A STUDY ON

DEALERS PERCEPTION ON MARKETING MIX AT APPM

With reference to

ANDHRA PRADESH PAPER MILLS LTD;

RAJAHMUNDRY
A project report Submitted in Partial Fulfillment of
The Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
V.V.MAHA LAKSHMI ,MBA(FINAL)
(H.T.No.20854100057)

Under the Esteemed Guidance of

Sri. K.LAKSHMI CHANDU, M.B.A.,
Faculty in Management Studies

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

ADITYA INSTITUTE OF P.G STUDIES
(Approved by AICTE, Affiliated to AU, & Accredited by NBA)
Aditya Nagar, ADB Road, SURAMPALEM-533437
2008-2010

ADITYA INSTITUTE OF P.G.STUDIES

DEPARTMENT OF BUSINESS MANAGEMENT
(Affiliated To Andhra University)
Aditya Nagar, ADB Road, SURAMPALEM-533437, E.G.Dst.
Phones: (08852)252243,252250,
cell:9866576662

CERTIFICATE

This is to certify that the project entitled DEALERS PERCEPTION ON

MARKETING MIX AT APPM is the bonafide work done by V.V.MAHA
LAKSHMI with Regd.no:2085410057 during the period 2008-10 in partial fulfillment of
the requirement for the award of the Degree of MASTER OF BUSINESS
ADMINISTRATION in Aditya institute of P.G studies affiliated to Andhra University is
a record of benefited work carried out by under my guidance and supervision.

Project Guide

Head of the dept.

Sri.K.LAKSHMI CHANDU

Mr. J.Nagendra Kumar

DECLARATION

I, V.V.MAHA LAKSHMI here by declare that the Project work

entitled A STUDY ON DEALERS PERCEPTION ON MARKETING
MIX AT APPM, RAJAHMUNDRY submitted by me to the department of
Management Studies, Aditya institute of P.Gstudies, SUREMPALEM is of
my own and has not been submitted to any University or published any time
before.

PLACE:
DATE:

(V.V.MAHA LAKSHMI)
Reg No: 20854100057

ACKNOWLEDGEMENT
I am solely indebted to Head of the Department SRI.J.NAGENHRA
KUMAR, MBA for his valuable and precious advises and comments on this
work. I also extend my heart felt and precious advises and comments on this
work. I also extend my heart felt and obliged thanks to honorable faculty
members of the department of management studies, ADITYA INSTITUTE
OF PG STUDIES, surampalem, for extending me, their valuable
suggestions for the completion of the project work.
I express my deep sense of gratitude to Sri. K.LAKSHMI
CHANDUunder whose guidance I could make a thorough and complete copy
of my Project work.
I thank Sri.K.V.N.SIVARAM,( Deputy General Manager P&A) for
providing valuable information and guidance for my project work.
I thank all the teaching and non-teaching staff members who extended
their cordial and valuable help.

(V.V.MAHA LAKSHMI)
R.NO:20854100057

CONTENTS
P.No.s
CHAPTER-I

INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY

CHAPTER-II

INDUSTRY PROFILE

CHAPTER-III

COMPANY PROFILE

CHAPTER-IV

THEORETICAL FRAMEWORK

CHAPTER-V

DATA ANALYSIS AND INTERPRETATION

CHAPTER-VI

FINDINGS & SUGGESTIONS

CONCLUSION

QUESTIONNAIRE
BIBLIOGRAPHY
BROCHURES

 INTRODUCTION
NEED FOR THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY
LIMITATIONS OF THE STUDY

INTRODUCTION
The Andhra Pradesh Paper Mills Limited is one of the largest and most respected
manufactures of Pulp and Paper in India. It is an ISO9001, ISO14001 & ISO18001
certified Company having a wide market network through out India. It is situated on the
Eastern Bank of the holy River Godavari at Rajahmundry.
Paper is essential commodity for civilized society. Its consumption can be an
indicator for measurement of development. In India, the consumption of paper is very low
i.e., 3 kg per head per annum comparing to advanced countries like UK, and USA, JAPAN
the consumption is 250 kg per head per annum. Indias total paper and paperboard
consumption in the year 1998-99 was 4.3 million Tonnes against its production of 3.7
million Tonnes.
The APPM Ltd. produced 91,453 Tonnes of paper during 1998-99. It exported 6080
Tonnes during the year 1998-99. The paper industry continued to heel under the demand
recession, cheaper imports and supply demand imbalances. This situation requires paper
industry to concentrate on cost effectiveness, product improvement and introduction of
new products to meet the growing needs of the Customers. The APPM has already taken
necessary steps to implement Rs.200 crore Mill Development Plan involving
technological

up gradation,

Cost

reduction,

energy

conservation

and product

diversification.
The customer is the objective of all processes. The APPM is building relationships
of trust with customers - thus capturing their loyalty by providing value.

Cost is the ultimate bottom line. Efficient resource utilization in term of people,
process and material is resulting in cost competency the benefit of which is passed on to
customers.
Change is the root of all progress. With changing times, APPM is driving change
within the company in terms of technological up gradation at the organization level. An
aggressive continuous modernization programmed that modernizes the companys outlook
matching to its state - of - art technologies.
APPM Ltd., has been serving the market with several product since 70 years. Out
of the many varieties of paper, which APPM is offering, the millennium paper and the
copier paper are currently being concentrated on.

Under the current competitive

conditions, it becomes very essential to keep up with the customer needs to retain the
existing customers. Customer satisfaction is one of the key ingredients to retain existing
customers and to attract new customers. The type of customers institutional, individual is
a very important criteria to influence customer satisfaction.

MARKETING AT ANDHRA PRADESH PAPER MILLS LIMITED

INTRODUCTION:
In a constantly changing business and market scenario, maintaining a niche
becomes even more challenging. In such a situation only with innovative leadership, stateof-the-art technology and committed people, can a company steal the lead over
competitors.

A Company can lead by making quality a continuing reality. Lead by being a profit
- making concern. Lead by being a committed corporate citizen. Lead by moving ahead
into the future confidently and that is the story of APPM Ltd., the biggest integrated pulp
and paper manufacturing plant in India.
Nestled in abundant forest and situated along the banks of the river Godavari, the
Andhra Pradesh Mills has had Rajahmundry - the cultural capital of Andhra Pradesh - as its
home for the last seven decades.
One of the oldest paper mills in India, APPM is the biggest, integrated pulp and
paper manufacturing plant in India. It produces a wide range of paper grades, which
include writing, printing and coating base papers packaging and poster paper.
Better its performance and raising its standards every year, APPM today is
targeting for an all-time high production of 1,00,000 tons per year. An awesome 300 tons
everyday.
Having celebrated its Silver Jubilee Year in 1989, APPM looks forward into the
future with one guiding philosophy.
Leadership through Quality

MISSION:
Our Mission is to be powerful force in the world economy in paper technology
through productivity and excellence, a shared vision for which started responsibility lies
with all stack holders.

10

VALUES:
Employee empowerment for commitment to total quality teams effort and increased
productivity, ethical management practices for esteem, credibility, life and public image.

QUALITY POLICY:
To achieve customer satisfaction through quality up gradation of products, process
and Human resource on a continuous basis.

IMPORTANCE OF THE STUDY OF MARKETING MIX IN APPM

1. The Andhra Pradesh Paper Mills Limited is one of the biggest, integrated pulp and
paper manufacturing plant in India.
2. Andhra Pradesh Paper Mills Limited maintaining ISO 9001 : 2000 standards for
quality management and ISO 14001 : 2004 standards for Environmental
Management system.
3. The APPM want to expand their product line and product size through the product
line they want to increase the product to that the present.
4. The APPM want to increase the pulp line production capacity from 90,000 tones to
1,90,000 tones, while paper making will also go up by 25,000 tones from 1,55,000
tones at present
5. A brand product of length, product depth and product breadth represents the
product mix of APPM

11

OBJECTIVES OF THE STUDY

To study about the paper industry in general.
To know about the companys over all performance.
To study the Marketing activities of Andhra Pradesh paper mill limited.
To analyze distributors opinion with regards to marketing mix of Andhra Pradesh
paper mills limited.
To know the pricing policy of APPM.
To know the type of discounts provided by APPM.
To know the levels of channels of distribution in APPM.
To study the criteria for selecting the dealers.
To study the firms sales Promotional activities.

12

NEED FOR THE STUDY

The topic considered yields the THE STUDY ON MARKETING MIX
ACTIVITIES OF ANDHRA PRADESH PAPER MILL LIMITED, RAJAHMUNDRY.
As there is growing demand and as well as competition in the market of paper
manufacturing the firm has to adopt various aspects of sales promotion.
The importance of the study can be arrived through two points, first understanding
the importance of the Marketing Mix in the marketing discipline and secondly
understanding the importance of Marketing Mix activities of APPM. That is to study the
following marketing mix activities.

Product

Price

Place

Promotion

The Andhra Pradesh Paper Mill Limited is one of the biggest, integrated pulp and
paper manufacturing plant in India.

There is much feasibility of product mix designing.

Consumers are more prices sensitive, at the same time of validity conscious.

The trade has demanded more deals from manufactures

Advertising efficiency has declined because of rising costs, media, dusters,

legal restraints.

13

SCOPE OF THE STUDY

The scope of the study is restricted to Andhra Pradesh Paper Mill Limited

The scope of the study is subjected to marketing mix activities of Andhra Pradesh
Paper Mill Limited only.
The scope excludes financial matters and Human Resources Development matters

in the Organization.

14

METHODOLOGY
When once the problem is identified it must be determined how to obtain the
necessary information to solve the problem. The data for the study has obtained from
Primary Data
Secondary Data

PRIMARY DATA:
Primary data was obtained by interviewing various executives in the company. To
study the perceptions of dealers towards APPM. Andhra Pradesh Paper Mill Limited, a
questionnaire was designed and presented to them. About 50 dealers were selected in
Visakhapatnam, Kakinada areas.

SECONDARY DATA:
The data relating to the paper industry. Andhra Pradesh Paper Mill Limited etc.,
were obtained through sources like original records and annual reports and also from
magazines, Books and Internet.

15

LIMITATIONS OF THE STUDY

1. The accuracy of the information generally depends upon the quality of the data
obtained from the company sources.
2. Non Availability of extensive literature on paper industry limited the Scope for
analysis.
3. The sample is restricted to Visakhapatnam and East Godavari Districts.
4. Some of the answers given by the dealer may bias.
5. The comparative analysis is completely self designed company has provided
information to a limited extent.
6. The major part of the project is based on the availability of secondary data.

