• Tamil Nadu Newsprint and Papers Limited (TNPL) was formed by the Government of Tamil Nadu in April 1979 as a Public Limited Company under the provisions of the Companies Act,1956. The primary objective of the company is to produce newsprint and printing & writing paper using bagasse, a sugarcane residue, as the primary raw material. The Registered Office of the company is situated at 67, Mount Road, Guindy, Chennai – 600 032.

• The company is in the business of manufacturing and marketing of Newsprint and Printing & Writing Papers. The products are being marketed throughout the country and also being exported to 20 countries around the world.

• The factory is situated at Kagithapuram in Karur District of Tamil Nadu. The initial capacity of the plant was 90,000 tpa of Newsprint and Printing & Writing paper which commenced production in the year 1984. The capacity was doubled to 1,80,000 tpa in January 1996 after implementation of the first expansion project. The capacity has been further enhanced to 2,30,000 tpa in April 2003 through upgradation of both the paper machines.

Some of the key features of the Mill are listed below:

• The largest bagasse based plant in the World and a mill with largest production capacity in India, at a single location.

• Appropriate for India, which is one of the largest sugarcane producers in the World.

• The only paper mill in India assisted by the World Bank

• Doubled the capacity within a period of 10 years from inception

• State-of-the-Art paper machines with built in flexibility for manufacturing both newsprint and printing & writing papers in the same machine.

• Unique arrangement with the sugarmills for sourcing the raw material. in the form of exchange of steam / fuel for bagasse.

Paper Machine I	Paper Machine II

"To be the market leader in the manufacture of world class eco-friendly papers by adopting innovative technologies for sustainable development".

• Attain leadership in Paper Technology

• Promote the usage of bagasse in the manufacture of Newsprint and Printing & Writing Paper

• Minimise environmental impact and become an environment friendly organisation.

(A) ON QUALITY:

Quality Policy : "TNPL is committed to manufacture and supply eco-friendly papers to customers’ satisfaction with emphasis on continual improvements in its quality management system"

Meeting customer requirement with Eco friendly raw materials (viz bagasse) for paper making, through continuous process improvements is the aim of TNPL’s Quality Policy. Quality standardization without compromise on environment is being accomplished with online quality control at various stages of production. Despite opening-up of Indian markets for imports, TNPL has been consistently recording increase in exports year by year, which demonstrates the company’s commitment to Quality. Direct interaction with the customer through customer service cell has helped the company in meeting the customer satisfaction with Customer Satisfaction Index (CSI) ranging from 7.01 to 7.50. Customized products are also being manufactured by TNPL to meet the customer delight.

TNPL has obtained the ISO 9001 - 2000 certification from RWTUV of Germany for development, manufacture and supply of  Newsprint and Printing & Writing Paper.

The Online Integrated Information System (OIIS) a mini ERP package developed by CMC Ltd for TNPL integrates the flow of information from all the sections of the company covering production, materials, finance, marketing etc. This OIIS has greatly improved information transfer for faster and timely decision making for assured product quality. The automated process control facilities ensure complaint free products at various stages up to the final packing and despatch.

TNPL’s in-house Research and Development facility is recognised by the Department of Scientific and Industrial Research (DSIR) New Delhi. The R&D department has sophisticated state-of-the art instruments and equipments.

(B) ON ENVIRONMENT

ENVIRONMENT POLICY OF TNPL

• Produce eco-friendly quality papers adopting innovative technologies

• Provide a cleaner environment by sustained R&D efforts and continued process improvements

• Comply with all relevant environmental legislation and regulation

• Conserve and optimise the usage of resources viz., power, water, fossil fuels and raw materials like bagasse and wood

• Impart training to promote and motivate our human resources to be environmentally responsive

The above Environment Policy has been approved and adopted by the Board which clearly demonstrates the commitment of the company towards genuine sustainable development and the " Minimum impact –best process " philosophy.

ENVIRONMENT PROTECTION

• By using bagasse as the primary raw material instead of wood, TNPL is saving deforestation of about 30000 acres of forest land every year.

• Due to the usage of bagasse, the chemical consumption in the pulp bleaching process is lower

• TNPL’s effluents completely comply with the norms set by Tamil Nadu Pollution Control Board. TNPL is adopting state-of-the-art activated sludge treatment system. Further the treated effluent water is being used to irrigate 1500 acres of land abutting the factory. The farmers are cultivating cash crops such as sugarcane, groundnut etc using TNPL effluent water. By this process " A full Cycle is completed " as depicted below:

• The company has never used wood from natural forests. Wood is being sourced only from Farm forestry.

• Engaged the services of Tamil Nadu Agricultural University (TNAU), Coimbatore for continuous monitoring of land irrigated with TNPL effluent water.

