Cash Management HNL

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CASH MANGEMENT, HINDUSTAN NEWS PRINT LIMITED, MBA

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Cash ManagementOne of the most critical functions of a companys financial manager is that of cash management. Since inventory and demand for cash change on a daily basis, the financial manager must be knowledgeable in the most effective ways to manage the cash a firm has, along with the most efficient ways to obtain cash as needed. Both cash management and short term financing will be discussed throughout this paper. Managing your working capital, managing business risks, and monitoring costs and inventory are cash management techniques to be discussed. Managing working capital is very essential in cash management. A companys working capital is closely related to the flow of cash into and out of the business.Working capital management involves the financing and management of the current assets of the company. The financial executive devotes more time to working capital management than to any other activity (Block & Hirt, 2005). Current assets change daily driving short term managerial decisions regarding items such as inventory and funding. These short term decisions on working capital determine the long-term future of the company.The goal of cash management is to keep cash balances as low as possible while maintaining sufficient funds for transactions purposes and compensating balances (Block & Hirt, 2005). The financial manager attempts to use cash management techniques to hasten the inflow of funds and defer the outflow of funds by managing the companys float. Float is the difference between the amount of money recorded in a companys financial statements and the amount credited to the company by the bank. Float is created from delays in mailing processing and clearing checks. To compensate for float one method of cash management is the slowing of disbursements. Banks offer corporations services that control disbursements and allow the company to time payments such that cash balances as held as long as possible. Electronic funds...

What are the objectives of cash management?Answer"Cash Management" =)Cash management is a broad term that refers to the collection, concentration, and disbursement of cash. It encompasses a company's level of liquidity, its management of cash balance, and its short-term investment strategies. In some ways, managing cash flow is the most important job of business managers. If at any time a company fails to pay an obligation when it is due because of the lack of cash, the company is insolvent. Insolvency is the primary reason firms go bankrupt. Obviously, the prospect of such a dire consequence should compel companies to manage their cash with care. Moreover, efficient cash management means more than just preventing bankruptcy. It improves the profitability and reduces the risk to which the firm is exposed.Objective of cash management1) To make Payment According to Payment Schedule:-Firm needs cash to meet its routine expenses including wages, salary, taxes etc.Following are main advantages of adequate cash-a)To prevent firm from being insolvent.b)The relation of firm with bank does not deteriorate.c)Contingencies can be met easily.d)It helps firm to maintain good relations with suppliers.(2) To minimise Cash Balance:-The second objective of cash management is to minimise cash balance. Excessive amount of cash balance helps in quicker payments, but excessive cash may remain unused & reduces profitability of business. Contrarily, when cash available with firm is less, firm is unable to pay its liabilities in time. Therefore optimum level of cash should be maintain.

Objectives of cash management-1. Transaction motive

Firms need cash to meet their transaction needs. The collection of cash (from sale of goods and services, sale of assets, and additional financing) is not perfectly synchronized with the disbursement of cash (for purchase of goods and services, acquisition, of capital assets, and meeting other obligations. Hence, some cash balance is required as a buffer.

2. Precautionary motive

There may be some uncertainty about the magnitude and timing of cash inflow from sale of goods and services, sale of assets, insurance of securities. Like wise, there may be uncertainty about cash inflow on account of purchases and other obligations. To protect itself against such uncertainties a firm may require some cash balance.

3. Speculative motive

Firms would like to tap profit making opportunities arising from fluctuations in commodity prices, securing prices, & interest rates. Cash-rich firms is better prepared to exploit such bargains may carry additional equity. However for most firms their reserve borrowing capacity & marketable securities would suffice to meet their speculative needs.