16

 INDUSTRY PROFILE

17

PROFILE OF PAPER INDUSTRY

DEFINITION:
Paper may be defined as a mat of cellulosic fibers arranged in crises cross fashion
with hydrogen bonds and other forces. The basic unit of paper is cellulose fiber.

MEANS OF WRITING IN OLDEN DAYS:

In early days of mankind man used clay tablets, copper plates, Tamar patria,
papyrus etc, for recording his thoughts.

ORIGIN OF PAPER:
The first sheet of paper was created in china by Tsai Luno, a court official in 2nd
century B.C. by using mulberry and other best fibers along with rags and hum waste. Then
it gradually spread along Mediterranean around 1100 A.D. and there after to Europe and
America.

HISTORY:
Paper is a commodity, which is important in every days life. One of the basic
needs that man felt of is the media for written communication. Paper forms the basic
material for written communication.
Mans earliest attempt to record human activities was made on stone. A little later
BARK leaves were used. Between 2500 B.C. and 2000 B.C.

18

The manufacturing of paper was begun from tall reed growing along the NILE
called PAPYRUS. Chinese invented the actual manufacturing of paper about in 105 A.D.
The first paper mill in the world was started in 1336 A.D. in Germany viewing the
tremendous impact of paper industry, mills started in 1556 in Holland and Switzerland.
Later it was spread to allover the world. Firstly in 1789 chlorine was used for bleaching of
paper. In 1779 Robert incholes the French scientist design the first paper machine in the
world. Presently used paper machine was designed by Lages Diddt and Bratman Doukin
with their continuous effort.
Cultural, specialty, board, industrial culture-writing, printing, bond, Xerox-bond,
strawberry, millboards, fiberboards, boxboard, duplex board.
Indians were using copper and iron plates for the purpose of writing before paper
came into existence. The art of paper making reached India through Arabs. Some Indian
Muslims might have learned it directly when they visited Mongolia. But the families who
learned it also known as KAGZIS kept this art a closely guarded secret.
Nothing can be said about the first paper mill in India. But it is said that WILLIAM
CAREY in 1812 started the first paper mill at Serampur (Srirampur) in west Bengal with
the help of kagzis. In 1832 the first u-dryer type machine was introduced in India. In 1867
it was transfer to Royal Paper Mills, BALI near Calcutta, which was virtually absorbed
by Titagraph Paper Mills. There they started the preparation of pulp from bamboo in 1912.
The paper milled named India paper pulp company was started Naihalt, West Bengal in
1918. Later the remaining mills started one bye one.

19

In early 1950s the total number of paper mills were 17 which has increased to 250
by 1980 and to 406 till date.
The domestic output of paper and paper boards grew from 1, 35,000 metric tones in
1951 to 15, 00,000 metric tones in 1985.
The number of paper mills in the past with production capacity is given in the
following table.
Production
Year

Mills

(Tones/Annum)

1950

17

1,35,000

1985

250

15,00,000

1995

350

25,00,000

1997

375

28,00,000

The initial development and growth of paper industry till the late 19 th century was
effected by the shortage of soft wood in the country. But in 1914, the development of a
process based on bamboo lead to rapid growth of domestic industry.
By the end of 60s the capacity for power production lagged demand and imports
increased to approximately 10% of the domestic demand. Most of the domestic production
was concentrated in the hands of few large mills.
By the late 60s bamboo as an input to paper industry came under short supply.
Taking this into account, the govt. of India started encouraging small units based on agroresidue waste paper in the 1970. Fiscal incentives were offered. This lead to an increase in
the number of mills with small capacities.

20

But from the late 80s industry started facing an over supply situation with lower
price realization and plant closures. The down trend continued till 1992, when demand
supply situation improved. In 1993, in step with the easing of the world wide recession in
the industry investments started increasing. A booming capital market also helped in rising
money for new capacities. The industry was in a jolly mood up to 1996.
Since 1990 the paper industry in India is following global cycle with periods of
over capacity leading to drop in paper prices, lower capacity utilization and slow in
investments in addition to followed by closure of mills, decrease in demands, supply gap
and then increase in paper prices.

HISTORICAL DEVELOPMENT:
200 B.C

Birth of Paper Concept in China by Tsai Luno.

100 B.C
1798

Traces of Authentic Paper making process

Patent issue to Nicholas-Louis Robert for first Continuous

1803-1807 A.D

paper machine
Patent issued to four drinier brothers for improved continuous

1829

paper machine
Patents issued to John Dickinson for cylinder paper machine.

1840

Ground wood pulping method developed.

1854

First manufacture of pulp from wood using soda process.

1867

Patent issued to Benjamin Tilghman for sulphite pulping

1884

process.
Invention of Kraft pulping process by Karl Dahl.

1976

Bi-Sulphite pulping and oxygen delignification of agri

1984

residues.
Oregano-salvo pulping of baggage with recovery.

21

WORLD WIDE COMPARATIVE STUDY OF PAPER

CONSUMPTION
Country

Per-capita consumption

U.S.A

(Kgs)
289

Canada

251

Germany

205

Switzerland

168

Japan

153

England

135

Israel

79

Singapore

60

U.S.S.R

32

Brazil

26

Egypt

10

China

India

3.5

Indonesia

SIZE AND CAPACITY OF INDIAN PAPER INDUSTRY:

22

The economic size of paper industry is determined by the availability of raw

material and density of markets, availability of power and transport facilities etc., in the
beginning of first five year plan, there were only 19 paper and paper board mills with a
total annual capacity of 1.39 lakh tones.There are some units well organized and well
equipped with a production capacity of more than 50,000 tones and units too small with a
capacity of 1000 tones.
In India the growth of paper industry after independence is satisfactory under the
guidance of 5 year plans. Its growth is reflected by the fact that from major 17 mills with
annual capacity of 1.37 lakh tones in 1951, the industry enlarged to 390 mills with annual
capacity of 32.31 lakh tonnes at the end of 7 th five year plan. The following table shows the
paper and paper board production in India during the period of 1951-1994.
Year

No.Of.Units

Installed

Net

Capacity

1951

17

Capacity
1.4

Production
1.3

Utilization
96.4

1961

24

4.1

2.6

88.8

1971

57

9.5

7.8

82.3

1981

135

18.2

12.4

68

1990

317

32.31

18.75

58

1991

325

33.04

20.6

62

1992

326

33.65

21.11

63

1993

340

35.51

21.28

60

1994

380

37.90

27.21

60

According to the above table there are 380 units with a installed capacity of 3790
lakh tonnes while the production excluding news print is about 22 lakh tonnes. The lack of

23

large investment in this industry by the private sector forced the Government of India to
setup the Hindustan paper corporation in the public sector to give importance to the growth
of the industry and to meet the requirements of the near future with effect from March
1987 paper industry.
The preview of MODVAT scheme. The govt. also helped the paper industry to
import wood pulp chips and waste paper by allowing them under open general license and
certain excise duty exception. During the last few years, Govt. has made efforts to reduce
the import of news print and forced the news papers and magazines to use some of the
cultural varieties of paper manufactured by Indian mills.

24

GEOGRAPHICAL SPREAD OF THE INDUSTRY

State
Andhra Pradesh
Assam
Bihar
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Karnataka
Kerala
Madhya Pradesh
Maharastra
Nagaland
Orissa
Pondichery
Punjab
Rajasthan
Tamil Nadu
Uttar Pradesh
West Bengal
Total

No.Of.Mills
22
2
4

Installed Capacity
4,14,550
2,20,500
25,000

68
15
6
1
14
5
21
71
1
9
1
37
7
31
73
18
406

9,35,800
1,49,140
53,200
5,000
3,45,000
2,15,600
2,90,650
10,34,050
33,000
2,70,850
9,000
3,72,162
12,195
6,39,750
8,70,780
2,22,600
61,21,327

DEVELOPMENT OF PAPER INDUSTRY IN INDIA:

According to historic records the first paper mill was setup in the year 1812 A.D. It
was only after 1870s manufacturing of paper gained momentum with the establishment of
ROYAL BASE PAPER MILL at Hoogly, which was merged with Titagarh paper mills.
From then onwards the production of paper has been constantly increasing to meet
the ever increasing demand of paper in the country at present about 288 paper mills are in
function with overall instilled capacity of 24.50 lakh tonnes out of this huge amount of

25

production capacity 40% of the production are from small-scale mills and only two Mills
are Giant undertakings.
Only 47 mills have an annual installed capacity of 10,000 tonnes. According to
recent survey, it was quite clear and evident that INDIA is in the back seat when compared
to countries like America, Canada, Sweden and Japan

INDUSTRY POSITION:
Paper industry is highly fragmented with a capacity of mills ranging from less than
10 tonnes to 600 tonnes per day. There are around 406 paper mills, which are producing
paper in our country.
The rate of growth of paper industry is around 6% per annum. The overall installed
capacity is around 44 lakh tonnes while the production is around 32.5 lakh tonnes out of
32.5 lakh tonnes of paper production, 29 lakh tonnes is paper and paper boards and 3.5
lakh tonnes companies of newsprint.
Raw materials being used by these paper mills around 43% of the production are
dependent on wood 28% is dependent upon agro and the remaining 29% is dependent upon
the waste paper.By the year 2000 the consumption of paper has increased to 5kgs with an
expected growth rate of 6 to 7 % per annum over the next 5 years. Paper consumption in
India is likely to reach 6.9 million tonnes by 2010. The capacity utilization of the industry
at present is 67%.

PAPER INDUSTRY IN ANDHRA PRADESH:

26

Andhra Pradesh is one of the most developed states in terms of paper production. It
often provided excellent platform for the development of paper mills. The state now
contains 21 paper mills scattered allover the state. Andhra Pradesh stands 5th in the number
of paper mills it contains. In Andhra Pradesh out of the 21 mills it possesses, 15 mills are
functioning quite efficiently and the remaining has been an exception of work excellence,
as they remained closed these days.
Andhra Pradesh is contrast to its fifth position in terms of number of paper mills
stands 2nd in terms of installed capacity. The installed capacity of Andhra Pradesh is 4.48
lakh tones per annum. The different paper mills situated in Andhra Pradesh and their
installed capacity are clearly mentioned in the table given below:

Name
Charminar paper Ltd

Location
Medak

Circar paper mills Ltd.

