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CHAPTER 1:
INTRODUCTION
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HISTORY OF PAPER INDUSTRY IN INDIA:::

Paper industry in India is the 15th largest paper industry in the

world. It provides employment to nearly 1.5 million people and
contributes Rs 25 billion to the government's kitty. The government
regards the paper industry as one of the 35 high priority industries
of the country.

Paper industry is primarily dependent upon forest-based raw

materials. The first paper mill in India was set up at Sreerampur,
West Bengal, in the year 1812. It was based on grasses and jute as
raw material. Large scale mechanized technology of papermaking
was introduced in India in early 1905. Since then the raw material
for the paper industry underwent a number of changes and over a
period of time, besides wood and bamboo, other non-conventional
raw materials have been developed for use in the papermaking. The
Indian pulp and paper industry at present is very well developed and
established. Now, the paper industry is categorized as forest-based,
agro-based and others (waste paper, secondary fibre, bast fibers
and market pulp).

In 1951, there were 17 paper mills, and today there are about 515
units engaged in the manufacture of paper and paperboards and
newsprint in India. The pulp & paper industries in India have been
categorized into large-scale and small-scale. Those paper
industries, which have capacity above 24,000 tonnes per annum are
designated as large-scale paper industries. India is self-sufficient in
manufacture of most varieties of paper and paperboards. Import is
confined only to certain specialty papers. To meet part of its raw
material needs the industry has to rely on imported wood pulp and
waste paper.
Indian paper industry has been de-licensed under the Industries
(Development & Regulation) Act, 1951 with effect from 17th July,
1997. The interested entrepreneurs are now required to file an
Industrial Entrepreneurs' Memorandum (IEM) with the Secretariat
for Industrial Assistance (SIA) for setting up a new paper unit or
substantial expansion of the existing unit in permissible locations.
Foreign Direct Investment (FDI) up to 100% is allowed on automatic
route on all activities except those requiring industrial licenses
where prior governmental approval is required.

Growth of paper industry in India has been constrained due to high

cost of production caused by inadequate availability and high cost
of raw materials, power cost and concentration of mills in one
particular area. Government has taken several policy measures to
remove the bottlenecks of availability of raw materials and
infrastructure development. For example, to overcome short supply
of raw materials, duty on pulp and waste paper and wood logs/chips
has been reduced.

Following measures need to be taken to make Indian paper industry

more competitive:

Improvements of key ports, roads and railways and communication

facilities.

Revision of forest policy is required for wood based paper industry

so that plantation can be raised by industry, cooperatives of
farmers, and state government. Degraded forest land should be
made available to the industry for raising plantations.

Import duty on waste paper should be reduced.

Duty free imports of new & second hand machinery/equipment

should be allowed for technology up gradation.
Outlook

Outlook for paper industry in India looks extremely positive as the

demand for upstream market of paper products, like, tissue paper,
tea bags, filter paper, light weight online coated paper, medical
grade coated paper, etc., is growing up.

WORLD HISTORY OF PAPER INDUSTRY::::

As early as the second century,the chiness knew the art of paper

making.The muslim learned it from the chinese in the eight
century,made improvement and developed paper making from an art
into an industry.

The world·s first paper mill was thus established in Samarqand

in751.The paper mill was water-powered and linen or flax was used
as raw material.Trip Hammers,powered by water wheels,were used
to pound the raw material. Soon after the establishment of the
paper mill in Samarquad in Baghdad during the eight century due to
the high demand of books. From there,paper mills began being
established in other parts of the world.Europe had its first paper mill
established in Italy in 1261.Paper thus started replacing the costly
parchmeny,papyrus and wood that were earlier being used for
writing.

GROWTH :::

c The increasing demand for paper brings with it new challenges of

economies of scale, efficient usage of resources, need to develop
and expand sustainable use of fibre, and value chain management,
etc. Despite the fact that the Indian Paper Industry holds its
importance to the national economy, unfortunately it stands
fragmented.
Paper sector is dominated by small and medium size units; number
of mills of capacity 50000 tons per annum or more is not more than
25. Less than half a dozen mills account for almost 90% production
of newsprint in the country. There is a growing need to modernize
the Indian mills, improve productivity and build new capacities.

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THE rising cost of its raw materials caused corrugated cardboard

box manufacturer TRM Packaging to endure paper-thin margins
while enjoying strong organic sales growth.

The firm, which employs 230 people at its Burscough factory, uses
40,000 tonnes of paper a year producing more than 600,000 boxes
every day for the giants of the food sector.