ess no matter its net worth.In theory, there are 3 motives for holding cash:Transactions MotiveCash balances are kept in order to meet routine cash needs of the business, such as the purchase of raw materials, payment of employees wages, etcPrecautionary MotiveUnanticipated cash demands require that an additional amount is kept to be able to meet such unexpected demands. Unanticipated cash demands can vary from unexpected rise in the prices of raw materials, debtors delaying their payment further than expected, strikes, etcSpeculative MotiveSpeculative balances are kept in order to allow the business to take advantages of any opportunities which may present themselves at unexpected times. Suppliers at times may try to attract companies by giving special discounts, but you must pay in cash.Objectives of Cash ManagementIn order to ensure you meet the objectives of an effective cash management policy, the financial manager must ensure that the company meets the payment schedule and also minimize idle funds committed to cash balances.Meeting Cash BalancesThe financial manager must ensure he has enough cash in hand to pay suppliers, creditors, employees, shareholders, banks, etcMost financial managers at times go a step further and keep even more than required. This can be the result of various factors such as: Enhancing the companys reputation settling payments on time keeps creditors and suppliers happy Taking advantage of trade discounts by paying your debts on time Stronger negotiating power when dealing with suppliers Unexpected cash requirements can be met with no problem at allMinimising idle balancesToo much cash tied up in idle balances waiting for something to happen involves an opportunity cost and hence loss of profits. As you minimise the cash balance, you increase the chance of a shortfall and of failing to meet your payments schedule. A company must always try to find a suitable cash management policy and this at times can be facilitated by having a cash budget in place. By doing so, a company could forecast its cash inflows and outflows for the coming period and thus estimate with reasonable precision the amount of cash balance that it must keep idle.As a compromise, many companies try to hold some of their cash in short-term investments such asDeposit/Savings AccountsandFixed Term Deposits Accounts.Government Securitiesare also attractive for those opting for marketable securities.Cash is one of the most important aspects of a business. Lack of cash could and would probably lead to financial problems hence it is vital for a company to have a financial manager who is responsible for managing its cash to ensure it has enough to pay off creditors whilst also making profit from possible investment schemes with its idle cash.Industry profileIndian scenarioNewsprint Industry Scenario

The newsprint market in India is characterized with voluminous demand and high growth rate. However capacity of Indian paper mills is insufficient to meet the demand and almost 50% of the demand is met by way of import of newsprint. Thus this market is still very much open to absorb further expansions by the Indian Players, provided quality newsprint as per customer requirements are supplied at a competitive price.

The National Youth Readership study in 2009 discloses following interesting facts those have major bearing over the Indian newsprint market. Nearly 24% of the household have newspaper subscription.

Four out of every seven households of graduates and three of every eight urban households with literates buy a newspaper.

Despite television being the most popular source of information (78%), followed by newspapers (53%), the later cored over television for news and current affairs information source.

Literacy increased from 64.83% in 2001 to 74.04% in 2011, as per census 2011.India has more daily newspaper than any other nation and out of world's 100 largest newspapers 20 are Indian. The demand of newsprint in India is expected to grow at a rate of 9% and India's paper consumption will increase from 2 Million tons in 2010-11 to 3 Million tons in 2015-16.

Manufacturing newsprint through the waste paper is prevalent in India. Since India does not have a developed waste paper collection system, raw material availability is low and prices are high. Consequently, imports of waste paper accounts for 55-60% of the total waste paper consumed (mostly from the US, the world's largest waste paper market).

Company profileThe Company

Hindustan Newsprint Limited (HNL), located at Velloor in Kottayam District in Kerala, is a Government of India (Central Public Sector) Enterprise under the administrative jurisdiction of the Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises. HNL was incorporated as a wholly owned subsidiary of the Hindustan Paper Corporation limited (HPC) on June 07, 1983.

Truly world-classHNL produces exceptional quality newsprint for the Indian and International market, which is comparable with the best in the global market. The company has an installed capacity of 1,00,000 MT per annum for producing 49 & 45 GSM newsprint. HNL, with its state-of-the-art technology, has emerged as a company that is truly contemporary, within a short span of operation, and today, caters to the requirement of all major News Dailies in the country.

