publications Ahmedabad, Tamil Nadu Text Book Corporation, Director
of Stationary and Printing Govt of Tamil Nadu etc., TNPL has recorded the highest production of
30248 Mts.

TNPL is having the Indentors network covering the length and breadth of the country.
The indentors procure order from a customer and are responsible till the payments received by
the company.

TNPL is poised to achieve 40,000 Mts. Of branded Note book production during
20052006.

The inventors are appointed by the company based on the past experience in the field,
his financial status and past performance, they will collect orders from various retailers and the
same will be forwarded to the marketing department. The payment is guaranteed by the inventor
on behalf of the part. The compensation for risk taking and processing the orders from the
consumers and retailers will be rewarded in the form of turnover discount per metric tonnes basis
to the inventors.

Some of the retailers those who have more retail shops will be considered for stockiest
level. For other than Tamil Nadu and other southern states, the retailers and consumers are not
ready to purchase from Tamil Nadu because of lorry freight as if increase the cost of the paper
per metric tonne. There are around 59 inventories in India. Exports are done through exports
dealers.

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Major direct consumers are

 Banks
 Tamil Nadu Textbook Corporation, Chennai.
 Transport Corporation
 Kerala book and publication society, cochin
 Universities

B) Indenters sales.

Manufacturer (TNPL) Indenters Wholesaler Retailers Consumers.

TNPL is having the Indentors network covering the length and breadth of the country.
The indentors procure order from a customer and are responsible till the payments received by
the company.

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2.3 HUMAN RESOURCE DEPARTMENT STRUCTURE

GENERAL MANAGER

DEPUTY GENERAL MANAGER

MANAGER

DEPUTY MANAGER

SENIOR MANAGER

OFFICER

ASSISTANT OFFICER

STAFF
FOREMEN

ASSISTANT
SENIOR ASSISTANT
WORK MEN CHARG E MAN
ASSISTANT GRADE 1
HIGHLY
ASSISTANT GRADE 2 SKILLED

JUNIOR ASSISTANT SKILLED

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The Personnel Department in TNPL is mainly consists of following:

 Establishment
 Industrial relations
 Human Resources and Development

1. Establishment
Establishment is that part of personnel and administration management process which is
primarily concerned with the human constituents of an organization. The following functions are
comes under the establishment.
 Promotion  Recruitment
 Increment  Selection
 Bonus  Induction
 Employment  Training

a. Recruitment
Employee’s recruitment is the very important process in the organization. So every
organization has to recruit and retire the employees. Before recruitment, the department has to
make detailed study and determine the activities of the department. If there is any vacancy, the
company has to give the advertisement or the company can inform the employment exchange.

b. Selection

Selection of the employees made through oral or written test it depends upon job requirements
and skills necessary for the company. After the satisfaction of the HR department the candidate
can get the appointment.

c. Induction
It is conduct after the candidate selected in the interview or after getting the appointment
order. Before joining into the job all candidates have to attend the medical examination. After
some certificate verification formalities are the over, the HR trainer will provide the details about
the organization and nature of the job which he is going engage, and introducing their
department heads.

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d. Training
Training is the important aspect in all kinds of jobs. After the appointment of the candidates
they have to get the training regarding their respective department works it will take normally
two years, during this training period the candidates can get stipend.

e. Promotion
Promotion is one of the welfare activities of the HR department. Without having any
promotion the employee cannot get the job satisfaction, the promotional activities will enhance
the output of the company. It will provide the unions and management under the industrial
dispute Act, with regard to officers, promotion will be done as per the policy of the management.

f. Increment

All the company’s regular employees are having the eligible to get the yearly increments. The
increment will vary depends upon the posting.

g. Bonus
Every year bonus will be paid to the employees of the festival of Diwali and Pongal. For
executives and workman they will get 20% as bonus and 35 days wages as a bonus are paid
subject to ceiling of maximum of Rs. 10,000.

h. Employment
During the course of the training there are 1820 plus employees are on permanent basis are on
roll, of which 1000 are workmen. In addition to this, contract labours around 1600 are also there.
In total around 3420 employees are working.