Paper prices rose 60% during its financial year, to August, 2010, and
the company was unable to ´recover the full impact of the increases
from customersµ.

However, it is working with its customers to restore margins

through supply chain initiatives and higher box prices in the first
half of 2011.

It also believes that the improvement in the value of sterling should

make the UK more attractive to overseas suppliers, which will help
to stabilise prices.

Sales rose 12% to £27.6m ² and it is looking to grow its turnover by

up to 50% in the next three years ² although its pre-tax profits fell
70% to £141,000.

Managing director Trevor Maund, who bought the company in 2001,

remains committed to a strategy of investing while the economy
remains difficult so that it has the capacity to grow when the upturn
comes.
In August, it installed a £2.2m addition to its corrugator, which itself
cost £6m, in the second phase of a £12m investment plan. This
incurred an exceptional cost of £233,000.

Backing for the expansion has come from the commercial banking
team at HSBC, in Liverpool, which is providing a £4.5m equipment
finance facility and a £6m invoice finance facility.

It also received £1.2m from the Northwest Development Agency

through its Grants for Business Investment scheme.

Pulp and paper production in the mid- to late 1980s has been valued
at some $14 billion annually and has accounted for about 3% of the
Gross Domestic Product. Exports of around $11 billion have
comprised about 9% of total Canadian exports. The industry is the
largest of Canada's manufacturing industries, with about 85 000
workers in mills and offices, some $2.8 billion paid in wages and
salaries and some $6 billion in value added by manufacture.
Furthermore the industry makes a net contribution to Canada's
BALANCE OF PAYMENTS of some $8 billion, larger than that of any
other Canadian industry.

The first Canadian paper mill was completed in 1805 at St Andrews

[Québec], by 2 entrepreneurs from New England. It produced
printing, writing and wrapping papers for sale mostly in the growing
markets of Montréal and Québec City. Sites chosen for early mills
were on rivers or streams, which provided water necessary for
papermaking processes and waterpower to run machinery.
Waterways also provided a convenient means of transporting raw
materials (rags) to the mill and finished goods to markets.

Throughout the 19th century, pulp and paper was largely a domestic
industry, serving the gradually increasing needs of Canadians. As
literacy spread and commercial and industrial activity quickened,
the need for cultural and packaging papers grew. Many new mills
were established along the Great Lakes-St Lawrence system and its
tributaries and in the Maritimes.
For many centuries the traditional source of cellulose fibre for paper
manufacture had been cotton and linen rags. The full potential of a
Canadian pulp and paper industry based on a vast forest resource
began to be realized only after the discovery of how to make paper
from wood (around 1840). Alexander Buntin is credited with
inaugurating Canada's groundwood mill at Valleyfield, Québec (now
Salaberry-de-Valleyfield). Groundwood, prepared by grinding the
wood, is used primarily for inexpensive papers, such as newspaper.
The exact date for Buntin's mill is not known, but he had 2 grinders
imported from Germany in operation by 1869.

The first chemical wood-pulp mill in North America was built by

Angus & Logan at Windsor Mills, Québec, in 1864. It was erected
under the supervision of John Thomson, a Scot who had conducted
experiments in Saint John, New Brunswick. Chemical pulp is
prepared from wood chips boiled under pressure with chemicals -
Thomson used soda - to leave mostly cellulose fibre. The wood pulp
is washed, bleached, blended and then poured over a wire screen,
leaving a fine layer of fibre. Wood pulp then gradually displaced rag
pulp for most uses, and the era of modern papermaking began.

Two developments, both occurring within a relatively short period,

moved Canada onto the world papermaking stage. The first, in the
1890s and early 1900s, was the prohibition of exports of pulpwood
from crown lands, applied by provincial governments.

The second was the removal of the US tariff on newsprint in 1913.

These actions stimulated large investments in Canadian pulp and
papermaking for foreign markets and set the industry on the course
it has followed ever since. By the end of WWI, Canada had already
become the world's largest exporter of pulp and paper.

Each subsequent decade of the industry's history has had its

particular flavour. Rapid growth took place in the 1920s, especially
in northwestern Ontario and the St-Maurice Valley, Ottawa Valley
and Lac Saint-Jean regions of Québec. Mills were sited in northern
locations that offered hydroelectric power potential as well as
spruce stands. Establishment of a mill frequently necessitated
development of a townsite such as KENORA, Ontario (see
RESOURCE TOWNS). Expansion was followed by the worldwide
depression of the 1930s, when some companies went bankrupt and
most others were in very serious financial straits.
WWII brought a return to higher levels of activity and even some
expansion as European wood-pulp supplies that had formerly served
the US market became unavailable. The postwar economic boom
arrived in the late 1940s, continuing almost uninterrupted through
to the late 1950s. Pulp and paper companies, by now fully restored
to financial health, refurbished their manufacturing operations,
steadily raised shipments and exports and, for a number of years,
ran at maximum capacity.