Quality & RecognitionIn 1998, HNL became one of the first newsprint manufacturers in the country to achieve the coveted ISO-9002 certification. The Quality Management System has been recertified to ISO 9001: 2000 in November 2002. HNL is also certified to ISO 14001: 1996 in October 2000 for its Environment Management System. The EMS was recertified in 2003. HNL has been awarded with Occupational Health and safety Assessment System(OHSAS 18001:2007) certification from Bureau Veritas Certification (India) Private Limited in July 2008.

Vision & Mission

Vision To be the dominant player in the mass consumption segment of writing & printing paper To be the foremost and largest producer of quality newsprint To attain a group sales turnover of RS.1500 crore byFY 2009-2010Mission To operate large capacity integrated newsprint/paper mills on sound commercial principles To continuously upgrade plant and equipment, upscale production output and enhance market share within the country and outside

Board Of Directors

Message from MD

HNL has always been a front-runner in the Newsprint segment of the Pulp & Paper industry offering the best quality Newsprint at competitive prices to the Indian print media. HNLs extensive contributions to the society, place it among the more responsible and responsive corporates in the country.

The creative and unique way of blending commercial objectives with its social mission manifests in HNLs passionate pursuit of the twin programmes of social farm forestry and purchase at gate schemes. The distribution of 25 million seedlings through the farm forestry scheme and the collection of about 0.45 million MT of wood materials through its complementing scheme of purchase at gate is a pointer of the sterling success of these programmes among the rural farming community of the State.

In tune with HNLs mission to improve the quality of life of the local community, we have completed the drinking water supply scheme, benefiting 580 families in the vicinity. Our caring outlook has prompted us to sponsor the Paediatric Cancer Care Ward of Medical College at District Headquarters, Kottayam.

So lets live and enjoy commitment to make a positive difference to the world around us.

Warm Regards

M.V.Narasimha RaoManaging DirectorHindustan Newsprint Limited

customers

Sub:Stockists Meet on October 05,2012 at HNLHindustan Newsprint Limited (HNL), (A Subsidiary of Hindustan Paper Corporation) has established itself as a leader in the newsprint market with its superior quality for last 30 years.

We are happy to announce that HNL has also commenced the production of Writing & Printing Cream Wove paper from July 2012 onwards.HNL is organizing a Stockists Meet on 05, October 2012, from 10.00 am to 4.00 pm, at the Mill premises at Newsprint Nagar, Dist. Kottayam, Kerala 686 616.This place isabout 40 kms.awayfrom Kochi and Kottayam (nearest Railway Station-Piravom Road, between Ernakulam and Kottayam) in the State of Kerala.Stockistsof Writing & printing paper are cordially invited to participate in this Meet.Interested participants may send a line in confirmation to the undersigned at the following e-mail addresses or postal addresses given below:e-mail:[email protected]@hnlonline.comPostal Address:AIR Cmde. P. KMukherjeeJohn MathewMDirector (Finance)Dy. General Manager (Mktg.)Hindustan Newsprint LimitedHindustan Newsprint LimitedKottayam DistrictKottayam DistrictKerala State 686 616Kerala State 686 616

May contact us also in the following telephone numbers in case of any further information is needed.Mobile No. 9446012580Land No.04829 257803Newsprint is the major input for the newspaper industry. Quality newsprint provides excellent prints to satisfy the discerning and demanding readers - the ultimate customers of the product.

HNL commands leadership position in the domestic newsprint market. Our current product range is from 48.8 GSM to 45 GSM, standard and pink newsprint. The quality of HNL newsprint and our prompt service delivery are well accepted and appreciated in the market.