Nellore

10,000

Coastal papers Ltd

Kadiam

10,000

Delta paper Ltd

Vendra

18,000

Guardian paper Mills Ltd

Bammurlu

10,000

Vamsadhara Paper Mills Ltd

Srikakulam

7,500

Bhadrachalam

83,923

Jyothi cellulose Ltd

Medak

2,700

Kolleru Paper Mills Ltd

Eluru

10,000

Pennar paper Mills Ltd

Cuddapah

10,000

Rayalaseema paper mills

Kurnool

42,000

Nagarjuna paper mills Ltd

Patancheruvu

10,000

ITC Paper Boards Ltd

27

Capacity (M.Tones)
3,000

Sandeep paper mills Ltd

Patancheruvu

4,950

Shree paper mills

Ranagampeta

4,000

Bodhan

15,500

Mandapeta

6.000

The Andhra Pradesh Paper Mills Ltd

Rajahmundry

1,01,447

Coastal Chemicals Ltd

Gauripatnam

16,000

The Sirpur paper mills Ltd

Sirpur

71,000

Telangana Paper Mills Ltd

Khammam

10,000

Sri Lakshmi Saraswati paper Ltd

Surya Chandra paper mills Ltd

From the table it is quite clear that the leading paper mills in terms of production
are
The APPM Ltd
Sirpur Paper Mills
Sri Rayalaseema paper mills
ITC paper boards Ltd.
The APPM Ltd & ITC paper boards Ltd are considered to be largest operating mills
in the state. The expansion plans of ITC Paper Boards Ltd. will no doubt make Andhra
Pradesh, the leader in production of paper in India.

INDUSTRY SCENARIO:
Paper industry supplies various types of paper boards specially paper to a number
of end users. These end users include Govt., education, companies involved exclusively in
packaging, news paper, magazines etc use of paper and paper product is intimately linked
with cultural and economical development of the country.

28

The demand for paper depends on a number of intangible factors such as

population, national income, growth of literacy and spread of education into distant parts of
the country, standard of living and industrial production.
Products of Indian paper industry are mainly paper and paper boards.
These include glassine papers, grease proof paper, vegetable parchment papers, art
card, cigarette paper, carbon papers, insulation papers, and coated boards, duplex board,
triplex board, straw boards, paper boards, ticket boards, check papers, lottery papers,
Xerox papers, decorative papers, computer stationary etc.,. These different products are
used in different industries like printing of news print, processed foods and tobacco
packing corrugation, carbon making bags, socks industries, textile industries and many
more industries.

PAPER PRODUCTS:
The products of paper industry can be broadly classified into two types:
1. Paper and paper board
2. Newspaper

PRODUCT CLASSIFICATION OF INDIAN PAPER INDUSTRY

Indian Paper Industry

29

News Paper

Paper &Paper Board

Glassed

Standard

Industrial

Cultural

Board

Specialty

Writing

Printing

Wrapping

Packing

Straw

Bond

Cream move

Map litho offset

Pasts

Craft

Mill

Micro

Azureliad

Photocopier

Tea yellow

Media

Gray

Electrical

Cream bid

Cover Laminate

Magmata

Linear

Brown

Tissue

APSR

Sac Kraft

Duplex file

Airmail

Pulp

Twist wrap

Bas
e
Bond

Cool Print Bond

Duplicate

Every paper mill in India does not produce all products of the Indian paper
industry. The number of mills producing various products is clearly explained below:
Product

No. Of Units Open

No of Units Closed

30

Total

Board

43

50

Cultural

136

41

177

Industrial

165

21

186

Specialty

12

15

It is quite clear from the above table that out of all the different types of products
available in Indian paper industry, industrial paper is most sought after product and is
being produced by large number of paper mills.

NEWSPAPER:
Newsprint is a special type of paper used for printing newspapers and magazines.
Though newsprint is a type of paper, very few paper units manufacture both newsprint and
other varieties of paper.
In India there are 4 mills engaged in the production of newspaper 3 of them situated
in south India and one in central India.
The four units produce about 2.41 lakh tonnes of newspaper. In order to meet the
growing demand for newspaper, 16 letters of intent have been issued for a total capacity of
7.46 lakh tonnes. With the proliferation of newspapers and magazines over the past two
decades, demand for newspaper production is around 3.4 lakh tonnes per annum. Capacity
utilization is also satisfactory high at over 90% demand for newspaper is estimated to go
up from 6 to 7 lakh tones in 1990-91 to 10 lakh tones by 2004-05.
The central Govt. raised the foreign exchange allocation for newspaper import in
the financial year of 1988-89 by Rs.95. crore over the above Rs.220 crore already
allocated. This was expected to meet the industrys full requirement of important

31

newspaper. The state-trading corporation has been asked to give priority to small and
medium newspapers. The requirement of important newspaper is estimated to be 2.55 lakh
tonnes of standard variety and 30,000 tonnes of glazed variety. The per capita consumption
of newspaper in India which is at present at 0.65 kg is expected to increase to 1.10kg
during the current decade a stark contrast to 5.6kg in developed countries. In the guide
lines of industries (1988-89) the industrial ministry has estimated the demand for
newspaper to go up to 6.68lakh TPA and to 8.91 lakh TPA by the turn of the 2004-05.
According to the experts newspapers constituted 70% of the variable costs of news print.

EMPLOYMENT OPPORTUNITIES:
The main motives that make people run after development of industries is the
employment that these industries provide. The employment in case of paper industries is
better because it employs 25-30 employees directly for production of 1000 tonnes of
annual capacity because, very large number of workers are employed for cutting trees in
forest and other related works. The employment potential based on agricultural residues is
50-70 per 100 tonnes of annual capacity.

CONSUMPTION OF PAPER IN INDIA:

The per capita consumption of paper in India is at a low condition since it is a very
poor level is 5 kg at present. This is the lowest level, in Asian continent. The average paper
per capita consumption in Asia is 18kg where as it is only 5 kg in case of out India. But
hopes are alive that Indian per capita consumption is likely to increase by 6-7% by the end
of 2010. This rise in demand is attributed to conditions, that there is going to be utilization
of about 75%. If the above hopes are fulfilled, the demand is likely to increase to about 32

32

lakh tonnes per annum, to meet the demand; the paper industrys installed capacity is
expected to be around 42.5 lakh tonnes.

CONSUMPTION OF PAPER & PAPER BOARDS:

Year

Total paper &

Cultural

Warping

Paper

Specialty

1989

Paper Board
1.672

Paper
0.877

packing
0.465

Boards
0.298

Paper
0.372

1990

1.748

0.912

0.493

0.303

0.376

1998

2.184

1.103

0.661

0.389

0.397

2000

2.720

1.334

0.887

0.497

0.420

WASTE PAPER RECYCLING:

A careful study of the factors involved in paper production makes it clear that
nature plays a prominent role in paper production. By cutting down trees for a large
amount of paper production can create much impact on the balance in nature. Driven by
strong environmental pressures, Government legislation and customer preferences, the
paper industry worldwide are resorting the recycles fiber for its raw material needs. Public
support for recovery of waste paper needs to be mobilized. Adoption of technologies in
practice else were for processing domestic waste is a pre-requisite to improve waste paper
use. In particular adoption of drinking technology for newsprint manufacture should be top
priority. Recycled fiber is used in printing and writing purpose as well.

PRESENT STATUS:

33

In 1974 Govt. of India introduced the paper control order to regulate the prices and
quantities of paper and paper boards with the withdrawal of paper control order, the
industry has received some respite and it hopes to achieve higher profitability by producing
these blends of paper and paper boards which are supported by viable demand.
A significant turn around has been achieved by a large number of units during the
past two or three years. However, the paper industry put a lot of emitting conflicting
signals during 1992.
The Govt. has taken the following steps to encourage & enhance production of
paper and paperboard in the country.
1. Paper units based on the use of minimum 75% pulp derived form bagassee, agricultural
residues and o0ther

non-conventional raw material have been exempted form

industrial licensing subject to locating angle.

2. manufacture of writing and printing paper and unquoted craft paper containing not less
than 75% by weight of pulp made from rice & wheat straw, jute, bagassee, mixture of
two or more pulps of the above mentioned material is exempted form excise duty.

TYPES OF RAW MATERIALS:

Production of paper is mainly dependent on 3 types of raw materials. The different
types of raw materials that are used in production of paper and different paper products are

1.

Wood

34

2.

Agros

3.

Waste

Out of different types of raw materials available for production of paper & paper
products in India, agros are most favorably used by the industries. The selection of raw
materials is dependent upon the conditions prevalent in and around the industry.

EXTERNAL FACTORS:
The external factors that effect the selections of raw materials are those related to
the surroundings the plant possesses. The Andhra Pradesh Paper Mills Ltd because of the
availability of a lot of forest areas around Rajahmundry where the plant is located, Andhra
Pradesh Paper Mils Ltd has successfully adopted the technology of paper production where
the raw material is wood. By using wood, the mill can reduce the cost of transportation.
Therefore it is quite clear and evident that raw material selection is purely dependent upon
many external factors.
Internal factors are totally dependent upon the type of raw materials used. For
e.g. In case of Andhra Pradesh Paper Mills Ltd., where the raw material is wood, it has to
introduce a process called Crushing Process, which is essential only in case the raw
material is wood.
Therefore raw material can be a deciding factor for a slot internal factor, such as
production strategies, production technologies and many more other factors. Out of
different types of raw materials available, agro is use by fourteen companies in Andhra,
while only four companies are using wood a their raw material. The remaining three are
using waste as their raw material.

35

EMPHASIS ON CLEAR PRODUCTION:

In the recent summit organized by the institute of environment and development
it was decided that the paper industry would lay emphasis on the key aspect of cleaner
production.
Cleaner production is nothing but a continuous application on an integrated
preventive e strategy to improve operations to reduce usage of resources and costs. The
main objective behind this cleaner production is to reduce risks to human and environment.
Another major aim of using cleaner production methods is to reduce risks to human
and environment and to reduce the amount of energy consumed eliminating use of toxic
materials and also reducing emission of toxic materials.

The Govt. also helped paper

industry in importing wood-pulp chips and waste paper by allowing them wider open
general license and certain excise duty exemptions. During the last few years efforts have
been made by the government to reduce the import of newsprint and force the newspapers
and magazines to use some of the cultural varieties of paper manufactured by indigenous
mills. But the newspapers and magazines have not approved this decision, as it would
lower the quality of printing of presentation.

PRICE OF PAPER:
Being a house hold utility, prices of paper production are well controlled. This
controlling is essential because of the e3xtent of the competition in the market. Prices of
paper products are generally restricted or influenced by the restrictive imported polity
1957. In case of abnormal price deflections government then refers to Bureau of Industrial

36

Prices and Costs (BICP), to get proper recommendations. Depending upon these
recommendations, govt. plans its actions in order to regulate the process of paper products.
It is well-known fact the demand for a paper product is very severe and it is likely
to increase over the next few years.