With the 1960s came the greatest surge of expansion in the industry
since the 1920s. It occurred everywhere, but the pacesetter was
BC. Canadian and foreign interests, spurred by provincial
governments eager for new industrial investment, scrambled to
participate as large areas of public forestland were made available.
Sixteen new mills opened between 1965 and 1970, mostly for the
production of bleached kraft pulp for world markets.

The 1970s were a turbulent period for the industry, marked by

greatly intensified competition in international markets, periods of
worldwide overcapacity, a deep recession in mid-decade, large
changes in currency exchange rates, rapidly rising inflation
throughout the industrial world and a decline in the competitiveness
of the Canadian economy as a whole.

Nevertheless, as the decade ended, devaluation of the Canadian

dollar had helped restore the competitive strength of the pulp and
paper industry, and large programs of mill modernization were under
way in every region.

The early 1980s brought other abrupt changes: a deep recession

and sharp cutbacks in pulp and paper production. This was followed
by economic recovery, a sustained period of moderate growth in
major markets in the middle and later years of the decade, and the
prospect of substantial future growth in worldwide use of pulp and
paper. This prospect was accompanied by the knowledge that the
Canadian industry would continue to face intense competition in all
its traditional markets.

In quantity, Canada's pulp and paper shipments now total about 23

million t: about 40% is newsprint, of which Canada has been the
world's largest producer for over 50 years; about 37% is wood pulp,
for further processing into paper and paperboard; 23% is a wide
variety of packaging papers and boards, book and writing papers,
tissue and sanitary papers and building papers and boards.

Some 79% of Canadian production is exported; 21% is used in

Canada. The largest export market has for many years been the US,
which now absorbs about 52%. Western Europe takes about 12%;
Japan some 5%; all other world markets together about 10%. Nearly
87% of exports consists of newsprint and wood pulp, which have
entered the major world markets duty free for many years.

Historically, other papers and paperboards have encountered tariffs

around the world and, partly for this reason, have been
manufactured largely for use within Canada. Although this situation
is now changing, as a result of successive rounds of multilateral
tariff reductions negotiated through the GATT, newsprint and wood
pulp remain the export staples of the Canadian industry, with
various grades of printing papers other than newsprint increasing
rapidly.

The pulp and paper industry uses about 90 million m3 of wood

annually: over 90% is SPRUCE, FIR, PINE and other softwoods; the
balance is hardwoods. Over the past 20 years the most significant
development in the industry's fibre requirements has been the
tremendous increase in the use of wood chips, reject lumber and
other wood residues from sawmills.

Such residues now account for more than half of all wood used in
Canadian pulp and paper mills, as compared with around 10% in the
early 1960s. This development has meant a more efficient use of the
forest resource and has stimulated greater integration of pulp and
paper and lumber manufacture.

Québec accounts for the largest share of total production, about

35%; Ontario about 25%; BC about 22%; and the Atlantic and Prairie
provinces together have some 18%. Most mills are located in
communities near the forests from which they draw their chief raw
material; some that purchase pulp for conversion into finished
products or use mostly wastepaper have been built in the large
metropolitan areas.

About 70% of Canada's pulp and paper is manufactured by

companies that are controlled in Canada; some 23% comes from
companies controlled in the US; and 7%, from companies controlled
elsewhere. Canadian ownership is largely via the private sector.
There has been some public-sector ownership by provincial
governments or their agencies in Québec, Manitoba and
Saskatchewan, but this amount represents only some 10-15% of the
industry's total manufacturing capacity.

The major Canadian companies are ABITIBI CONSOLIDATED, British

Columbia Forest Products Ltd, Canadian Forest Products Ltd, CIP
Inc, Consolidated-Bathurst Inc, DOMTAR Pulp & Paper Products
Group, Great Lakes Forest Products Ltd, Kruger Inc, MACMILLAN
BLOEDEL LTD and Repap Enterprises Inc.

The pulp and paper industries of Canada and the other large
producing regions of the world (eg, the US, Europe, Japan) have
traditionally shared information on technological development.
Hence, the major advances in wood harvesting, pulping and
papermaking during the 20th century have tended to result from
research work in several countries.

