Structure of Paper Industry - Finall111

Mysore Paper Mills Limited, Bhadravathi
1. INDUSTRY PROFILE
1.1 Historical Background of the Paper Industry:

The paper industry occupies an important place, as paper can be put to many uses. It
contributes not only to economic development but also to cultural development. The spread
of education and literacy is bound to increase demand for paper.
Paper has a long history beginning with the ancient Egyptians and continuing to the
present day. For thousands of years hand made methods dominated and then during the 19 th
century paper production became industrialized. Originally intended purely for writing and
printing purposes, a wide variety of paper grades and uses are available to the consumer.
The art of making paper was first discovered in China, 2nd Century B.C. From there it
traveled slowly towards Europe. The end of 14th century gave birth to number of paper mills
in Italy, France and Germany. In the year 1837, Dr. Charley established a paper mill at ‘West
Bengal’. Unfortunately, it was closed in a few years. In 1967, the royal paper mill was set up
in West Bengal again.
1.2 INDUSTRY STRUCTURE

The per capita consumption of paper in our country has grown marginally from5 kg
to 6 kg against Asian average of 28 kgs and the world average of 58 kgs. The growth in
paper consumption is directly related to the GDP growth in our country. The growth in our
country’s GDP in 2007-08 was about 9.6%. The rate of growth in paper consumption in the
country in the last few years has been 6.7%.
Currently there are about 525 paper mills in the country with an installed capacity of
78 Lakh MTs, out of which there are about 32 mills with a capacity in the range of 100 to
600 MTs per day, 110 mills in the 30-100 MTs per day and 383 mills in the 3-30 MTs per
day. During 2006-07, the production of writing, printing, packing paper & board was
approx. 72 Lakh MTs against 68 Lakh MTs in 2005-06 (5.9% growth). The demand for
Department Of Management Studies, JNNCE, Shivamogga 1

paper in the country went up from 65 Lakh MTs to 69 Lakh MTs (6% growth). Though the
overall import (mainly newsprint(7 Lakh MTs) coupled with smaller quantity(3 Lakh MTs)
of specialty papers) was in the range of 9.5 to 10 Lakh Tons during 2007-08, the import of
newsprint grew marginally from 7.0 to 8 Lakh Tons. The export of paper from the country
continued to be in the range of 3-4 Lakh MTs in 2007-08.
1.3 CONSTRAINTS FOR PAPER INDUSTRY

1. Scarcity of Raw Material such as Wood, Agrobased residue, waste paper etc.,
coupled with high cost of raw material as compared to other countries.
2. Fragmented capacity and Market volumes of each grade of paper are very low – do
not justify setting up of large single grade mills.
3. Low economy of scale.
4. Steadily increasing state administered cost and infrastructure cost.
5. Cost of inputs like electricity, coal, chemicals increasing year after year while paper
prices are pegged at international parity.
6. Strict environment regulations have forced the industry to go in for new chlorine free
technology, reduce water and energy consumption and invest heavily in lime kiln and
NCG gas burning.
The biggest constraint for the paper industry in the next few years will be the
availability of wood in the country. As per the estimates of IPMA, the wood requirement for
the paper industry would go up from 60 lakh tons to 130 lakh tons by 2020. The plantation
land required for this, however, can be easily allocated by government out of the vast
degraded forest land and the waste land available in the country. However the dependence
on imported Pulp will continue along with usage of imported waste paper, as there is no
proper collection of waste paper in our country.

1.4 GROWTH AND DEVELOPMENTS
Considering the present low level of consumption of paper (6Kgs) and the anticipated
growth in population, literacy level and living standards; growth in the
packaging/printing/publishing industries; and the environmental restrictions on the usage of
plastics vis-à-vis paper, there is a vast scope for increasing the consumption of paper in the
country.
As the growth in consumption of paper is directly related to the GDP growth of our
country, it is expected that the industry would grow at a rate of over 8% in the coming years.
The demand for both WPP (Writing and printing paper) and Newsprint paper would grow.
However, in the case of WPP the maximum growth would be in the speciality papers. With
growth in literacy by about 10% in the 3-4 years, the demand for paper would increase. In
the case of Newsprint the consumption would grow with the increased circulation of most of
the Newspaper publications. However, the price war among various publications would
continue along with the fight for getting the largest share of the advertisement pie.
Advertising in the print media is expected to go up along with advertising on TV and other
media
Following are the new developments in the Paper Industry that are taking place:
1. Continuous up-gradation of the existing machinery by Mills coupled with
introduction of newer technologies of production of paper at lower costs.
2. Most Mills are going in for expansion of their capacities. The additional capacities
are in the production of Writing and Printing Paper and not of Newsprint due to
higher realization on WPP as compared to Newsprint.
3. More usage of non-wood resources and waste paper by establishment of De-inking

plant.
4. In the production of WPP the trend is towards speciality papers like security paper,
high brightness copier, lightweight coated paper, tissue paper, etc., where the
realization is better.