PRICE CONTROL:
The paper control order, 1974 adversely affected the efforts of developing new
varietiesof papers and board and distributed the production of certain stabled varieties.
Under this order, the mills are required to manufacture 30% of their total output in the form
of white printing paper and sell the same to allot at confessional rate of Rs.2, 750 per tone,
which is non-remunerative. However due to poor of take y the respective consumers, the
industry had to carry huge stock of this variety of paper, accounting 57% of total output.
Following the representation made by the industry, the govt. permitted open marketing
Sales and this concession were available up to the end of 1976. Burt in Nov 1976,
the govt. has asked to set up immediately the open market sales as it felt that the market
conditions improved. The industry circles estimate that an excess production of 40,000
tonnes will be available even in the case of other varieties of paper. The off take was poor
and price dripped by Rs.600 a tone on an average.
Under the paper control order 1979, promulgated with printing paper but also
brought its distribution under control. Hindustan Paper Corporation arrange for the supply
of paper bulk consumers publisher and printers.

37

The latest control on the paper industry has followed sharp increase in the price of
common varieties of writing & printing paper. These were reports of trade charging
premises over & above the listed price of most common varieties of paper.
Even the white printing paper that was under control was often found to be sold in
the open markets at rates much higher than stipulated.
Under the paper control order 1979, promulgated on June 30 1979 the ex-factory price of
white printing cream covers paper was fixed at Rs.3000 per tone and Rs.3875 per tone
respectively. This order also empowered the union government to issue directions to the
manufacturer regarding disposal of their stocks of both these varieties on the term and
conditions specified by the government.

Thus under the latest control order, the

government not only increased the price of white printing paper but also brought its
distribution under control.

PROBLEM OF PAPER INDUSTRY:

Many environmental issues are associated with the paper industry The Indianpaper
Industry is blamed for using too much of water& large discharge of colored effluent,
presence of chlorinated by products in the effluent system, odour control , acid deposition
and stack emission, soiled waste.
The Indian paper industry is blamed for cutting down of trees, which could create
economical imbalance.

The Indian government has not taken effective steps in

encouraging the industry to use other sources of raw materials. The govt. on the other side
took steps and decisions to control cutting down of trees. This created a sort of discontent
in paper industry.

38

Innovative plans are in progress to associate sugarcane mills with the paper mills.
This plan has come into existence. So as to avoid extra pollution being incurred by the
paper mills it will be used by the sugarcane mills, which are associated with them.

FUTURE PROSPECTUS OF THE PAPER INDUSTRY:

The industry should be helped to optimize capacity utilization through renovation&
modernization of existing large mills. In this connection, the price fixed by the govt. for
various types of paper
Were unrealistic and did not provide for reasonable returns on capital. As a result
the industry was hard put to plough back funds for expansion and modernization with the
removal of prices and distribution controls on which printing paper in 1988, paper industry
was able to get remunerative price.
One of the most serious problem is facing the paper is the rapid depleting of fibrous
raw materials. Bamboo continues to be the main stay although some success has been
achieved in the use of mixed hard woods baggage and other agricultural residue.
As bamboo cultivation is becoming uneconomical reliance has to be placed on
unconventional raw materials such as hard wood. Paper mills may have to under take
plantation, forests in their surrounding areas.
In recent years, the production of paper & paperboard has recorded moderate but
steady progress. India is now self sufficient in the product9on of most varieties of paper &
paperboard. Only certain varieties of paper & paperboard are being imported. However a
majority of paper mills still use out-dated technology machinery.

39

To help the industry, the Government has taken various measures, which include
excise rebate to small units, abolition of custom duty on the import of paper grade pulp &
wood chips removal of statutory control over production.
Price & distribution of white printing paper & providing infrastructural support, by
way of increased allocation of coal & wagons.

40

COMPANY PROFILE

41

COMPANY PROFILE
THE ANDHRA PRADESH PAPER MILLS LIMITED:
The Andhra Pradesh Paper Mills Limited situated on the bank of river Godavari
is one of the oldest and at the same time most modern paper units in the country today.
The history of the APPM ltd dates back to 1924. In 1921 a retired
Forest officer proposed to set up the paper mill in Rajahmundry before there was no paper
mill in Andhra Pradesh and southern region also. The construction work was going in 3
years i.e., up to 1924 it started its production with a capacity of 1 tone per day under the
name of CARNATIC PAPER MILL AND COMPANY LIMITED.After the
independence it came under the state govt. in 1953 and functioned as The Andhra Pradesh
Paper Mills Limited with 10 tonnes per day capacity under the reigns of the A.P
government during 1956-64. On June 29th 1964 it saw incorporated as one of the first joint
sectors companies under the stewardship of the Bangur group with its present popular
name The Andhra Pradesh Mills Limited.
The mills quality system was certified to ISO 9002-1994 international quality
management system standard in December 1988 by M/s DET NORSKE VARITAS
(DNU), NETHERLANDS. A certificating body accredited by the Dutch accreditation
council RAAD VOOR DE ACCREDIATATIE (RUA).
It has celebrated its silver jubilee year in 1989. APPM look forward into the future
with one guiding philosophy Leadership through Quality.

42

The mill initially started a far back as in twenties of this century has a long and
required career. It has changed several hands before it was taken over by the A.P.Govt., in
1956. In June 1964, M/s The Andhra Pradesh Paper Mills Limited was formed to take
over the unit with participation of the Andhra Pradesh state government prominent Bangur
group of industrialists and public, perhaps the first joint sector projects in the country.
The first phase of expansion project with large capacity paper machine s was
completed in Oct 1966 and March 1967 raising it annual capacity from 3000 TPA to
18,000 TPA. Since then it has been making rapid strides in its growth by taking up several
expansion projects concurrently and attained the status of one of the biggest paper mills in
the country today with installed capacity of 92,500 TPA. The company uses 80-85% hard
wood and 15-20% bamboo as the fibrous raw materials. Versatile Kraft pulping process is
being adopted in this mill. The company has produced 84,237 tonnes of paper during
1994-95. The govt. of India in recognition of the excellent capacity utilization has reendorsed the industrial license for the expansion of the capacity up to 1, 46,477 TPA.

THE BRIEF HISTORY OF A.P.P.MILLS LIMITED YEAR WISE:

1924

Carnatic Paper Mills Limited

1929

The Andhra Pradesh Paper Mills & Company Limited

1937-42

Take over by Dayaram & Sons

1942

Handed over to Apte & Sons

1946-53

Under Closure

1953

Handed over to Andhra Govt.

1956-64

The Andhra Pradesh Paper Mills Limited,

Run by State Govt.

1964

Converted into Joint Stock Company

43

VISION
APPM by providing competitive value must emerge as the preferred choice for
repeat purchases by an increasing number of satisfied customers. We should continue to be
environmentally friendly and practice good 'corporate citizenship. "We will follow a resultoriented style of management, encourage meritocracy and continuously improve on all
parameters of operations thereby producing a profit that improves the ratio of PBT to
turnover year on year.

MISSION
To be a powerful force in the Pulp & Paper industry through:

High level of productivity and excellence;,

Continual improvement in the quality of human resources, products, services and

technology;

Customer satisfaction;

Concern for occupational health & safety, and

Commitment to environmental management.

ENVIRONMENTAL POLICY
The Andhra Pradesh Paper Mills Limited remains committed to:
Adopting environment friendly and non-polluting processes based on techno
economic viability;

44

 Complying with applicable legal and other requirements, to which the Company
subscribes, related to environmental aspects;
Conserving chemicals, coal, lime stone, power, steam and water;
Improving the competence of employees for effective implementation 'of
environmental management system;
Promoting and propagating social and farm forestry; and
Reviewing environmental performance periodically, for achieving continual
improvement.

QUALITY POLICY
To achieve customer satisfaction by:
Meeting the needs and expectations of the customers;
Continually Improving the quality of our products,, processes and services;
Communicating to appropriate levels within the organization, the need for
continued commitment to quality;
Enhancing the awareness and competence of human resources through training and
development processes, and
Establishing and reviewing our objectives for quality for synergy with overall
business goals;

45

OCCUPATIONAL HEALTH AND SAFETY POLICY

To provide and maintain safe and healthy working conditions by continually
improving the work environment with the active cooperation and participation of the
employees at all levels.

ACQUISITION OF COASTAL PAPERS LIMITED:

In December 2000, the company acquired 42, 60, 000 3equity shares of Rs.10/each of coastal papers limited (CPL) representing 71% of its equity share capital. With the
acquisition, CPL became a subsidiary of the company. The object of acquisition of CPL
by the company was to facilitate synergized operations between both the companies and
also to consolidate its market. Share in the paper industry with a diversified product range
of newsprint.
As the company and the CPL are engaged in the similar line of manufacture, it was
proposed to amalgamate CPL with the company with effect from 1-10-2000. So that the
amalgamation will result in the combined operations being carried on more advantageously
& also economically & efficiently. The BODs of the company met on 31-01-2000 &
announced an exchange ration of 1:3 for the amalgamation of CPL with APPM. The
scheme was subsequently approved by the share holders of both APPM & CPL on 26th
March 2001, at the respective meeting of the equity share holders convened as per the
directions of the Honble High court of Andhra Pradesh.

46

MARKETING:
In APPM Limited marketing is done only through order only. There is no open
market for their product. Paper enters to the market only through orders placed by dealers.
The organization is having a team of 79 reputed dealers who carry on the operations of
marketing and sales of the paper produced by the organization.

APPM POSITION IN PAPER INDUSTRY:

The APPM Ltd stands 2nd in the poster paper production using wood as the basic
raw material. It also stands 4 th in production of craft paper. APPM Ltd is proud to occupy
5th place in production of superior craft paper. It also stands 2nd in production of map
litho/offset Printing. It stands 5th in production of cream wave paper. The mill stands 2 nd
in pulp board cover production. The mill is happy to occupy 5 th in coated paper & boards
production. In regard to export of paper production from Indian paper industry. APPM
Ltd occupies 4th position. The above information was based on the information provided
by the industry.

AWARDS:
The company receives May Day award for the year 1999 for the best management
for their outstanding organization towards productivity and harmonious industrial relations
and labour welfare.
The company won an award from the chemicals and allied productions export
promotion counsel for outstanding export performance in the year 1996-97.

