The gamble that paid off well

In 1981, there were few units producing printing and writing paper (PWP) using bagasse as the primary raw material. Further, the technology for production of newsprint from bagasse pulp was unknown and the attempts made elsewhere was not successful on a commercial scale.

In the fifties, commercial bagasse-based newsprint plants were set up in Cuba and Louisina, US. They suffered from high operating costs. Quality was also an issue there. Even in late seventies, the two mills established in Peru and Mexico, based on the process developed by a Mexican Dr Cual, soon became unviable due to technical reasons.

Against this bleak scenario, the TNPL project was conceived to meet the twin objectives of conserving the fast-depleting forest resources and to reduce dependence on imported newsprint. Promoted by the Tamil Nadu government, the project received the support of the World Bank and other domestic financial institutions in view of its importance to the country and other sugar producing countries.

TNPL commenced operations with a capacity to roll out 50,000 tpa of newsprint and 40,000 tpa of PWP. The company entered into unique bagasse-steam exchange contracts with various sugar mills in Tamil Nadu. TNPL, in exchange for bagasse, would meet the cost of boilers and coal at those sugar mills.

Initially, TNPL incurred losses due to unremunerative newsprint prices. With financial assistance from institutions, the company came out of the woods. Since then, the company never looked back. The doubling of its capacity at an outlay of Rs 583 crore in 1995, reducing its capital, becoming the first paper mill to roll out pink newsprint in India, is all history now.

Mastering the technology, TNPL is now assisting others in the world in setting up similar paper mills. The company assisted Quena Newsprint, Egypt, to set up 1.2 lakh tpa plant there.