ON

Undertaken at

Century Pulp and Papers Lalkua

PROJECT GUIDE SUBMITTED BY

Mrs. Darshneel Batra Avinash Mishra
Lect. (IIMS Bareilly) M.B.A. 3RD Sem.

Invertis Institute of Management Studies, Bareilly.

PREFACE

There is a famous saying…..

“The theory without practical is lame and practical without theory is blind.”

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This modern era is era of consumers. Consumers satisfy themselves according to their needs

and desires, so they choose that commodity from where they extract maximum satisfaction. It

has been identified that in the beginning of 21st century the market was observed a drastic

change. The successful brand presents itself in such a way that buyers buy them in special

values which match their needs.

Summer training is integral parts of the MBA student have to undergo training session

in a business organization for 6 to 8 weeks to gain some practical knowledge in their

specialization and to gain some working experience.

My institution has come forward with the opportunity to bridge the gap by imparting modern

scientific management principle underlying the concept of the future prospective managers.

To the emphasis on practical aspect of management education the faculty of Invertis

Institute of Management studies, Bareilly has with a modern system of practical training of

repute and following management technique to the student as integral part of MBA. In

according with the above obligation under going project in “Century Pulp and Papers Lalkua

Dis. Nainital”. The title of my project is “A Brief Study of Effectiveness of Channel of

distribution of century pulp and papers”

Certainly this analysis explores my abilities and strength to its fullest extant for the

achievement of organization as well as my personal goal.

ACKNOWLEDGEMENT

I take this opportunity to express my gratitude to the Management of Century pulp & paper at

Lalkua (Nainital) for providing me the opportunity to get an exposure of their esteemed unit.

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I am sincerely thankful to the HR Department for coordinating my training & explicitly to

express my thanks to Mr. T.C. Pandey, Sr. Manager (HRD) & Mr. N. Sharma,

Suptd. (HRD) for their continued help & guidance during my stay there.

I wish to express my sincere gratitude to Mr.Vivek Shotriya (Manager Sales), Mr. Manoj

Gupta (q.c.l.) & all other personnel of baggase process & sales department, for their inspiring

guidance & motivation, I received during my stay in their respective sections. I would like to

specially thank Mr.Umesh Aggrawal (G.M. process) for the motivational words with which he

kept us energized towards my work.

Last but not the least; I would like to express my deep gratitude to the principal of my

respective colleges for sending us to a large integrated pulp & paper industry & giving me a

chance to acquire experience of my life time.

I would also express my heartily thanks to our parents & all other family members & peer

group who directly or indirectly provided us their moral support.

AVINASH MISHRA

CONTENTS

S. NO. CONTENTS PAGE NO.

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 1. EXECUTIVE SUMMARY 8

2. COMPANY PROFILE. 10

3. INDUSTRY PROFILE 12

4. DISTRIBUTION CHANNEL 50

5. RESEARCH METHODOLOGY 80

6. OBJECTIVE & SCOPE 87, 89

7. DATA PRESENTATION & ANALYSIS. 90

9. FINDINGS & CONCLUSIONS. 104

10. SUGGESTIONS OR RECOMMENDATIONS. 107

11. SWOT ANALYSIS 110

12. ANNEXURES: 112

References 113

Questionnaires 117

13. BIBLIOGRAPHY. 120

List of Tables

 Table of Indian Paper Industry

 Table of Annual Potential of AGRO Based Fibers in India

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 Table of Financial Highlight of Company

List of Graphs

Retailer:

 Graph of Retailer Response

 Graph of Advertisement Required

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 Graph of Distribution Channel

 Graph of Consumer Response

 Graph of Quality Attributes

 Graph of Problem Faced With Paper

 Graph of Frequent Consumer

 Graph of Prefer of WPP

 Graph of Discount Policies and Schemes

 Graph of Packaging of CPP

 Graph of Attributes towards Packaging

 Graph of Protect From Future Threats

Dealers:

 Graph of Allocated Size

 Graph of Dealers Godowns

 Graph of Type of Godowns

 Graph of Dealer Receives Order

 Graph of Solving Problems

 Graph of Satisfaction With CPP Products

List of Abbreviation

CPP- Century Pulp and Papers

WPP- Writing and Printing Paper Plant

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CTIL- Century Textile and Industries Ltd

RGP- Rayon Grade Pulp

EXECUTIVE SUMMARY:

Today a successful product or service means nothing unless the benefit such that service can

be communicated clearly to the target market.

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The aim of the project is to do the market analysis & adjudge potential of writing & printing

paper in the market & suggesting the best quality & service providing as standardization for

increasing the adaptability of Century pulp & paper industries paper product. More precisely,

the ultimate objective of the project was to identify the promotional & distribution network

tools which have effectively converted the temporary customer into permanent ones of the CPP

Product.

Also ,on the basis of various findings made through the market study under this project I was to

provide some suggestion & recommendations so as to enhance & strengthen the market

position of the company’s paper products .More precisely, the ultimate objective of the project

is to identify the promotional & distribution channel tools which can effectively help in

retaining the customers,& analyze various aspects & identification of marketing loopholes so

as to strengthen the brand in the market.

The dealers & retailers sell the company’s product allover India, so for their prudential

guidance, continuous encouragement, valuable & technical advice & willing support

throughout my research work.

I used a combination of both exploratory & conclusive research design with a blend of

descriptive market study so as to collect a relevant data from the market via various

questionnaires & interviews & make a suitable recommendation to the company on behalf of

various responds given by the respondents.

I would also like to thank the staff members who rendered their help in due course of my study.

Sincere thanks are due to Mr. Shaileshwar Ghosh –Honorable H.O.D. (M.B.A.) INVERTIS

INSTITUTE OF MANAGEMENT STUDIES BAREILLY. & institute authorities for smooth

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running of my investigations & studies. I would also like to thank Mrs. Darshneel Batra who

helped in the market analysis of my project work.

I find no words to express my feelings for my beloved Parents for showing their love, care,

support & helping to the maximum extent for shaping this manuscript.

CENTURY PULP & PAPER: INTRODUCTION

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Century Pulp and Paper (CPP) a division of Century Textile and

Industries Ltd (CTIL) is manufacturer of Rayon Grade Pulp

(RGP) and an exhaustive range of excellent quality of Writing &

Printing Paper. The unit successfully achieved significant

efficiencies in various disciplines within a short span of time.

Located at Lalkua (District Nainital, U.K.), CPP has provided  

direct and indirect employment to the people of the surrounding

areas.

Century Pulp & Paper (an ISO-9001:2000 & ISO-14001:2004 certified Division of Century

Textiles and Industries Ltd.), a Division of Century Textiles and Industries Ltd. is a member of

B.K. Birla Group of Companies. The company chairman is Syt. Basant Kumar Birla.

Established in 1984, the Division is situated at Lalkua on the Bareilly-Nainital Highway. The

Head Office of the Division is on the 11th Floor of Industry House, 10, Camac Street, Kolkata.
 
Product range of the CPP comprises a vast range of quality Writing & Printing Paper and

superior quality dissolving Rayon Grade Pulp used for Viscose/Staple fiber/filament yarn. It

has other uses in preparing urea, formaldehyde, melamine formaldehyde and phenol

formaldehyde.
 
CPP has a well equipped and planned department for Environmental Conservation and

Pollution Control. CPP pays sincere attention to the overall development of its employees and

that of the community. It also has a well organized HRD Department for supervising these

activities. CPP maintains an excellent infrastructural set up with modern facilities in order to

carry out organizational activities.

Century pulp & paper industries ,a unit of top Indian corporate conglomerate-B.K. Birla group

of companies is one of the leading integrated pulp & paper plants .Established in the year 1984

at Lalkua, a township near the foothills of Himalayas in Distt. Nainital (Uttarakhand), the

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company after expansion & modernization, presently operates four fiber lines at the following

installed capacities:

 Rayon grade pulp : 31320 TPA

 Writing & printing papers(wood) : 37250 TPA

 Writing & printing papers(bagasse) : 84600 TPA

 Writing & printing papers(DIP) : 75960 TPA

Sales Department

INDUSTRIAL – PROFILE

INTRODUCTION:

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With the emergence of the open market economy which leads to reduce tariff barriers & the

promulgation of free trade agreement with thriving neighboring economies, the

competitiveness of the Indian paper industry has come to sharp focus on the front of costs &

quality. The industry has been in turbulent state since the company was opened & the paper

import was allowed under open general license scheme.

Face with various issue & changes like, availability of fibrous raw material, technological

obsolescence, cost, quality & environment, the industry has taken steady steps to enhance its

competitiveness by way of addressing these issues. The demand for paper, paperboard, & news

print has been rising in the recent past & the domestic market has been registering growth rate

of around 6% against the world average of about 2.8%.

The present paper highlights the status of the Indian paper industry with respect to key market

indicators. Data has been presented for production, import, export, demand, & consumption of

paper, paperboard & newsprint covering technological status of the Indian paper industry.

Discussions have been made on the basis if issues related to raw materials scenario keeping in

view the present & future demand.

Present status & profitability: The pulp & paper industry presents an incoherent picture

today; with mills of various sizes struggling to survive side by side, unlike the western

counterparts where they have a capacity of 100000 tons per machine per annum has become a

norm here in India. We have a mill capacity of 10000 tons per annum. The total size of Indian

paper industry in terms of volume is approximately 5.7 million tons & the growth rate of the

industry is about 5% to 6% per annum. Exports from India account for mere 3% of the industry

volume. While the per capita consumption has increased, i.e. 5 kg. This is very low as

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compared to the world average of 46 kg .The per capita consumption of China, Iran, Egypt &

Thailand are at 26kg, 16kg, 13kg, & 5.5 kg respectively.

STRUCTURE OF INDIAN PAPER INDUSTRY:

There are around 700 pulp & paper mills in India producing nearly 6.8 million tons of paper &

newsprint out of which 5.8 million tons account for paper & paperboard & the remaining in

newsprints. The mills in the country can be classified into three categories. Mills that have

integrated, largely forest based operations produce over 100 TDP are classified as large mills.

These mills are 33 in number & account for 36% of the total production. Medium sized mills

that have capacity between 50-100TDP, Using agro based raw material they are 165 in paper as

fiber. These are 510 in number & account to about 35% of the total production .In past few

years many mills which were using renewable crop residue as fiber base have now shifted to

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recycled fiber in the face of the CREP norms, which stipulated the chemical recovery for the

mills.

GENERAL PROPERTIES OF PAPER

Grammage: - Grammage is a parameter which denotes available

(Basic weight) surface area of the paper or its weight. It is important

because, it is the surface area paper which is used in

nearly all its applications be it a writing, printing

paper or a tissue paper.

Also the paper is sold on the basis of weight & the

Turnover of a mill is also indicated in units of weight.

daily.