Canada has participated fully in these developments and has had a

very important role in some of them, such as the chemical-recovery
system used in alkaline pulping, which stimulated the growth of the
kraft pulp industry all over the world; improved pulp-bleaching
techniques, which opened new markets for many papers and
paperboards; and twin-wire forming, one of the most significant
developments in the papermaking process since the invention of the
Fourdrinier machine in the first decade of the 19th century (see
CHEMICAL ENGINEERING).

Scientific research is carried out by a number of Canadian pulp and

paper manufacturers and the industry also carries on co-operative
research through the Pulp and Paper Research Institute of Canada
and the Forest Engineering Research Institute of Canada, both
situated in Pointe-Claire, Québec. The industry makes large capital
expenditures on air and water POLLUTION abatement; in recent
years, $100-150 million annually. Mill effluent losses have been
reduced substantially: suspended solids per tonne of production
have dropped by 90%; biochemical oxygen demand, by 72%.
History of handmade paper industry in India.
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The history of handmade paper in India dates back to the 3rd
century BC. Making handmade paper is a traditional art that has
been practiced by a particular class of people for generations
together. This art has been passed on from one generation of
craftsmen to another. These craftsmen are known as "Kagzi's".
Their name is derived from the Urdu word 'kavas', which means
paper. The size of this community has dwindled over the years.
There is a small settlement of 'Kagzi's' in Sanganer near Jaipur,
where a section of this community settled thousands of years ago.
They claim that they are originally from Turkey and from there
moved to China and then finally settled in India.

In Sanganer the 'Kagzi' community is the primary owner of the

handmade paper industry in the town. Their history goes back to the
14th century when the ruler was Feroze Shah Tughlaq. Even in
those days the royalty used handmade paper made by them for
official documents, miniature paintings, calligraphy, and to make
copies of the Holy Quran and to maintain account books. In the 16th
century the then ruler of Amber, Raja Man Singh brought the Kagzis
to Sanganer and settled them on the bank of the river Saraswati,
where clean water was easily available. Thus the town emerged as
one of the biggest paper producing centers in north India.

It is claimed that paper production in this village reached its zenith

during the Mughal period. Under the British handmade paper
received a serious setback as the British encouraged the import of
mill-made paper from the Western countries. By the 1930s there
were only a handful of people from this community practicing their
traditional trade. At this point Mahatma Gandhi provided them with
the much-needed support by buying handmade paper in bulk for his
Ashram and other associates. After independence, the Khadi and
Village Industries Commission (KVIC) included handmade paper in
the list of crafts to be promoted. Over the years the handmade
paper industry has grown slowly but steadily and is today a major
player in the world market, exporting a major portion of its
production.
World history:

Handmade Paper Mill Velke Losiny, established prior to 1596, is one

of the oldest paper manufacturing operations in Europe. At the Mill,
paper is made by hand using original formulas and processes that
have come down through the centuries. During its long history, the
Mill has become the world wide known over for high-quality
craftsmanship, and its products received international awards and
recognition at many trade shows.

The Handmade Paper Mill offers its customers handmade paper both
in sheets and in the form of final handmade products which can be
used as gifts or in promotions.
Products from Velke Losiny are exported to customers in Europe
and United States.

A Paper Museum is housed at the Mill, where visitors can acquaint

themselves with the history and development of papermaking. The
Museum is one of its kinds in the Czech Republic. Also on the Mill
grounds, there is a company store and a gallery of works of artists
that use Velke Losiny handmade papers as medium.

