To meet its power requirement MIL has set up its own power plant. This power plant generates 100 percent of the energy needed by the Company. Commissioning of this power plant was yet another feather in our cap as we became one of the few paper mills which were self-sufficient in respect of power requirements. The cost of power generation from our plant is Rs. 1.85 per unit as against 3.25 Rs. per unit grid cost. This low cost of power generated by our plant results in lower production cost of our products. Yet another huge advantage of the power plant accruing to us is that unlike other industries we do not have to face the problem of power outage and as such there are no hold-ups in production in our factory on this account.
Efficiently running the power generation units with the capacity of The 3 MW Co Generation Power Unit& 15 MW Co Generation Plant has definitely taken a bold step towards the Energy Conservation and cost cutting on overheads. The Unit is supplying power to the Duplex, News Print & Printing Paper and Writing Printing Paper Unit and thus saving the cost overheads of these Units. During the period under review, the Unit attained a Turnover of Rs 1896 Lacs. (PY Rs. 984 Lacs)
MIL spares on effort to ensure excellent quality of its products. We have time and again reiterated our unflinching commitment to maintaining matchless quality of our products. Continuous upswing in the sales figures of the company is a strong indicator of the fact that due to their incomparable quality MIL products are all set to completely dominate the market in foreseeable future.
MIL firmly believes in the dictum 'the greater the efficiency the greater the productivity'. It is in conformity with this belief that it has over the years practiced a culture of prudent asset protection, refurbishment and maintenance as this helps achieve higher degree of efficiency in manufacturing operations. The benefits of focusing on the aspect of efficiency accruing to the Company have been listed below.
- MIL reported a capacity utilization in excess during 2005-06.
- It has noted with satisfaction that its average capacity utilization over the last three years.
Efficiency has been the hallmark of all our operations. To enhance the efficiency of distribution system the MIL management follows a unique dealer grading and ranking system which is intended to improve throughput per dealer. This grading-cum-ranking system is based on a number of strategic and operational parameters. Grading of our dealers into 'true friends', 'fleeting friends' and 'strangers' is designed to add to the efficiency of the distribution of our products.
Supplying quality products to its customers has been the cherished goal of MIL. Right from the inception of the company the management been striving hard to ensure that our customers derive maximum satisfaction from the quality of our products. It is with this objective in mind that we carry out a detailed analysis of materials, intermediate products and inputs. The results so obtained aid the company better the quality of its products and eventually capture more and more markets.
Catalyzing production processes has also resulted in better quality of our products leading to their greater acceptability in the market.
A rapid expansion in manufacturing operations in MIL has necessitated recruitment of more and more employees to handle growing volume of work in the company. We have emerged as one of the biggest employers in the heart of Central India where unemployment has been a major cause of social backwardness. The number of people employed by the company is a clear manifestation of this. Employees working their heart and soul are rewarded by the company not only by retaining them in the job but also providing various incentives to them from time to time.
- This policy pursued by the company vis-a vis its employees motivates them to put up their best possible performance.
- It has led to the attainment of one of the highest levels of productivity in the industry.
- The company has noted with satisfaction that there has been an increase in productivity per person over the previous years.
MIL is a strong advocate of automation in industrial operations. It holds that automation quickens the interest of capable employees and inspires them to work heart and soul for the aggrandizement of the Company. The following facts amply demonstrate this.
- MIL has successfully blended a long enduring paper manufacturing process with modern controls and automation leading to improved efficiency.
- The installation of an on-line Quality Control System was pioneered by the Company. This system which is in place in all its five machines has led to a better management of GSM, moisture, ash and coat weight, etc.
The Company has also pioneered business automation by way of Navision ERP to better the quality of all its business operations.
Good corporate governance and transparency in actions of the management is key to a strong bond of trust with the Company's stakeholders. MIL understands the importance of good governance and has constantly avoided an arbitrary decision-making process. Our initiatives towards this end include :
- Professionalism of the board.