Thickness: - Since the thickness of a paper is affected by its

moisture

(Caliper) content, therefore due care is to be taken as regard to

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 conditioning of paper.

Apparent: - Typical values of apparent density range from 0.75(in (Density/bulk)

loosely formed or less dense papers) to 1.20 for highly

bonded sheets. Since the density of cellulose (major

Paper making ingredient) is1.5, lower value of apparent

Density means larger fraction of paper volume having

air & vice-versa.in most papers roughly 50% of

volume is air. Apparent density affects nearly all

properties of paper .the inverse of apparent density is

called ‘BULK’.A bulky paper will be more opaque &

soft. Moreover it may also cause more ink absorption

during printing.

Smoothness: - In comparison to a perfectly flat surface, paper surface

may have hills & terrains, however this statement is a

Comment to the characteristic “smoothness “of the

paper. Thus we have papers of varying degree of

smoothness being referred as having either ‘smooth’ or

‘rough’ texture. Smoother paper will give better print

reproduction but will be stiffer. Generally smoothness is

achieved by calendaring. Higher calendaring might give

reduced brightness & poor opacity.

Porosity: - Paper is porous i.e. paper has air-space in between its

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 constituents namely fibers & fines. Consequently, density

of paper is less & these spaces give way for permeability

of air & liquid.

Tensile: - Tensile strength depends upon grammage (hence

Strength thickness) of specimen. In order that tensile strength of

specimens with varying grammage may be compared, the

term ‘breaking length’ is used .this is defined as a length

of specimen which breaks under its own weight.

Tear strength: - This parameter indicates the resistance of paper to

tearing action. Tear strength is defined as amount of

energy consumed in continuing the tearing of a given

paper. Tear factor is tear strength (gmf) per unit

grammage (g/m2).

Double fold: - This parameter represents the resistance of paper to

Repeated folding/unfolding as is experienced in case of

Ledger bank notes etc. It also indicates deterioration of

paper with time. Consequently, fling endurance is of

importance for currency, ledger, map, blue print, records

papers where resistance against repeated

folding/unfolding is required along with longevity.

When paper undergoes repeated folding, the fibers

stains initially. Gradually fiber-bonding starts loosening

resulting into decrease of tensile strength. Consequently

, folding endurance is determination of modified tensile

strength .for example the paper failing after 100 double

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 folds will not have 10 times more life than weaker paper

against folding/unfolding stress while in use but roughly

only 1.5 times life. Thus number of folds represented log

to the base 10(LOG10) gives better comparison of folding

strength.

Bending: - Paper requires certain stiffness, no matter whatever its u

Strength se may be. Copying machines could not function properly

without proper bending stiffness. Even when we read

our daily news paper we hold the paper for which some

bending stiffness is required.

Bending strength represents the capacity of paper/board

to resist the forces responsible for bending action. It also

indicates the capacity of paper to support its own weight

while clamped in cantilever form.

Brightness: - A paper sheet appears brighter if it reflects (diffused)

preferentially blue color (wave length=457nm).Pulp is

bleached before making cultural paper, so that the

resulting sheet formed is bright. This is because a sheet is

formed of unbleached pulp &looks pale & hence is not

Pleasing in appearance. The degree of bleaching is

measured by the extent of blue color reflectance. Due to

these reasons, brightness of a sheet is measured as the

diffused reflectance of blue color form an opaque pad of

such sheets. Brightness differs from whiteness in the sense

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 that whiteness refers to the uniformity of reflectance of

different colors (wavelength).Most white papers have total

reflectance ranging from 50-90%.brightness is affected by

the addition of dyestuff. A small amount of blue dyestuff is

often added in furnish for making white paper. However, it

does not increase brightness.

Opacity: - This property refers to the see through characteristic of a

paper sheet. Opacity increases with increase in grammage

of sheet. Addition of fillers, dyestuff or pigment also

increases opacity of the paper. However, effect of

beating, pressing or calendaring decreases the

opacity. Highly bleached pulps also have less opacity.

Sheen: - For surfaces with low gloss e.g. low finished, uncoated paper

‘matt’, gloss measurement is done at 850 angle & field

angles. The result is usually reported as sheen.

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 Company Vision
Our vision for the millennium remains manufacturing of international quality products at

optimum cost in consistence with the physical and psychological environment best suitable for

customers and stakeholders.

 
Concrete vision elements :
 

 Product quality
 
   Safety and Environment
   Satisfaction of customer and stakeholders
   Cost Effectiveness
   Energy conservation

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 Business Strengths of company

Century Pulp and Paper is the manufacturer of Rayon Grade Pulp, Wood based Writing

Printing Paper & Bagasse based Writing Printing Paper. CPP employs around 2500 well

trained manpower including 700 staff and 1800 workmen.

CPP Specialties in manufacturing :-

 Wide variety of quality writing printing paper (agro based) with Bagasse as raw

material.
 Best quality photocopiers paper which has been highly appreciated in the market,

both international and domestic.

The mill established at Lalkua is unique because :-

 
 It is the only mill in the world producing both rayon grade pulp, wood-based paper

and bagasse based paper.

 The level of control instrumentation is relatively high.
 CPP is the first mill in the world to use ClO2 for bagasse pulp bleaching.

 The mill features a unique pile building system for preventing deterioration of

stored bagasse fiber. Bagasse fiber fed to the digester has a high fiber pith ratio

(more than 5:1).

 CPP’s farm forestry scheme ensures that raw material is cultivated and replenished.

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 CPP is the driver for good forestry management and manages socio-forestry

nurseries for cultivation and distribution of plant saplings.

 The mill has a well equipped laboratory to monitor various water and air pollution

control measures including AOX level.

   

Company Policy

 
We at Century Pulp and Paper are committed to strengthen our position as market

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leader in manufacturing of writing and printing paper and rayon grade pulp by

developing a company wide culture that promotes :

Customer delight

 Quality, Environment, Safety and Information Security

Initiatives
 Environment friendly, Safe and Energy efficient operation
 Protecting Information of all Stakeholders
 
We will continuously pursue for :  
  
 Continual improvement in our products, processes & services in all areas.
 Protecting information assets and customer information from all threats through

the implementation of suitable information security management systems.

 Remain incompliance with applicable legislations.
 Communicate and reinforce this policy throughout the company.

 
ENERGY CONSERVATION COMMITMENT POLICY AND SET UP

CPP has accorded high priority for energy conservation from the inception. Accordingly for

energy conservation, a cell consisting of all energy producers & consumers is formed. The

objective of the cell is to coordinate the steam and power requirement of the mill, study the

causes of variance in consumption figure with targets on daily basis and take corrective

measures. The cell also identifies energy conservation schemes and monitors their progress.

The energy conservation is a part of our Company Policy. Some of the major energy saving

projects implemented by us are :

Capacity utilization continuously increased

Fine tuning of pumps and motors

Installation of VFD’S

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Optimization of voltages & frequency of own generation.

Optimization of operating procedures for Agitator, pumps, Depithers

Energy efficient lighting practices

Prevent idle running of equipments

CPP also believes that apart from energy conservation lot of savings can be generated by

effective utilization of plant capacities. The thrust is on continuous plant operation without any

unscheduled stoppages. In order to involve and motivate

EXPORT

Century pulp & paper industries is basically into three kinds of exports:

 Deemed export

 Mercendise export

 Direct export

DEEMED EXPORT:

The paper already purchased is reprocessed & than supplied to export dealers. Various

publishing agencies who are customers of century pulp& paper do this. For e.g.: Navneet

publications.

MERCENDISE EXPORT :

In mercendise export a mediator is involved into & does the export, the paper is not

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reprocessed. The sole responsibility is of the dealer.

DIRECT EXPORT :

In direct export the material is dispatched directly to the destination by the company & sole

responsibility in this case is of CPP industries itself. As per the available sources at century

pulp & paper industries, there are various countries in which the paper is exported by meeting

out the standards & specifications of the respective countries as per the rules set up in ISO:

14001.

CURRENT EXPORT’S OF CPP INDUSTRIES :

Century pulp & paper industries is currently exporting the various verities of paper products to

Canada,Egypt,Kenya,Srilanka,Phillipines,Ghana,Thopia,Bangladesh,Nigeria,Myanmar etc.

Environment Management of company

Century Pulp & Paper maintains a perfect harmony

with Environment through excellent pollution-control

measures both for Air and Water. All initiatives and

efforts are made to curb pollution at the grass-roof  

level. In order to meet the measures set by the Board

for air & water, CPP has adopted the following control

facilities.

Water: - Effluent Treatment Plant having most modern

technology, based on Activated Sludge Process

involving Primary clarifier, Anaerobic treatment,

Biological reactor, Secondary clarifier and Sludge

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 handling system.
  
Air - Electrostatic Precipitators and Bag Filter in Coal Fired Boilers: Electrostatic

Precipitators in Recovery Boilers; Electrostatic Precipitator & ventury scrubber in

Rotary Lime Kiln; jet condensers for Digester Blow offs.

 
Green Belt development and Plantations are an integral part of the total

Environmental Management Program. CPP maintains its own plant nurseries and

has planted various species in and around the premises.

 
Maintaining a clean and unpolluted environment has been one of the prime

objectives of CPP. All endeavors have been made right from the inception to

incorporate devices that can take care of pollution –both of water and air. “Waste

Control” forms an integral part of the overall “Waste Management System” –

systematically planned and adopted by CPP.

Preserving and protecting the environment is a top priority at century. We are always

sensitive to our bio-diversity of the soil, water and air around us. The power plant

features an efficient system for reducing Air emissions. Electrostatic Precipitators has

been installed to remove particles from recovery Boilers, Coal- fired Boilers and Lime

Kiln flue gases.

In strict adherence to the standards and guidelines, the effluents are treated in a

modern Effluent Treatment Plant which is recognized as a Model Plant for its

efficiency and performance. Company ‘s adoption of a systematic approach to the

Environment matters including Waste Minimization, Water- Recycling and Re-use

programs of the by – products has facilitated the company in getting the ISO-14001

Certification. or its Environment management System Company’s friendship with

Environment has also reflected in its Bagasse - based papers being licensed for ECO

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labeling a distinct honor to be attained. Sincere efforts are made to find applications

for the waste material. Few examples are

The dust generated during Lime stone crushing is used in place of normal sand with

cement. The stones received along with coal are used for stone pitching in place of

natural stones. The PH Liquor is directly burned in Chemical Recovery Boilers along

with black liquor. The organic solid waste collected in PH Liquor Tank is burned in coal

fired boilers.

Apart from reducing the effluent loads these schemes have resulted into a saving of

Rs 8.94 lacks. Continuous efforts are made to minimize our water consumption by

finding opportunities of Recycling and minimizing its consumption. Water consumption

trend is as shown.

