The paper business of the Group, which was earlier being carried on as a Division of Amrit Corp. Ltd., has been vested in ABC Paper Ltd. under the Scheme of Restructuring. The paper mill was set-up in the year 1980 in the State of Punjab – 108 Kms from Chandigarh. As one of the largest wood-free paper plant, ut uses only agro-wastes like wheat, rice-straw, kana grass etc. to manufacture fine quality printing & writing paper. ABC Paper is focusing on branded printing & writing paper, which is extensively used in the printing of books, trade directories and even as newsprint.
ABC Paper has a name for its products, which are well accepted in the market. The major products as on date are writing and printing paper, coloured cream wove, computer stationery paper, duplicating paper, ledger and newsprint. ABC Paper is the leader in the cream-wove paper in agro-based segment. The paper produced by ABC Paper is typically used in the manufacture of note books, publications, text books, computer stationery, goods receipts & invoice books (both colored paper and white paper), pamphlets, newspaper supplements, diaries & calendars etc. These products, particularly, note books manufactured by using the paper produced by ABC Paper are also exported.
The ABC Paper is located at Saila Khurd, Distt. Hoshiarpur, a small village, which is a backward area, situated on the main National Highway connecting Chandigarh – Hoshiarpur – Pathankot. The unit have all the locational advantages viz.
The ABC Paper is a well planned set up with own residential colony with all types of facilities. Spread in area of 257 acres, ABC Paper has vast growth of eucalyptus and poplar trees. Over the years, Amrit Paper has given prosperity to this backward area and generated gainful employment to more than 1000 families.
Plant & Machinery
The ABC Paper has in-built capacity of 100 TPD of finished paper. The pulping & finishing section and ancillary facilities (steam, power, bleach and storage) is over 150 TPD equivalent of paper. The pulping section, in addition to facilities for straw and bagasse is equipped with a jute street to handle upto 10% usage in the raw material furnish at 150 TPD paper production levels. The paper making capacity is reckoned on 52 gsm output basis. The first two Paper Machines (PM I & II) have a capacity of 15 TPD each an the third machine (PM III) has a capacity of 70 TPD.
PM I & II installed in 1981, were supplied by PMP Ltd., Bombay and PM III installed in 1987 was custom designed by L&T Voith. All machines were bought new. These machines have been upgraded from time to time and are equipped with various features like QCS system, Dandy Roll, Dry Hood, Kuster Type swimming role calendars to import high glaze and compact sheets. On PM III, ABC Paper has been able to produce superior grade 29 gsm paper also. This machine is capable of producing even lower grammages, if needed.
The rewinding section is equipped with two high efficiency rewinders supplied by Voith, which can take the full deckle of PM III (3.36 mtrs.). The reels produced are of very superior quality, which the market has appreciated. It also has a Jagenberg Duplex Cutter which can cut upto 600 gsm of sheets of any size and mix. The sheet cutting is very efficient with even corners and consistent size.
Marketing & Distribution
The Company currently caters to the demand for its products across India. The Company enjoys strong & committed customer’s base for almost its entire range of writing & printing paper. The Company’s own distribution network contributes more than 90% of its turnover. Typically, ABC Paper manufactures after it receives advance orders from its dealers. The inventory of finished goods is rare and does not exceed two days of production. All goods are dispatched directly from the factory to the Company’s clients and there are no intermediate stock depots. With over 80 distributors spread across the country, the Company has amongst the best distribution networks in the paper industry. The Company has created strong brands and differentiates its products based on quality. Some of the brands are – ABC Gold, ABC Sapphire, Pearl White, Blue Diamond etc.
Mill Expansion Program
Rapid expansion of the Indian economy has led to a great focus on education and industrialization. The Writing & Printing category is one of the fastest growing segments of the paper manufacturing industry and ABC Paper primarily caters to this segment and will be better poised to meet the ever growing demand for paper.
The management of ABC Paper is undertaking a Rs. 156.93 Crores expansion and modernization program by setting up
- Capacity Expansion
- Installation of Paper Machine IV
- Wood Pulp Street
- Chemical Recovery Plant
- Co-Generation Power Plant
- Power Grid upgradation
Installation of Paper Machine IV
The installation of Paper Machine IV would lead to increasing the production capacity, enhancing the product range and improve the overall quality to sustain in the competitive market. As per the design, the Paper Machine IV can produce upto 175 TPD of finished paper. It will have speeds of 650 MPM, Deckle length of 3,870 mm having GSM range of 45–90. Presently, ABC Paper is manufacturing normal writing & printing paper varieties. Post installation of PM-IV, the company will be able to manufacture value-added SS Mapliptho paper and copier paper which fetch higher price and will provide an opportunity to expand into the premium segment of writing & printing paper.