47

The award YAJAMANY RATNA was presented in the year 1994-95 for
maintaining a harmonious relation with the employees of organization.
In 1991-92 company won two awards.

One is from commerce and export

promotion department, A.P. as best supporter, and second one is special supported award
from chemicals and allied product export promotion counsel, Calcutta.
The companys forestation activities were recognized by district administration as
well as state government by awarding Independence day award for social forestry and
state level Vana Mithra Award for excellent contribution in the field of forestation.

POWER:
The mills fire coal fired boilers and chemicals recovery plant can produce about
230 TPH of team for power generation at 32 kgs/cm 2 pressure and 420C. The usual steam
production is about 110 TPH from coat fired boilers and 45 TPH from recovery boilers.
Coal fired boilers 1 and 2 features DCS, which DCS is being installed in coat-fired boilers.
Conversion to fluidized bed type boilers allowed the mill to reduce fuel costs, as
this technology can use low-grade coal. This cut cost of steam by 30 Rs/Tonne.
There are three steam turbines to generate power
1) Extraction, back pressure ( 5 MW)
2) Pure condensing ( 5 MW)
3) Double extraction condensing

48

The mill uses 15.5 MW of captive power and 4 MW from the state grid captive. Power
is cheaper than grid power.
Process water for the mill is drawn from Godavari River.

FUTURE DEVELOPMENT PLANS:

The following are the future development plans of APPM.
1) Modifications of recovery boilers 2&3.
2) Rebuild of PM 5 to increase speed to 650n/min
3) Orders for film press, infrared drying and six kitchens for manufacture of coated
papers.
4) Cascade evaporates to be removed and economize to be added.

PAPER MACHINES:
1) ASHA machine 1926/1969 (MG) MG white color posters pink manila and deluxe
ribbed Kraft & ribbed white poster.
2) AGRAJA machine 1969 (MG) MG white & NS cover/board, coating base, MG
plain and deluxe Kraft, MF stiffener and color cover/board.
3) ANUJA m/c 1962/1988 (MF) surface sized, writing and printing paper, coating
base paper, Azure laid, copier paper, SS white color orders, and industrial varieties.
4) ABHA m/c 1965/1988 (YANKEE) - MG white & color poster, pink manila.
5) ANUPAMA m/c 1974/1988 (MF) cream wove, deluxe map litho, SS multipoint,
coating base paper, dyeline & copier paper.

49

ORGANISATION OF THE MILL:

The entire organization of the paper mill is conveniently divided into two main
parts so as facilitate easy communication in the two parts. The organization of the APPM
Ltd is divided into
Administrative section
The technical or the manufacturing section
The organization is run in a scientific manner as the principle of span of
management is followed. There is part amount of delegation & decentralization followed in
this organization. Most of the decision concerning the department is taken at the
departmental level but when the decision involves huge sums, it should get the approval of
the chief executive or the managing director.

ORGANISATION OF THE ADMINISTRATION SECTION:

The deputy chief executive of the company leads the administration section of the
paper mill at Rajahmundry. There are eight assistants namely.
Assistant the deputy chief executive accounts officer
Chief forest officer
Purchase officer
Personnel Manager
General administrative officer
Paper godown incharge
Transport officer incharge

50

 Stores controller
The eight departmental heads have vast powers and they are only responsible to the
deputy chief executive. The sub-heads under each head and enumerated as follows
Purchase Department there are 3 officers of the purchase Department located at
Bombay, Hyderabad and Rajahmundry.
Forest there is forest department in the allocated lands by the government.
Accounts-there are seven departments, which report to chief accounts officer.
Company accounts
Cost accounts
Sales accounts
Cash officer
Time officer
Stores accounts
Internal audit

Personnel Department the Personnel Manager lead the Personnel Department and
the following Departments report to him.
Time office
Welfare
Establishments
Safety & H.R.M
General administration it looks after the imports of the company
Paper godown looks after the stocks of paper

51

 Transport the transport manager reports to the chief executive and he is in

charge of the transport network in and out of the mills.
Stores the stores controller leads the stores Department & there are 3 stores
Departments.
M.S.P. Stores
General stores
Chemical store

ORGANISATION OF THE TECHINICAL SECTION:

Organization of the technical section of the APPM Ltd headed by G.M.
( Technical) who looks after the complete administration of the operation & maintenance
of the plant.
Under Deputy G.M. (Maintenance) there are 3 chief engineers.
Civil & designing
Power block utilities
Mechanical
All the 3 report to the deputy general manager, the superintendents of the various
maintenance Departments in turn assist these three chief engineers.
Two superintendents assist the Deputy General Manager (process). He looks after
the
Paper machine

52

 Chemical plant
These two superintendents are in turn assisted by Deputy Superintendents of the
various process Departments.
Control laboratory
Research centre
Quality control
Chemical recovery plant
Power house
Work shop
Transport Department
LABOUR AND EMPLOYEE PROFILE:
In APPM Ltd organization labour & employees are the important factor of
production.

In this organization the total number of employees working in this

organization is about 3000.

Employees
1
2
3
4
5
6
7
8
9
10
11
12
13
Total

Spl. Grade
Highly Skilled-I
Highly Skilled-II
Skilled I
Skilled II
Semi Skilled-I
Semi Skilled-II
Un Skilled
Others
Junior Staff
Senior Staff
Badli
Contract

EMPLOYEE WELFARE AND SOCIAL SECURITY:

53

175
317
236
232
139
123
145
83
229
278
361
14
681
3013

The Andhra Pradesh Paper Mills Ltd., is provided all welfare facilities to
employees as per factories Act 1948.
They provide statutory & non-statutory facilities.
Washing facilities
Facilities for strong and drying clothing
Facilities for sitting
First aid appliances
Canteen
Shelters, rest rooms and lunch rooms
The A.P.P.Mills provide canteen facilities to their employees on the basis of no
profit & no loss. The APPM Ltd was given the subsidy nearly 3,00,000/- per month.
These amounts used only for material cost. In 1989 the canteen prices are decided. Still
now there is no change in price.

The APPM Ltd has the canteen committee.

The

committee consists of 10 members, 5 members from employee side and 5 members from
management side.
Totally 60 members are working in canteen workers 54 & staff 6 members.

NON STATUTORY FACILITIES :

Housing
Colony shops

54

 Sports, games, cultural activities

Uniforms
Postal savings
Funeral expenses
Family planning
Cycle stand
Meal carrier
Distribution of sweet packets on birthday
Arranging exercise notebook
Furniture advances (only senior staff)
Arranging of schoolrooms vacant quarters for marriage and other functions
Area maintenance (collect 5 per month)
Screening of film shows
Water coolers.

PROCESS OF PAPER:
The main constituent of paper is cellulose. It is mainly available in wood, cotton,
and in agro-residues such as biogases, jute Mestas and straw. Cotton though easily
available in the country is too expensive to be used for producing paper.
Processes involved in paper making
Raw material
Pulping
Bleaching

55

 Additives
Removing water
Final product

RAWMATERIALS OF PAPER INDUSTRY:

Paper is made up of the following raw materials
Soft wood like spruce and pine which have a long fibre
Hard wood short fiber. Not very suitable for papermaking. Gives trouble in
barking & chipping, eucalyptus, acacia
Albizzia & wattle trees are more suitable hard wood trees for papermaking and do
have a very high rate of growth.
Grasses several types of long grasses like bamboo, sabai grass, sarkanda etc are
used
Straws-in India rice, wheat straw has been reported as suitable for paper making.
Cotton linters-its a seed hair from cotton plant after extracting cotton only small
proportions of raw cotton in form of short fiber linters comes directly to paper
mills.
Cotton rags-this gives more strength in paper or paperboard.
Linen linen fiber is derived from the baste tissue of the stem of the flax plant,
cultivated extensively in USA, Russia Hungary, France, Belgium & Ireland

56

 Manila-fiber occurs in the leaves of a plant of the plantain family that growth in the
Philippines islands
Water paper the demand of waste paper for manufacturing of paper is increasing
every day. Utilization of this would reduce load on demand of fresh fiber. About
80% of the waste paper is used in the manufacture of paperboard. Small-scale units
depend almost entirely on waste paper as raw material.

PULPING:
It is obtained by removing lignin & other impurities from the wood & other raw
materials used by a cooking process (lignin is the glue that holds the fibers of the wood in
the three form). The cooking process requires wood bamboo or other raw materials chips.
The chips are loaded into a digester and cooking liquor is added. Then by pressure
cooking, the wood bamboo or other fibers are separated from other unwanted ingredients.
Either batch digester or continuous digesters are used in cooking.
The chips and liquor are mixed as the chips are pumped to the top of the digester is
pressurized to 160 psi and more. As the chip mass passes downward the cooking liquor
penetrates the chip. After about 45 minutes or more as per raw material the chips have to
be passed through the impregnation zone where hot liquor (340 degree F) is circulated
through the chips for heating. The actual pulping occurs at 355 degree F in about 90
minutes, a period known as the cooking period. After passing through the cooking zone,
the chips (which have not become pulp) are washed with weak liquor from washing stages
that follow
With the chemical process there are 2 types.

57

Sulphate process (alkaline process)

Sulphite process (acid process)

Some hard woods may be dissolved with difficulty by the sulphite process on the
other hand, the sulphate process most of the chemicals are recovered and revised.

BLEACHING:
Although cellulose fiber is white in colour, due to residual lignin traces remaining
on the fibers the pulp appears creamish. Therefore to manufacture white paper we need to
remove yellowness without physically or chemically damaging the fiber with improvement
in various properties. So the main objectives of bleaching the pulp can be set out as
follows.
We can increase brightness of the pulp by removal of modification of some of the
unwanted elements in the unbleached pulp. These deleterious elements are lignin traces,
resins, metal ions, non- cellulose carbohydrates, etc.
Bleaching for brightness improvement should also help to keep the pulp stable
without turning yellow or lose strength or reduce brilliance due to aging the lower
viscosity of pulp for optimum flow, during subsequent operations.
Bleaching also should help to reduce the fiber bundles shrives and bark fragments
Bleaching should be done with minimum mechanical action of fibers, while
dissolving lignin and other unwanted residuals.

58

Bleaching pulp is normally done in a step- wise sequence using different chemicals
and process conditions at each stage with washing in between stages.

ADDITIVES:
Additives are added to paper pulp. Addition of filers like clay & calcium carbonate
is very common & besides acting as fillers, they add brightness to the paper. These
additives must be finely ground. Additives like dyes & pigments are also added. Other
fillers are titanium dioxide, barium sulphate & zinc sulphide.