020406080100120m3/ton2004-052005-062006-072007-08WATER CONSUMPTION

26
Century’s Socio-Forestry venture, to scientifically grow large – scale plantation to meet

the future Raw Material requirement reflects company’s commitment towards

sustainable development. The company maintains and distributes quality saplings to

farmers and offers technical support. Massive plantation and Green belt has been

developed within and around the company premises.

The employees are very conscious about the safety aspect of the mill and strive to

achieve zero accidents. For this departmental safety committees operate under the

control of central safety committee. Work permit system exists for all jobs. Why-why

analysis is done for each accident, root causes identified and counter measures are

taken. As a proactive approach, frequent safety patrols are carried out to identify

unsafe acts and conditions in the plant.

There is continuous thrust for training of employees and regular training and awareness

programs are conducted by internal and external faculties.

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HIERARCHY OF THE ORGANIZATION
JOINT PRESIDENT (UNIT HEAD)

Sr. VICE PRESIDENT (S)

VICE PRESIDENT

SENIOR GENRAL MANAGER (S)

GENRAL MANAGER (S)

DY.GENRAL MANAGER (S)

Sr. MANAGER (S)

MANAGER (S)

DY.MANAGER (S)

SR.SUPREINTENDENT (S)

SUPREINTENDENT (S)

OFFICER

ASSISTANT.OFFICER

GRADED STAFF

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MANAGEMENT AND SR.EXECUTIVES OF THE COMPANY AT

LALKUAN:

Mr. Deepak Tandon DIRECTOR

Mr.A.K Bisarya JT.PRESIDENT (works).

Mr.A.C Mittal SR.VICE PRESIDENT (production)

Mr.S.K. Aggarwal SR.VICE PRESIDENT (Commercial)

Mr.A.K Sharma VICE PRESIDENT (P&A).

Nearly 2700 peoples are working as a team to achieve the objective of the organization.

There is an excellent harmony between the employees union & the management.

AWARDS & HIGHLIGHTS

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 State energy conservation award-2009,First prize under the category of “Large &

medium scale industries” at Dehradun on 14.12.2009

 Excellent award to “AGRO” quality circle (bagasse process) in National Convention

on quality circles (NCQC-09) held at Bangalore on 19.12.09.

 National Energy Conservation award in pulp & paper sector for the year 2004, 2006 &

2008 by Govt. of India at New Delhi.

 National Award for excellence in energy Management for the year 2007 & 2008 by

CII.

 National safety award for outstanding performance in industrial safety for the

performance year 2007 by govt. of India, as runner-up on 17th Sep 2009 at New Delhi.

 IPMA Environment Award – I prize for Environment conservation in 2006 for the

year 2005-06.

 Energy Conservation Award for the year 2002 & 2004 by ‘Indian paper makers

association’.

 Based on the Environment Management & cleaner technology adopted, CPP was

selected as a “Model unit” In the field of “Waste Minimization audit” by CPCB/NPC.

 Awarded “Eco-labeling” for copier paper from Baggase & some of the varieties of

writing & printing paper from Bagasse

We have identified and implemented 259 schemes in the last 3 years

with an investment of Rs 4495.93 lac. and resulting into a savings of Rs

2479 lac. The specific energy has a reducing trend.

Appreciating our efforts –

IPMA awarded us ENERGY CONSERVATION AWARD for the year 2002 – 03 &

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2003 - 04.

CII identified us as “Energy Efficient Unit “ for the year 2003-2004 & 2006-07

Awarded National Energy Conservation Award for 2003 – 04 and 2005-06 by

G.O.I.

CII identified us as “Energy Efficient Unit “ for the year 2007-2008

PROCESS DESCRIPTION:

The company four streets of production viz, W.P.P.Bagasse & Recycled fiber &

R.G.P, Streets. A wide variety of writing & printing paper is manufactured in W.P.P.

Baggase & recycled fiber streets & Rayon Grade pulp is manufactured in R.G.P,

Street.

The main steps in manufacturing paper/Rayon Grade pulp are as follows:

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 Chipping of the logs of bamboo, eucalyptus /poplar in W.P.P. street & eucalyptus in

R.G.P street to about 1 inch size chips & strong in chips silo.

 Baggase unloading, handling, depithing, pile building, reclaming &washing in

Bagasse street.

 COOKING:-sulphate process, In W.P.P. & RGP streets, vertical batch digestors (for

chips cooking) & in Bagasse street, continuous tube type digestor (for Baggase fibre

cooking) are in operation. The cooking process is carried out at preset temperature &

pressure in presence of cooking chemicals for specified cooking period.

 Removal of knots/uncooked/partially cooked portion of the material obtained from

digestors on knotters.

 Washing of pulp in brown stock washers to remove spent chemicals & organic

matters.

 Screening & cleaning of the pulp to remove impurities.

 Bleaching of the pulp based on the latest technology to attain final pulp brightness as

per requirement.

 Sizing & loading of pulp stock in the stock preparation section to achieve desired

qualities in final product.

 Paper sheet formation in sheeting machines (WPP & Baggase streets) equipped for on-

line quality products.

 Pulp sheet formation in sheeting machines in RGP street, equipped for on-line quality

products.
Production Process
CPP is the first large pulp and paper mill in India, who had not only floated the idea of

consuming bagasse for manufacturing Quality paper but also gave concrete base to its

idea in the form of Bagasse Unit. The Bagasse Unit of CPP was commissioned in early

32
1995 with a capacity of 211 TPD for manufacturing quality paper. The salient features of

bagasse unit are latest bagasse handling, pulping and paper making technologies.
1. Bagasse handling, moist depithing, pile building reclaiming  - Beloit UK.

and washing
2. Bagasse cooking continuous digester, cold blow to avoid  - Sunds

Emissions and to retain fiber strength.

3. Brown Stock Washing.  - HDO
4. Screening and cleaning  - Ahlstrom,Finland
5. Bleaching system based on C/D, E/O D sequence to attain  - Sunds, Sweden

final pulp brightness of +88 without affecting the strength

of pulp.

Bagasse:
 
Bagasse is received from the Sugar Mills either in bale form

or in loose form as per the requirement. Whole bagasse

from the sugar mill is available only in the sugar cane

crushing season which is stretched over a period of

maximum six to seven months only, whereas the process of

production of paper is continuous throughout the year.

Therefore, it is essential to store bagasse in a proper way so

as to make it available for paper making throughout the year

i.e. during off season without affecting the quality

 
Hence, the total amount of bagasse required for the production throughout the year is

carefully stored so that the production is not affected due to the shortage of bagasse.

33
Writing and Printing Paper Plant Process (WPP)
This integrated plant is based on Eucalyptus and Bamboo furnishes to produce paper

ranging between 45 to 210 gsm.

 
The best selected species of Eucalyptus and other hard wood/bamboo which is locally

available from nearby forest is used for pulping. Pulping process is conventional kraft

process. For high brightness and good strength pulp output latest technology of bleaching

sequences consisting of Hydrogen peroxide, chlorine dioxide & sulphur dioxide is used.

Pulp is further processed in highly sophisticated continuous stock preparation plant.

 
To cater to market requirement of reels and sheets facilities of winding, sheeting and

packing is available. The packing of reels & sheets is conforming to seaworthy standards

suitable for export.

The company has established a strong brand image in the domestic & oversees market

with excellent quality of its products & services & caters to diversified sectors like note

books & diaries, continuous stationary, copier, envelopes, offset printing, security papers,

industrial papers & viscose filament yarn & cell phone paper.

The company has been awarded golden status by DGFT. Govt. of India as golden star

trading house at the corporate level. The unit is ISO 9001:2008, ISO 14001:2004,

OHSAS 18001:2007 & ISMS (ISO 27001:2005) certified unit. The bagasse based

papers are eco labeled. Company’s main raw material Eucalyptus, poplar, bamboo,

Bagasse & waste paper. Company’s marketing policy is targeted to meet customers’

need & satisfaction. Presently the company is also exporting its paper to various

countries. The head office of the company is at Kolkata.

34
Company Product

CPP’s range of products includes some of the finest varieties of writing and

printing paper which has carved a niche in the market.

CPP also manufacturers raw material for viscose filament yarn/staple fiber

and also paper grade pulp.

A. Writing and Printing Papers (45 to 210 gsm)

(Wood based)

 Azurelaid
 Maplitho White/NS
 Maplitho Deluxe CG
 SS Maplitho
 Dye line base
 Offset printing paper
 Maplitho NS (ARSR)
 Century Parchment
 Super Printing
 Century Bond
 Railway Bond
 Copier
 Continuous Stationery (HB)
 Base Paper for coating
 Plain Paper
 Opaline Base Paper
 Overlay tissue
 Century Maplitho
 NCR Base Paper
 MICR Cheque Paper
 Color Ptg Paper
 Century Excel Ptg
 Century Index Paper

35
  Broke cover MF – Sticker Base
 

(Bagasse Plant) 

 Copier
 Super Maplitho white
 Super shine Printing
 Plain Paper / Writing Paper

B. Rayon Grade Pulp

C. Bleached Hardwood Pulp (Paper Grade) 

CPP range of products includes finest varieties of writing & printing paper, industrial

papers, specialty papers, security papers & copier papers from diversified range of raw

materials.

Century parchment, NCR base, Overlay tissue, wax match tissue, century index,

36
MICR cheque paper, buff pulp board, Railway bond, Azure-laid (ivory), MF book

cover(UV Fiber), maplitho, super white maplitho, super shine printing, base paper for

coating, sticker Base paper, Copier paper 75 gsm (ECO-MARK) are some of the

verities that have wide range of applications.

CPP also manufactures high quality dissolving rayon grade pulp, raw material for

viscose filament yarn/staple fiber & bleached hardwood paper grade pulp.

Rayon Grade pulp/paper grade pulp :

This fiber line manufacturers wood pulp with eucalyptus & popular furnish for

dissolving grade as well as paper grade application.

Century is one of the leading suppliers to rayon industry for viscose filament yarn

manufacture. The pulp also finds application as filler in melamine formaldehyde /urea

formaldehyde for making melmo ware/ electrical switches.

Writing & printing papers (wood based):

The integrated plant incorporates eucalyptus & bamboo furnish to produce papers

ranging from 40 to 210 gsm .The plant is equipped with two paper machines with a

total capacity of 110 TDP & manufactures some of the finest qualities of specialty

papers.

BAGGASE-Based papers:

37
 The plant incorporates modern, state –of- art machinery & technology & is based on a

completely environment-friendly concept. The salient features are a unique bleaching

sequence with chlorine –dioxide, oxygen enriched extraction stage along with enzyme

pre-bleaching, biotechnology application that the company has pioneered to

implement; & a comprehensive computer-aided control system. The high speed paper

machine is equipped with film press for on-line coating applications. The product

range includes fine varieties of writing & printing papers of 53-130 gsm including

copier.

