TNPL is exploring new value-added products using paper and board as raw materials. 100 TPD Tissue Paper Machine Set for Commissioning by March 2026

TNPL is exploring new value-added products using paper and board as raw materials. 100 TPD Tissue Paper Machine Set for Commissioning by March 2026

-The prices of raw materials especially, wood has also increased significantly impacting the profitability of the company. The Profit before tax (PBT) is Rs. 324.76 crore and Profit after tax (PAT) is Rs. 208.16 crore.
-As part of Phase # 1, procurement of one High Pressure Boiler is under progress and is likely to be completed by end of March, 2026.
The Pulp and Paper Times

Tamil Nadu Newsprint and Papers Limited (TNPL) commenced paper production in the year 1984 with a capacity of 90,000 Metric Tonnes per annum. Over the years, the capacity stands expanded to 4.0 lakh Metric Tonnes per annum of Printing and Writing Paper. In 2016, the company had set up a state-of-the-art Packaging Board Plant with an annual capacity of 2,00,000 Metric Tonnes per annum in Mondipatti village, Manaparai taluk, Trichy District.

The Company has modernised plants to manufacture a wide range of high quality surface sized and Non surface sized Writing and Printing Papers at Kagithapuram and virgin grades coated and uncoated boards best suited for the packing industry at Mondipatti.

Dr. Sandeep Saxena, I.A.S., Chairman and Managing Director of TNPL, said during the 44th AGM, that TNPL has been operating with a Vision to adopt state-of-the-art contemporary technology and be the world’s most sustainable brand to manufacture eco-friendly paper and paperboards. We also strive to create an inclusive work environment, become the best place to work at, and grow in favourable opportunities. In line with the above Vision, the company’s Mission has been to manufacture paper and paperboards of top-notch quality and achieve over 1 million tons per annum by the end of 2030. Besides that, we also focus on becoming the number one choice for our customers and provide our products at the most affordable and competitive prices, meet our financial goals and create a culture of safety and sustainability.

During the year 2023-24, the market for paper faced challenges due to increase in import of paper. Consequent to which the realisation of paper was lower than the previous year. The prices of raw materials especially, wood has also increased significantly impacting the profitability of the company. The Profit before tax (PBT) is Rs. 324.76 crore and Profit after tax (PAT) is Rs. 208.16 crore.

“In the fiscal year 2023-24, India witnessed a significant increase in imports of Printing and Writing papers. This rise, in imported paper is attributed to very competitive pricing from overseas suppliers. These imports have intensified competition in the Indian market, putting pressure on domestic manufacturers, including TNPL, to maintain market share and price competitiveness,” Dr. Sandeep Saxena said in his speech.

He disclosed that TNPL is exploring new segment to forward integrate in value added products using paper and boards as a raw materials and is in active discussions with paper machine manufacturers to get into newer categories of value added papers.

Considering the market potential for Tissue paper, a 100 tpd capacity, state-of-the art Tissue Paper Machine along with its auxiliaries is proposed to be installed at TNPL Unit-ll at an estimated project cost of Rs.300 crore. The machine shall have facilities to produce different grades of tissue paper ranging from 13 GSM to 40 GSM mostly made from high quality in house Hard Wood Pulp. The procurement action was initiated in February, 2024 and expected to be commissioned before March, 2026.

The installation of two high pressure boilers of 125 tph each along with a 42 MW Turbo Generators under Revamping of the existing Steam and Power System (RSPS 2) at Unit -I is being taken up in phases to retire and replace the old low-pressure boilers installed in 1985. As part of Phase # 1, procurement of one High Pressure Boiler is under progress and is likely to be completed by end of March, 2026.

The domestic market has faced sluggish demand, in the year 2023-24. Various sectors, including Education, Publishing and Corporates, have been experiencing reduced consumption of printed materials. This is partly due to the ongoing digital transformation, which has led to a decline in traditional paper usage. Additionally, economic uncertainties and shifts in consumer behaviour have contributed to the muted demand for printing and writing papers.

Dr. Sandeep Saxena further explained the market scenario, and added, that the domestic market faced very high downward pressure on prices due to the influx of imports. While this may benefit customers and industries that rely upon paper, local manufacturers had to face many challenges. The pricing pressure has been exacerbated by fluctuations in raw material costs also, which impact production costs and margins. Availability of Hard wood is an issue. Most Indian Paper Mills, have resorted to importing wood chips, at much higher costs. This has further added to increase in raw material costs.