5. In newsprint, the trend is towards more usage of 45 gsm paper than 49 gsm paper and
also high bright paper (around 67 brightness as compared to 55-56 brightness
presently available domestically).
6. Since the demand for WPP paper & Board is lower than the current production, Mills
are resorting to export of the surplus production.
7. With VAT introduced in most states, Mills have started strengthening their
distribution network to take advantage of the lower VAT(4%) in the states against 8-
10% which was prevailing earlier.
8. Availing Carbon Credit by Afforestation and clean development mechanism

processes.
1.5 LEADING PLAYERS IN PAPER INDUSTRY:

The major players in this sector with their respective production capacity are given below:
Company Name Capacity in Million TPA

TNPL 0.18
Hindustan newsprint 0.11
MPM 0.09
NEPA 0.09
Rama newsprint 0.06
Table Showing leading players in paper industry (source: magazine of MPM)

The public sector units (PSUs) control a major share of domestic production by
supplying 60 to 65 percent of total industrial production. Private sector players have very
small capacity in comparison to PSUs.
1.6 FUTURE PROSPECTS OF PAPER INDUSTRY:

 Strong demand from packaging segment will drive demand growth for industrial
paper.
 Establishment of new business area such as telecom and power will lead to increasing
literacy levels, thus improving the low per capita consumption of paper (3.2 KGS per
annum). Besides rapid growth in population, enhanced literacy levels, growing
quality consciousness and changing consumer preferences will drive paper demand.
 In view of the high capital costs, expansion of existing units and revival of sick units
remain the practical option for capacity additions. Also, paper mills in India have to
look for ways to cut down costs to compete with imports.
 International paper prices are not expected to rise substantially over the short-medium
term. Domestic paper companies will thus continue to reel under the pressure of
reduced margins. However, a app `preciating rupee will marginally protect domestic
companies from imports. Due to increased supply, some of the companies have put
their expansion plans on hold or have reduced their investment opting for lesser
capacity expansions.

2. COMPANY PROFILE
2.1. ORIGIN OF MYSORE PAPER MILLS LTD
The Mysore Paper Mills Limited, (MPM) founded by Sri.Krishnaraja Wodeyar

Bahadur in 1937 the Maharaja of erstwhile Mysore State was incorporated on 20th May 1936
under the then Mysore Companies Regulation, VIII of 1917. Later it became a Government
Company in 1977 under Section 617 of the Companies Act, 1956. The Company has its
Registered Office at Bangalore and its plant located at Bhadravati, Shimoga District,
Karnataka State.
The Company has an Authorized Capital of 150 Crs. and paid up capital of about 120
Crs. The shares of the company are listed in the Bombay Stock Exchange and there are about
17,000 shareholders.
While Government of Karnataka holds 65% of the shareholding of the Company,

IDBI and other Financial Institutions hold 24% of the shares and shareholding by the General
Public is 11%.
The company is managed by eminent Board of Directors consisting of IAS, IFS and
other professionals.
The Chairman & Managing Director of the Company is assisted by a team of

professionals in various fields who have expertise in production, finance, marketing etc., with
a dedicated team force.
MPM with 5000 employees has its own township. About 15000 families of the cane
growers who supply sugarcane to the company are directly dependent on this company and
many more depend indirectly The direct and indirect contribution by MPM to the local
economy is about Rs.170 Cr P.A

The Objectives of the Company

1. To manufacture and deal in all kinds of paper products.
2. To manufacture and deal in all kinds of sugar and sugar products including alcohol
and spirit.
3. To cultivate and raise grass, timber, wood eucalyptus, etc.
4. To meet social responsibility.
5. To provide employment opportunities.
6. To meet the national and regional demand of paper and paperboard.
7. Increase sales and profits of the company.
8. Increase market share and reduce cost of production.
9. Reduce the imports of newsprint from the foreign market.
10. To minimize waste
11. Adopt the best practicable technology
12. Better resource management
13. Protect, sustain, and upgrade local environment
VISION:
To be a world-class enterprise offering paper, sugar and allied products and services,
enhancing stake holders value.
MISSION:
 Customer satisfaction.
 Consistent quality
 Competitive price.
To Make MPM As A Self Reliant Company By

• Creating a vibrant work culture.
• Enhancing productivity.
• Offering globally competitive products and services through continuous technology
up gradation and innovation.