Recycled fibre based paper:

A secondary fiber based plant manufacturing writing printing paper, DIP plant is

equipped with two stage flotation & two-stage bleaching. Latest technology

incorporated in this plant facilitates production of finest paper quality in this category.

The product range includes writing & printing papers of 52-130 GSM.

TISSUE PLANT:

Prime grade tissue plant of 100 TDP with hi-speed machine (2000 mpm) supplied by

Metso is equipped with latest technology to produce finest quality in this category.

The product range will include Facial, Napkin, Toilet, C-fold, & kitchen Towel etc, in

the range 13-40 gsm

Packing Details :-
 

38
Pulp Sheets of Size 80+ 60 cms. Packed in Bales with  

strong wropper & tied with steel wires by Automatic

Tying Machine. Bale Wt: 175 Kgs.

CPP is following IS specification for its entire range of

product. However, various properties can be custom

made to meet the customer requirement.  

Commitment to quality & service:

At century, quality is an all-pervasive commitment. We strive to continually improve

the quality of our products & a service, which has been, affirmed in the form of ISO

9001:2008 certifications to the company for its quality management system. The

company has been responsive to the changing market requirement & has developed

new quality products to care to the varying end uses.

Care for Environment:

Preserving & protecting the environment is a top priority at century. We are always

sensitive to our bio-diversity of the soil, water & air around us.

CPP’S power plant maintains an efficient system for reducing air emissions.

Electrostatic precipitators have been installed to remove particulates from recovery

boilers, coal fired boilers & lime kiln fuel gases.

In strict adherence to the standards & guidelines, the effluents are treated in a modern

ETP, which is recognized as a model plant for its efficiency & performance.

Company’s adoption of a systematic approach to the environment matters including

waste minimization, water recycling & re-use programs of by products has facilitated

39
the company in getting the ISO-14001:2004 certification for its environment

management system.

Company’s friendship with Environments has also reflected in its bagasse based paper

being licensed for eco labeling, a distinct honor to be attained.

Power Block:

Power house has 8 coal fired boilers & three turbines .The turbines are of 6.8 mw

BHEL TG set (Extraction back pressure),21 MW TDK TG set (double extraction

condensing type)& 16 MW BHEL Turbine.

Towards sustainable development:

Caring for the community:

Century cares for the community at large & strives to be a good corporate & social

citizen. We actively contribute to the community development of the areas in our

surroundings & regularly conduct medical camps, undertake construction work of

schools, drinking water facilities, self-employment schemes etc.

Marching Ahead:

The company has embarked on a prestigious expansion program to install a modern

450TDP fiber line (ECF) & 500TDP multilayered board plant along with 44 MW

turbine & chemical recovery boiler.

Technology

40
  
Writing & Printing Paper Plant (WPP)
   
Capacity - 37250 TPA

Integrated Pulp & Paper Unit based on

Eucalyptus & Bamboo Furnish.

Two Paper Machines equipped with size  

press.
 

- 45-210
Paper Grammage Range

 Machine deckle - 2.69 Meters
 Rewinders  - Jagenberg
 R/W speed  - 1000 m/min
 Cutters - 1.45 m width with 200 m/min. speed
 

Bagasse Paper Plant :-

 
CPP has recently commissioned Bagasse Paper Plant to manufacture 211 TPD

quality papers based on Bagasse furnish. The salient features of the project are

the latest pulping technology involving oxygen bleaching and a comprehensive

computer-aided control system.

Bagasse handling, depithing, pile  - Beloit Corporation, U.K.


building Reclaiming &

Washing.
 Bagasse cooking: continuous  - Sunds Defibrator, Sweden

digester cold Blows to avoid

41
 emissions and to retain Fiber

strength.
 Brown stock washing& -
Hindustan Door-Oliver
deckering.
 Screening & Cleaning  - AhlstromCorpn.Finland
 Bleaching System based on  - Sunds Defibrator, Sweden

D/C-E/O–D Sequence to attain

final pulp brightness of 88(+). 

 Paper Machine  - Equipped with Film-Press for on-line coating

Voith-Sulzer, Germany
 Capacity  - 84600 TPA
 Deckle  - 5.2 MTR
 Qualities  - Fine varieties of writing & printing paper53-

130 GSM including light weight coated

varieties copier.
 Slitters & Cutters  - Jagenberg, Germany
 
Rayon Grade Paper Plant/Paper Grade Pulp
 
 Based on Eucalyptus furnish
 Bleaching sequence includes Chlorine-Di-Oxide treatment.
 Sheeting Machine with 105 TPD capacity (Carmano, Italy)
 Deckle 2.4 Meters with on-machine cutters and Bailing Press.
 
Power Block
 
 3 Nos. AFBC Coal - 23T/Hr (47 at, 420° C)

Fired Boilers
 1 No. Spreader - 25T/Hr (47 at, 420° C)

Stroker Coal Fired

 2 Nos. AFBC Coal - 50T/Hr each (53 at, 480° C)

Fired Boilers
 BHEL Recovery - 325 Tons/day dry solids (47 at, 420° C)

Boiler
 ABL Recovery - 350 Tons/day dry solids (63 at, 480° C)

42
 Boiler
 6.8 MW BHEL TG - Extraction Back Pressure

Set
 21 MW TDK TG Set - Double Extraction, Condensing
 DG Sets - 3 x 1450 KVA
 Grid Power available - 10 MVA at (Maximum demand)

132 KVA
 Producer Gas Plant - An innovation and pioneering project

implemented to substitute RFO in Lime Kiln.

 
CPP has also undertaken a project to generate green power by installation of a

Boiler dedicated on Bio-fuels.

 

Quality Control

43
Century Pulp and Paper, Lalkua has well organized laboratory

equipped with modern pulp and paper testing equipments

including Auto line from L&W Sweden, Qualified and

experienced staff manage the quality control department.

For all inputs fibrous/non fibrous, in-process material (digester

section, bleaching section, stock preparation); finished material

 
(Paper/Pulp) at paper machine rewinders/cutters, finishing house

and Godowns, standards/ specifications are followed as per

guidelines of ISO-9001:2000) quality system (quality Inspection

Plant).
 
Inputs and Finished product is allowed only after conforming to standards. Testing/analysis

is carried out as per TAPPI/ISO standard.

 
A separate customer cell has been formulated to redress customer grievances and recourse to

quick solutions. This cell understands changing needs of customers, caries out periodical

market research to improve customer-choice process and also monitors competitor moves.

DISTRIBUTION CHANNEL

A distribution channel is a method of getting a product to its consumer. Distribution channels

are part of a company's marketing mix. A marketing mix refers to each business' unique

combination of product, price, promotion and place. Distribution affects the place or path

44
through which consumers can buy and receive the product. A distribution channel may be an

on-site store, a virtual store, a retailer, a wholesaler, an agent, a telemarketer or direct mail.

DISTRIBUTION CHANNEL

 A channel is a distribution for a product and it is the route by the help of which the

goods are move from the producers to the ultimate uses.

 According to the AMA “The structure of intra company organization and extra

ordinary company agents and dealers, wholesalers and retailers, through which a

commodity, product or services is marketed.

 Marketing channel are the set of interdependent organization involved in the process

of making a product or services available for the use or consumption.

Distribution Channels

• A distribution channel is a set of independent organizations involved in the process

of making a product or service available to the consumer or business user

• Used to move the customer towards the product

Why Use Marketing Intermediaries

• Selling through wholesalers and retailers usually is much more efficient and cost

effective than direct sales

Distribution channels move products and services from businesses to consumers and to other

45
businesses. Also known as marketing channels, channels of distribution consist of a set of

interdependent organizations—such as wholesalers, retailers, and sales agents—involved in

making a product or service available for use or consumption. Distribution channels are just

one component of the overall concept of distribution networks, which are the real, tangible

systems of interconnected sources and destinations through which products pass on their way

to final consumers. As Howard J. Weiss and Mark E. Gershon noted in Production and

Operations Management, a basic distribution network consists of two parts: 1) a set of

locations that store, ship, or receive materials (such as factories, warehouses, retail outlets);

and 2) a set of routes (land, sea, air, satellite, cable, Internet) that connect these locations.

Distribution networks may be classified as either simple or complex. A simple distribution

network is one that consists of only a single source of supply, a single source of demand, or

both, along with fixed transportation routes connecting that source with other parts of the

network. In a simple distribution network, the major decisions for managers to make include

when and how much to order and ship, based on internal purchasing and inventory

considerations.

In short, distribution describes all the logistics involved in delivering a company's products

or services to the right place, at the right time, for the lowest cost. In the unending efforts to

realize these goals, the channels of distribution selected by a business play a vital role in this

process. Well-chosen channels constitute a significant competitive advantage, while poorly

conceived or chosen channels can doom even a superior product or service to failure in the

market

MULTIPLE CHANNELS OF DISTRIBUTION

For many products and services, their manufacturers or providers use multiple channels of

46
distribution. A personal computer, for example, might be bought directly from the

manufacturer, either over the telephone, direct mail, or the Internet, or through several kinds

of retailers, including independent computer stores, franchised computer stores, and

department stores. In addition, large and small businesses may make their purchases through

other outlets.

Channel structures range from two to five levels. The simplest is a two-level structure in

which goods and services move directly from the manufacturer or provider to the consumer.

Two-level structures occur in some industries where consumers are able to order products

directly from the manufacturer and the manufacturer fulfills those orders through its own

physical distribution system. In a three-level channel structure retailers serve as

intermediaries between consumers and manufacturers. Retailers order products directly from

the manufacturer, and then sell those products directly to the consumer. A fourth level is

added when manufacturers sell to wholesalers rather than to retailers. In a four-level

structure, retailers order goods from wholesalers rather than manufacturers. Finally, a

manufacturer's agent can serve as an intermediary between the manufacturer and its

wholesalers, creating a five-level channel structure consisting of the manufacturer, agent,

wholesale, retail, and consumer levels. A five-level channel structure might also consist of

the manufacturer, wholesale, jobber, retail, and consumer levels, whereby jobbers service

smaller retailers not covered by the large wholesalers in the industry.

BENEFITS OF INTERMEDIARIES

If selling directly from the manufacturer to the consumer were always the most efficient

methodology for doing business, the need for channels of distribution would be obviated.

47
Intermediaries, however, provide several benefits to both manufacturers and consumers:

improved efficiency, a better assortment of products, routinization of transactions, and easier

searching for goods as well as customers.