PERFORMANCE HIGHLIGHTS OF THE FINANCIAL YEAR 2023 – 24:
a) Operations 
1. The Company’s Revenue from Operations for the year 2023-24 is Rs. 4692.82 crore. 
2. Profit before tax is Rs. 324.76 Crore and Profit after tax Rs. 208.16 Crore. 
3. During the year, the Paper production was 422742 MT. 
4. Paper sales during the year 381860 MT. Domestic Sales accounts for 78% and Exports at 22%.
5. During the year, the Packaging Board plant production was 195437 MT. 
6. The Packaging Board sales during the year 2023.-24 was 177748 MT. Domestic Sales accounts for 98% and exports at 2%. 
7. 292949 MT of Hardwood Pulp (HWP), Chemical Bagasse Pulp (CBP) and Deinked Pulp (DIP) were produced during the year in Unit I. 124904 MT of Hardwood Pulp (HWP) was produced during the year in Unit II. The total pulp produced during the year was 417853 MT. 
8.7258.74 lakh units (Unit I – 5109.55 and Unit II – 2149.19) of power was generated of which 8279.59 lakh units (Unit I - 5993.07 and Unit II – 2286.52) of power was consumed and 54.74 lakh units (Unit I – 0.46 and Unit II - 54.28 exported.

Generating value from Waste:

Waste management strategies of TNPL are aimed towards a circular economy. Solid wastes are being reused in the process either for producing Cement or as fuel in the boiler. MLSS along with other degradable wastes are used as manure for the plantation inside and outside the mill. About 1.23 lakh MT of solid wastes including lime sludge, fly ash, lime grits, CCK sludge and DIP sludge etc., from both the Mills (Unit-I and Unit-II) were consumed in the mini–Cement Plant (LSFM) which is about 62% of the total raw material consumed for manufacturing 2.00 lakhs tons of cement in an environmentaIIy friendly way during the year 2023-24.

The organic waste generated from the process of pulp mill is effectively utilized as a fuel to generate wealth from waste. The Company has utilized in the Power Boilers, 1,53,309 MT of internally generated organic waste such as bagasse pith, wood dust, pulpwood bark etc., which resulted in conservation of 50,251 MT of imported coal.

Clonal Nursery

TNPL continuously works towards sustainable growth and minimizing the impact of its operations on the environment and always prioritizes the importance of sustainable raw material procurement i.e., Environmental preservation, economic stability & social responsibility. TNPL also raises pulpwood plantations commensurate with wood consumption and also to fulfill its social responsibility.

During 2023-24, TNPL produced 568 lakhs clonal plants comprising 466 lakhs Casuarina clonal plants and 102 lakhs Eucalyptus clonal plants. TNPL is the first Company in India to produce 568 lakhs clonal plants in a year from own sources without any outsourcing of clonal plants. Against this, TNPL supplied 528 clonal plants in which 429 lakhs Casuarina clonal plants and 99 lakh Eucalyptus clonal plants to registered farmers for planting in time. So far, TNPL produced 3962 lakh pulpwood plants and supplied 3697 lakh pulpwood plants to farmer's field over the past 20 years.

TNPL motivated farmers to raise pulpwood plantation in an area of 22982 acres covering 5938 farm fields during 2023-24. Short rotation Casuarina species is covered in the maximum area of 60% (13737 acres) and Eucalyptus plantation has been covered in 40% (9245 acres). With this the cumulative plantation area promoted by the Company from 2004-2024 is about 2,56,756 acres. Plantation was raised mainly in the coastal Districts, where the pulpwood species are better established.

The Company has procured 9,26,092 MT of debarked pulpwood during 23-24, in which 2,96,789 MT from Government Sources, 5,37,486 MT directly from farmers’ fields and balance 91,817 MT from Open Market sources.

As on 31.03.2024, TNPL removed 28,398 MT of Senna pulpwood from Mudhumalai Tiger Reserve and Sathyamangalam Tiger Reserve and 8668 MT of Wattle pulpwood from Nilgiris forest division. TNPL’s commitment to the environment is evident in its various eco-friendly processes.

During the financial year 2023 – 2024, TNPL has spent Rs. 3.71 crore and had carried out various programmes under CSR.

TNPL Unit-I has obtained “Energy Efficient Unit” award and “Most Useful Presentation” Award in th the 24 National Award for Excellence in Energy Management 2023 from Confederation of Indian Industry (CII). During the FY 2023-24, TNPL has saved 23.16 Lakh units of Power (previous year 25.10 Lakhs units), 2,442.45 MT of Imported coal (previous year 3030 MT) and 4464.24 KL of furnace oil (previous year 5088.90 KL) by implementing various Energy saving projects.

TNPL has set up a 900 tpd Capacity Cement plant for producing high grade cement from inorganic solid wastes-lime sludge and fly ash. TNPL is the first and only paper mill in the country to have set up a cement plant within the factory premises to produce cement from mill wastes.
 

Web Title: TNPL is exploring new value-added products using paper and board as raw materials. 100 TPD Tissue Paper Machine Set for Commissioning by March 2026