• To adopt eco-friendly processes and technologies and up hold corporate social

responsibility
Environmental Policy
 MPM is committed to the society, to continuously improve its environmental
performance by adopting best practicable technologies and processes, which
minimizes its impact on environment.
 MPM is committed to protect, sustain and upgrade the local environment and
health and quality of life of its employees, customers and neighbourers.
2.2 COMPANY'S PHILOSOPHY
MPM’s philosophy on Corporate Governance is to attain highest level of

transparency in all its operations, to deal with integrity and equity with its stakeholders including
shareholders, employees, lenders and the Government, to employ skills that take pride in satisfying
customer needs with superior products and services, to contribute towards higher productivity
through team work and innovation, to consciously work towards conservation of resources and
minimization of wastes of all forms, to achieve customer satisfaction with consistent supply of
quality products at competitive prices.
2.3 GROWTH AND DEVELOPMENT OF THE ORGANISATION

The company was incorporated in the year 1936, and started with a small capacity of
4000 metric tonnes per annum, with a share capital of Rs 25, 00,000, 10% being contributed
by the government of Mysore. The first 4000 tonnes of writing and printing paper produced
under the brand name “BISON” was found to be immediately acceptable.
Now MPM ltd is a 350 crores public sector company. MPM ltd owns Rs 815 crores
worth of land. The company has about 3069 permanent employees on its role. MPM ltd has
four regional offices situated at New Delhi, Calcutta, Chennai, and Mumbai with its
corporate office at Bangalore. It is the first largest single location integrated plant in the
country manufacturing newsprint, cultural verities of paper and sugar. The Mysore Paper
Mills ltd has its own forest land of 30,000 hectares for producing the raw material required.

2.4 Milestones:
Date Particulars
20.05.1936 Incorporated with an initial share capital of Rs.25 lakhs. Obtained license to
produce 4000 Mt. Per annum of Writing and Printing Paper.
01.04.1937 Foundation laid by His Highness Sri KrishnaRaja Wodeyar Bahadur.
1952 Expanded manufacturing capacity to 8000 TPA

13.09.1977 Industrial License was issued for increasing manufacturing for Cultural variety
paper to 37000 TPA and setting up a Newsprint Plant to produce 75000 TPA
Newsprint
1977 The Mysore paper mills ltd has become Govt company when the state
government has increased its share holding in the company to the extent of
56.2%.
11.07.1981 Trial production of Newsprint commenced.
1982 Implementation of Afforestation Project in the Government allocated 75000
acres of Forest area in a phased manner.
1983 2500 TCD sugar project implemented and the MPM ltd become the first largest
single location integrated plant in the country.
11.02.1984 Regular crushing of sugarcane commenced
1995 Expansion of sugar mill 2500 TCD to 5000 TCD
2000 Installed with 90 MT capacities of modern Boilers and 16 MT TG to the Mills
to boost steam generation and increase the self-generation of power. The
Company has ventured to obtain ISO 9001 certificate to boost its image in the
trade of business to meet the global competition.
2004 ISO 14001 certificate (for pollution control)
In 1954, the production was doubled to the capacity of 8000 tonnes per annum by
taking a loan of Rs 50, 00,000 form the IFCI and loan was repaid ahead of schedule.

2.5 FUTURE GROWTH AND PROSPECTUS:

• MPM has got license to produce liquor
• MPM is initiating new product development
• Test marketing of SS Maplitho is in progress.
• MPM is planning to introduce copier grade in the market shortly
2.6 Production
The Company has an installed capacity of 30,000 tonnes per annum for production of
writing & Printing Paper, 75,000 tonnes per annum for production of Newsprint and Sugar
Mill with a capacity for crushing of sugarcane of 2,500 TCD. The water requirements of the
Company are met through adjoining Bhadra River.85% of the power requirements (41 MW
capacity) are met through captive power generation.
MPM is engaged in the manufacture of varieties of Cultural Paper, Standard and Pink
Newsprint and Sugar. MPM is the only company in India to have a sugar factory as an
integrated part of the Paper Mill wherein bagasse bye product of sugar is being used as raw
material for manufacture of WPP.
The average turnover of the Company is about Rs.325 Crs. Per annum of which 65%
is from Newsprint, 20% from Writing & Printing Paper and 15% from Sugar. The market
share of Newsprint is 11%.
Cultural Paper
The cultural variety of paper are classified as fallows
1. Writing paper
2. Printing paper
3. Packaging and wrapping paper
4. Special paper
The above said writing printing and special paper are classified into following varieties.
a. Cream wove : Uses for pose

b. Azure laid : used for ledge paper

c. Color printing : used mainly for printing (pine, green yellow and blue)
d. Unleaded : low quality printing paper.
e. MG ribbed : MG / MF plain used for envelope making
f. MG POSTER : used to print lottery tickets and wedding cards
g. MG postal colors : used for printing cards
h. MG / MF white and colored cover paper : used for book cover
i. Mysore bond
j. Tea label paper
k. Test book printing paper
l. Green tint – for making notebook
Test for Cultural Paper:

The test is conducted according to the Indian Standard Institution’s Specification for
the testing of the paper. The test is conducted inorder to maintain the standard quality of the
paper. The tests are conducted during the working process of production. The test process are
conducted to maintain the following quality,
• Breaking Length
• Brightness
• Brust Factor
• Tear Factor
• Stiffness Factor
• Wax absorption
• Smoothness.