2. Industrial Relation
The word ‘industrial relation’ denotes the good relationship between management, employees
and Government in any industry. In TNPL they are maintaining the cordial relationship with
their employees. The directors of the company placing the valuable contribution made by the
employees of the company to the performance and growth of the factory.

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3. Human Resource Development

HRD must concentrate on the development of the overall organization. It has to improve the

organization diagnostic and problem solving capabilities and make the organization more

effective one. HRD in TNPL mainly focus on Health, Safety and Welfare measures.

A. Health

TNPL provides the health care to its employees and their family members. They are having
various schemes for their employees which is they needed.

TNPL has various medical assistance schemes of its employees and dependants. In addition
they are providing the First Aid is also maintained in the factory. TNPL bearing 50% medical

expenses for the employees if they admitted 24 hours in the hospital. b. B.Safety

Safety is the foremost one in the factory without safety the employee may get fear to work,
but in TNPL is not like that. The factory is providing the clearly defined safety policy. The
safety policy specifies in detail the responsibility for implementation of safety measures,
prevention of personal injury, accident reporting system.

All safety reporting systems, testing procedures, inspection procedures are brought under ISO
9001-1994 documentation.

c. Welfare Measures

TNPL Welfare Measures are divided into two types:

1. Statutory Welfare Measures

Canteen facility:

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In TNPL they are having good industrial canteen as per the requirement and the needs of the
workmen and officers. In addition they are maintaining two types of canteen.

 Employees canteen
 Workmen canteen

Gratuity:

Gratuity is paid for staffs and workmen as per the Gratuity Payment Act. For officers gratuity
is paid as the service rules of the company.

Leave:

In TNPL all the permanent employees are getting three different types of leaves. They are
explained in the following table.

 Casual leave
 Sick leave
 Privilege leaves
 Apart from these above leaves, the company is providing 9 days as national and
festival holidays.

Leave Schedule:

Types of Leave Officers Staffs Workmen

S.No.
1. Casual Leave 10 days 12 days 12 days
2. Sick Leave 10 days 8 days 8 days
3. Privilege Leave 30 days 30 days 1 day for every
20 days worked

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4. National festival 9 days per year 9 days per year 9 days per year

TNPL providing some other facilities to their employees such as:

 Lunch rooms  First Aid Applications

 Rest rooms  Safety facilities for storing and
 Provident fund drying cloths
 Toilets  Sitting facility
 Shelters  Purified water facility.

2. Non-Statutory welfare measures

Uniforms:

In TNPL the permanent employees are only wearing the blue color uniform. Two pairs of
Terri cotton uniform are being issued to all the permanent employees. It is used to identify the
employees from the contract labours.

Shoes:

In TNPL employees are getting industrial type of Bata Safety shoes is being issued to all
employees including contract labours with three pairs of Nylon socks. It will protect the feet of
the employees.

Identity Badge

Identity badge has been issued to all employees.

Medical Assistance

TNPL is providing leave with wages for a period of six months, pay for hospitalization
charges for employees, who suffer from certain specific chronic illness.
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First- Aid Medical centre

TNPL has a good first aid medical with one male medical officer, one female medical officer,
one nurse and two dressers. The first aid medical centre is rendering the medical assistance to
the colony residents besides rendering assistance to the accident cases to the employees.

TNPL School

TNPL is providing the matriculation school where about more than 1700 children are studying.
In this school all employees can join their children and also the outsider can join in this school.

TNPL Housing Colony

The factory maintains a well laid housing with around 702 houses where essential employees
are given accommodation on nominal basis. The employees those who are coming more than 30
km from the factory those employees can get quarter’s facilities. TNPL Colony has 24 hours
power supply.

Recreational Facilities

The following clubs are functioning in the TNPL housing colony, which arranges for regular
cultural programmes.