REMOVING WATER:
Removing water is the next important stage. For this the pulp is passed through a
rapidly moving wire mesh called four driner. The objective is to recover 93-95% of the
water in the finished paper.
As the paper flows along the wine mesh & water is drained along. The way, a
dandy roller near the end helps to smooth out the paper; the dandy roller will improve the
formation of the paper web by application f pressure. When the paper reaches the end of
the wire mesh it is transferred to a felt blanket that conveys it through many stams heated
dryers to remove the excess moisture. In the process the paper gets some glaze like coating
also. Then it is made to pass through a series of calendar stacks. The calendars are series of
polished form rollers stacked one on top of the other, through which the finished paper will
pass to smoother down, the next step is rewinding on a metal or fiber core.

FINAL PRODUCT:
The last stages after this are sheeting, packing & testing.

59

Paper manufacturing is highly polluting. Discharge of process water contains toxic

pollutants like bark, fibers, wood debris, lignin & other suspended solids. Air pollution also
takes place at the pulping stage with the release of toxic gases containing oxides of sulphur
and nitrogen and the release of nitrogen & carbon oxides by burning of coal to produce
steam.
The setting up of water treatment plants and chemical recovery systems is
economically feasible only for large plants. Therefore with the stricter enforcement of
pollution control norms by the government of India, many small firms are finding it
difficult to continue operations.
The cost of production for small paper mills is higher than that for large mills. The
latter get the benefit of lower energy costs by using co-generation facility, chemical
recycling etc.
The benefit of lower fixed cost (capital cost) per tone of installed capacity for small
paper mills is more than made up by higher variable operating cost. Further small units are
also more polluting.

60

FLOW DIAGRAM OF PAPER MAKING PROCESS

Raw Material

Chipper House

Digester house

Screening & Washing

Hypo

Evaporators
Steam to

Bleaching

Recovery Boilers
Power block

Stock Preparation
Causticizing
Paper Making
Lime
Converting &
Finishing

61

Lime Kiln

PRODUCTION VS SALES PEFORMANCE:

Year

Production

Sales

(in Units)

(in Units)

1995-96

83,251

83,187

1996-97

CHAIR79,861
MAN

77,742

1997-98

84,330

84,074

1998-99

91,543
DIRECTORS
94,344

93,072

88,745
EXECUTIVE DIRECTORS
1,54,322

86,801

1999-00
2000-01
2001-02

95,281

1,56,967

2002-03

1,49,874

1,46,125

2003-04

1,51,692

1,49,743

2004-05 EXRCUTIVES
(Corporate Office)
2005-06

1,54,789
1,56,567

1,43,735

2006-07

1,48,865

1,39,543

VICE
PRESIDENT
(FINANCE)

VICE
PRESIDENT
(COMMERCIAL)

EXICUTIVES
1,45,765

(FACTORY)

VICE
PRESIDENT
(Personnel&
Administration)

VICE
PRESIDENT
(works)

ORGANISATION CHART OF ANDHRA PRADESH PAPER

MILLS LTD.

Dy. GENRAL
MANAGER
(Production)

GENERAL
MANAGER
(WORKS)

Dy. GENRAL
MANAGER
(Product
development &

Consumer
Services)
62

Dy.
GENERAL
MANAGER

BOARD OF DIRECTORS

The Management is entrusted to the Board of Directors headed by its Chairman,

Mr. L N Bangur with Mr. R C Mall, the Executive Director as the CEO. The other eminent
directors in the Board are: -

63

1. Sri L.N. Bangur

(Chairman)

2. Sri R.C Mall

(Executive Director)

3. Smt Alka Bangur

4. Sri N. Srinivasan
5. Sri R.K. Joshi
6. Sri K.K. Rai
7. Sri R.C. Sarin
8. MS Sheetal Bangur

Director (Commercial)

9. Sri Shreeyash Bangur

Director (Corporate)

EXECUTIVES OF CORPORATE OFFICE

1. Sudhir Bansali,

President (Finance) & Chief Finance Officer.

2. P.B. Naidu

Sr.Vice President (Commercial)

3. L.M.Hoogon

Sr.Vice President (Projects)

4. K.George Thomas

Sr.Vice President (Marketing)

5. Shreeyash Bangur

Vice-President (Corporate Planning &

Business Development)

6. M.Samba Shiva Rao

General Manager (Commercial)

64

THEORETICAL FRAMEWORK

65

MARKETING MIX : A CONCEPTUAL APPROACH

According to Stanton Marketing mix is the terms used to describe the combination
of focus inputs which constitute the case of a companys marketing system. The product,
the price structure, the promotional activities and distribution system. In short marketing
mix refers to the amount and kinds of marketing variable the firm using at a particular
time.
Marketing mix constitutes the four basic elements viz., product, price, distribution
(place) and promotion.

These four elements are called as 4ps of marketing mix.

Therefore, the marketing mix consists of the following four major activities usually
referred to as elements of marketing mix.

4PS GIVEN CUSTOMER BENEFIT INDICATE BY 4CS

4ps

4cs

Product

Customer solution

Price

Customer cost

Place

Customer convenience

Promotion

Communication

PRODUCT

66

A product is any thing that can be offered to a market for attention, acquisition or,
use, consumption that might satisfy a want or need.

A product may be defined as

something, which is given to consumers in exchange for a price.

DEFINITIONS
PRODUCT: A product is a complex set of tangible attributes, including packing,
color, price, manufacturers prestige and retailers prestige and manufacturers and retailers
services, which the buyer may accept as offering satisfaction of wants or needs.
--- WILLIAM J.STANTON
Product planners need to think about the product on three levels.
1. Core Product
2. Actual Product
3. Augmented Product

CORE PRODUCT:
The most basic level is the core product, which addresses the question. What is the
buyer really buying? It consists of the problem solving services or core benefits that
consumers obtain when they buy product. Thus, when designing products, marketers must
first define the core of benefits the product will provide to consumers.

ACTUAL PRODUCT:

67

The product planner must next build an actual product around the core product.
Actual products may have as many as five characteristics : a quality level, features,
packaging and other attributes have all been carefully combined to deliver the core benefit
a convenient, high quality way to capture important moments.

AUGMENTED PRODUCT:
Finally, the product planner must build an augmented product around the core and
actual products by offering additional consumer services and benefits. When developing
products, marketers must first identify the core consumer needs the product will satisfy.
They must then design the actual product and find ways to augment it in order to create the
bundle of benefits that will best satisfy consumers.

PRODUCT CLASSIFICATION
Product can be classified in to two groups according to their durability or tangibility
ie., Durable goods and non-durable goods.

NON-DURABLE GOODS
These goods are consumer goods that are normally consumed in one or a few uses.
These goods are purchase repeatedly, these goods are having short period life.

DURABLE GOODS
Durable goods are consumer goods that are used over an extent period of time and
that normally survive many years. These goods are purchased for long period.
Products can also be classified as consumer goods and industrial goods.

68

CONSUMER GOODS
Consumer goods are those bought by final consumer for personal consumption.
Marketers usually classify these goods based on consumer shopping habits. Consumer
goods include convenience, shopping, specialty and unsought goods.

INDUSTRIAL GOODS
Industrial goods are those bought by individuals and orginzations for the further
processing or for use-conducting a business. Thus, the distinction between consumer
goods and industrial goods is based on the purpose for which the product is purchased.
Industrial goods can be classified according to how they entered the production
process and according to what they cost. Those three groups of industrial goods are:
1.

Materials and parts

2.

Capital Items

3.

Supplies and services

BRANDING
Consumers view a brand as an important part of the product, and branding can add
value to the product. Branding has become a major issue in product strategy.
A brand is a name, term, sign, symbol or design, or a combination of these,
intended to identify the goods or services of one seller on group of sellers and to
differentiate them from those of competitors.

69

ADVANTAGES OF BRANDING
Branding as an aspect of product marketing can be analyzed from two different
stand points : that of buyers and of sellers. It is also possible to have a social view point.

A)

BUYERS:
The buyers can derive several advantages:
1. A brand generally denotes uniform quality.
2. It makes shopping easier
3. Competition among brand can over a period of time, led to quality improvements.
4. Purchasing a socially visible brand can give psychological satisfaction to the
buyer.

B)

SELLERS:
A marketer can also derive certain advantages such as :
It helps in product identification
In a highly competitive market, it can carve out a niche for itself through product

differentiation.
If brand loyalty can be developed through successful promotion, the firm will be
able to exert quasi-monopolistic power.

PACKAGING

70

Packaging is the art, science and technology of preparing goods for transport and
sale. This definition brings out two salient aspects of packaging.
These are:

It has to help in the physical transportation and sale of the products packaged.

Packaging as a function consists of two distinct elements, the positive aspects, viz.,
the art of product design, which is associated with consumer motivation research,
buying research etc.

FUNCTIONS OF PACKAGING
Packaging should perform the following basic functions : it should
(a)

Protection

(b)

Appeal

(c)

Performance

(d)

Convenience

(e)

Cost effectiveness

LABELLING
Sellers may also design labels for their products, ranging from simple tags attached
to products to complex graphics that are part of the package. The label might carry only
the brand name or a great deal of information. Even if the seller prefers a simple label, the
law may require more information.

71

Labels perform several functions, and the seller has to decide which ones to use. At
the very least, the label identifies the product or brand, such as the name Sunkist stamped
on oranges. The label might also grade the product conned peaches are grade labeled A,
B and C. The label might describe several things bout the product Who made it, where it
was made, when it was made, its contents, how it is to be use, and how to use it safely.
Finally, the label might promote the product through attractive graphics.

The more

prominent being the Fair Packaging and Labeling Act of 1966.

PRICE
A companys pricing decisions are affected by many internal company factors and
external environmental factors.

Internal factors include the companys marketing

objectives, marketing mix strategy, costs, and organization. External factors include the
nature of the market and demand, competition and other environmental factors.

DEFINITIONS : Price is the only element in the marketing mix that creates sales revenue to the
other elements of costs.
Price is only one of the marketing mix tools that the company tries to achieve its
marketing objectives.

Price decisions must be coordinated with product design,

distribution, and promotion decisions to from a consistent and effective marketing

program. Decisions made for other marketing mix variable may affect pricing decisions.
Generally, marketers consider the following factors in setting price:

Target customers

72

Cost

Competition

The law

Social responsibility

PRICING APPROACHES
Companies price by selecting a general pricing approach that includes one or more
of these three sets of factors. We describe the following approaches: the cost based
approach (cost-plus pricing, breakeven analysis, and target profit pricing), the buyer-based
approach (perceived-value pricing), and the competition-based approach (going-rate and
sealed-bid pricing).