- Lean and active Board .
- More professionals and independent Directors for better management.
- Governed through Board committees for Audit, Remuneration, Shareholder Grievances, Compensation and Nominations.
- Meets all Corporate Governance Code requirements of SEBI.
MIL has embarked on an ERP solution to facilitate informed decision making. Solution to connect all branches, dealers and suppliers across the country This ERP would enable the Company to know what inventory is lying and where. This would help in timely allocation of material required by various units of the Plant which would eventually result in smooth production activities.
Health & Safety
MIL has always accorded top priority to workers' safety in all its functions & operations. It has taken a number of steps aimed at boosting workers' safety during the course of industrial operations.
- MIL has made sizeable investment in a number of processes to enhance workers' safety.
- The Company conducts a daily inspection across all its hazardous units which is backed up by periodic inter-departmental safety audits, beyond what is required by law.
- No employee of the Company is permitted on the shop floor without clearance from the Safety Department.
- The Company celebrates 'National Safety Week' once a year with employees & their families to develop awareness relating to health hazards & the importance of safety precautions.
Logistics & Supply Chain
Surging operations of MIL are a direct outcome of logistics and supply chain maintained effectively by it. The Company is conscious that timely and uninterrupted movement of raw materials and finished goods is crucial to its success.
- MIL has prudently managed its logistics in a business in which profitability depends critically on the cost of fuel and fleet management.
- It has always been supported by a band of dedicated transported who are on the road at any given time ferrying raw materials to or carrying finished goods from the Company.
- It economically uses the vehicles transporting finished products to their destinations, resulting in a lower transportation cost; it also uses the proximate railway network to minimize freight cost.
- Owing to this vigilant management, the Company has never experienced shortage of raw materials and other inputs and has been successful in delivering the goods on time to end users. This has been among several key achievements for the Company.
- Unlike its rivals MIL does never face resource crunch. It retains a sizeable amount to meet its immediate as well as medium term financial requirements.
- We have always used a blend of funding sources from accruals to commercial papers to FCNR (B) loans to low cost dollar debt to term loans from various banks to fund our plant operations.
- We are grateful to the consortium of four banks which bank rolls us.
MIL has earned lavish praise from various sections of society for the decisive role it has been playing in community development. This is in keeping with its policy of giving a fillip to social development alongside the expansion of its industrial activities With a view to creating hygiene-related awareness and rendering medical services to its employees, it occasionally organizes health check-up camps at its Vadoda Plant.
Through its various initiatives, it has made considerable investment in the upkeep of an otherwise sleepy village of Vadoda .
MIL has stabilized fly-ash dumps through biological means, developed better drainage systems, set up educational institutions, (including the ones conducting pulp & paper Technology Courses)
It has also extended educational facilities for needy children and also organized various social awareness programs thus taking a lead in the direction of social transformation.
- We have lived up to our reputation as protectors of environment. It has all along been our sincere endeavor to safeguard the environment through the application of eco-friendly techniques in production activities in all our plants.
- Manufacturing processes in our plants as well as their performance are periodically evaluated by Statutory Agencies.
- We are among those few industries whose record in terms of meeting the standards laid down by Pollution Control Board for air emissions and liquid effluents has always been impeccable.
- We were the first to set up a large Pulp Mill for captive virgin pulp availability; this backward integration is expected to supply major portion of the company's overall raw material needs. The company expects to meet approximately 40% of its raw material needs from this backward integration.
- The Company is proud to be in the vanguard of protection of environment. It upgraded its Effluent Treatment Plant. The Company has taken due care to see to it that all the norms prescribed under Environment Protection Act are strictly adhered to. In addition to this it is also tasking necessary actions to implant CREP action plan on schedule.
- We are committed to completely eliminate or at least minimize the use of Chlorine from all the production processes in our plant.
- We are investing for stricter CREP compliance as part of our ongoing modernization & expansion drive.
- We are confident of shortly eliminating the use of elemental chlorine.