 TNPL study centre  Personal Accident

 TNPL recreation club for workman Policy
 TNPL ladies club for officer’s wives.  Group Insurance
 TNPL ladies recreation club for employees Scheme.
wives for workmen and staff.  Bachelor’s Hostel.
 Staff mess.
 Housing Loan.

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 Labour Welfare
Centre.

OTHER FACILITIES

•   Group Personal Accident Insurance cover. In case of death by an accident, the

nominee will get 96 months’ salary (Basic + DA).
•   Superannuation scheme for employees.
•   Interest subsidy on Housing Loans.
•   TNPL Schools Society runs TNPL Public School (CBSE pattern) and TNPL
Matriculation and Higher Secondary School. In addition, ITI is also being run by TNPL
Arakkodai Trust.
•   Banks and Post office with ATMs in Colony premises.
•   Family Planning Incentives for employees.
•   Corporate day gift to all employees once in a year.
•   Funeral expenses.
•   Community Hall and HRD Hall with a nominal rent.
•   Tour for families of employees.
•   A modern Sports stadium with 400 meter track and a separate full-fledged
Gymnasium. Full-fledged playground for indoor and outdoor games like cricket, Tennis,
Shuttle, Ball Badminton, Volley ball, Basket Ball, Table Tennis, etc. in Colony premises.
•   Digitalized cable TV Systems for TNPL Colony.
•   Air Rifle Shooting Range to train young children.
•   At 50% of the market rate, 12 long size notebooks for all employees or 24 long size
note books to employees are issued annually if they are having 2 school going children
in  addition to one ream of A4 size paper to all the employees.
•   Uniforms, Shoes and Diary are issued to all the employees annually. Rain coat is
issued once in 4 years to all employees.
•   Co-operative and Thrift Society for the benefit of employees.
•   Marriage Gifts.
•   200 cement bags to employees at dealer’s invoice rate less discount. 

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Shift Timings
A- Shift from 6.00 AM to 2.00 PM

B- Shift from 2.00 PM to 10.00 PM

C- Shift from 8.00 PM to 4.00 AM

G- Shift from 8.30 AM to 5.30 PM

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2.4 FINANCE DEPARTMENT

Account department is the main department in the company. Various types of accounts are
maintained in the department. All the expenditure made and all the income gained in done
through this department. The department is divided in to various sections as follows.

FUNCTIONS OF ACCOUNTS DEPARTMENT

 To maintain all the financial records.
 To maintain the books of accounts relating to sales, purchase & all other financial
transactions.

BILL PASSING OR ESTABLISHMENT

The finance departments of corporate office prepare pay roll and disburse the salary and
other allowances to employees at corporate and all branches office.

The accounts department’s another function is to compile all accounting entry prepare
trial balance, profit and loss account and balance sheet site office accounts will be merged with
corporate office final accounts once entry quarter and at the year end to publish the results in the
newspaper as per SEBI’S guideline.

Besides, the corporate account department is working the opening of letter of credit (LC)
for major imports like coal, pluged.

Corporate office finance & accounts functions:

• The corporate office finance and accounts department reforms the following functions.

• The finance & accounts department arranges term loans from the (DB) World Bank IFCI
and other commercial banks.

• Arranges for working capital loan (cash credit)

• The company working capital limit is 70 Crores from contortion banks consisting of
Andhra Bank, Canara Bank, Indian Bank & Indian Overseas Bank, K.V.Bank, Syndicate
Bank of Patiala, State Bank of India.

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BILL PASSING SECTION

Accounts Department receives the bills of invoice from supplies vendors through
materials of user department. The following types of bills are received at accounts department.

 Civil, repairs & maintenance bills.

 Chemicals & packing materials.
 General stores, spares.
 Labour bills.
 Transport raw materials & finished goods.
In TNPL while processing bills for payment, bills section takes various control measures in
order to make correct payment to the parties.