Newspapers printed on HNL newsprint greet millions of Indians, every morning. It is the information carrier to millions. HNL Newsprint is preferred by major publishing houses in the country. Malayala Manorama, Mathrubhumi, Deshabhimani, Kerala Kaumudi, Mangalam, Madhyamam, The Hindu, The New Indian Express, Sanmarg, Ananda Bazaar Patrika, Eenadu, Vartha, Andhra Jyothi, Vijay Anand Printers, Deccan Chronicle, Deccan Herald, Lokprakashan, Dinamalar, Sandesh, Thuglak, Kalki, Rashtra Deepika, Chandrika etc.arethe major customers of HNL across the country. HNL is also establishing its market in Srilankaand Malaysia.For price details, samples, terms and conditions, product linesetc, contact:Mr.John Mathew M ,HOD ( Marketing) at:[email protected]

Certifications

ISO-9001-International recognitionIn 1998, HNL became one of the first newsprint manufacturers in the country to achieve the coveted ISO-9002 certification. The Quality Management System has been recertified to ISO 9001:2004 in November 2007. The QMS was further upgraded to ISO 9001:2008 inNovember 2010.

ISO-14001-International recognitionHNL was certified to ISO 14001:1996 in October 2000 for its Environment Management System. The EMS was recertified in 2003. EMS system was further upgraded to ISO 14001:2004 in April 2006. EMS system was further upgraded to ISO 14001:2004 in November 2011OHSAS 18001:2007-International recognitionHNL was certified with OHSAS 18001:2007 on 28th July 2008 by Bureau Veritas Certification (India) Pvt Limited for the excellent methods adopted by HNL for ensuring occupational health and safety.

Awards

ENERGY CONSERVATION AWARD 2012Director Finance Air Cmde. Prodip Kumar Mukherjee is receiving the Energy Conservation Award for large scale industry for 2012 from Hon. Chief Minister Shri Oommen Chandy on 14th Dec 2012 at the Mascot Hotel, Trivandrum.

Award for Excellent implementation of Official Language Policy/Rules

HNL has been awarded with TOLIC,Kottayam ,Official Language Trophy acquiring 2nd position in terms of excellent implementation of Official Language Policy/Rules of Govt Of India for the year 2011-12.The trophy was received by K.Gopinathan, HoD (FDP) from Smt. Sheela Thomas, IAS Chairman, TOLIC-Kottayamon 29th August - valedictory function of joint Hindi week celebration-2013 held at office of RUBBER BOARD, Kottayam, Kerala.

Kerala state Pollution Control Award 2011HNL received Kerala State Pollution Control Award by acquiring 2nd position among large scale industries. The Award was received by Shri E.K.Shajahan, GM (Works) fromShri Oommen Chandy, Hon'ble chief minister of Kerala, at Trivandrum on 5 th June 2012.Award for Excellent Implementation of Official Language Policy/Rules

HNL has been awarded with TOLIC, Kottayam ,Official Language Trophy acquiring 2nd position in terms of excellent implementation of Official Language Policy/Rules of Govt Of India for the year 2010-11.The trophy was received by R. Shreekumar (Sr.Mgr. safety & Fire) from Dr.Babu Joseph,Member,HAC,Ministry of Defence Govt Of India on 5th June valedictory function of joint Hindi week celebration-2012 held at office of RUBBER BOARD,Kottayam ,kerala.Kerala state Pollution Control Award 2010Shri M.V.Narasimha Rao,Managing Director receiving the Kerala state pollution control Award 2010 for Large Heavy Industries from Shri Oommen Chandy, Hon'ble chief minister of Kerala, on the World Environment day.MoU Excellence AwardHindustan Paper Corporationwasbestowed with the prestigious MoUExcellence Award for performance during the FY 2005-06. Shri Raji Philip,CMD, HPC received the award from the Hon. Prime Minister Dr. Manmohan Singh at a glittering function held at Balayogi auditorium, Parliament Library Building, New Delhi on 8th March, 2007. The Memorandum of Understanding (MoU) is a mutually negotiated agreement between the Public Sector Enterprises (PSEs) and the Government of India. Under this agreement, a PSE undertakes to achieve the targets set out at the beginning of each financial year. The MoUcovers both financial and non-financial parameters and the performance is measured on a weighted 5-point scale.The MoU award os given only to the top ten PSEs securing excellent rating.National Energy ConservationAwardHindustan Newsprint Limited has been selected for the certificate of Merit in the Pulp and Paper sector for the National Energy Conservation Awards-2005. Shri.N.P.Prabhu,Managing Director received the award from Dr.A.P.J.Abdul Kalam President of India at a function on 14th December 2005 at Vigyan Bhavan, NewDelhi.State Pollution Control Board AwardHindustan Newsprint Limited bagged thesecond prize forpollution control activitiesinthe category of very large-scale industries,instituted by Kerala State Pollution ControlBoard for the year 2009. Shri. E.K. Shajahan, DGM (O&M)has received the award fromHon.Minister for Health,Smt. P.K.Sreemathi at a glittering function held at Thiruvananthapuram on 5th June 2010, the World Environmental Day. The award was a true recognition to the sustained efforts and commitment of HNL in preserving the environment.