COST-BASED PRICING
Cost plus pricing: the simplest pricing method is cost-plus-pricing-adding a
standard markup to the cost of the product. Construction companies, for example, submit
job bids by estimating the total project cost and adding a standard markup for profit.
Breakeven Analysis and Target Profit Pricing: Another cost-oriented pricing approach
is breakeven pricing or a variation called target profit pricing. The firm tries to determine
the price at which it will break even or make the target profit it is seeking.
Target pricing uses the concept of a breakeven chart. A breakeven chart shows the
total cost and total revenue expected at different sales volume levels.

BUYER-BASED PRICING

73

Perceived-value pricing: an increasing number of companies are basing their prices

on the products perceived vale. Perceived-vale pricing uses buyers perceptions of value,
not the sellers cost, as the key to pricing. The company uses the non-price variables in the
marketing mix to build up.

COMPETITION BASED PRICING

1. Going rate pricing
2. Sealed-bid pricing

GOING RATE PRICING

In going-rate pricing the firm bases in price largely on competitors prices, with less
attention paid to its own costs or demand. The firm might charge the same, more, or less
than its major competitors. In oligopolistic industries that sell a commodity such as steel,
paper, or ceramic, firm normally charge the same price.

SEALED-BID PRICING
Competition-based pricing is also used when firms bid for jobs. Using sealed-bid
pricing, a firm bases are price on how it things competitors will price rather than on its own
costs or demand. The firm wants to win a contract, and winning the contract requires
pricing lower than other firms.

DISTRIBUTION PLACE

74

Distribution activities are used to transfer ownership to consumers and to place

products, services and idea at the right time and place. Distribution is made up of two
components:

CHANNELS OF DISTRIBUTION

PHYSICAL DISTRIBUTION

CHANNELS OF DISTRIBUTION
A distribution channel is set of interdependent organizations involved in the process
of making a product or service available for use or consumption by the consumer or
industrial user.

DEFINITION
A Channel of distribution (sometimes called a trade channel) for a product is the
route taken by the title to the goods as they move from the product to the ultimate customer
of industrial users.
---WILLIAM J.STANTON

DISTRIBUTION CHANNEL FUNCTIONS

A distribution channel moves goods from producers to consumer. It overcomes the
major time, place and possession gaps that separate goods and services from those who
would use them. Members of the marketing channel perform many key functions.

75

Information --- gathering and distributing marketing research and intelligent

needs for planning and aiding exchange.

Promotion --- developing and spreading persuasive communications about an

offer.

Contact --- finding and communicating with prospective buyers.

Matching --- shaping and fitting the offer to the buyers needs. Including such
activities as manufacturing, grading, assembling and packaging.

Negotiation --- reaching an agreement on price and other terms of the offer so
that ownership or possession can be transferred.

Physical distribution --- transporting and storing goods.

Financing --- acquiring and using funds to cover the costs of the channel work.

Risk taking --- assuming the risks of carrying out the channel work.

The first five functions help to complete transaction; the last three help fulfill the
completed transaction

NUMBERS OF CHANNEL LEVELS

Distribution channels describe by the no. of channel levels.

Each layer of

middleman that performs some work in bringing the product and its ownership closer to
the final buyer is a channel level. Because the producer and the final consumer both
perform some work, they are part of every channel.

76

CHANNEL 1 :

Called a direct marketing channel, has no intermediary levels. It

consists of a manufacture selling directly to consumers.

CHANNEL 2 :

Contains one middleman.

In consumer markets this level is

typically a retailer.
CHANNEL 3 :

Contains two middleman levels, in consumer markets these levels

are typically a wholesaler and retailers.

CHANNEL 4 :

Contains three middleman levels. Jobbers usually come between

wholesalers and retailers.

77

FOUR MAIN TYPES OF CHANNEL OF DISTRIBUTION

Producer Ultimate consumer
Producer .. Retailer . Ultimate consumer
Producer Wholesaler . Retailer Ultimate consumer
Producer Wholesaler .. Jobber . Retailer Ultimate consumer

PHYSICAL DISTRIBUTION
DEFINITION
Physical Distribution involves the management of the physical flow of products
and the establishment and operation of flow system.
--- WILLIAM J STANTON

NATURE OF PHYSICAL DISTRIBUTION

Physical distribution involves planning, implementing, and controlling the physical
flow of materials and final goods from points of origin to points of use to meet the needs of
customers at a profit. The major physical distribution cost is transportation, followed by
inventory carrying, warehousing, order processing, and customer service.

ORDERS PROCESSING
Physical distribution begins with a customer order. The order department prepares
invoices and sends them to various departments. The company and customers benefit

78

when the order processing steps are carried out quickly and accurately. Ideally, sales
peoples send in their orders daily, often using online computers.

WARE HOUSING
Every Company must store its goods while they wait to be sold. A storage function
is needed because production and consumption cycles rarely match. The company must
decide on the best number of stocking location. The more stocking locations, the more
quickly goods can be delivered to customers. However, warehousing costs go up. The
company must balance the level of customer service against distribution costs.

INVENTORY
Inventory levels also affect customer satisfaction.

Marketers would like their

companies to carry enough stock to fill all customer orders right away. However, it costs
too much for a company to carry that much inventory. Inventory costs rise at an increasing
rate as the customer service level approaches 100 percent. To justify larger inventories,
management needs to know whether sales and profits will increase accordingly.

TRANSPORTATION
Marketers need to take an interest in their companys transportation decisions. The
choice of transportation carries affects the pricing of the products, delivery performance,
and condition of the goods when they arrive all of which affects customer satisfaction. In
shipping goods to its warehouses, dealers and customers the company can choose the one
among the various transportation modes available.

79

PROMOTION
A modern company manages complex marketing communication systems. The
company communicates with its middlemen, consumers and various publics.

Its

middlemen communicate with their consumers and publics. Consumers have word-ofmouth communication with each other and with other publics. Meanwhile, each group
provides feedback to every other group.
A companys total marketing communications program-called its promotion mixconsists of the specific blend of advertising, sales promotion, public relations and personal
selling that the company uses to pursue its advertising and marketing objectives.

DEFINITION:Promotion is an exercise information, persuasion and influence. The four major

promotion tools are defined below:

ADVERTISING
Any paid from of non-personal presentation and promotion of ideas, goods or
services by an identified sponsor.

SALES PROMOTION
Short-term incentives to encourage purchase or sales of a product of service.

80

PUBLIC RELATION
Building good relations with the companys various publics by obtaining favorable
publicity, building up a good corporate image, and handling or heading off unfavorable
rumors, stories and events.

PERSONAL SELLING:
Oral presentation in a conversation with one or more prospective purchasers for the
purpose of making sales.
Promotion function being linked with the ever-changing market environment is a
dynamic function. The promotion mix, Therefore, acquires the dimension of dynamism
and varies from product to and over a period of time.
The major determinants of the promotion mix are:
1.

Type of product

2.

Nature of Market

3.

Stage of Production its life-cycle

4.

Available budget, and

5.

Company Policy.

81

ADVERTISING
An identified sponsor can define advertising as Any paid form of non personal
presentation and promotion of ideas, goods or services. Advertisings public nature
suggests that the advertised product is standard and legitimate. Because many people see
ads for the product, buyers know that purchasing the product will be publicly understood
and accepted.

PERSONAL SELLING
Personal selling is the most effective tool at certain stages of the buying process,
particularly in building up buyers preferences convictions, and actions. As compared with
advertising, personal selling has several unique qualities. It involves personal interaction
between two or more people, so each person can observe the others needs and
characteristics and make quick adjustments.

Personal selling also to deep personal

friendship. The effective salesperson keeps the customers interests at heart in order to
build a long-run relationship.

SALES PROMOTION
Sales promotion includes a wide assortment of tools coupons, contents, cents
off deals, and premiums. And other-and these tools have many unique qualities. They
attract consumer attention and provide information that may lead consumer to buy the
product.

They offer strong incentives to purchase by providing inducements or

contributions that give additional value to consumers.

82

PUBLIC RELATIONS
Public relations offer several advantages.

One is a believability-news story,

features and events seem more real and believable to readers than do ads. Public relations
can reach many prospects who avoid sales people and advertisements; the message gets the
buyers as news rather than as a sales-directed communication. And like advertising,
public relation can dramatize a company or product.

83

DATA ANALYSIS AND INTERPRETATION

84

DATA ANALYSIS AND INTERPRETATION

1. Duration of dealership for APPM products.

Particulars
1-3 years
3-6 years
6-10 years
> 10 years
Total

No Of Respondents
8
7
25
10
50

% Of Respondents
16
14
50
20
100

60

50

40
1-3 years
3-6 years

30

6-10 years
> 10 years

20

10

0
1-3 years

3-6 years

6-10 years

> 10 years

INTERPRETATION:
From the survey conducted 50% of Dealers have been a dealer of APPM from 6-10
years. 16% are from 1-3 years, 14% are from 3-6 years and 20% are from above 10 years.

2. Preference to sell APPMs products.

85

Particulars
Quality of products
Price low
Greater margin
Brand image
Total

No Of Respondents
20
10
5
15
50

% Of Respondents
40
20
10
30
100

Quality of products
Price low
Greater margin
Brand image

INTERPRETATION:
From the above table, it is clear that 40% of dealers prefer to sell the
APPMS products because of quality of products, 20% of dealers say price low, 10% says
greater margin 30% says brand image.

3. Satisfaction with respect to the existing colors of papers by APPM.

86

Particulars
Satisfied
Un satisfied
Total

No Of Respondents
45
5
50

% Of respondents
90
10
100

100
90
80
70
60
Satisfied

50

Un satisfied

40
30
20
10
0
Satisfied

Un satisfied

INTERPRETATION:
From the above table is clear that 90% of dealers are satisfied with the existing
colors of papers, and 10% of dealers are unsatisfied.

4. The improved quality of products will help to attain zero levels of consumer complaints.

87

Particulars
Yes
No
Cant say
Total

No Of Respondents
40
5
5
50

% Of Respondents
80
10
10
100

Yes
No
Cant say

INTERPRETATION:
It is evidence that 80% of dealers viewed that improved quality of the products and
services will help to attain zero levels of consumer complaints 10% are viewed No , and
10% are cant say.