General stores, Chemicals & Packing materials for making payments to vendor the following
documents are verified.

 Bills or invoice received from vendor

 Materials receiving report (MRR) received from stores department for ensuring the
materials are received at TNPL.
 Purchase order for terms of payment value to materials, quality, validity to the order etc.,

If the purchase order terms matches with the bill, MRR, Bills section prepare bank vouches
while processing the above if any to the terms in the purchase order differs the bill section. Will
send inter office Memorandum to make amendments to materials department. After getting the
amendments only the bill is processed for payments.

VARIOUS TYPES OF BILLS

A) Civil Repairs & Maintenance Bills

The company is engaging civil contractor construction of building, repairs &
maintenance works. For the above works the company is issuing work order to the civil
contractor.

B) Labour Bills
The company is engaging labour for various works through contractors. For labour
supply contract the company is issuing work order with terms and conditions, which is based on

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rate contract basis. The labour contractors are submitting their bills once in 15 days, to the
executive department. The executing department will be certifying that the work has been
completed and payment can be made after due verification at account department. After receipt
of duty certified bill, the bills passing section will process the bills for payment with reference to
work order.

C) Transport Bills
The company is engaging vehicles to transport fuel of raw materials from offsides and
finished goods to the customers. The transport contract is awarded to the transport, contract for
one year on rate contract basis. The transport contractor submits the bills along with the goods
carry copy to the transport department. The transport deportment after the verification certifies
the bill for payment and subject to accounts department verification. After of bill at bills section
process, the bills for payment with reference to work order issued to the transport contractors.

D) Miscellaneous Bills
The miscellaneous works bills duly certified by the respective user department and are
received by work order the same process for payment.

MATERIALS ACCOUNTING SECTION

The material accounting section is maintaining the stock ledger with records and bills of raw
materials, chemicals and coal. The receipt and issue of materials is accounted by the section. The
material accounting section is to be prepared stocks on monthly basis and it occurs with financial
records.

FINANCE SECTION

Finance section arranges the funds from corporate office: cash is paid only to employees for
travel advance. For all other payments, the company is issuing cheque only finance section
receives the bank payments vouchers from various sections in account department. Based on due
date of bills, every day finance section will prepare funds requirements and get the required
funds from corporate office. After receipt of funds, finance section will prepare the cheque and
sent foe dispatch to the parties.

Income Statement
 Standalone

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 ABC

  Dec 2019 Sep 2019 Jun 2019 Mar 2019 Dec 2018

Net Sales 831.96 767.11 944.47 1,039.44 1,094.45

Other Income 8.11 7.04 9.53 10.92 10.02

PBDIT 145.31 137.01 216.23 201.77 183.80

Net Profit 29.51 21.58 77.10 13.49 49.69

 Consolidated
Balance Sheet

Standalone Mar 2019 Mar 2018

Total Share Capital 69.38 69.38

Networth 1,651.68 1,603.13

Total Debt 1,530.13 1,958.89

Net Block 3,888.15 4,070.87

Investments 0.67 1.03

Total Assets 3,181.81 3,562.00

RESEARCH AND DEVELOPMENT DEPARTMENT

The company adopted and developed the innovation technology of manufacturing

newsprint using mechanical bagasse pulp and its endower is to perfect and hardness the bagasse
pulping technology. The in-house research laboratory facility of the company is recognised by
the department of scientific and Industrial research New Delhi. The Company has a full pledged
quality control assurance department which ensures highest quality standards of the products.

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Specific study of R&D includes

 Environmental bleaching technology

 Pulping studies for improving pulp yield
 Bio technology studies
 Improvement of mechanical bagasse pulp quality
 Printing studies

The R&D department has sophisticated state of the art instruments.

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2.5QUALITY CONTROL DEPARTMENT

The quality control function in many paper mills is now undergoing with some
changes. The old approach to quality consisted of setting up of a quality control department,
making spot checks on incoming material, alone end of the plant performing some in process
tests and finally conducting evaluation of the finished product. Some statistical analysis was
included if such specialized talent was available. The competitive market of the future will
demand much more.