• Comprehensive Environmental impact assessment study is undertaken once in 5 years, through National Environmental Engineering Research Institute (NEERI), Nagpur.

• Water consumption per tonne of paper has been brought down from 124 KL in 1999-2000 to 105 KL in 2002-03. During the year 2003-04, this has been further reduced to 83 KL. 80% of the water drawn from the river is being supplied back for irrigation as treated effluent water.

• TNPL has installed Rainwater Harvesting System with a catchment area of 1500 Sq.M in its administrative building at Kagithapuram during 2002-03 and an additional 5000 Sq.M in and around the plant premises during 2003-04.

Solid Waste Management:

• Fly ash generated at the power boilers is being sold to the cement plants

• Effluent sludge is being sold to the Board manufacturing units

• Lime sludge generated is being recycled in the Lime Kiln

• TNPL has commissioned the Bio-methanation plant, which generates around 23000 cum of biogas (methane) per day, to be used as fuel in the lime-kiln in replacement of furnace oil. The biogas replaces around 10-12 KL of furnace oil per day in the lime-kiln. During the year 2003-04, the bio- methanation plant generated 41.45 lakh M³ of methane gas and replaced the use of furnace oil worth Rs.2.48 crores

• TNPL obtained "3 Leaves Award" under the Green Rating project of the Centre for Science and Environment, New Delhi during October 2004, in recognition of the Environment Management System.

(C) ON ENERGY CONSERVATION

ENERGY MANAGEMENT POLICY OF TNPL

TNPL is 100% self sufficient in power generation through the 61.18 MW Power Generation Capacity (TG Sets) installed at the paper mill site. The surplus power generated is being exported to the State Grid.

TNPL also generates green power through the 18 MW wind farm installed at Devarkulam and Perungudi of Tirunelveli district. The entire power generated at the wind farm is being exported to the State Grid. The wind farm capacity has been enhanced to 21.75 MW in March 2004 by installing 3 wind mills of 1250 KW capacity each.

TNPL also believes in prudent utilisation of bio fuels. Entire pith generated while depithing the bagasse, is being fired in the boilers as fuel. Besides the company is also using many agro fuels such as coconut shell, rice husk, saw dust, coffee husk etc. The usage of above agro fuels has substantially reduced the consumption of fossil fuel.

Installed a Bio-methanation plant to generate methane gas from the effluent water (bagasse wash water) and use it as fuel as substitute for furnace oil in the lime kiln saving 10 KL of furnace oil every day. During the year 2004-05 TNPL generated 34.12 lakh M³ methane gas from its bio-methanation plant and used the same in lime-kiln replacing 1886 KL of furnace oil valuing Rs. 2.02 Crores. The confederation of Indian Industry has recognised the bio-methanation project implemented by TNPL as an "Innovative Project". This project contributes to sustainable development in terms of generating in-house renewable energy and reducing green house gases.

Energy Conservation measures:

Energy conservation is an ongoing process at TNPL. Some of the measures taken in this regard are given below :

• Installed Variable Frequency Drives where the process requires variation in speed of the drive.

• Installed energy efficient motors and reduced the motor capacity in many areas after continuous review.

• Installed high efficiency pumps in key areas.

• Enhanced the economizers’ capacity in power boilers to reduce flue gas temperature and improve the boiler efficiency.

(D) ON HUMAN RESOURCES DEVELOPMENT

TNPL realises that the continued success of any organisation depends on a healthy human resources policy. TNPL’s Human Resources policy focuses upon enthusing the human resources to be innovative to keep ahead of competition. As an enlightened employer the company has always been concentrating on optimizing the labour productivity and continuous efforts have been taken to improve the same. Some of the initiatives by the company in line with the above objectives are given below:

In-house training programmes are conducted on topics like Team Building, Personality Development, Safety, Inter-personnel skills, productivity and so on. Besides the employees are also being sponsored for training programmes in the relevant areas organised by reputed Institutions.

Performance Appraisal plays a significant role as a tool and technique of Management development and growth. Key Result Areas (KRA) have been identified and responsibility, accountability, objectives and targets are defined for these KRAs. The results of these KRAs are reviewed on continuous basis and corrective measures initiated appropriately.

The philosophy of Total Quality Management (TQM) integrating all activities of the organisation coupled with a customer-centered focus has been taken-up. Suitable projects have been identified and implemented.

Company is nurturing a participative atmosphere of redressing the grievances of the employees for ensuring peaceful working environment.

Amicable Wage settlements are reached with the Trade Unions and harmonious industrial relationship is being maintained.

TNPL is providing direct employment for 1725 persons and indirect employment for about 5000 persons

The Business World, a leading business weekly, which conducted an employees’ involvement and motivation survey in India jointly with Grow Talent Company Ltd, New Delhi and the Great Places to work Institute of USA has selected TNPL as one of the top 25 Great Places to work in India. TNPL is the only one company from Tamil Nadu to get this coveted ranking.