Products

Hindustan Newsprint Limited (HNL), a Government of India Enterprise, uses advanced technology and eco friendly raw materials and processes to produce superior quality newsprint. Newsprint is used in the printing of newspapers, flyers, and other printed material intended for mass distribution. The consumers of newsprint include printers or publishers of newspapers, periodicals, textbooks or books of general interest.

Diversity in rangeHNL produces a wide range of newsprint grades. Initially, the company produced 52 GSM (Grams per Square Meter) newsprint. Later, to meet changing market demands, HNL commenced production of 48.8 GSM newsprint. With increasing demandfor lower GSM newsprint, HNL started production of 45 GSM newsprint also. HNL maintains consistent quality in all grades of newsprint that it manufactures.

Better brightness, better product!Salient Features

Grammage48.8 / 45 GSM

ColourStandard / Pink

Brightness55 - 58 % ISO

Size of reel34 cm to 163 cm

Note: HNL expresses brightness on ISO standard which when converted into conventional units is higher by 3 points.

At the time of commissioning in 1982, HNL produced newsprintwith just 48-50 % ISObrightness. Later, it switched over to a superior and eco-friendly technology in bleaching using Hydrogen Peroxide (H202). This change enhanced the brightness to 53-55% ISO. The companys competitors soon followed suit. Always a step ahead, HNL further advanced the brightness levels and is at present producing newsprint with 55 - 58 % ISO.

Today, brightness level is at par with that of imported newsprint. Further improvements are possible by putting a premium value on the product.

Quality

HNL Newsprint is of superior quality and comparable to world-class standards. Reason why, HNL commands an enviable position in the domestic newsprint market, today. HNL is highly customer focussed and enjoys exclusive patronage with top dailies in India.

Regular visits are made by HNLs production managers to newspaper establishments to understand the customers demands. It is found that pressroom operators favour HNL newsprint for its excellent runnability and printing properties.

The production technology at HNL is modified to match exacting requirements of sophisticated high-speed printing machines. The quality of the product is given primary importance in the quality policy at HNL.

For all clarifications with respect to quality, contact:Mr.M John Mathew ,HOD (Marketing) [email protected]. Panchamukhi VH, Chief Chemist at [email protected]

Plant and Machinery

Plant & MachineryName of ManufacturerYear ofInstallation

Paper MachineVoith, Germany1982

Raffinator (CMP)Sunds Defibrator, Sweden1982

Quality Control System in Paper MachineMeasurex, USA1991

Chemical Additive PlantCelleir, France1982

Andritz Filter Press (ETP)Andritz, Austria1993

Roll wrapping MachineKlienewefers, Germany1982

Core making MachineGuschy Tannesmann1982

Machine winderJagenberg, Germany1982

Turbo GeneratorBHEL, Hyderabad1982

Power BoilerABB1982

Recovery BoilerBHEL, Trichy1998

Evaporator - IL&T, Mumbai1982

Evaporator - IIAlfalaval, Pune1994

De-Inking PlantVoith, Germany2002

Major Process Control Systems:

DCS for Utility PlantYokogawa Blue Star, Bangalore1995

DCS for Pulp Mills & Paper MachineYokogawa Blue Star, Bangalore2002

Quality control System for Paper MachineHoneywell Measurex, USA2002

Raw Materials

Materials Required Fibrous raw materials like wood, reed, bamboo etc. Old Newspaper (ONP) and Old Magazines (OMG) for De-Inking Plant. Chemicals used in pulp and paper making like caustic soda, hydrogen peroxide etc. Packing materials like kraft paper, grey board etc. Imported machineries and spares General spares like motors, bearings etc. Fuels like coal, furnace oil etc. Paper machine clothing (felts, wires and screens)Fibrous raw materials

HNL meets a major portion of its requirement for fibrous raw materials from forest sources. The credit for the superior quality of HNL newsprint goes to the unique raw material: Reed (Ochlandra travancorica) which is a specialty of Kerala forests.

The company has a long-term agreement with the Government of Kerala for the supply of Eucalyptus wood and Reed from state forests. Dwindling forest resources has led to this supply getting diminished in the past few years.

HNL has developed appropriate alternatives by : Raising captive plantations using own resources and technical know-how on land allotted for that purpose by Govt. of Kerala, and also on vacant land made available by various institutions like Railways. Encouraging pulp wood cultivation on agricultural land through implementation of farm forestry schemes. Procuring raw materials from neighbouring states where they are available. Buying Eucalyptus, Bamboo and other 'pulpable' raw materials from local suppliers and farmers directly under "Purchase at Gate" scheme. Recycling of waste paper to manufacture pulp.Chemicals and packing materials

HNL being a process industry, utilises a range of chemicals in the production process. The list of these chemicals and their annual requirements are as follows:

Chemicals(Annual Requirement in MT)Hydrogen Peroxide (50% concentration)4,600

Soap Stone Powder(Talcum)3,700

Caustic soda lye4,300

Raw Lime Shell7,000

Chlorine725

Non-ferricAlum1,700

Ferrous chloride( for ETP)19,000

Sodium Silicate2,700

Sodium Sulphate1,100

Sulphuric Acid450

Hydrochloric Acid150

Packing materialsKraft paper925

Grey Board575

Energy

HNL has a22 MW coal-based captive power generation facility. HNL requires a large amount of fuel and electricity for its production process.Coal (indegenous & Imported)0.15 million MT

Electricity (Purchased)1050 lac Units

Furnace Oil2500 Kilo litre.

HNL is particular in procuring quality chemicals and other inputs as per specifications/norms.For further information prospective suppliers / agents may kindly contact :Mr.John Sebastian DGM(Commercial ) [email protected]

Process

Three grades of pulp:-Chemi Mechanical pulp,Chemical pulp and De-inked pulp are blended to manufacture newsprint.Chemi Mechanical Pulp (CMP)230 BDMT per day CMP plant (Sunds Defibrator, Sweden) uses hard wood(Eucalyptus,Acacia) chips to produce pulp. Chips are washed, presteamed and impregnated with caustic soda. Impregnated chips after recovering spent alkali is mechanically pulped using three Raffinators. Raffinators are driven by synchronous motors of 6.5 MW (BHEL make). Spent chemicals are removed after primary refining using Twin roll press. Pulp after second stage refining is washed and bleached by Hydrogen Peroxide. The TCF bleaching process operates effluent free. Bleached pulp after third stage refining is sent to High Density storage tower for onward use in paper machine.