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©c 1562 establishing of paper mill in Sumperk by Jan
Bauernsfiedn, papermaker from Olomouc
©c 1589 Jan junior of Zerotin completed the construction of his
new residence ² Late renaissance castle in Velké Losiny;
beginning of economical development of the demesne ²
brewery, sawmills, flour mills, manors, forestry, spa ² sulphur
baths in Velke Losiny
©c 1591 last mention in archive on seigniorial flour mill on mill
race connecting the rivers Desna and Losinka
©c 1591²1596 conversion of flour mill on the race to a seigniorial
handmade paper mill
©c 1596 the oldest so far known watermark from Velke Losiny in
the form of Zerotíns' lion ² the first indirect document
on the existence of handmade paper manufacture in Velke
Losiny
©c 1598 the second and the third oldest watermark from Velke
Losiny with heraldic motif of the Zerotins and with initials
J S Z Z ² Jan senior of Zerotín (+1608)
©c 1603 the oldest written mention on operating handmade paper
mill ² lords of the manor sell the manufacture to paper master
Ondrej Kluge for 150 thalers and annual rent
©c 1673 by means of the marriage with Barbora Schnellerova,
widow of papermaker, Krystof Göttlicher becomes an owner
and paper master in Handmade paper mill Velke Losiny
©c 1679 papermaker·s wife Barbora Göttlicherová was accused
of sorcery and burned on 5.9.1680 as one of the first victims
of inquisitional processes in Velke Losiny (1678 ² 1693)
©c 1692 papermaker Daniel Bittner sells dilapidated and indebted
plant back to the lords of Zerotin manor for 780 florins
©c 1704 seigniorial administration invests into the repairs of
paper crushing mills, new slushing vat is acquired, masonry
well, paving and new windows, new iron glazing hammer
was purchased for paper glazing with plate weighing
90 pounds (approx. 45 kg)
©c 1729 reconstruction of substantial part of the handmade paper
mill at the costs of 241 florins; in addition to reconstruction
of buildings, the Zerotíns also purchase a new revolutionary
invention ² wooden Hollander beater for the preparation
of paper pulp; the oldest document on the existence of such
an equipment in paper mills in Moravia
©c 1750 the handmade paper mill, with its annual revenues in the
amount of 200 florins belongs among the most profitable
seigniorial businesses within the demesne
©c 1778 count Jan Ludvík of Zerotín again sells the handmade
paper mill for 400 florins and 230 florins of annual
rent to its former renter Matyas Werner jr.; inventory
of the paper mill includes 1 beater, 1 rag chopper and 2
slushing vats
©c 1795 short period of flowering of paper mill, terminated by the
death of papermaker Werner, widow Anna Wernerova takes
over the plant administration together with her journeymen
 ©c 1825 the construction of late Baroque main building for paper
mill with Classicist frontage and typical mansard roof;
incorrectly estimated amount of building expenses
represented one of the reasons for collapse of the company
©c 1830 papermaker Frantisek Sterz, because of bad economic
situation sells the indebted plant within bankruptcy
proceedings to his biggest creditors ² to Schmidt family, linen
producer in Stity
©c 1840 3 beaters and 3 slushing vats are in operation in the
paper mill, 14 employees work here, annual production
amounts only to 1500 reams of office and concept papers ²
the reason for such dismal condition is formed by beginning
production and sales crisis caused by increasing competition
of industrial paper-making;

In addition to paper-making, the papermaker Philip Wenzel

establishes also linen bleachery in the building of paper mill and
finishing workshops ² in operation up to 1910