Waston Wyatt India Pvt Ltd., a global management consulting firm, which recently conducted an "Asia Pacific Human Capital Index Survey 2002 has awarded TNPL an overall Score of 76, on a scale of 0 – 100 for the effectiveness of the company’s human capital management.

(E) ON SOCIAL DEVELOPMENT

The Company has taken several steps for promoting the overall betterment of the abutting villages. Providing drinking water facilities, construction of retaining walls in the irrigation channels, laying & improving roads & culverts, provision of lighting facilities, park development, supply of equipments & instruments to Fair Price shops & schools are some of the projects completed by the company in this regard. TNPL is also conducting free medical camps in the surrounding villages on a monthly basis. TNPL functions in harmony with the local community.

(F) ON SAFETY

TNPL has a clearly defined Safety Policy. The policy specifies in detail the responsibility for implementation of safety measures, prevention of personal injury, accident reporting and statutory reporting system. The Safety committee consists of members from Management and workmen. Periodic committee meetings are conducted and suggestions are implemented. Safety Audit is conducted to ensure the effectiveness of the safety systems in position.

• Achieve full capacity utilisation following the latest productivity techniques and developed technologies. Continuous upgrade of the technology.

• Improve the quality of the paper to that of international standards.

• Develop new products with good quality at reasonable prices by adopting innovative and persistent R&D efforts.

• Build brand equity with branded value added products

• Become globally competitive in terms of cost, pricing and quality

• Provide cleaner environment by following the best practices of ISO 14001 Environment Management Systems

(H) RESTRUCTURING OF LOAN

• TNPL has swapped the high cost multi-currency loan of USD 45 million availed from the World Bank into a single currency USD loan of an equivalent amount. The swapping has benefited TNPL a sum of Rs. 44 crores between December 2002 and March 2005 in the form of financial charges : USD 3.44 million (Rs. 15 Crores). The average cost of loans outstanding as on 31.03.2005 is 3.90%.

(I) NEW INITIATIVES AND FUTURE PLANS

• TNPL is in the process of developing Wild Sugarcane as an alternative to conventional bagasse. The wild sugar cane, which contains less sucrose and high fibre content, requires less water and is suitable for large scale cultivation.

• TNPL is actively implementing an afforestation programme under the two major areas such as captive plantation on farm forestry schemes. Under captive plantation scheme, Government waste lands, Temple lands, Industrial / Institutional lands are taken and lease basis and high yielding pulp wood species are planted. Under farm forestry scheme, TNPL is assisting the farmers to hold un-utilised degraded lands for raising pulp wood plantation. During the year 2004-05 TNPL raised pulp wood plantation in 1185 acres under captive plantation scheme. Further 1890 acres are under the farm forestry programmed involving 480 farmers in 6 Districts of Tamil Nadu.

• TNPL is planning to raise pulp wood plantation in around 6000 acres during the current financial year (05-06) through Farm Forestry and captive plantation. Similarly during next year and thereafter also pulp wood plantation will be undertaken on continuos basis every year through Farm Forestry and captive plantation. This will enable TNPL to augment the wood supplies by around 1.25 lakh Mts per annum.

• TNPL is implementing a Mill Development Plan at a capital outlay of Rs. 565 Crores for increasing the in-house pulping capacity from 520 tpd to 800 tpd with environment friendly ECF bleaching. In the capital outlay of Rs.565 Crores, Rs. 159 Crores will be spent for improving the environmental standards. With the implementation of the Mill Development Plan, the paper production capacity will be increased from 2,30,000 MT to 2,45,000 MT per annum. The project cost will be met through internal generation of Rs. 150 Crores and term loan assistance of Rs. 415 Crores from the banks. The financial closure for the project has been made. The project will be implemented in 18 months from now.

The broad product range of TNPL is given below:

• NEWSPRINT

• PRINTING & WRITING PAPER:

• Creamwove

• Superprinting

• Hitech Maplitho

• Excel Maplitho

• Ultawhite Maplitho

• Magazine Printing

• COPIER PAPER

• TNPL Copier

• TNPL OS 2000

• TNPL Eco-Friendly Note Books

Newsprint is normally manufactured in 49 Gsm reels and directly sold by the company to the various newspaper establishments such as The Hindu, Malayala Manorama, Ananda Bazaar Patrika and so on.

Printing & Writing paper (PWP) is manufactured in reel and sheet forms with the Gsm (Grams per square meter – basis weight of the paper) varying from 50 to 80. Various sizes of reels and sheets are also cut to suit the customer requirements. Some of the major end-use segments of PWP are printing applications, note books, computer stationery, office stationery, etc. The major distribution channels for PWP are given below:

• Sale through Indentors

• Direct Sales

• Export

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

TNPL is also making direct sales to certain major customers. Some of the major direct customers are Navneet Publications Ahmedabad, Tamil Nadu Text Book Corporation, Director of Stationery & Printing Govt. of Tamil Nadu etc.