Wood Pulp Street
The existing agro based pulp mill has little higher capacity than the present production level. Since the pulp requirements post-expansion will increase, a wood based pulp plant of 60 TPD capacity is proposed to be installed. Hard wood/bamboo as raw material has been selected to meet the additional pulp requirement so as to improve the strength properties of pulp leading to production of higher quality of paper.
Chemical Recovery Plant
For the manufacture of paper, pulp is made through various processes in which different chemicals are used for cooking of raw materials. At ABC Paper mill, sodium hydroxide (caustic) is used as cooking chemical for pulp making from agro residues like wheat straw, kana grass and baggase. After cooking and washing sequences, this caustic along with lignin separated from the pulp is recovered in the form of spent liquor called black liquor.
ABC Paper has installed a combination of Bio-methenation and Lignin Precipitation System to separate the non-biodegradable lignin from the black liquor and a Bio-methenation system by an ETP based on activated sludge process to further treat the effluent. The current effluent treatment facilities do not to recover caustic (a costly chemical used in the making pulp) from the black liquor and was being neutralized in the effluent treatment process thereby consuming the entire caustic that was added to make pulp.
In the proposed chemical recovery plant, spent caustic will be recovered from the black liquor, is regenerated and used in the pulping process. The recovery boiler in the unit will use the organic content in the black liquor as fuel.
The unit would be an environmental friendly process and reduce the COD & BOD load on effluent by burning the organic matter and recovering the inorganic matter, caustic for reuse as cooking chemical. This would reduce the overall consumption of caustic, lower the fuel expense per combined unit of steam and power and make the manufacturing process environment friendly.
Co-Generation Power Plant
In order to reduce the total power cost and to meet the increased steam and power requirement of the plant post expansion, a Fully Back Pressure Turbine of 74 TPH steam capacity capable of generating 10.0 MW power based on bio-mass fuels (i.e. rice husk, baggase, baggase pith, saw dust and fire wood chip) is proposed to be installed as a Co-Generation Power Project by ABC Paper. Rice husk has a considerable fuel value and is available in abundance in Punjab. In the event of any short supply of rice husk due to unavoidable reasons; the boiler has been designed to utilize other biomass fuels available in the surrounding areas and /or coal. With the installation of this project, the power generation cost will come down to Rs. 1.56 per unit from Rs. 4.42/unit.
The boiler/power generation based on biofuels like rice husk are eligible for carbon credits. The company has appointed TERI for evaluating and filing an application for generation of carbon credits. Any benefits from sale of carbon credits have not been considered in the financial projections. The company is going to apply for the carbon credits and after successfully passing the requirements and getting eligible for the carbon credits, it will be indicated in the financial projections as per the sale rates of carbon points at that time.
The power consumption of plant will go up due to increase in capacity. To meet the enhanced power consumption demand the power grid is proposed to be upgraded from 33 KV to 66 KV with the addition of 20 MVA transformers.
BENEFITS FROM EXPANSION & MODERNISATION PROGRAMME
The benefits that would accrue to ABC Paper from the mill expansion plans are improved product quality, enhanced product range, increase in production capacity, higher operational efficiency and cost reduction. Some of the specific benefits are as follows:
- Increased installed capacity of 1,04,000 TPA would make ABC Paper one of the larger paper manufacturer thereby strengthening its market benchmarking.
- Will start manufacturing premium quality paper by mixing agro-based and wood-based pulp, which will be placed in SS paper and premium mapliptho paper category meeting quality specification of wood based paper but at lower price band.
- With chemical recovery and co gen. power plant, the company will be poised to become among the lowest cost paper manufacturer in India, which will substantially improve its operating margins
- Co gen. power generation would remove the inefficiencies and bottlenecks of external sourcing of power thereby increasing substantially the operational efficiencies
- Company will be entitled to Carbon Credits for generating power from bio-mass fuels. From a conservative view-point, the benefits of Carbon Credits has not been accounted for in the projected financials while doing the project feasibility
- Economies of scale since its entire additional production will be absorbed by its existing infrastructure.
- Chemical recovery would lead to better solid waste management capabilities.