The following table shows the total production and sales of cultural paper from 2000 to 2007.
Year Annual production (MT) Annual sales (MT)

2000 - 01 27265 28059
2001 - 02 29188 26260
2002 - 03 34453 30733
2003 - 04 30165 27874
2004 - 05 26139 27915
2005 - 06 22633 22258
2006- 07 30512 29920
2.7 MARKETING SET UP AND DISTRIBUTION CHANNELS:
The paper is a consumer oriented product and there is keen competition among
various mills. The marketing of paper occupies an important position. Therefore, MPM
Limited has set up a separate division to market its products. Marketing division has its
headquarters at Bangalore and regional sales office at New Delhi, Mumbai, Kolkata and
Chennai and the marketing office at Bhadravathi is the nodal.
The products that are marketed by MPM are :

i) Paper
a) Newsprint-75000 MT per annum
b) Writing & Printing Paper-30000 MT per annum
ii) Sugar-40000 MT per annum
iii) Molasses (by-product)-16000 MT per annum

Some of the following important documents dealt by Marketing Department are as

under :
(a) Pricelist
(b) Order acceptance
(c) Dealer/Customer off take
(d) Invoices
(e) Payment Forwarding Books
(f) Dealership Agreement
(g) Party files
(h) Contract file
(i) Sugar and Molasses Tender files
(j) Miscellaneous
The major function of marketing division are:
1. To ensure that the Machines are provided with sufficient Orders, so that, the capacity
utilisations of the Machines are optimum.
2. Production is not only optimized but also the sales realization is maximized.
3. Feed-back to Production Department regarding customers’ acceptance of the quality
of MPM products.
4. Regular interaction with the dealers/customers to understand their changing needs
5. To price the product taking in to account the competition from domestic and
international suppliers
6. To supply the customers material as per their schedules.
7. Customer Satisfaction-Resolving customer complaints.
8. Timely collection of payments from customers/dealers.
9. Adherence to the stipulations given by government in the sale of controlled
commodity(Sugar)

The Marketing Activities/Procedure
News Print is marketed directly to large RNI registered News paper publishers by
entering in to contract with them. For catering to requirement of small and medium news
paper publishers dealer is appointed. The contract with publishers/dealer generally will be
with an exchange of letters between the mill and the publishers/dealer. The general procedure
followed for appointment of dealer for news print is available with the division. The
marketing practice followed by MPM in line MPM sell through a network of dealers. MPM
sell approximately 50% of their sale of writing and printing paper through the dealer
network (numbering around 80 spread across the country) and the balance directly to
government/institutions .The general guidelines/criteria followed in appointment of a dealer
in writing and printing paper is available with the division. The marketing practice followed
by MPM in line with the trade practice in the paper industry.

MPM'S PAPER DISTRIBUTION CHANNELS
1. MPM Godown Ex-Mills
Main Dealers (All India Basis)
Ultimate Consumers
2. MPM Godown
Main Dealers (MSIL)
Sub Dealers
Ultimate Consumer
3. MPM Godown
Direct consumers (Like Government Establishment, Universities, Schools,

Authorized publishers and banks and institutional customer)

CHAPTER- 3
GENERAL INTRODUCTION
3.1 STATEMENT OF THE PROBLEM:

“A study on Customer Attitude and Satisfaction with respect to Cultural Paper of
Mysore Paper Mills Ltd., Bhadravathi” has been conducted in Bangalore.
In the present market economy, it is very essential to trace customer satisfaction/& attitude
and accordingly the problem taken up in MPM with respect to cultural paper justifies the
research agenda.
3.2 OBJECTIVES OF THE STUDY:

• To know the level of satisfaction of the customers towards the cultural paper of
MPM.
• To know customer expectation with respect to cultural paper of MPM.
• To know different attributes taken into consideration by customer while making a
purchase decision with respect to cultural paper.
• To know the criteria used by customers for selecting the source of purchase/Mill.
• To know the effectiveness of the service and distribution provided by the MPM to its
cultural paper customers.
3.3 SCOPE OF THE STUDY:

The scope of the study of this report is confined only to Bangalore city. This project is
purely done for academic reasons. The time allotted for conducting the study is limited. The
study was conducted to know the competitiveness while marketing cultural paper of MPM.
As the time was limited the persons interviewed were limited to only 30 customers.

3.4 OPERATIONAL DEFINITIONS AND CONCEPTS:
Customer Satisfaction
Customer satisfaction, a business term, is a measure of how products and services

supplied by a company meet or surpass customer expectation. It is seen as a key performance
indicator within business and is part of the four perspectives of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasingly has become a key element of
business strategy.
Customer Satisfaction, by nature, is dependent on an individual’s expectations and

previous experience of service.
Measuring customer satisfaction
Organizations are increasingly interested in retaining existing customers while

targeting non-customers; measuring customer satisfaction provides an indication of how
successful the organization is at providing products and/or services to the marketplace.
Customer satisfaction is an ambiguous and abstract concept and the actual

manifestation of the state of satisfaction will vary from person to person and product/service
to product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization's products.
The usual measures of customer satisfaction involve a survey with a set of statements
using a Likert Technique or scale. The customer is asked to evaluate each statement and in
term of their perception and expectation the of the performance of the organisation being
measured.