TNPL has recorded the highest production of 30,248 Mts of "TNPL Copier Paper" during 2004-05 (last year 25,015 Mts). The growth works out to 21% against the Industry average growth of 15%. TNPL is poised to achieve 40,000 Mts of branded copier production during 2005-06.

Apart from the above, TNPL is also exporting about 18% of the PWP production to 20 countries around the World.

THE EXPORT NETWORK

TNPL is having marketing offices at the major cities of the Country to regulate the marketing activities. Regular customer meets are arranged for continuous customer feed back and corrective action.

During 2004-05 the company has sold 7708 tonnes of Newsprint and 193532 tonnes of Printing & Writing Paper. Of this, 41264 tonnes of Printing & Writing Paper was exported valuing Rs 127.68 crores. The exports recorded a growth of 37% in quantitative terms and 47% in value terms during the year 2004-05 compared the pervious year. Thus TNPL recorded new peak in Exports during 2004-05.

The company has achieved all time highest production of 1,96.240 MT and all time highest sales of 2,01,279 MT during the year 2004-05.

Symbolic of TNPL’s commitment to the environment, the World Wide Fund for nature (WWF) has entered into a pact with TNPL to use the ‘Panda’ logo in TNPL’s branded products.

The Company has achieved Zero Stock of finished goods as on 31^st March 2005. This is the 14^th year in which TNPL has achieved Zero Stock of finished goods. TNPL is known as "a Zero Stock Company".

The quality complaints on paper manufactured by TNPL are received at Corporate Office and Factory Office at the following address:

The quality complaints are attended within a maximum of two weeks. Wherever necessary, the company deputes its marketing and quality control personnel for attending the complaints and redressing the customers' grievances.

TNPL NET WORK IN INDIA

"EXCELLENCE IN CORPORATE GOVERNANCE"

The Institute of Company Secretaries of India (ICSI), New Delhi has conferred on TNPL, the "ICSI National Award of Excellence in Corporate Governance" for the year 2004 in the Public Sector category . This is the first time such a prestigious award in Corporate Governance has been given to a State Public Sector Undertaking. So far, in the last two years, only major Central Public Sector Undertakings, viz. ONGC and IBP got the award.

"BEST PAPER MILL 2001-02"

TNPL has been given the prestigious award "Paper Mill of the year 2001-2002" for TNPL’s overall performance, approaches for meeting social obligations, ensuring global competitiveness, sustainable development & technology options by the Indian Paper Manufacturers’ Association, New Delhi.

CERTIFICATE OF EXCELLENCE

TNPL bagged, the Certificate of Excellence in Productivity, Quality, Innovation and Management from the "Institute of Economic Studies", New Delhi.

"ENVIRONMENT PROTECTION"

Recognising TNPL’s concern for the environment, the Rotary Club of Chennai (East) and Earth Care, bestowed the "Dr M.S. Swaminathan Award for Environment Protection 2002" on TNPL.

"EXPORT AWARD" & STATUS

TNPL has bagged the CAPEXIL "SPECIAL EXPORT AWARD" for the sixth consecutive year, for its outstanding export performance during the year 2003-04.

The Government of India has given "TRADING HOUSE" status to TNPL recognising the export performance.

TNPL has been bestowed the " Niryat Shree Award" by Federation of Indian Export Organisation (FIEO) for the high degree of excellence it has demonstrated in exports.

RATING BY CRISIL & ICRA

Credit Rating Information Services of India Ltd (CRISIL) has reaffirmed the rating of "FAA+" for TNPL’s Fixed Deposit Program, indicating the high degree of safety. ICRA Ltd has reaffirmed the highest rating of "A1+" for TNPL’s Commercial Paper program.

SAFETY AWARD

TNPL was awarded the commendation award on "CII Leadership & Excellence in Safety, Healthy & Environment (SH&E) year 2002" during the month of February 2003.

ENERGY AWARD

TNPL has bagged the National Energy Conservation Award for the year 2001 from Government of India, in recognition of its outstanding achievement in energy management.

BEST CORPORATE CITIZEN

Loyola Institute of Business Administration (LIBA) Chennai has adjudged TNPL as the " Best Corporate Citizen 1999" and bestowed the Mother Theresa Award by recognising its

• Outstanding social commitment

• Exploring eco-friendly technology

• Professional Management

• Customer friendly and community caring enterprise.

For more details about the company, products profile and other details, please browse the company’s web site at www.tnpl.co.in or contact through the company’s e-mail address: "response@tnpl.co.in".

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