Andhra Paper Ltd Management Discussions.

Forward looking statements

In this Annual Report, we have disclosed forward looking information to enable investors to comprehend our prospects and take informed investment decisions. This report and other statements - written and oral - that we periodically make, contain forward looking statements that set out anticipated results based on the managements plans and assumptions. We have tried wherever possible to identify such statements by using words such as ‘anticipate, ‘estimate, ‘expects, ‘projects, ‘intends, ‘plans, ‘believes, and words of similar substance in connection with any discussion of future performance.

We cannot guarantee that these forward looking statements will be realized, although we believe we have been prudent in assumptions. The achievement of results is subject to risks, uncertainties and even inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated or projected. Readers should bear this in mind.

We undertake no obligation to publicly update any forward looking statements, whether as a result of new information, future events or otherwise.

OPERATING ENVIRONMENT

Indian Economy, Global Paper Industry & Indian Paper Industry

Indian Economy

Indian economy grew at 6.8 per cent in 2018-19. This is the lowest growth outturn in five years. The slowdown over the past year has been driven by steadily cooling activity in the manufacturing sector and, to a lesser extent, agriculture. Weaker momentum has been mainly domestically driven. While lead indicators suggests that the growth will remain subdued in the near term, monetary and regulatory easing from the RBI, along with a recovery in portfolio inflows, should support a recovery in credit to the private sector and reverse the drag from the negative credit impulse. The demand drivers for paper comes from a combination of factors, mostly GDP driven, such as emerging middle class (increased spending on books, magazines and commercial papers), access to education, digital drive (Broadband and smartphones penetration) leading to higher use of computers and printers and online shopping (e-commerce).

Global Paper Industry

Globally over 400 million MTs of paper and paper products are consumed. The worlds three largest paper producing countries are China, the United States, and Japan (these three countries account for approximately half of the worlds total paper production), while India accounts for a small but growing share of the global market. The global paper and pulp industry has contracted slightly over the past five years, primarily due to disrupting technology, and shift in customer demand. However, the decline in growth in developed markets are expected to be offset by the demand growth in India, Middle East, Africa and Asia.

Indian Paper Industry

The domestic demand of paper and packing is ~14 million MTs, which accounts for ~4% of the worlds consumption. The paper industry is classified into four segments viz., Packaging, Paper and Boards, Printing and Writing, News print and speciality papers. The Printing and Writing segment is ~4.5 metric tonnes (30% of industry size) and is growing at a healthy rate of ~4%. The Indian paper industry is highly fragmented with ~750 paper mills, of which top 10 producers account for 48% of capacity.

Outlook

The Indian economy is growing at a faster rate than other economies and GDP growth in India, in long term, is expected to exceed other Asian and Western European economies. The per capita consumption of paper in India is ~10 Kg as against a global average of ~56 kg. The emerging middle class will also drive paper consumption as the middle class spending increases. Books and magazines will become more accessible to people; increase in retail activity will further stimulate advertising.

The demand for paper is largely driven by:

Education: Efforts to improve the primary and higher education is driving the students enrolment and continuance of education.

Offices: Printing paper usage for legal and formal documents, sticky work habits favouring paper.

E-commerce: Internet penetration is creating new business models and demand for industrial packaging, consumer packaging and printing & writing paper.

Economic activity: The increase in economic activity is expected to open up more avenues (Manufacturing sector, Office space) for paper demand.

Demographics and economy: Increased literacy rate, telecom penetration and emerging middle class increased spending on books, magazines, online shopping, fast food consumption, pro- environment choices (plastic ban)

Consumerism: Higher disposable income coupled with urbanisation is expected to drive new and different consumer behaviours and drive demand for paper products.

As per the industry estimates, Printing and Writing segment demand is expected to grow at a CAGR of ~4% and packaging at a CAGR of 5-6%.

As the Indian economy further develops, end-uses are foreseen to move towards the structures of Europe and North America. The paper consumption habits are gradually expected to change in India in the longer term, with gradually strengthening impact of substitution levers, and digitalization being the main countertrend softening the demand growth.

Major Industry Challenges

Access to quality and cost competitive raw material

India is a wood-fibre deficient country as the Government of India does not permit industrial plantations in the country.