ATTITUDES
Consumer researchers asses attitudes by asking questions or making inference from
behavior more over, the illustration suggests that a whole universe of consumer behavior of
purchase recommendation to others, top rankings, believes, evaluations, and intentions are
related to attitudes. What, then, are attitudes? In a consumer behaviors context an attitude is
learned predisposition to behave in a consistently favorable are unfavorable way with respect
to given object. Each part of definition describes an important property of an attitude and its
critical to understanding the role of attitudes in consumer behavior.
OBJECT
The word object in our consumer oriented definition of attitude should be interpreted
broadly to include specific consumption or marketing related concepts, such as product,
product category, brand, service, possessions, product use, causes or issues, people,
advertisement, internet site, price, medium, or retailer.
In conducting attitude research, we tend to be object specific.
ATTITUDES ARE A LEARNED PREDISPOSITION:

There is general agreement that attitudes are learned. This means the attitudes
relevant to purchase behavior are farmed as a result of direct experience with the product,
word of mouth information acquired from others, are exposure to mass media advertising, the
internet, and various forms of direct marketing. It is important to remember that whereas
attitudes may result from behavior, they are not synonymous with behavior. Instead, they
reflect either a favorable or unfavorable evaluation of the attitude object.
Attitudes have consistency:

Attitudes are relatively consistent with the behavior they reflect. However, despite
their consistency, attitudes are not necessarily permanent they do change. It is important to
illustrate what we mean by consistency. Normally, we expect consumer behavior to
correspond with their attitudes.

ATTITUDES OCCUR WITHIN A SITUATION

By situation we mean events or circumstances that, at a particular point in time
influence the relationship between an attitude and behavior. A specific situation can cause
consumers to behave in ways that are seemingly inconsistent with their attitudes.
Marketing Research-
The part of marketing intelligence that involves specific enquires in to problems and
marketing activities to discover new information so as to guide marketing decisions.
Marketing strategy
Successful companies know how to adapt to a continuously changing marketplace.
They practice the art of market-oriented strategic planning, the managerial process of
developing and maintaining a viable fit between the organization’s objectives, skills, and
resources and its changing market opportunities.
The aim of strategic planning is to shape the company’s businesses, products,
services, and messages so that they achieve targeted profits and growth.
3.5 METHODOLOGY: Research Design
Source of data / data collection-

This project report has been prepared by utilizing both types of data, that is primary
data and secondary data. For the purpose of collecting primary data personal interview with
open and close ended questionnaire was used.
The questionnaire was formulated under the guidance of Mr. Vasanth Vete. Manager
[marketing] MPM Bhadravathi and T.M. Prasanna Kumar. Faculty member, department of
management studies JNN College of Engineering, Shimoga. Data has been gathered from 30
cultural paper consumers.

Secondary data has been gathered from many published sources such as news papers,
Magazines, company reports, standard text books and information from website has been
acquired where ever necessary.
Sampling plan-
The sampling method adopted for research was convenience sampling.
Sample selection- The survey was conducted in Bangalore market because majority of the
customers of MPM are located in Bangalore, and the sample was selected on the basis of
information provided by Mr. Ravi Shankar Manager (Marketing) MPM, Bangalore. The
target customers of the study consist of the regular and irregular dealers/ customers who
purchase the product directly or indirectly from the company.
Analysis of data:
Data collected was analyzed using simple statistical methods and the same
represented using graphs / tables. Then based on findings few suggestion has been put forth.
3.6 LIMITATIONS OF THE STUDY:
1] The executives of MPM inspite of their own busy business schedules responded and
helped fully . But due to restricted time period 100% complete and detailed
knowledge could not be acquired.
2] As the customers are scattered all over India, a primary first hand information from
all customers cannot be obtained.
3] Some of the respondents were uneducated, so there was some difficulty in making
them to fill the questionnaire.
4] The survey was limited to Bangalore city only.

5] Even though MPM has wide range of products, the present study is confined to
marketing of cultural paper only.
6] Despite of all these limitations, efforts have been put forth for making the survey
report as realistic as possible with the resource available. Therefore I hope that the
conclusions are realistic and correct.

CHAPTER – 4
ANALYSIS & INTERPRETATION
4.1 Duration as Customers of MPM.

Table: 1
Percentage of
Sl. No Particulars No. of respondents respondents
1 Less than 5 Years 6 20%
2 5-10 Years 10 33%
3 10-20 Years 8 27%
4 20 Years and above 6 20%
Total 30 100%
Source: Primary data.
Analysis:
From the above table it is observed that among 30 respondents 27% of the
respondents are the customer of MPM from 10-20 years and 33% of them are being the
customer from 5-10 years and 20% are the customers from less than 5 years and above
20years each.