The improved efficiency that results from adding intermediaries in the channels of

distribution can easily be grasped with the help of a few examples. Take five manufacturers

and 20 retailers, for instance. If each manufacturer sells directly to each retailer, there are 100

contact lines—one line from each manufacturer to each retailer. The complexity of this

distribution arrangement can be reduced by adding wholesalers as intermediaries between

manufacturers and retailers. If a single wholesaler serves as the intermediary, the number of

contacts is reduced from 100 to 25: five contact lines between the manufacturers and the

wholesaler, and 20 contact lines between the wholesaler and the retailers. Reducing the

number of necessary contacts brings more efficiency into the distribution system by

eliminating duplicate efforts in ordering, processing, shipping, etc.

In terms of efficiency there is an effect of diminishing returns as more intermediaries are

added to the channels of distribution. If, in the example above, there were three wholesalers

instead of only one, the number of essential contacts increases to 75: 15 contacts between

five manufacturers and three wholesalers, plus 60 contacts between three wholesalers and 20

retailers. Of course this example assumes that each retailer would order from each wholesaler

and that each manufacturer would supply each wholesaler. In fact geographic and other

constraints typically eliminate some lines of contact, making the channels of distribution

more efficient.

Intermediaries provide a second benefit by bridging the gap between the assortment of goods

and services generated by producers and those in demand from consumers. Manufacturers

48
typically produce large quantities of a few similar products, while consumers want small

quantities of many different products. In order to smooth the flow of goods and services,

intermediaries perform such functions as sorting, accumulation, allocation, and creating

assortments. In sorting, intermediaries take a supply of different items and sort them into

similar groupings, as exemplified by graded agricultural products. Accumulation means that

intermediaries bring together items from a number of different sources to create a larger

supply for their customers. Intermediaries allocate products by breaking down a

homogeneous supply into smaller units for resale. Finally, they build up an assortment of

products to give their customers a wider selection.

A third benefit provided by intermediaries is that they help reduce the cost of distribution by

making transactions routine. Exchange relationships can be standardized in terms of lot size,

frequency of delivery and payment, and communications. Seller and buyer no longer have to

bargain over every transaction. As transactions become more routine, the costs associated

with those transactions are reduced.

The use of intermediaries also aids the search processes of both buyers and sellers. Producers

are searching to determine their customers' needs, while customers are searching for certain

products and services. A degree of uncertainty in both search processes can be reduced by

using channels of distribution. For example, consumers are more likely to find what they are

looking for when they shop at wholesale or retail institutions organized by separate lines of

trade, such as grocery, hardware, and clothing stores. In addition, producers can make some

of their commonly used products more widely available by placing them in many different

retail outlets, so that consumers are more likely to find them at the right time.

Distribution Channel Functions

49
Information → Gathering & distributing marketing resear about the environment

Promotion → Developing & spreading persuasive Communication about an offer

Contract → Findings & communicating with prospective Buyers

Matching → Shaping & fitting the offer to the buyers need

Negotiation → Agreeding on price & terms of the offer so Ownership or possession can

be transferred

Physical → Distribution: transporting & storing goods

Financing → Acquiring & using funds to cover the cost Of channel work

Risk taking → Assuming financial risks such as the inability to sell inventory at full

margin.

Number of Channel Levels

50
Channel Level - Each Layer of Marketing Intermediaries that Perform Some Work in

Bringing the Product and its Ownership Closer to the Final Buyer.

1- 0 level channel – Direct

Producer → consumer

3- 1-level channel

Producer → Retailer → consumer

5- 2-level channel

Producer → wholesaler → retailer → consumer

7- 3-level channel

Producer → wholesaler → jobber → retailer → consumer

CHANNEL OF DISTRIBUTION FOR CONSUMER

51
PRODUCTS

 ZERO LEVEL CHANNEL (BATA, EUKEKA FOBES)

 ONE LEVEL CHANNEL ( TITAN WATCHES)

 TWO LEVEL CHANNEL ( LML, BAJAJ, KWALITY ICE CREAM)

 THREE LEVEL CHANNEL ( COLGATE, CLOSEUP )

52
DISTRIBUTION CHANNEL FOR THE SERVICES

PRODUCER OF SERVICES

↓ AGENTS

↓
ULTIMATE CONSUMERS OR BUSINESS USERS

53
54
55
E.g. Distribution Channel Of Agriculture Sector

56
Parallel Distribution: Most manufacturers find it useful to go through at least one

wholesaler in order to reach the retailer, and it is simply not efficient for Colgate to sell

directly to pathetic little "mom and pop" neighborhood stores. However, large retail chains

such as K-Mart and Ralph’s buy toothpaste and other Colgate products in such large volumes

that it may be efficient to sell directly to those chains. Thus, we have a "parallel" distribution

network whereby some retailers buy through a distributor and others do not. Note that we

may also be tempted to add a direct channel—e.g., many clothing manufacturers have factory

outlet stores. However, note that the full service retailers will likely object to being

"undercut" in this manner and may decide to drop or give less emphasis to the brand. It may

be possible to minimize this contract by precautions such as (1) having outlet stores located

in vacation areas not within easy access of most people, (2) presenting the merchandise as

being slightly irregular, and/or (3) emphasizing discontinued brands and merchandise not

sold in regular stores.

57
58
Channel Management and Conflict:

Vertical integration. Generically speaking, products may come and reach consumers

through a chain somewhat like this:

Raw materials ---> component parts ---> product manufacturing

---> product/brand marketing ---> wholesaler ---> retailer

---> consumer

Money can be made at each stage in the chain and it may be tempting for firms to try to get

into all aspects. For example, Henry Ford wanted to make all the components for his own

cars, so Ford tried to run its own rubber plantation with limited success. The temptation to try

to expand vertically can be especially strong when an industry faces limited growth and thus

presents limited opportunities for reinvestment into traditional operations (e.g., if the auto

industry is not growing as much as desired, one way to reinvest profits, rather than having to

pay them back to stockholders who would then have to pay taxes on the dividends, might be

to buy steel mills. The problems, however, is that the management is not used to running

such businesses and that managerial time will be spread among more areas.

59
Distribution Objectives:

Objectives: A firm’s distribution objectives will ultimately be highly related—some will

enhance each other while others will compete.  For example, as we have discussed, more

exclusive and higher service distribution will generally entail less intensity and lesser reach. 

Cost has to be traded off against speed of delivery and intensity (it is much more expensive

to have a product available in convenience stores than in supermarkets, for example).

Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs.

wide (intense) distribution depends on a number of factors.  One issue is the consumer’s

likelihood of switching and willingness to search.  For example, most consumers will switch

soft drink brands rather than walking from a vending machine to a convenience store several

blocks away, so intensity of distribution is essential here.  However, for sewing machines,

consumers will expect to travel at least to a department or discount store, and premium

brands may have more credibility if they are carried only in full service specialty stores.

Retailers involved in a more exclusive distribution arrangement are likely to be more

“loyal”—i.e., they will tend to

  Recommend the product to the customer and thus sell large quantities;

  Carry larger inventories and selections;

60
   Provide more services

Thus, for example, Compaq in its early history instituted a policy that all computers must be

purchased through a dealer.  On the surface, Compaq passed up the opportunity to sell large

numbers of computers directly to large firms without sharing the profits with dealers.  On the

other hand, dealers were more likely to recommend Compaq since they knew that consumers

would be buying these from dealers.  When customers came in asking for IBMs, the dealers

were more likely to indicate that if they really wanted those, they could have them—“But

first, let’s show you how you will get much better value with a Compaq.”

Distribution opportunities:  Distribution provides a number of opportunities for the

marketer that may normally be associated with other elements of the marketing mix.  For

example, for a cost, the firm can promote its objective by such activities as in-store

demonstrations/samples and special placement (for which the retailer is often paid). 

Placement is also an opportunity for promotion—e.g., airlines know that they, as “prestige

accounts,” can get very good deals from soft drink makers who are eager to have their

products offered on the airlines.  Similarly, it may be useful to give away, or sell at low

prices, certain premiums (e.g., T-shirts or cups with the corporate logo.)  It may even be

possible to have advertisements printed on the retailer’s bags (e.g., “Got milk?”)

Other opportunities involve “parallel” distribution (e.g., having products sold both through

conventional channels and through the Internet or factory outlet stores).  Partnerships and

joint promotions may involve distribution (e.g., Burger King sells clearly branded Hershey

pies).

61
Deciding on a strategy:  In view of the need for markets to be balanced, the same

distribution strategy is unlikely to be successful for each firm.  The question, then, is exactly

which strategy should one use?  It may not be obvious whether higher margins in a selective

distribution setting will compensate for smaller unit sales.  Here, various research tools are

useful.  In focus groups, it is possible to assess what consumers are looking for an which

attributes are more important.  Scanner data, indicating how frequently various products are

purchased and items whose sales correlate with each other may suggest the best placement

strategies.  It may also, to the extent ethically possible, be useful to observe consumers in the

field using products and making purchase decisions.  Here, one can observe factors such as

(1) how much time is devoted to selecting a product in a given category, (2) how many

products are compared, (3) what different kinds of products are compared or are substitutes

(e.g., frozen yogurt vs. cookies in a mall), (4) what are “complementing” products that may

cue the purchase of others if placed nearby.  Channel members—both wholesalers and

retailers—may have valuable information, but their comments should be viewed with

suspicion as they have their own agendas and may distort information.

62
 Function of Distribution Channel

 Gather information about the potential and current customer, competitors and other
forces in the marketing environment.

 Develop the persuasive communication to stimulate the purchasing.

 Helpful in communication.

 Matching in the process of demand and supply

 Helpful in marketing research.

 Movement of the physical goods.

 Promote the products.

 Sell the product through personal presentation

 Service products and provide advice on their uses required.

 Creates three types of utilities:

Place utility, Time Utility, Ownership utility

63
 STRATEGIES TO COVER THE MARKET

 (A) Intensive Distribution

 Maximum market coverage, maximum exposure for the product.

 Used for the convenience product. (Cigarettes, chewing gum, etc.)

 In this buyer are unwilling to spend much time for shopping.

 Intensive distribution is a form of distribution in which the manufacturer distributes

his products through as many outlets as possible.

 Products like chocolates, biscuits, shaving blades, soaps and detergents are

distributed in this manner, so that they are easily available to the customers at their

nearest locations.

EXCLUSIVE DISTRIBUTION

 Exclusive distribution is a form of distribution in which there are a limited number of

intermediaries between the producer and the customer.

 This type of distribution network is opted for by producers who want to deliver the

maximum service quality to the customers.

 By limiting the number of distribution outlets, the manufacturer or producer can

control the quality levels at these outlets.

 An exclusive distribution arrangement also helps the producers ensure that the

64
 distributors do not sell competing products along with the producer’s products.

 Products that are marketed through the exclusive distribution process have a higher

brand value and are naturally priced higher.

 Automobiles, apparels and its accessories are sold through exclusive distributorship.

