Cash Management

One 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 management
1) 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 Motive
Cash balances are kept in order to meet routine cash needs of the business, such as the purchase of raw
materials, payment of employees wages, etc
Precautionary Motive
Unanticipated 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, etc
Speculative Motive
Speculative 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 Management
In 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 Balances
The financial manager must ensure he has enough cash in hand to pay suppliers, creditors, employees,
shareholders, banks, etc
Most 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 all
Minimising idle balances
Too 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 Accounts and Fixed Term Deposits Accounts. Government Securities are 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 profile
Indian scenario
Newsprint 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 profile
The 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-class
HNL 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 & Recognition
In 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 by FY 2009-2010

Mission

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 Rao
Managing Director
Hindustan Newsprint Limited

customers


Sub: Stockists Meet on October 05, 2012 at HNL

Hindustan 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 is about 40 kms. away from Kochi and
Kottayam (nearest Railway Station-Piravom Road, between Ernakulam and Kottayam) in the State of
Kerala.

Stockists of 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: pkm@hnlonline.com

johnmathewm@hnlonline.com

Postal Address:
AIR Cmde. P. K Mukherjee John Mathew M
Director (Finance) Dy. General Manager (Mktg.)
Hindustan Newsprint Limited Hindustan Newsprint Limited
Kottayam District Kottayam District
Kerala State 686 616 Kerala State 686 616

May contact us also in the following telephone numbers in case of any further information is needed.
Mobile No. 9446012580
Land No. 04829 257803
Newsprint 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. are the major customers of HNL across the country. HNL is also establishing its
market in Sri lanka and Malaysia.
For price details, samples, terms and conditions, product lines etc, contact:
Mr. John Mathew M , HOD ( Marketing) at:
johnmathewm@hnlonline.com

Certifications

ISO-9001 - International recognition
In 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 in November 2010.

ISO-14001 - International recognition
HNL 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 2011

OHSAS 18001:2007-International recognition
HNL 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 2012
Director 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-
Kottayam on 29th August - valedictory function of joint
Hindi week celebration-2013 held at office of RUBBER
BOARD, Kottayam, Kerala.



Kerala state Pollution Control Award 2011

HNL 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) from Shri 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 2010

Shri 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 Award
Hindustan Paper Corporation
was bestowed with the prestigious
MoU Excellence 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 MoU covers 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 Conservation Award
Hindustan 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, New Delhi.

State Pollution Control Board Award
Hindustan Newsprint Limited bagged the second prize for pollution control
activities in the category of very large-scale industries, instituted by Kerala
State Pollution Control Board for the year 2009. Shri. E.K. Shajahan, DGM
(O&M) has received the award from Hon.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 range
HNL 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 demand for
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
Grammage 48.8 / 45 GSM
Colour Standard / Pink
Brightness 55 - 58 % ISO
Size of reel 34 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 newsprint with just 48-50 % ISO brightness.
Later, it switched over to a superior and eco-friendly technology in bleaching using Hydrogen Peroxide
(H
2
0
2
). 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) at johnmathewm@hnlonline.com
Mr. Panchamukhi VH, Chief Chemist at panchamukhi@hnlonline.com









Plant and Machinery




Plant & Machinery Name of Manufacturer
Year of
Installation
Paper Machine Voith, Germany 1982
Raffinator (CMP) Sunds Defibrator, Sweden 1982
Quality Control System in Paper Machine Measurex, USA 1991
Chemical Additive Plant Celleir, France 1982
Andritz Filter Press (ETP) Andritz, Austria 1993
Roll wrapping Machine Klienewefers, Germany 1982
Core making Machine Guschy Tannesmann 1982
Machine winder Jagenberg, Germany 1982
Turbo Generator BHEL, Hyderabad 1982
Power Boiler ABB 1982
Recovery Boiler BHEL, Trichy 1998
Evaporator - I L&T, Mumbai 1982
Evaporator - II Alfalaval, Pune 1994
De-Inking Plant Voith, Germany 2002
Major Process Control Systems:
DCS for Utility Plant Yokogawa Blue Star, Bangalore 1995
DCS for Pulp Mills & Paper Machine Yokogawa Blue Star, Bangalore 2002
Quality control System for Paper Machine Honeywell Measurex, USA 2002

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 lye 4,300
Raw Lime Shell 7,000
Chlorine 725
Non-ferric Alum 1,700
Ferrous chloride ( for ETP) 19,000
Sodium Silicate 2,700
Sodium Sulphate 1,100
Sulphuric Acid 450
Hydrochloric Acid 150


Packing materials

Kraft
paper
925
Grey
Board
575

Energy

HNL has a 22 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 Oil 2500 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 ) at
johnsebastian@hnlonline.com

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 conventional kraft 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 Machine
The CMP, CP and DIP are mixed in a definite ratio and supplied to the
headbox through approach flow system wherein chemical additives 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 Utilities
The steam requirement is met by 3 ABV/ABL boilers with fluidised bed burning. There is a chemical
recovery boiler of BHEL make. There are two turbo 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 Treatment
In 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 upgradation and improvisation in technology for

cost minimization and quality improvements.

First Newsprint Manufacturer 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 forefront
HNL 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:
Production 10,8005 MT
Capacity Utilization 108 %
Sales 87,476 MT
Sales Turnover Rs 297.67 Cr
Profit Before Tax Rs 21 Cr
Profit After Current Tax Rs 12.64 Cr


Research & Development