Inadequate raw material availability domestically is a major constraint for the paper industry. Additionally, the recovery rate of wastepaper in India is quite low (~30%) due to lack of an effective collection mechanism. With issues like availability of quality raw material at competitive prices, many players depend on the imports of pulp, wastepaper and even pulpwood to meet their raw material needs and often have to pay premium for availing them thereby impacting profitability and capacity addition. IP APPM has implemented a farm-forestry strategy that collaborates with private nurseries and research organisations, develops free saplings in partnership with farmers to sustain 100% consistent supply of Companys fiber needs with a long term vision to bring down haulage radius from present up to 300 Km to within 150 km from mills in the state of Andhra Pradesh. Our Farm forestry program has led to the plantation of 2.5 million high yielding Casuarina clones, along with 32 million Casuarina seedlings within 150 km radius of the mill. This covered 3,834 hectares of plantation and generated 1.92 million man-days of employment for farmers. The Companys strategy to reduce distance of fiber procurement area has helped in stabilizing the price of virgin fiber during 2018-19.

Imports of paper and paperboard

Imports of paper and paperboard from ASEAN countries (Import duty at 0%) pose a challenge to India paper industry. The Indian government implemented an anti-dumping duty on uncoated freesheet copy paper to prevent dumping of low priced imports to the Indian market. The anti-dumping duty has helped to ensure a competitive price for copy paper imports thus normalizing the supply demand balance. The action by the government and diversion of surplus capacity (ASEAN paper manufacturers) to meet Chinese demand led to moderation of imports into India for the financial year 2018-19.

ABOUT IP APPM

About IP APPM, Strategy, competitive strengths, products and manufacturing. International Paper APPM Limited (formerly known as The Andhra Pradesh Paper Mills Limited) is one of the largest integrated paper and pulp manufacturers in India. The Andhra Pradesh Paper Mills Limited was established in the year 1964. In 2011, the Andhra Pradesh Paper Mills Limited was acquired by International Paper (IP), a USD 23 billion American packaging, pulp and paper company founded in 1898. In the first significant domestic acquisition by a foreign paper company, IP bought 75% stake in the Company. IP, headquartered in Memphis, Tennessee, USA is the largest packaging, pulp and paper company in the world, with approximately 53,000 employees operating in 24 countries. In December 2013, the Company was renamed as International Paper APPM Limited. The name change was intended to recognize the parentage of International Paper, while maintaining the link to the history and positioning of the Andhra Paper brand. On May 29, 2019, the promoters of the Company namely International Paper Investments (Luxembourg) S.A.R.L and IP International Holdings Inc. holding 2,18,56,033 equity shares of Rs. 10 each and 79,71,496 equity shares of Rs. 10 each respectively, comprising 75% of the issued and paid up capital of the Company on a fully diluted basis, have executed a Share Purchase Agreement ("SPA") with West Coast Paper Mills Limited (Purchaser) to sell such number of equity shares of the Company aggregating to a minimum of 51% and up to a maximum of 60% of the issued and paid up capital of the Company as per the terms and conditions stated in the SPA. The aforesaid transaction is subject to receipt of requisite regulatory approval(s), as applicable.

IP APPM is focused on serving customers with high quality printing and writing papers. IP APPM is also focused on people safety, efficiency enhancements and social and community programs backed up with its own pioneering work in raw material generation through social farm forestry. Across the Company, there is a strong strategic focus to drive future growth through building on the organization strengths to produce the highest in quality, ramping up of volumes and be a cost effective producer of paper.

The Company has always been conscious of its corporate responsibilities and follows a strict environmental policy. Investments continue to be made in achieving benchmarks to remain ahead of compliance standards. Such efforts have helped protect and regenerate the natural resources, conserve energy and water, improve productivity and set a good environmental track record at the mills.

Products

The Company produces writing, printing and cut-size papers for foreign and domestic markets and offers a wide range of high quality specialty grade products for a diverse range of applications. These products are designed to provide outstanding performance, functional excellence and exceptional finish quality.

The well-known cut-size papers of the Company offer a wide range of office documentation and multipurpose papers, from economy to premium grades, ideal for both home and commercial use. The papers are available in best-in-class brightness and produced with elemental chlorine free (ECF) pulp technology. The range is perfect for high volume photocopying and high-quality color printing needs and engineered to run flawlessly on all types of photocopiers, laserjet and inkjet printers, fax machines and multi-functional devices.

Manufacturing

Our Rajahmundry Mill is an integrated wood based paper mill with a rated capacity to produce 177,000 MT of finished paper and 191,000 MT of bleached pulp annually. The unit manufactures uncoated writing and printing paper - mainly cut-sizes, industrial grade papers and posters using Casuarina, Eucalyptus and Subabul as main sources of pulp wood. Our Kadiyam Mill has a rated capacity to produce 71,000 MT per annum of finished paper such as cream wove, azurelaid, colored cut-sizes and industrial grade papers using recycled fiber and purchased pulp as base raw materials.

The Company holds ISO 14001, ISO 9001 and OHSAS 18001 certifications as well as the Forest Stewardship Council (FSC) Chain Of Custody (COC) certification. The company has embarked on a journey to upgrade from OHSAS 18001 system to ISO 45001, for which certification process is underway.