SELECTIVE DISTRIBUTION

 This form of distribution falls somewhere in between the two extremes of exclusive

and intensive distribution.

 In this form of distribution, although the manufacturer does not use all the available

marketing channels, he uses more than one distribution channel.

 As the manufacturer uses a relatively fewer number of distribution channels, he can

maintain good relations with the channel members and as a result, expect an

increased marketing effort from them.

 Branded menswears like Color Plus, Arrow, Zodiac, Lee and so on are available at

exclusive showrooms as well as through other distribution channels.

 Similarly, in the branded suitcase or luggage market, VIP, Aristocrat, etc., sell their

products at exclusive showrooms as well as at other retail outlets.

Channel Organization

• A vertical marketing system (VMS) consists of producers, wholesalers, and retailers

acting as a unified system

One channel member either owns the others, has contracts with them, or

wields so much power that they all cooperate

65
Conventional vs. Vertical Marketing Channels

66
Vertical Marketing Systems

• Corporate VMS combines successive stages of production and distribution under

single ownership

• Administered VMS coordinates successive stages of production and distribution

through the size and power of the parties

• Contractual VMS consists of independent firms at different levels of production and

distribution who join through contracts to obtain economies or sales impact

67
 Channel Conflict

• Horizontal conflict is conflict between firms at the same level of the channel

i.e. retailer to retailer

– Vertical conflict, which is more common, refers to conflicts between different

levels of the same channel

– i.e. retailer to wholesaler

Path or 'pipeline' through which goods and services flow in one direction (from vendor to the

consumer), and the payments generated by them flow in the opposite direction (from

consumer to the vendor). A distribution channel can be as short as being direct from the

vendor to the consumer or may include several inter-connected (usually independent but

mutually dependent) intermediaries such as wholesalers, distributors, agents, retailers. Each

intermediary receives the item at one pricing point and moves it to the next higher pricing

point until it reaches the final buyer. Also called channel of distribution or marketing

channel.

68
A THEORETICAL FRAME WORK OF CHANNEL OF

DISTRIBUTION

“Marketing channels are sets of interdependent organization involved in the

process of making a product or service available for use or consumption.”

The main objective of the marketing process is to distribute the products to the actual

users. This function involves a number of sub-functions to be performed by a producer or

manufacturer. These two functions are most important first, the creation of demand is made

through the process of advertising and sales promotion activities. On the other hand the

distribution through the channels of distribution. The decision relating to the channel of

distribution is a very important decision from the firm point of view because the selected

channels affect considerable other marketing decision. Such decisions are of long term nature

and exercise their impact on the cost structure of the firm also.

By channel distribution mean the intermediaries or the process through which the

goods products are transferred from the producer to the ultimate users.

69
 Now a day any of the producers possibly do not sell their goods directly to the final

users. There are a lot of intermediaries between producers and consumer, bearing a variety of

name performing various kinds of function. Some intermediaries like wholesalers and

retailers buy and resale taking the bill. They are known as merchant middle men and other

are brokers, representative sales agent who seeks or search for customers and negotiate on

the behalf of the producer but do not take of goods. These are called as middlemen.

The manufacturer and its distributive outlets share common objective to sell the

manufactured products at a profit. No doubt its objective differs with the marketing

circumstance. Even though many variation of specific objective fits into some categories.

These are as follows:-

 To built distribution network loyalty

 To stimulate distribution

 To develop managerial efficiency in distribution organization

DECISION MAKING FOR CHANNEL OF

DISTRIBUTION

The marketing executive must undertake to following steps in order to establish

the channel of distribution for a company.

1. He/She must understand the retail and wholesale market and type of middlemen

available in both.

2. He/She must understand the various conflicts which continually exist between and

within the channel.

3. He/She must select the general channel to be used keeping in mind the goals of

the company marketing programme and the job to be done by distribution system.

70
 4. He/She must take decision regarding be intensity of the distribution (i.e. the

number of middlemen) to be used each level and each market.

5. He/She must select the specific firms which will handle his product and then

manage the day to day working relationship with them.

He/She must determine the methods and the procedure in firms (i.e. use of the transportation

and warehouse facilities and services in firms making programme) in the physical

distribution of the product.

Types of Marketing Channels

1. Direct marketing channel: A marketing channel that has no intermediaries’ level

2. Indirect marketing channel : Channels containing one or more intermediaries

Customer Marketing Channels

Channel 1.

Manufacturer………………………………………………..…Consumer

Channel 2.

Manufacturer……………Retailer……………………………Consumer

Channel 3.

Manufacturer……...Wholesaler………….Retailer…………Consumer

Channel 4.

Manufacture…….Wholesaler……Jobber……Retailer…….Consumer

71
 TYPE OF CHANNEL LEVELS USED BY CPP INDUSTRIES

Century pulp & paper industries mainly uses two types of distribution channel to cater their

product viz :

The channels used by CPP are one level channel & two level channel.

Via one level distribution channels what the company does is that it distributes the paper

products to different dealers in different zones & these distributers than distribute goods to

the retailers & various organizations or institutions who themselves are final consumers.

The company also uses two level channel of distribution so as to catter its products among

ordinary customers like us, who do not use the product in excess.viz.

CENTURY PULP &PAPER IND.

KANSAL TRADERS
(DEALER) BHARGAVA
STATIONERS.
(RETAILER)

72
Special parameters taken into consideration by the company while deciding a distribution

channel:

SALES TAX: Govt. of India generally takes 10% sales tax (central sales tax) on the

goods from dealers. Dealer is provided with “form c” if he fulfills the norms against it. Then

central government takes 4% (central sales tax on goods.)

Local sales tax: Generally 8% tax is tax is taken by state government from the dealers.

But if the dealer is capable enough of submitting”Form-3b” to the paper company ,the sales

tax imposed on to the dealer by state government reduces down to only 2.5%.

EXCISE DUTY: The central government takes excise duty on the finished goods at the

time of sales, basic excise duty (BAD) is charged as 16% of the value of finished paper

products of the company ready to use, at present.

Also called (CENVAT) central value added tax.

However it was interesting for me to know that no excise duty is charged for the pulp

manufactured in the plant, it is because pulp is been considered as semi-finished good. No

excise duty is charged on export of pulp.

It is also to be noted that CENTURY PULP & PAPER INDUSTRIES, is also involved in

export of fine quality pulp & it generates huge revenue via pulp sales.

73
DISTRIBUTION- NETWORK OF CPP INDUSTRIES

Before we focus on distribution network of CPP industries, we would first discuss what

actually a distribution system refers to.

Distribution network is a network & integrated system of channels through which flow of

goods & services takes place from producer to consumer smoothly.

Now ,discussing about the Century pulp & paper industries, there are various dealers which

directly get the paper from mill on behalf of quotation made by them & send it to various

converters & their consignees or parties by placing order, indents & invoices as issued by the

company, from where it reaches to the end users.

Specimens of these are mentioned in the Annexure attached with the research report.

74
TYPE O

RESEARCH METHODOLOGY

RESEARCH
OBJECTIVE

RESEARCH
DESIGN.

DATA SOURCES (SAMPLING

PLAN &RESEARCH
INSTRUMENT.)

DATA COLLECTION.

75
 DATAOBJECTIVE
RESEARCH ANALYSIS.

Every research has an ultimate objective to be fulfilled. A research without objective is

worthless.

Research process is actually that vital framework under which we plan the whole structure of

the work to be done which involves-identifying the research problem, making appropriate

plans, collection of data, data

analysis, preparation of questionnaires, studying the market & finally drawing a conclusion &

achieving the research objective.

RESEARCH

The word research derives from the French recherche, from rechercher, to search closely

where "chercher" means "to look for or to search".

Research can be defined as the search for knowledge or as any systematic investigation to

establish facts. The primary purpose for applied research (as opposed to basic research)

is discovering, interpreting, and the development of methods and systems for the advancement

of human knowledge on a wide variety of scientific matters of our world and the universe.

Research can use the scientific method, but need not do so.

76
Research methods

The goal of the research process is to produce new knowledge, which takes three main forms

(although, as previously discussed, the boundaries between them may be obscure.):

1. Exploratory research, which structures and identifies new problems

2. Constructive research, which develops solutions to a problem

3. Empirical research, which tests the feasibility of a solution using empirical evidence

RESEARCH DESIGN

Research design is a framework or a statement describing the research problem clearly, it

highlights on those procedures & techniques which are to be used for gathering information,

processing it & analyzing the Data collected .Research design also describes those

mathematical & Statistical tools which are to be used & are helpful further in the research

work.

A good research design covers each & every aspect of the Research work. It is actually a

blueprint of how the research work would be successfully accomplished, how the data will be

collected & from where.

77
  TWO MAJOR TYPES OF RESEARCH DESIGN--

EXPLORATORY
RESEARCH DESIGN.

RESEARCH DESIGN

CONCLUSIVE
RESEARCH DESIGN.

78
 EXPLORATORY RESEARCH DESIGN:

Exploratory research design describes the whole problem in a brief & concise form.

This research design is helpful to those research works where sample size is indefinite

& the research work is not too much analytical. Through exploratory research design

the researcher through various data collection regarding the problem, descriptive market

study, & by analyzation of the data’s collected can draw a conclusion.

This research design mainly focuses on to the highlighted factors of the research

problem & covers all the theoretical aspects been involved into it.

 CONCLUSIVE RESEARCH DESIGN :

One of the major research design is conclusive research design, which focuses on to the

problem deeply, describes each & every aspect of the problem & finally helps in

drawing the conclusion via detailed analyzation of data, application of various

mathematical &statistical tools which gives an accurate measure.

Conclusive research design is helpful in solving those research problems where the

sample size is definite, numerical data collected is accurate up to standards.

79
 DATA COLLECTION:

PRIMARY DATA: These are the first hand information’s collected via some

source or through observation, the primary data may be collected through conducting

any survey, interviewing sample units directly through questionnaire, or conducting a

telephonic or electronic survey.

QUESTIONAIRE: It can be recognized as a schedule with a particular

formalized Set of questions prepared specifically so as To conduct various interviews

by the help of which the respondents respond towards the questions is adjudjed. It is

widely used in consumer & industrial marketing research Analysis.

SECONDRY DATA: Secondary data is the data which is readymade i.e.

. data which is already available in usable form.

Such as blog reports, magazines, newspapers etc.

VARIOUS TYPES OF SECONDRY DATA’S USED BY ME DURING THE

STUDY INCLUDES:

 LITERATURE OF CENTURY PULP & PAPER.

 LITERATURE FROM PUBLISHED MAGZINES OF B.K BIRLA

GROUP OF COMPANIES.

 LITERATURE ON (CPP) WEBSITE.