Graph -1
Duration as Customers of MPM.
Source: Table No.1

4.2 Frequency of purchase with respect to different types of cultural paper

Table -2
Type Frequency of purchase
Per week Per month Per 6 month 6 months & above
Cream wove 1 20 6 0
( 3.33%) (66%) (20%)
Azurlaid 1 15 11 2
(3.33%) (50%) (36.66%) (6.60%)
Colour printing 1 3 9 1
(3.33%) (10%) (30%) (3.33%)
Kraft paper 0 3 3 1
(10%) (10%) (3.33%)
Cover paper 0 5 14 2
(16.66%) (46.66%) (6.66%)
Source: Primary data
Analysis:
66% of the respondent says that they are purchasing Cream wove paper per month.
50% of the respondent says that they are purchasing Azurlaid paper per month.
30% of the respondent are purchasing Colour printing paper per 6 months.
10% of the respondent are purchasing Kraft paper per month and equal % are purchasing per
6 month.
46.66% of the respondent are purchasing Cover paper per 6 month.

Graph -2
Frequency of purchase with respect to different types of cultural paper

Source: Table No.2
4.3 Rating of MPM in Comparison with other suppliers by respondents.

Table: 3
Sl. No. Particulars No. of Respondents Percentage of

Respondents
a Superior 14 46%
b Competitive 10 33%
c Inferior 6 21%
Total 30 100%
Analysis:
From the above table we can observe that among 30 respondents 46% of respondents
rate mpm as superior and 33% of respondents rate mpm as competitive and 21% of
respondent rate mpm as inferior.

Graph -3
MPM in Comparison with other suppliers by respondents.

Source: Table No-3

4.4 Respondents’ preferred supplier other than MPM :

Table: 4

Respondents
a APPM 9 40%
b TNPL 8 26.6%
c West Coast 6 20%
d NEPA 2 6.6%
e JK 3 10%
f SeshaShayee 2 6.6%
Analysis:
From the above table we can see that out of 30 respondents, 40% prefer APPM and
26.6% prefer TNPL Paper Mill. They are followed by West Coast, JK Paper Mill, NEEPA
and SeshaShayee in terms of preference.

Graph -4
Respondents’ preferred supplier other than MPM :
Source: Table No.4

4.5 Respondents Criteria for selection of product purchase.

Table: 5
Rank I II III IV Total
Criteria
Quality 13 11 5 1 30
(43.33%) (36.66%) (16.66%) (3.33%)
Price 13 11 3 3 30
(43.33%) (36.66%) (10%) (10%)
Service 1 4 8 17 30
(3.33%) (13.33%) (26.66%) (56.66%)
Credit 3 4 14 9 30
(10%) (13.33%) (46.66%) (30%)
Availability 2 2 7 19 30
(6.66%) (6.66%) (23.33%) (63.33%)
Demand 2 5 14 9 30
(6.66%) (16.66%) (46.66%) (30%)
Analysis:
With respect to quality and price most of the respondents have ranked 1 which
indicates that they are the most important criteria which the customers consider before
making purchase. Similarly. with respect to service most of the respondents have ranked IV ,
credit - III, Availability - IV, and demand - III.
4.6 Respondents opinion about the quality of MPM Product.

Table: 6
Percentage of
Sl. No. Particulars No. of Respondents Respondents
1 Highly Satisfied 3 10%
2 Satisfied 16 53%
3 Average 9 30%
4 Not satisfied 2 7%
Total 30 100%
Analysis:
From the above table it can observed that among 30 respondents 53% of the respondents
are satisfied with the quality of the product of MPM, 10% of them are highly satisfied, 30%
of them say quality is average and 7% are not satisfied with the quality of MPM Product.

Graph -6
Source: Table No.6

4.7 Respondents opinion with respect to price and service of M.P.M products.
Table: 7
Particulars Highly satisfied Satisfied Average Not satisfied
Price 16 11 3 0
(53.33%) (36.66%) (10%)
Service 05 16 09 0
(16.66%) (53.33%) (30%)
Analysis:
 53.33% of the respondents say that they are highly satisfied with the price of the
products offered by MPM.
 53.33% of the respondents are satisfied with service of MPM

Respondents opinion with respect to price and service of M.P.M products
Graph-7
Source: Table No.7

4.8 Respondents opinion about supply of products in time by MPM

Table: 8
Percentage of
Sl. No. Particulars No. of Respondents Respondents
1 All the time 10 33%
2 Most of the time 15 50%
3 Few times 5 17%
4 Never 0 0%
Total 30 100%
Analysis:
From the above table it can be observed that among 30 respondents, 33% of the
respondents are getting M.P.M Products in time always , 50% of them are getting most of the
time, and remaining 17% only few times. There is no negative response from the
respondents about the supply of M.P.M Products in time.