©c 1860 the company ÅAnt.J.Schmidt s Söhne ² Leinen und

Baumwollewaren Erzeugung in Gross Ullersdorf (The sons of
A. Schmidt ² production of linen and cotton goods in Velke
Losiny) was established; the enterprise concentrates above
all on the production and processing of linen, processing
of textile goods; limited production of handmade paper serves
as a package material for textile products
©c 1881 discovery of excellent filtration properties of unsized
paper from Velke Losiny ² impulse for the revival
of production; filtration paper awarded by golden medal
of the first international pharmaceutical exhibition
in Australian Melbourne
©c 1882 in order to extend the paper production, new branch
established in adjacent Vernirovice with 2 slushing vats;
altogether 5 slushing vats are in operation in paper mill
©c 1896 modernization of technological procedures in paper
production ² construction of boiler room with steam boiler,
boiling of rags with lime or soda in rotating boiler heated
by steam introduced
©c 1913 installation of Francis water turbine (42 Hp) with
electrical generator 50kW on the flume of paper mill
©c 1945 after the end of World War II, whole property of the
company ´Ant.J.Schmidt´s Söhne´ ² manual production
of paper, mechanical weaving mill, husbandry and power plant
² was confiscated in full extent according to presidential
decree; national administration was established
©c 1949 Handmade paper mill in Velké Losiny becomes a part of
state enterprise Olsanske papírny with the seat in Olsany
nearby Sumperk
©c 1954 unprofitable production of handmade made paper gives
rise to considerations about stopping its production;
employees of paper mill and outstanding Czech artists fight
for the rescue of the monument and preservation of production
©c 1960 25 employees work in the paper mill with two-shift
operation; annual production amounts to 92 tons of filtration
brewing matter and 10 tons of handmade paper
©c 1962 production of paper from old rags (sorting, cleaning,
cutting, boiling and bleaching) replaced by the processing
of cotton waste from spinning factories (cotton linters)
and flax rag pulp
©c 1974 the precinct of Handmade paper mill was registered into
the state list of immovable cultural monuments thanks
to its rare cultural and technical value ; design
work commenced for general reconstruction being prepared
©c 1975 commencement of extensive reconstruction of buildings
within the paper mill
©c 1983 study for overall reconstruction of the precinct
of handmade paper mill with budget in the amount
of CZK 22 mil.
©c 1987 establishment of exhibitions on the history of paper
production and establishment of Museum of Paper
in the precinct of the paper mill; the object of cultural
and technical monument opened to public
©c 1993 privatization of Hand paper mill ² by company LEVIA,
s.r.o.
©c 1996 abortive attempt to privatize the plant terminated by the
return of handmade paper mill into organizational structure
of paper-making company Olsanske papirny, a.s.;
©c 1996 400th anniversary of duration continuous production of
handmade paper in Velke Losiny ² on the occasion
of important jubilee, further extensive phase of reconstruction
was completed (reconstruction of facades on main object
 of the paper mill, establishment of Gallery at the Museum
of Paper, exterior modification of the entrance to the precinct
of the cultural monument)
©c 1997 flood in July affected water supply system of the paper
mill ² dam on river Desna was destroyed and technical system
for supplying the mill flume with water was damaged
©c 1999 existing production of manually made papers is
gradually extended with the assortment of products
with polygraphic processing
©c 2002 government of Czech Republic declares the handmade
paper mill to be a National Cultural Monument; further phase
of demanding reconstruction of production buildings at total
costs of CZK 7.2 mil. (repairs of shingle roofs, rehabilitation
of masonry and repairs of floors, general overhaul of central
heating, reconstruction of facades)
©c 2003 overall reconstruction of boiler house, rehabilitation of
masonry and the conservation of original steam boiler
of Fairbanks type of 1896
©c 2004 repairs of roof and chimneys on main building of the
paper mill, commencement of the reconstruction of building
for storage and visitors services in entrance part of the paper
mill precinct ² repair of roof frame and replacement of shingle
covering; modernization of printing office ² enlargement
with offset print technology;
©c 2005 overall reconstruction of roof frame and renewal
of shingle covering on the building of museum gallery; planned
extension of exhibition areas with newly accessible second
and third above-ground storey.
©c 2006 operation of handmade paper mill is taken over by
independent joint-stock company Rucni papirna Velke Losiny
a.s.
©c 2006 a new retail shop opened in gallery building and new
exhibition space in reconstructed loft storeys + simultaneously
also new stylish restaurant ÅLOSIN´ was opened for visitors
of the precinct, as a result of renovation of originally industrial
building in entrance part of the paper mill precinct
©c 2007 the second visit route offered to public in tourist season
(July ² September) providing the possibility to visit further
technical curiosities of paper manufactureJ
Growth; India