80
 DISCRIPTIVE RESEARCH DESIGN

Along with the exploratory research some descriptive research was used in the study of

marketing strategies for the sales of companies’ product also studying about the various

parameters which affect the competitiveness of companies’ major product (COPIER PAPER).

Sampling technique : Snow ball sampling has been used for the purpose of studying the

dealers & retailers as it helped in locating the dealers who were presently engaged in the sales

of CPP products &Convenient sampling method was used for dealers in distant places as

accessibility emerged as a problem in these locations.

Sampling unit: sampling unit defines the target population that was being sampled

together for carrying out the research. It included both dealers & retailers.

Sampling size: So as to conduct the study on market & distribution network system of CPP

(century pulp & paper) some regions of Uttarakhand (Kashipur, Haldwani, Rudrapur) were

selected, also Moradabad (U.P.) was selected by me to collect the relevant data from market.

Sample size taken is 57(in all) …… [retailers+dealers+distributers]

81
RESEARCH INSTRUMENTS:

1. Direct Interviews.

2. Questionnaires.

3. Telephonic interviews.

OBJECTIVES OF RESEARCH

1. The major objective of the research is to find out the market potential of century

industries product line.

This will help to know that what are the prospective of century as a whole & will also give

an idea about its credibility, customer’s point of view & stability; apart from all these it will

help me to analyze the upcoming future of the company.

2. To know about the demand & consumption of the products manufactured in the unit &

thereby getting an idea about market forecast.

The paper market is huge & variety of product mix has been found which serve the

purpose industrial users & the ordinary customers like us as well. Through this

knowledge about the verities of products & their demand in the scenario can be

identified. Also the state of consumption of these products will also give a focus on the

target market customer’s taste & preferences & the current status of the paper industry

in the globalized world.

82
3. Another major objective is to get aware about the distribution network & the marketing

channels of CPP industries.

Every manufacturer needs a link with the consumer to sell its product. The vast laid net of

market intermediaries from the link is called distribution scheme trade channel, or

sometimes the dealer’s network.

Channel is a comprehensive term used to denote the group of agencies or intermediaries,

who help to deliver the products from producer to consumer.

The manufacturer’s choice of selecting the type of channel & the number of dealers depend

on various criteria’s.

Marketing channel can be vied as set of interdependent organization, involved in the

process of marketing the product or service available for consumption.

Thus by these objectives an idea about the networking through dealers to reach the end

customers is surveyed & analyzed.

4. To study & analyze the buying behavior of consumers towards CPP brand as compared

with similar product of some other companies, thus understanding the consumer

acceptance of the products.

83
 SCOPE

The scope of market study of CENTURY PULP & PAPER INDUSTRIES. Is vast.

It helped me to know about the market trend, demands & consumption patterns, future

prospects in terms of potential growth, consumer taste & buying behavior for the CPP

product & other aspects related to channel & network i.e.-distribution, at the same time

some bottlenecks & loopholes in the entire process could also be taken into consideration

for the solutions as well as betterments,

Also the following few aspects could be taken care off through this research study:-

 To study & adjudge the relationships & association among

 To study the distribution network of Century Pulp & Paper Industries. The dealer &

company.

 Identifying those attributes on the basis of which the dealer selects the products of

CPP. (mainly Copier paper-the major product).

 To know about the credit policy of the company.

 Popularity of company products among customers.

 To analyze the order quoted by the dealer & its fulfillment made by the company.

 To find out the response of the dealers towards the brand.

DATA ANALYSIS & PRESENTATION:

84
  RETAILERS.

 DEALERS.

RETAILERS: Sample size of retailers is 50; it includes retailers in the nearby cities such as

Haldwani, Kashipur, Rudrapur, Moradabad, Almora.

For the purpose of analysis percentages has been obtained by simple calculation of equation &

percentages.

For e.g. if 40out of 50 respondets response for “yes” & rest 10 for “no”, then solution will be

obtained by:

40/ 50 * 100

10/50 * 100

DEALERS: sample size of dealers is 7, for the analysis purpose a percentage has been

obtained by simple calculation of equation & percentages.

For e.g. ,if 5 out of 7 respondents responds for “yes” & rest 2 for no then, solution would be

obtained by:

5/7 * 100.

2/7 * 100.

RETAILERS RESPONSES

85
1. Since how long are you associated with the dealers of CPP Industries?

a) >4 years b) >8 years c)>12years d)>16 years.

2. Are advertisements required to serve the purpose better?

a) Yes b) No

30%
YES
NO.
1
2

70%

3. Type of Distribution network?

a) Contract marketing b) Direct mktg.

20%
Contract mktg.
Direct marketing
1
2

80%

4. Which type of consumer responses forwards the products of CPP?

a) Highly positive b) Positive c) Moderate d) Negative.

86
 10%
Highly positive moderate
14%
42%
Negative

positive 34%

5. Which of the quality attributes for writing & printing paper you?

prefer most in terms of customer preferences?

a) Smoothness b) Brightness c) Bulk d) Opacity.

bulk smoothness
14%
26%

1
20%
2
3
brightness 4

40%

opacity

6. Which problem have you generally faced with w.p.p. papers?

a) See thoroughness b) Poor ink absorbancy c) Creasing d) Other.

87
 other 10%

30%
16%
See thoroughness poor 1
2
Ink absorbancy.
3
4

44%

creasing

7. Who are your frequent consumers?

a) Corporate professionals b) Govt. officers c) Schools&institutions

d) Students.

Schools &10%institutions
Govt.offices
36%
20% 1
2
Students. 3
4

34%

Corporate professionals

88
8. Which w. p.p. you prefer most?

a) Cpp b) JK paper C) Andhra papers d) Orient

e) Ballapur

18% 10%
ANDHRA
20%
10%
OTHER ORIENT PAPERS CPP

14%
16%
12%

HPC BALLARPUR JK

9. Do the CPP dealer provide you with some discount policies or schemes

sometimes?

a) Yes. b) No.

YES
36%

64%

NO.

10. The current packaging of CPP products attractive & safe?

89
 Preferences of attributes towards packaging:

a) Attractive b) Protective c) Both

18%

ATTRACTIVE
1
BOTH
2
22% 3
60%
PROTECTIVE.

1. Any suggestions to protect against future threats?

a) Advertisement b) Quality improvement c) Promotional offers.

34% Advertisement
Quality 44% 1
Improvemt 2
3

22%

Promotional
Offer.

DEALERS

90
1. Allocated size of quota by the CPP industries to dealers: (D denotes dealer)

1250

MT 1150MT 700mt 350MT 100mt 300MT 400MT

D1 D2 D3 D4 D5 D6 D7

2 .Approximately more than 50 % dealers were having at least 1godown & at maximum

2 godowns.

1 godown 43%
1
2
57% 2 godowns

Type of godowns available with dealers:

a) Personnel b) Hired

91
 29%
Personnel
Hired. 1
2

71%

3. How do you receive the order from customer’s /retailers? how

frequently?

a) Weekly b) Fortnightly c) Monthly d) Once (in a whole year).

92
 weekly
monthly 43%
1

2
57%

4. How do you keep in touch with retailers? What is the mode of

Solving retailer queries & receiving feedback?

a) Via-telephone b) Direct visit c) Others.

Direct
Visit.
43%
Telephone 1

2
57%

5. Are you satisfied with the services provided by the company?

a) Yes b) No

93
NO

20%

80%

YES. YES

94
 THE INDIAN PAPER INDUSTRY

INDUSTRY SALES OPERATON NO.OF MILLS PRODUCTION SHARE %

Large integrated 101-108(avg.300) 33 36

Wood based

Medium agro based 50-100(avg.60) 165 29

Small waste paper 05-15(avg.15) 510 35

Total 708 100

ANNUAL POTENTIAL OF AGRO BASED FIBERS IN INDIA

95
 AGRO RESIDUE AVAILABILITY

MILLION TONS

White straw 22

Rice straw 15

Bagasse 12

Jute, Mesta 2

TOTAL 51

TOP SEVEN PLAYERS OF PAPER IN THE INDUSTRY:

CAPACITY(MILLION TON)

96
BALLARPUR INDUSTRIES LTD.(BILT) 0.45

ITC BHADRACHALAM 0.23

TAMILNADU PAPER LTD. 0.20

HINDUSTAN PAPER COMPANY. 0.20

CENTURY PULP & PAPER 0.19

JK PAPER LTD. 0.1

RAMA NEWSPRINT LTD.(RNPL) 0.13

Total 1.5

Financial Highlights of comp

97
 Value in INR (Crores) Value in US$ (million)
Year (2002 – 03)    
Turnover 463.78 103.06
Profit 4.43 0.98
Year (2003 – 04)    
Turnover 497.66 110.59
Profit 30.53 6.78
Year (2004 – 05)    
Turnover 556.35 123.63
Profit 30.41 6.75

FINDINGS & CONCLUSIONS

During our training we found an amazing world of big machineries & their process which were

in continuous operation to deliver the final product.

We never thought that developing a small sheet of paper would require such immense &

arduous tasks of both men & machinery.

98
Mr. Manoj Gupta, manager (quality control lab), made a statement that “we are ultimately No

1 in the paper market in India”. So to find out that how strong enough was his statement we

decided to explore the dealers & retailers in the market.

Also, apart from processes we made some major findings on behalf of my data collected from

in and outside the paper industry as follows:-

1- The new era of upcoming generation is going to be knowledge based, so demand for paper

would go on increasing in upcoming years. In view of paper industry’s strategic role for the

society & also for the overall industrial growth it is necessary that the paper industry performs

well.

2- The demand for upstream market of paper products like: TISSUE PAPER, FILTER

PAPERS, LIGHT WEIGHT ONLINE COATED PAPER, MEDICAL GRADE QUOTED

PAPER, etc, is growing due to increase in population & more & more facilitation. These

developments are expected to give fill up to the industry.

From the entire survey & the report formulation through data analysis I came to know

about various aspects of modern paper industry with regard to the title of my project

“MARKET ANALYSIS & STUDY OF DISTRIBUTION NETWORK TO ENHANCE

BRAND POTENTIAL”.

3- Due to industrialization & globalization there is huge demand & potential of paper & allied

products.

4- Corporate sector, computerization in banks, financial & other institutions has opened a great

market opportunity for a new sector that is COPIER PAPER.

99
5- As per the information collected through the sales & marketing department of the company,

a major consumption & demand is seen in Delhi & NCR region, where therefore are maximum

number of dealers that too with very high allocated size.

6- Paper industry is very risky & tough growth business as the raw material consists of

hazardous chemicals like cl 2,so2,hcl,clo2 etc & therefore performance is the only key to

success.

7- Average consumption per year of copier paper in Delhi &NCR region is approximately

5000mt while that of writing & printing paper is 40000mt.