In progressive mill the classical quality control function just described is beginning to be
replaced by the concept of total quality management. This involves the orderly co-ordination of
all functions that relate to product quality even to seemingly unrelated areas such as purchasing,
engineering and accounting shipping and warehousing. If starts with a management commitment
to a total quality effort that impacts every phase of the company.

The function of the quality control department is to measure quality keep the score and
measure the performance. The responsibility for quality lies with everyone in the production
system.

FUNCTIONS OF QUALITY CONTROL DEPARTMENT

 Testing the ongoing product for defects/deviation and informing production

department for taking corrective steps.
 Certification of output and maintaining parent roll history for future analysis of
products, companies etc.
 Inspection of joints and conducting “Operator- Wise Reel Joint Performance
Tests”.
 Inspection of finisher’s performance & reporting.

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PROCESS CONTROL COMPUTER REPORTING SYSTEM:

A computer scan of ongoing product i.e. paper is continuously taken in the paper machine
cross direction and automatically recorded for the following reports.

1) Parents roll quality report highlighting GSM moisture and calliper.

2) Grade Report
3) Profile Report
4) Production, Run Time and Loss Report
5) Day Report

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MANAGING DIRECTOR

DEPUTY MANAGING DIRECTOR

CHIEF GENERAL MANAGER

GENERAL MANAGER

CHIEF GENERAL DIRECTOR DEPUTY GENEAL

MANAGER MANAGER
(Operation
) (Finance) (Technical)

GENERAL MANAGER CHIEF GENERAL

(Marketing
) MANAGER (Finance &
Admin)

CHIEF GENERAL MANAGER

(Marketing
)

GENERAL DEPUTY
GENERAL DEPUTY
GENERAL MANAGER MANAGER GENERAL
MANAGER GENERAL
MANAGER
(m&l) (Paper) MANAGER
(HR)
(Production
)
(Paper)

THE VISION:

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To be the market leader in the manufacture of eco-friendly world class papers adopting
innovative technologies.

THE MISSION:

1. Attain leadership in paper industry.

2. Promote the usage of Bagasse in the manufacturer of Newsprint and Printing and
Writing paper.
3. Minimize environmental impact and become an environment friendly
organization.

SWOT ANALYSIS

Major Environmental

Strength:

 World Bank Assistance.

 Capacity doubled within s decade.
 Largest Bagasse based plant.
 Latest Technology Implemented.
 Working Continuously on Cost reduction.
 Zero Stock of finished goods for the 16th Continuous Year.
 New Studies for alternative renewable Raw Materials.
 Product Line Extension.
 Excellent Customer Service.
 Strong R & D force.
 Innovations in Waste Management and Reusability.
 Well Established Network.
 Rising Demand-Supply Gap.
 Quick Decision through OIIS.

Weakness:

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 Depend Sugar Mill for Bagasse.

 Depend on TAFCRN for Pulpwood.
 Depend on River Cauvery for water.
 Production Break-off due to water Shortage.
 Environmental Impact.
 Selective Distribution Channel.
 No Promotional Campaign.

Opportunities:

 Raising demand for Paper in Future.

 A Produce Cement using mill waste.
 Expand Power Generation.
 Expand the Clonal Plantation Scheme.
 Expand the Methane Gas Production.
 Gain a Large Share in Existing Market.
 Study on Commercial Suitability of wild Sugarcane.
 Improve Environment Performance.
 Alkaline Sizing of Bagasse Based Papers.

Threats:

 Scarcity of Raw Materials.

 Deforestation.
 Failure of Monsoon.
 Increasing Competition.
 Major prolonged economic depression.
 Reduce demand due to Paper les office.
 Changes in Excise Duty Affect the Price of Paper.

 Availability of Low cost Paper in Foreign Market.

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