©c In a first-of-its-kind eco-friendly initiative in Eastern India to

revive one of the numerous desi industries nurtured by
Mahatma Gandhi, the pioneering LB Group of Industries
recently launched a Handmade Paper Project through its SBU
LB Agro Private Limited. Located in the Koraibari area of
Guwahati, the project was inaugurated by respected Gandhian
and eminent social activist Natwar Thakkar, and the same is
expected to open up scores of employment avenues for the
youth of the region. The state-of-the-art handmade paper unit
is the first of its kind initiative in the entire eastern province of
the country.
©c In today·s age when issues like climate change and global
warming have become a cause for concern across the world,
the opening of an eco-friendly handmade paper project in the
Northeast is a significant development in itself. Handmade
paper is one of the few Swadeshi industries that were nurtured
during India·s Freedom Movement under the leadership of
Gandhiji. and later Kumarappaji. It was Kumarappaji who was
instrumental in organizing this traditional paper making
practice into the form of an industry. With technological up-
gradation and more widespread utilization of handmade paper,
this industry has come a long way since those early days, and
India today is one of the leading handmade paper suppliers
and manufacturers in the world. A major reason for this
stupendous growth is the financial and technological
assistance extended to this industry by the Khadi & Village
Industries Commission (KVIC) due to which the industry,
during the last four decades, has not only survived but also
made its impact felt in other developed countries by exporting
quality paper.
©c Because of its environment friendly manufacturing process
and products, the handmade paper industry is termed as
emerging in the Indian context, with its present growth rate
being labelled at 10 per cent in the domestic market and at 25
per cent in the export market. Experts, however, feel that the
scope of this industry is immense as utilization of paper is only
bound to increase in the country. A source in the Indian Pulp
and Paper Technical Association (IPPTA), which is a national-
level association of professionals engaged in the pulp,
 newsprint and allied paper industry of India, said, ´Our
country·s per capita consumption of paper, which is an index
of the educational and socio-economic development of a
country, is only around 4 Kg only in India as compared to a
world average of 45 Kg. With the growth of literacy and
development, the per capita consumption of paper is bound to
increase, at least in India.µ
©c Contrary to popular belief, production of handmade paper is
based on the use of non-forest-based resources and recycling
techniques. The potential of a handmade paper project is
immense in the Northeast, primarily because of the availability
of a variety of fibres that is rich in cellulose (the main
ingredient required in the production of paper). As
Bijaylakshmi Borpujari, a graduate in environmental studies,
says, ´Besides checking the onset of global warming and the
greenhouse effect, the production and utilization of handmade
paper will also help in stopping deforestation and checking our
forest resources.µ
©c The Key features of Handmade Paper Project are:
©c 1. It is a prominent industry based on decentralised production
and environment friendly technology.
2. Prevents deforestation by utilising non-woody raw
materials.
3. Converts waste into wealth by recycling.
4. It is the solution to the problem of energy and pollution.
5. The durability of paper is long, compared to machine-made
paper.
6. Increasing domestic consumption and bright export
potential.
©c The initiative of LB Group to start its handmade paper factory
is another instance of its attempts at ´business with a
conscienceµ. A pioneering business house that has
consistently promoted excellence and best in-class
performance, the group has opened up countless employment
avenues for scores of unemployed people of the Northeast.
Talking to Bazaar View, founder chairman of LB group Dipok
Borthakur said that their recent inaugurated factory is an
extension of their commitment to the local community, Assam
and Northeast. ´We had made a commitment to share our
achievements in everything that we do with the local
community and people of the Northeast. Our project is aimed
 at promoting sustainable industrial growth of non-polluting
agenda and is a step forward in the ¶Green· agenda of the
Government. The factory is based on the idea of promoting an
environment-friendly industry. Our papers, which are prepared
in an environment-friendly way, are acid and lignin free. We are
firm believers in responsible trade practices; we offer a wide
range of handmade paper and paper products that are of
superior quality and are 100% wood free.µ
©c The LB group opened a new era in entrepreneurship and
business in Assam and the Northeast when it started its
journey in 1969 under the leadership of Dipok Borthakur. The
group has today emerged as a frontrunner in the pharma-
distribution network of the Northeast region; also harbouring
plans to venturing into the healthcare manufacturing sector by
2011. The group is much respected for its continuous
commitment for the unemployed people of the region. As
Borthakur said, ´The work environment in our factories are
comfortable and our craft workers are paid well above the
local average; thus motivating them to perform better. With
this new handmade paper unit, we hope to provide a bigger
avenue of employment for the local community.µ

Growth: world

The export of handmade paper and paper products from the last two
year was estimated for around fifty crores and this year the
approximate growth was estimated to be 20% more and in the
coming years it is said to be growing in many folds or multiples. The
eco-friendly quality and long shelf life of the handmade paper
fetches a high premium in the international market. Exports from
Sanganer alone accounts for nearly 70 percent of the total
handmade paper exports from India. The paper and allied products
are sold in the US, Australia, Japan, Britain and South Africa.
Besides paper sheets, items like paper bags, sacks, gift wrappers,
art books, photo albums, diaries gift boxes and photo frames find
ready buyers abroad. The international demand for handmade paper
and its value-added products are increasing at an approximate rate
of 30-35 percent a year, which is phenomenal compared to five-
seven percent a decade back. The industry, however, has
weaknesses in terms of market concentration to a few countries
and lack of technology for product conversion resulting into low
production capacity. Other than this other threat that would have to
be overcome would be the competition being posed by more
pioneering countries like China. But it is said that like any other
commodity, handmade paper too goes through a cyclical trend
depending upon the demand-supply scene in the international
markets. Even the prices in the domestic market are inextricably
linked with the paper price movements internationally. But the
growing preference for environment-friendly products worldwide
and increasing demand for handmade paper products have
eradicated the limitations of the handmade paper industry and once
again it has emerged as one of the market leaders. In the era of
globalization, handmade paper is one of the prime sectors, which
has a major say.
c
c
c
Prospect: india
The demand of page and board in India will certainly continue to
grow as the country·s economy developes over the coming decades.
Per capital consumption is expected to rise from the present 2.5 kg
to 4kg. This figure is still rather low compared with consumption per
capital in many industrialized countries.Total production of paper
and board in India is predicted to rise in the next six years from 2.2
million to 4 million tonnes.
Handmade paper units on the other hand, are mainly contrained
only by limited demand.In a world where the emphasis is clearly
shifted to environment friendly products and production systems,the
large untaped potential of the handmade paper industry cannot be
ignored.For a developing country like India, faced with increasing
shortages of natural raw materials,energy sources and capital, the
development of this industry offers considerable potential to meet
development objectives and respond to demand for both domestic
and export products.
CHAPTER 2 :
RESEARCH
DESIGN
Sampling unit:

This is that element or set of elements considered for selection in

some stage of sampling (same as the elements, in a simple single-
stage sample). In a multi-stage sample, the sampling unit could be
blocks, households, and individuals within the households

A sampling unit is one of the units into which an aggregate is

divided for the purpose of sampling, each unit being regarded as
individual and indivisible when the selection is made.