5. The quality of APPMS products.

Particulars
Good
Satisfy

No Of Respondents
35
10

88

% Of Respondents
70
20

Average
Total

5
50

10
100

Good
Satisfy
Average

INTERPRETATION:
The above table reflects 70% of dealers feel good about the quality of APPMS
products and 20% are satisfied and 10% feel average.

6. Satisfaction with the respect to the margin offered APPMS.

Particulars
Yes
No
To some extent
Total

No Of Respondents
30
5
10
50

89

% Of Respondents
60
10
20
100

70
60
50
40

Yes
No

30

To some extent

20
10
0
Yes

No

To some extent

INTERPRETATION:
It can be analyzed that 60% of dealers are satisfied with the margin offering by
APPMS, 10% are not satisfied and 20% are satisfied to some extent.

7. Problems faced by the distribution of APPM.

Particulars
No problem
Finance problem
Marketing problem
Management problem
Total

No Of Respondents
15
20
10
5
50

90

% Of Respondents
30
40
20
10
100

40
35
30
25
No problem
20

Finance problem
Marketing problem

15

Management problem

10
5
0
No problem

Finance
problem

Marketing
problem

Management
problem

INTERPRETATION:
It is evident that the 20% of dealers said that distributors are facing finance
problem, and 15% said that no problem, 10% said that marketing problem and 5% said that
management problem.

8. Factors influencing the consumer to buy the APPMS products.

Particulars
Promotion
Quality
Price
Brightness
Total

No Of respondents
5
10
30
5
50

91

% Of Respondents
10
10
60
10
100

60

50

40
Promotion
Quality

30

Price
Brightness

20

10

0
Promotion

Quality

Price

Brightness

INTERPRETATION:
It can be analyzed that 60% of dealers observed that the price will influence the
customer to buy the products of APPMS and 10% of dealers viewed that quality. 5% are
promotion and 5% are brightness.
9. Contact with the sales representatives.

Particulars
Yes
No
To some extent
Total

No Of Respondents
25
5
20
50

92

% Of Respondents
50
10
40
100

Yes
No
To some extent

INTERPRETATION:
From the survey conducted 50% of dealers are in contact with sales representatives,
10% of dealers viewed that no and 40% of dealers viewed that to some extent only.

10. Fast moving quality products.

Particulars
Export quality
Commercial quality
Total

No Of Respondents
20
30
50

93

% Of Respondents
40
60
100

60
50
40
Export quality
30

Commercial quality

20
10
0
Export quality

Commercial quality

INTERPRETATION:
It is evident that 60% of dealers feel commercial quality products are fast
moving in terms of sales and 40% of dealers feel export quality.

11. Convenience of the present packing systems.

Particulars
yes
No
To some extent
Total

No Of Respondents
40
5
5
50

94

% Of Respondents
80
10
10
100

yes
No
To some extent

INTERPRETATION:
From the above table is clear that , 80% of dealers are convenient with
packing system and 10% of dealers feels no and 10% of dealers feels cant say.

12. Opinion on the promotional activities of APPMS enough.

Particulars
Enough
Not enough
To some extent
Total

No Of respondents
20
25
5
50

95

% Of Respondents
40
50
10
100

50
45
40
35
30
25
20
15
10
5
0
Enough

Not enough

To some extent

INTERPRETATION:
The above table reflects that 40% of the dealers viewed that the promotional
activities of APPM enough , 50% of dealers viewed no and 10% of dealers viewed that
cant say.

13. Market coverage of APPM.

Particulars
Coverage the entire market
Not coverage
To some extent
Total

No Of Respondents
25
15
10
50

96

% Of Respondents
50
30
20
100

50
45
40
35
30
25
20
15
10
5
0
Coverage the entire
market

Not coverage

To some extent

INTERPRETATION:
The above table shows that 50% of dealers feel the existing network of APPM
capable of covering the entire market, 30% of dealers feel no and 20% of dealers feel that
to some extent.

14. Regularity of the sales managers contact.

Particulars
Yes
No
Total

No Of Respondents
40
10
50

97

% Of Respondents
80
20
100

INTERPRETATION:
From the survey conducted, 80% of dealers viewed that the sales managers
regularly meet with them and 10% of dealers viewed no.

15. Ways or Means of placing the orders.

Particulars
Couriers
Fax
Telex
Total

No Of Respondents
15
30
5
50

98

% Of Respondents
30
60
10
100

70
60
50
40
30
20
10
0
Couriers

Fax

Telex

INTERPRETATION:
It is evident that 30% of dealers place the orders by couriers and 60% of dealers by
Fax and 10% of dealers by Telex.

16. Utility of the dealers meetings in reviewing performance.

Particulars
Yes
No
Cant say
Total

No Of Respondents
40
5
5
50

99

% Of Respondents
80
10
10
100

80
70
60
50
40
30
20
10
0
Yes

No

Cant say

INTERPRETATION:
From the above table reflects that 80% of the dealers observed that the dealers
meetings help them and 10% of dealers viewed that no and of dealers viewed that cant
say.

100

FINDINGS

SUGGESTIONS
CONCLUSION

101

FINDINGS
1.

2.

It is observed that the paper products of APPM Ltd consists of,

Writing paper and printing paper

Packing, wrapping paper

Specialty paper

Export paper

The company performance is quite profitable and the company is succeeding in its
marketing operation.

3.

The APPM ltd sell its products directly to the dealers. It is having about 240
dealers, throughout India and exporting to foreign up to 70 countries.

4.

The Andhra Pradesh paper mills limited has good brand image. They are
maintaining good quality of product to attain customer satisfaction.

5.

It is observed that the company fixes the price through the market demand. Pricing
policy generally followed by Appm is cost plus pricing policy. That is certain
percentage is added to the cost of goods sold, inorder to get the final price.

6.

Appm gives three types of discounts to customers.

Trade discount,

Cash discount,

102


7.

Quality discount.

The Appm has dealings with dealers. Here in this mills dealer is the main
intermediary to reach the consumers. As such, the levels of channels of distribution
are shown as follows:
Manufactures

8.

dealers

Retailers consumers.

It is found that the company is very keen on selecting the dealers for its paper
distribution. Its dealer selection criteria comprises several aspects like,

Financial strength of dealer

Business turnover of dealer

Reputation of dealer

Co-operative ness with management

Business experience

Social status

9.

APPM has recently started to appoint the retailers.

10.

The Andhra Pradesh paper mills Ltd., does not use any promotional tool but it tries
to motivate dealers in the distribution process,

103

SUGGESTIONS

Indian paper Industry is facing stiff competition from the foreign inventors. So,
APPM has to develop proper strategies to face the competition.

104

Much emphasis should be given to the promotional activities, so that performance

may improve in total and the overall marketing mix gets the proper balance.

The company has to motivate its staff by offering incentive schemes on part with
other competitive firms.

Proper co-ordination between the market departments at secunderabad and the mill
at Rajahmundry is to be maintained on a continuous basis.

Steps must be taken to meet requirements of specialty paper.

105

CONCLUSION
The Andhra Pradesh paper mills Ltd is one of the major paper producing units of
the country. This organization is unique in its own and perhaps among the biggest
producing industries in India.
This modern paper unit produces wide varieties of paper and paper boards. Many of
these have great demand in the market. This mill does not compromise with the quality
standards. The paper and paper board produced in APPM Ltd is of utmost good quality and
gained customer satisfaction.
One of the core strengths of APPM Ltd is the hard working and dedicated
administration staff and workers. Due to their contribution the mill is leading towards
excellence in quality.
APPM Ltd has an In-house research and development department continuously
working on the new product development and product quality improvement and
innovation.
Year after year Andhra Pradesh Paper Mills Ltd is attaining new heights and
emerging as the leader in the Indian Paper Industry.

106

QUESTIONNAIRE

107

QUESTIONNAIRE
Name of the Dealer:
Place:
Contact No:
1.

2.

For how many years have you been a dealer of APPM

a) 1-3 Years

b) 3-6 Years

c) 6-10 Years

d) > 10 years.

Why do you prepare to sell APPMS products

a) Quality of products

b) Price low

c) Greater margin
3.

d) Brand image

Are you satisfied with the existing colors of papers produced by APPM
a) Satisfied

4.

b) Un satisfied.

Does the improved quality of the products and services will help to attain zero
levels of customer complaints
a) Yes

b) No

c) Cant say

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5.

How do you feel about the quality of APPMs products

a) Good

6.

b) Satisfy

Is the APPM Is offering the good margin to you

a) Yes

7.

8.

9.

b) No

a) No problem

b) Finance problem

c) Marketing problem

d) Management problem

What factors influence the consumer to buy the APPMS products

a) Promotion

b) Quality

c) Price

d) Brightness

Are the sales representatives in contact with you

b) No

b) Commercial quality

Are the promotional activities of APPM enough

a) Enough

12.

c) To some extent

Which type of quality products are fast moving in terms of sales

a) Export quality

11.

c) To some extent

Are the distributors of APPM facing any problem

a) Yes
10.

c) Average

b) Not enough

c) Cant say

Do you feel the present packing system is convenient

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a) Yes

13.

b) No

Is the existing network of APPM capable of covering the entire market

a) Covering the entire market

14.

c) To some extent

b) No

In the way (or) means, you send or place orders

a) Couriers

16.

b) Not covering

Do the sales managers regularly meet with you to find out the problem
a) Yes

15.

c) Cant say

b) Fax

c) Telex

Do the dealers meetings help you to review the performance and for setting the
goals, organized by APPM
a) Yes

b) No

c) Cant say

110

BIBLIOGRAPHY

111

BIBLIOGRAPHY
PHILIP KOTLER Marketing Management

www.google.com

www.andhrapaper.com

Marketing Mix Wikipedia

Marketing journals
Business line

112

BIO-DATA
NAME

: VENKATA MAHA LAKSHMI VASAMSETTI

FATHERS NAME

: V. MALLESWARA RAO

SEX

: FEMALE

AGE

: 23 Years

D.O.B.

: 16th December 1986

RELIGION

: HINDU

NATIONALITY

: INDIAN

LANGUAGES KNOWN

: ENGLISH AND TELUGU

MARITAL STATUS

: SINGLE

EDUCATIONAL QUALIFICATIONS:
NAME OF THE

NAME OF THE

YEAR OF

S.NO

PERCENTAGE
COURSE
MBA

INSTITUTION

PASSING

(MARKETING

Aditya P.G. College

2008-10

66.66

2005-08

78

2002-05

55

2002

74

and HR)
S.K.R. Womens College,
2

B.A.
Rajahmundry
SKR.Womens College,

INTERMEDIATE
Rajahmundry
Bethel Convent School,

SSC
Rajahmundry

113