Graph-8
Supply of products in time by MPM
Source: Table No 8

4.9 Respondents satisfaction with respect to Sales Discount offered by MPM.

Table: 9
Sl. No. Satisfaction No. of Respondents Percentage of

Respondents
1 Yes 28 93%
2 No 2 7%
Total 30 100%
Analysis:
From the above table it is observed that 93% respondents are satisfied with the Sales
Discount offered by the company and 7% are not satisfied.

Graph-9
Satisfaction with respect to Sales Discount
Source: Table No.9

4.10 Respondents opinion about Credit Facility provided by the company.

Table: 10

Respondents
1 Highly Satisfied 3 10%
2 Satisfied 15 50%
3 Average 10 33%
4 Not satisfied 2 7%
Total 30 100%
Analysis:
From the above table we can see that there are 10% of respondents who are highly
satisfied with the Credit facility provided by the company, 50% of the respondents are
satisfied and 33% said credit facilities offered is average and 9% are not satisfied.

Graph-10
Opinion about Credit Facility
Source: Table No.1

4.11 Respondents opinion about the companies’ response to their complaints.

Table: 11

Respondents
1 Immediate 7 23%
2 Reasonable time 15 50%
3 Delay 8 27%
Total 30 100%
Analysis:
From the above table we can observe that among 30 respondents 23% responded for
immediate handling of complaints and 50% of them responded for reasonable time and the
remaining 8% responded for delay.

Graph-11
Opinion about response to complaint
Source: Table No.11

CHAPTER- 5
SUMMARY OF THE FINDINGS
Place : Bangalore.
Survey Size : 30 Respondents
Time frame : 6 Weeks
The summary is purely based on analysis and interpretation of primary data in the
present study primary data plays a vital role.
As our survey is limited in Bangalore city only. This study gives a bird’s eye view
about their opinions of MPM cultural paper.
• We can understand that MPM is having more customers (33%) who are dealing from
long time (5-10 years). Therefore, it is clearly showing that MPM is maintaining good
relationship with their customers.
• It is evident that each variety of cultural paper is being procured at different
frequency and comparatively Cream Wove and Azurlid papers have more demand in
the current market.
• We can observe that, about 46% of respondents rate mpm as superior and 33% of
respondents rate mpm as competitive and 21% of respondent rate mpm as inferior.
• We can observe that, about 40% prefer APPM and 26.6% prefer TNPL Paper Mill.
• With respect to quality and price most of the respondents have ranked 1 which
indicates that they are the most important criteria which the customers consider
before making purchase.
• We can observed that, about 53% of the respondents are satisfied with the quality of
the product of MPM.
• We can observed that, about 53.33% of the respondents say that they are highly
satisfied with the price of the products and services offered by MPM.

• We can be observed that, about 33% of the respondents are getting M.P.M Products
in time always , 50% of them are getting most of the time, and remaining 17% only
few times. There is no negative response from the respondents about the supply of
M.P.M Products in time.
• We observed that about 93% respondents are satisfied with the Sales Discount offered
by the company and only 7% are not satisfied.
• We observed that, about 10% of respondents who are highly satisfied with the Credit
facility provided by the company, 50% of the respondents are satisfied, 33% said
credit facilities offered is average and 9% are not satisfied.
• We can observe that, about 23% responded for immediate handling of complaints and
50% of them responded for reasonable time and the remaining 8% responded for
delay.

SUGGESTION
• The company has to give importance to manufacture different variety of products and
improve its quality.
• The company has to give importance to know the products dealing by its competitive
company’s and the quality, and should try to compete with that company.
• The company has to give more important to pricing and quality factors by comparing to
its competitors while marketing the product. To capture more market share the company
should think over the improvement in quality of cultural paper and at the same time
should think over the issue of reducing the price.
To improve the quality, MPM should update its technology & improve the quality of raw
material consumed .
• The company should works towards reducing the cost of production to provide
competitive price in the market.
• The company has to work to increase its discount level from 3% to 3.5% - 5% for the
bulk purchasers to highly satisfy them.
• The company should provide sufficient credit period from 15-20 days to 20-25 days to its
customers to highly satisfy them.
• The company has to improve it’s after sales service and should respond immediately for
the complaints of its customers.

CONCLUSION
This study is undertaken to find out the satisfaction level of the customers of Mysore
Paper Mills. This study helped to understand the customer’s requirement and their
expectation from cultural paper of MPM.
This study revealed that quality and price are the major attributes, which the
customers takes into account while making the purchase decision. Customers of MPM are
highly satisfied with the availability of the MPM product but it has to still improve its quality
of paper and offer the product `at competitive price in the market.
MPM is operating with its existing technology, which requires modernization; hence the
company should modernize it’s plant and adopt new technologies to produce special type of
products to compete in the present scenario.