Objective of the study

‡ An instrument for increasing the efficiency of enterprises and

establishing harmonious relations.
‡ A device for developing social education for promoting solidarity
among workers and for tapping human talents.
‡ A means for achieving industrial peace and harmony which leads
to higher productivity and increased production.
‡ A humanitarian act, elevating the status of a worker in the society;
‡ An ideological way of developing self-management and promoting
industrial democracy.
‡ To improve the quality of working life (QWL) by allowing the
workers greater influence and involvement in work and satisfaction
obtained from work.
‡ To secure the mutual co-operation of employees and employers in
achieving industrial peace; greater efficiency and productivity in the
interest of the enterprise, the workers, the consumers and the
nation.
Statement of the problem:

‡ Unique motivational power and a great psychological value.

‡ Peace and harmony between workers and management.
‡ Workers get to see how their actions would contribute to the
overall growth of the company.
‡ They tend to view the decisions as `their own· and are more
enthusiastic in their implementation.
‡ Participation makes them more responsible.
‡ They become more willing to take initiative and come out with
cost-saving suggestions and
growth-oriented ideas.

Limitations:

©c Lack of peaceful atmosphere like strikes and lock-outs ruins

the employees, harms the interest of the society, and puts the
employees to financial lossesJ

©c Effect on participation is limited because ownership and

management are two different things.

©c Technology and organizations today are so complex that

specialized work-roles are required. This means employees
will not be able to participate effectively in matters beyond
their particular environment. Everybody need not want
participation.

Sample size: The sample size of my project is thirty.

CHAPTER : 3
COMPANY
PROFILE
The Himalayan Handmade paper Industry in Kalimpong is situated in
K. D. Pradhan Road, which is in a walking distance of 15 minutes
from the main town. Otherwise, vehicles available take about 5
minutes from the town.

Mr.Thupden Tshering Bhutia is the owner of this small scale

industry.There are altogether 30 workers in the industry.

It has achieved ´ Small Scale industry Fosmi Awardµ in West

Bengal.The factory started its operation since 20years but was
shifted in this area 4years ago.

The future plan of the industry is to make it a more developed one

and to export the paper even outside India ,since now the paper is
supplied domesticaly only.The industry is doing well manually, at
the present.

It manufactures Japanese style handmade paper from a non tree

shrub, the species of Daphne known as Argalee (local name) or
Lokta (in Nepal).c This indigenous hemp shrub grows at an altitude
between 2000 to 3000 meters in the Himalayan Regions. The soft
bark of fast growing shrub is matured in every 4/5 years from
harvesting. Usually villagers use this to make strong ropes. Only
matured stems are used, thus preserving the eco system.

Operative process:

©c The bark is cleaned and boiled in a container of 5ft in

height.One thousand litre of water can be boiled in this
container.After the bark is boiled, the black coloured ones are
sorted out as this cannot be used for making the paper,the
other soft bark is taken for use.
©c In the next step these soft bark is taken and put into a bitter
machine to make the paper pulp.The machine is known as
Holendar as it was invented in Holland.
©c The paper pulp is mixed with water and put into a ´wood
Vadµ,a wooden frame.A small amount of Hibiscus glue is
added to this mixture.
©c In the next step,the liquid is put into a bamboo screen for
hand shifting the pulp and gives out a bunch of wet paper.
©c After this the wet paper is put in a ´Screw Pressµ,which
throws out the excess water.
 ©c The wet paper is then placed in a tin board and is brushed,so
that the paper is smooth.
©c Lastly the wet sheets are dried in air or in the sun.c Even
though partly automated, this process is time consuming but
very creative and unique.

This paper is known by different names in different countries.It

is known by the following names:

Lokta in Nepal.

Druksu bhutanese paper in Bhutan.

Baysu Tibetan paper in Tibet.

Chinese paper in China.

Japanese paper in Japan.

By-products of this paper are lampshades, bags, writing pads,

envelopes, notebooks, files, greeting cards, wedding cards etc.