8- Transportation to these high consumption areas is quick,& authentic but what I found was

that availability of contingency plans is not that strong ,as far as the planned transportation is

up to its schedule its ok,but what I adjudged in the sales department was that sales employees

were frequently observed busy in arranging for the transport at the final moment of order

dispatchment,as a consequence both time & work suffered.

9- Less number of small intermediaries are involved in the distribution channel, thus helping in

checking the malfunctioning & corruption involved into.

10- Talking to the dealers it was observed by us that relationships among dealers & consumers

of CPP industries reflects the companies policy of relationship building, but it could be further

increased by providing some sale or motivational schemes & policies.

11- We found that Century pulp & paper industries is very prompt in providing product variety

at a time, most of the orders of CPP are full filled in time and as per specific requirements.

12- Company emphasizes lot on packaging methods undertaken, so as to ensure safety of

product during transit.

13- Century could be thought of a market leader at the present scenario as it is the only

industry which has variety of processing plants for different raw materials via which the paper

is manufactured it includes- paper manufacturing through baggase,wood,R.G.P.

100
 Also the new tissue paper plant has already started to work this year & installation of a new

combined plant is in progress.

As the production in the unit goes on 24*7, so the employees work on basis of shifts. The

maintenance of the heavy machineries is a compulsion in this case,& thus company has

qualified engineers & technical staff which is well trained, they all work hard & their

endeavor’s have lead the company to the no.1 position in the paper industry.

SUGGESTIONS & RECOMMENDATION

After we completed up with the major findings related to the company, weather it was process,

sales or market study, being a MBA student we found some positive & good aspects of the

company as well as minor loopholes also.

Thus, here by on the basis of my understanding & observation, we would like to put forward

few suggestions & recommendations as follows:

 The company should sustain the availability of good quality of raw material (forest based)

& bulk import of waste paper to supplement the availability of raw material. Also with

101
 respect to above statement I would like to recommend the company to encourage

afforestation,in the nearby locations such as Rampur from where the major source of raw

material is supplied i.e. eucalyptus & popular trees, for w.p.p(wood based paper plant)

(major paper manufacturing plant).

 R&D technological absorption should be emphasized upon to enhance the productivity by

maintaining the quality of copier/writing/printing paper.

 The company should make good profile investments in advertisements which are directly

linked with customers.

 We would also like to recommend the company to hire a brand ambassador for the

advertisement purpose, it may be any celebrity,

However if the company feels like that this investment would be a cost burden they can look

for some socially renowned face who has a premium image & is available at cheaper rates.

 The company should achieve optimum energy conservation, better availability of quality

coal, more uniform energy policy by state.

 The employees in the quality control lab we found were busy in selection of a new

packaging carton, they were in a mood of changing the older packing & were deciding to

make it more colorful & attractive, with respect to it I saw the sample of new packaging &

being a customer I also found it attractive.

But If in future if the company’s marketing department again decides to change the

packaging, it should keep in mind their primary colours i.e.(blue, white).because talking to the

ordinary customers such as peons of various organization’s & institution we found that they

recognize the brand much more as-(“vo nile packet vala kagaz”.).

102
 The company can also try to increase the capacity & quality of machine no-3&4, to have an

edge over “B” grade mills such as “SIDHHARTH PAPER MILL” in kashipur who produce

same product in less cost & sale it in less prices in the market.

 During our t to dispatch location from where the rims of paper are finally packed &

forwarded to the godowns I found two mens who were busy in final packing of the paper

rims ,one of the worker busy in packing told me that at the end of the day he earns around

500 rupees,& there are other workers of similar

Category who are busy in the same work.

So I would suggest that company should look in for assembled machinery

Which packages the rims rather than humans, it might also help them to curtail

Down production cost.

 Mr. Malik a ( supervisor) in the baggase process discussed with us out the use of water in

the paper industry, he told me that water is used almost in every process of paper

production i.e. from moisturing the baggase to load it in the conveyor belt up till the final

washing.

But a major problem of water shortage might hinder the working of the CPP industries,

because the land water level in the lalkuan region has declined at an alarming rate, if it

continues declining at such pace the problems might soon start to occur, therefore we

would suggest the company to make necessary

Arrangements for saving the rain water, & make sure that there shouldn’t be unnecessary

wastage of water.

103
SWOT ANALYSIS OF CENTURY PULP & PAPER

INDUSTRIES:

STRENGTH:

 Well integrated & networked distribution channel.

 Backup support of recovery unit.

 Usage of waste paper.

 Good & certified quality of products

 An ISO-9001:2008 Certified (QMS) & ISO-1400(EMS) certified company.

104
 High grade” baggase” based technology.

 On line mixture & program control (at sheeting & paper machines.)

 Involved in export as well as government sector like postal, banking, railways etc.

 Continuous Research & development in the R&D labs, thus improving the product mix by

innovation.

 Delivery of goods at a short notice.

WEEKNESSES:

 Lack of advertisement of the paper products.

 Logistic management is to be improved further.

 More appropriate measures to be taken by the company to preserve the natural resources

such as wood, water.etc.

 Lack of cent percent co-ordination between executive & ground staff.

OPPORTUNITIES:

 Increase in demand of paper in the countries like Egypt & Singapore has given the

opportunity to the company to export more.

 Agro based waste material in India is sufficient, as India is an agriculture based nation ,so

the company has the opportunity to produce more & more in the upcoming years.

 Significant demand in pattern & better quality paper & industrial varieties of paper are

much more in demand.

 Special drive for awareness of literacy & increase in mass education by government.

105
 Increase in FDI’S (foreign direct investments) via which various MNC’S have entered into

business in India, & consume a good quantity of paper & stationeries in their workings.

 Opportunities opened for the technologically superior, upgraded better managed mills to go

value added product range, fetching higher realization.

THREATS:

 Stiff competition.

 Illegal distribution done by some distributors. Changing of consumer preferences.

ASSUMPTIONS OF THE STUDY

Respondent’s responses have been collected through various sources & it is assumed that they

are correct.

DATA ANALYSIS:

Data becomes useful only after it is properly analyzed .Data analysis involves uncovering the

information from a series of recorded observations i.e. data into descriptive statement &

inferences about relationship. This task was helpful thereby in identifying the areas where the

company can improve further; collected data was analyzed by the use of simple statistical tools

like percentage & average.

Results thereby have been represented by using Bar graphs, column graphs, tables & pie charts.

106
 ANNEXURE-II

REFERENCES

1. Indian paper market.

2. Wood & recycled fiber

(www.fao.org)

3. Company journals

4 www.centurytentind.com

5. www.acmesurplus.com.

6. www.century paperindia.co.in.

7. www.job street.com

8. www. Indubusinessline.com

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 ANNEXURE –III

CENTURY PULP & PAPER

(SUMMER TRAINING)

QUESTIONARE-FOR THE RETAILERS.

(FOR ACADEMIC PURPOSE ONLY)

2. Since how long are you associated with the dealers of CPP Industries?

a) >4 years b) >8 years c)>12years d)>16 years.

3. Are advertisements required to serve the purpose better?

a) Yes b) No

4. Type of function you are performing?

a) Retailer b) Supplier

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5. Which type of consumer responses forwards the products of CPP?

a) Highly positive b) Positive c) Moderate d) Negative.

6. Which of the quality attributes for writing & printing paper you

prefer most in terms of customer preferences?

a) Smoothness b) Brightness c) Bulk d) Opacity.

7. From where do you purchase the paper?

a) Dealer b) Directly firms the mill.

8. Which problem have you generally faced with w.p.p papers?

a) See thoroughness b) Poor ink absorbancy c) Creasing d) Other.

9. Who are your frequent consumers?

a) Corporate professionals b) Govt. officers c) schools&institutions

d) Students.

10. Which w.p.p. you prefer most

a) Cpp b) JK paper c) Andhra papers d) Orient

e) Ballapur f) Others.

11. Do the CPP dealer provide you with some discount policies or

schemes sometimes?

a) Yes. b) No.

11. What is your expectation from CPP dealers?

a) Incentive b) Discounts c) Credit d) Others.

12. Do you receive motivational sales scheme from CPP dealers?

a) Yes b) No

13. Is the current packaging of CPP products attractive & safe?

a) Yes b) No

14. Last but not the least that, do you feel like that hiring a brand

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 Ambassador & then advertising for the paper products would

be helpful in generating more volume of sales for the company?

a) Yes b) No c) Sale would remain approx.same.

ANNEXURE V

INDENT FORM

CENTURY PULP & PAPER

Propritor name & address:

Indent No: Date:

Dealer Name & Address:

C.S.T NO: Date:

L.S.T NO: Date:

Documents in use-

Documents of sale-

Banker’s name & address:-

Document No: - Issue No:-

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Head office address (KOLKATA):

Order confirmation no: - Date:-

Invoice to be raised on (address of party):-

Detail of mode of transportation:-

-----Destination-----------

Details of cheque/ draft/advance payment:

Probable date of us

QUESTIONARE – (FOR DEALERS)

1. How many godwns do you have?

a)1no b)2no c)3no d) 4no. e)more than 4

2. Weather the godowns are:

a) Hired b) Personnel.

3) During which period of year you register maximum sales?

a) 1st qtr. B) 2nd qtr. c) 3rd qtr 4) 4th qtr.

4. Who are your major customers?

a) Printers b) Govt.sector c) Industrial customers.

5. How do you receive the order from customer’s /retailers? & how

frequently?

a) Weekly b) Fortnightly c) Monthly d) Once (in a whole year).

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6. How do you keep in touch with retailers? What is the mode of

Solving retailer queries & receiving feedback?

a) Via-telephone b) Direct visit c) Others.

7. Despite CPP what are the other brands you deal with?

a) None other brand. b) Jk papers c) Punjab d) Ballapur e) Orient

f) Others.

8. Are you satisfied with the service provided by the company?

a) Yes b) No

9. How is the packaging?

a) Very good b) Good c) Satisfactory d) Others

10. What according to you are the possible threats to CPP from competitors?

a) Incentives b) Sales & distribution network c) Price d) Others.

Name of dealer-

Address-

Contact no-

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 DECLARATION

I hereby declare that project work entitled “MARKET ANALYSIS & STUDY OF

DISTRIBUTION CHANNEL TO ENHANCE BRAND POTENTIAL”. In century pulp &

paper, Lalkuan Nainital (uttarakhand), submitted in partial fulfillment of the requirements

of our M.B.A programme, is our original work & is not submitted for the award or any

degree, diploma or other similar title or prizes.

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 BIBLIOGRAPHY

BOOKS

 Marketing management(kotler Philip)

 Research methodology (Kothari C.R)

Magazines/annual reports of CPP.

 BUSINESS TODAY.

ANNUAL REPORT OF CENTURY INDUSTRIES.

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