EXECUTIVE SUMMARY
As a part of my curriculum a project work entitled “A study on Customer Attitude

and Satisfaction with respect to Cultural Paper of Mysore Paper Mills Ltd., Bhadravathi”
was undertaken after 3rd semester. This study throws some light on Paper Industry, Profile of
Mysore Paper Mills Ltd., along with the problem taken for study .
In this study the required information was collected in two ways:

1. Personal Interview through questionnaire
2. Website, magazine, marketing books, newspapers and company report etc.
Primary data was collected using a questionnaire. The survey was conducted in
Bangalore market and the sample was selected on the basis of information provided by the
Marketing Manager of MPM. The target customers of the study consisted of main dealers
and their sub-dealers in Bangalore. Based on the study, certain inferences have been drawn
and a few suggestions have been made for improvement of Mysore Paper Mills Ltd.
This study revealed some useful insights related to Cultural Paper quality, variety,
price and service offered by the MPM . And it also revealed problems faced by the Cultural
paper industry in the open market economy with special reference to MPM Cultural Paper
segment.
To sum-up, this study is expected to help the MPM Ltd. in terms of improving or
retaining its market share.

BIBLIOGRAPHY
1. MARKETING MANAGEMENT by Philip Kotler
2. MPM records and annual reports
3. News papers and Magazines
4. Encyclopedia
5. www.mpm.co.in

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Mysore Paper Mills Limited, Bhadravathi

1.1 Historical Background of the Paper Industry:

1.2 INDUSTRY STRUCTURE

Department Of Management Studies, JNNCE, Shivamogga 1

1.3 CONSTRAINTS FOR PAPER INDUSTRY

3. Low economy of scale.

4. Steadily increasing state administered cost and infrastructure cost.

Department Of Management Studies, JNNCE, Shivamogga 2

1.4 GROWTH AND DEVELOPMENTS

3. More usage of non-wood resources and waste paper by establishment of De-inking

Department Of Management Studies, JNNCE, Shivamogga 3

8. Availing Carbon Credit by Afforestation and clean development mechanism

1.5 LEADING PLAYERS IN PAPER INDUSTRY:

Company Name Capacity in Million TPA

Table Showing leading players in paper industry (source: magazine of MPM)

1.6 FUTURE PROSPECTS OF PAPER INDUSTRY:

Department Of Management Studies, JNNCE, Shivamogga 4

Department Of Management Studies, JNNCE, Shivamogga 5

2.1. ORIGIN OF MYSORE PAPER MILLS LTD

The Mysore Paper Mills Limited, (MPM) founded by Sri.Krishnaraja Wodeyar

While Government of Karnataka holds 65% of the shareholding of the Company,

The Chairman & Managing Director of the Company is assisted by a team of

Department Of Management Studies, JNNCE, Shivamogga 6

The Objectives of the Company

To Make MPM As A Self Reliant Company By

Department Of Management Studies, JNNCE, Shivamogga 7

• To adopt eco-friendly processes and technologies and up hold corporate social

2.2 COMPANY'S PHILOSOPHY

MPM’s philosophy on Corporate Governance is to attain highest level of

2.3 GROWTH AND DEVELOPMENT OF THE ORGANISATION

Department Of Management Studies, JNNCE, Shivamogga 8

1952 Expanded manufacturing capacity to 8000 TPA

Department Of Management Studies, JNNCE, Shivamogga 9

2.5 FUTURE GROWTH AND PROSPECTUS:

Department Of Management Studies, JNNCE, Shivamogga 10

b. Azure laid : used for ledge paper

Test for Cultural Paper:

Department Of Management Studies, JNNCE, Shivamogga 11

Year Annual production (MT) Annual sales (MT)

2.7 MARKETING SET UP AND DISTRIBUTION CHANNELS:

The products that are marketed by MPM are :

Department Of Management Studies, JNNCE, Shivamogga 12

Some of the following important documents dealt by Marketing Department are as

The major function of marketing division are:

Department Of Management Studies, JNNCE, Shivamogga 13

The Marketing Activities/Procedure

Department Of Management Studies, JNNCE, Shivamogga 14

MPM'S PAPER DISTRIBUTION CHANNELS

1. MPM Godown Ex-Mills

Main Dealers (All India Basis)

Main Dealers (MSIL)

Direct consumers (Like Government Establishment, Universities, Schools,

Department Of Management Studies, JNNCE, Shivamogga 15

3.1 STATEMENT OF THE PROBLEM:

3.2 OBJECTIVES OF THE STUDY:

3.3 SCOPE OF THE STUDY:

Department Of Management Studies, JNNCE, Shivamogga 16

3.4 OPERATIONAL DEFINITIONS AND CONCEPTS:

Customer satisfaction, a business term, is a measure of how products and services

In a competitive marketplace where businesses compete for customers, customer

Customer Satisfaction, by nature, is dependent on an individual’s expectations and

Measuring customer satisfaction

Organizations are increasingly interested in retaining existing customers while