Chemical Pulping (CP)Capacity of CP plant is 100 BDMT/day.Reed/ Bamboo chips are pulped using conventionalkraft process using stationary vertical Digesters of BHPV make. After counter current washing, pulp is bleached using chlorine followed by Hydrogen Peroxide stage.De-Inking Plant (DIP)The 100 TPD De-Inking Plant uses Old Newspaper (ONP) and Old Magazine Paper (OMG). Waste paper is weighed and pulped in Batch Pulper and stored in Dump Tower. Pulp is cleaned off the contaminants using HD cleaner followed by 2 stage hole screening. A seven cell floatation process removes the ink from pulp. Pulp is further cleaned in 4 stage centri-cleaners followed by 3 stage slot screens. Pulp is thickened in Disc filter and Screw Press to 30 % dryness and subjected to hot dispersion. Pulp is then bleached using Sodium Hydrosulfite and stored in High Density storage tower. A Reject handling system separates the rejects for disposal at about 50% dryness. The sludge handling system thickens the ink sludge to 40% dryness for use in our FBC Boilers.

Into Paper MachineThe CMP, CP and DIP are mixed in a definite ratio and supplied to the headbox through approach flow system wherein chemicaladditives are added. The paper machine approach flow system consists of four-stage centri-cleaner, Clark and Vicario Deculator system, primary fan pump and a variable speed secondary fan pump and pressure screens.

The paper machine is the modern high speed machine from VOITH, Germany. With the desired velocity, the diluted pulp flows from a high turbulance W-type head box into Duoformer twin-wire forming section. The paper web is formed in Duoformer and it is pressed to remove water with swimming rolls. The paper from the press section passes on to a dryer section, with 36 dryers and one sweat dryer, having thermo-compressor steam and condensate system. The dried paper surface is smoothened through a four roll open calendar stack with two Kusters swimming rolls.

The machine is designed for 750 meters per minute (mpm) speed with a deckle (width) of 6.85 meters to produce 44 to 54 GSM newsprint. The machine has a sectional D.C. drive with thyristor control. The finishing line has a VOITH winder, Jagenberg Salvage winder and Klienewefers roll wrapping machine. Paper core is made here in a spiral core making machine with purchased kraft paper and grey board.

The UtilitiesThe steam requirement is met by 3 ABV/ABL boilers with fluidised bed burning. There is a chemical recovery boiler of BHEL make. There are twoturbo generators with capacity of 15 MW and 7 MW. About 35% of total power requirement is met through State Electricity Board. Also the mill has an effective water and air supply system for plant use and controls.

Effluent TreatmentIn keeping with National priorities and increasing social obligations, HNL is ISO 14001 certified and has adopted environmental and pollution control measures. The colour and other pollutants are removed and water free from pollutants is discharged into the river. Air pollution is also controlled by effective Electro Static Precipitators.

Technology

HNL employs state-of-the-art technology and precision-driven processes to ensure that the end product is of superior quality. Some of the highlights are: Continuous upgradationand improvisation in technology for cost minimization and quality improvements. First NewsprintManufacturer in India to integrate process automation covering all the plants. E-practices in all functional areas viz. purchase, distribution, finance, stores, HR, process and maintenance, with ERP and other supporting infrastructure networks to ensure quick response time. Online Digital quality control system. Incremental, significant technological improvements in all critical areas like pulping, paper machine and finishing areas.In the forefrontHNL has always maintained an edge in technology. Following are a few instances of the use of modem technology by HNL. Used Hydrogen Peroxide for bleaching which resulted in better bleaching and lesser pollution. Installed and later upgraded the computer based Quality Control System for Paper machine. FBC conversion of Boilers. Introduction of DCS system for all mill process operations. Lime sludge re-burning plant for recovery of chemicals. Energy efficient Falling Film Evaporator and Finisher in Recovery plant. Installed Fiber Optic LAN for mill-wide Computer networking. Implemented Enterprise Resource Planning (ERP) software, BaaN for all business activitives.

Production Capacity

HNL is one of the well performing PSUs in the State which is continuously registering profits for 15 Years since 1990.

Fy 2008-09 - Highlights:Production10,8005MT

Capacity Utilization108%

Sales87,476 MT

Sales TurnoverRs297.67 Cr

Profit Before TaxRs21 Cr

Profit After Current TaxRs12.64 Cr

Research & Development