The paper industry is capital intensive with a large gestation period. Payback is partly earned through better product characteristics and value realization and partly by improving productivity. In its endeavor to match global standards, IP APPM has invested in environment friendly technologies that facilitate increasing the overall quality of products and demonstrating productivity gains. In addition, IP APPM has invested in technology to reduce water consumption, energy consumption and control air emissions.

All the investments are directed to improve the systems and processes to ensure consistent pulp quality with high strength properties, low consumption of utilities and chemicals and offer economies of scale. The Company has improved the economics of production in the mill and exceeded current environmental norms applicable in the country.

REVIEW OF OPERATIONS

The Companys operations strategies are aimed at enhancing the overall performance. During the year the Company further scaled up its customer support processes and systems to add excellence in delivery. This helped serve the customer better, improve customer satisfaction and retain and attract more customers. During the year, the company recorded the highest ever sales volume which grew by 3.4% to 238,729 MT, as compared to 230,894 MT in 2017-18. Of the revenues, 16% were from exports (previous year 19%) with domestic sales accounting for the balance 84%.

IP APPM also recorded highest ever production of 238,724 MT of paper in the year ended March 2019 as against 228,900 MT in 2017-18. Capacity utilization remained above 99 % during the year.

We started our Manufacturing Excellence (ME) initiatives in the year 2013. Our continued and consistent efforts in implementing and executing the programme helped in improving pulp productivity and overall paper machine efficiency (OME). The Company also made significant gains in fiber, energy and chemical costs. As in the earlier years, deliberate and continuous efforts were made to become a low cost producer, raising the operating efficiencies and optimizing material consumption. Overall, the Manufacturing Excellence initiatives helped improve the mill reliability, increase the productivity, reduce the overall cost and improve profitability. While focussing on improving the reliability, our initiatives in production planning and scheduling helped secure continuous runs and lower down time. This helped improving our On – Time – In – Full (OTIF) performance above 92% and delight our customers.

FINANCIAL PERFORMANCE

In FY19, the Company recorded highest ever revenue and profits. Revenue from operations improved by 12% while EBITDA registered an increase of 71%. These results were driven by higher sales volume, higher selling prices, record production levels, improved efficiency and lower manufacturing cost. Profit after tax improved by 140% supported by 67% lower finance cost.

The Company generated 37% higher cash from operations at Rs. 294 crore in the year under review as compared to Rs. 215 crore in 2017-18. The company is debt free and ended the year with cash surplus of Rs. 86 crores. The surplus cash is invested in fixed deposits and inter corporate deposits. The net profit for the year was Rs. 200 crore as compared to Rs. 83 crore reported in the previous year.

Financial Ratios

S.No Ratio March 31, 2019 March 31, 2018
1 Debtors Turnover Ratio in days (Net sales/Average Receivables) 20.00 19.00
2 Inventory Turnover Ratio in days (Sales/Inventory) 9.00 8.00
3 Interest Coverage Ratio (EBIT/Interest Expenses) 40.61 5.99
4 Current Ratio (Current asset/Current Liabilities) 1.52 0.80
5 Debt Equity Ratio (Debt /Equity) 0.02 0.37
6 Operating Profit Margin % (Operating profit/Sales) 22.41 11.92
7 Net Profit Margin % (PAT/ Sales) 14.02 6.49
8 Return on Net Worth % (Net Earnings/Networth) 26.19 14.73

The Company has maintained a healthy capital structure as is evident from its debt to equity ratio. Improved business, optimisation of operating costs and lower finance costs resulted in improved net margins and consequently improved return on net worth.

Internal Financial Controls

The management of IP APPM is responsible for establishing and maintaining adequate internal controls over financial reporting. Internal controls over financial reporting is the process designed by, or under the supervision of, our Chairman & Managing Director and Chief Financial Officer, and effected by our Board of Directors, Audit Committee, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes. All internal control systems have inherent limitations, including the possibility of circumvention and overriding of controls, and therefore can provide only reasonable assurance of achieving the designed control objectives. The Companys internal control system is supported by written policies and procedures, contains self-monitoring mechanisms, and is audited by Independent Auditors.

Appropriate actions are taken by management to correct deficiencies as they are identified. The Company has a process in place to continuously monitor the processes and identify gaps, if any, and implement new and/or improved controls wherever the effect of such gaps would have a material effect on the Companys operations. The Company performed an evaluation and made an assessment of the adequacy and effectiveness of the Companys internal financial controls as at March 31, 2019. Based on this assessment, the management believes that, as of March 31, 2019, the Companys internal controls over financial reporting was effective and our Statutory Auditors have expressed an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting in page no. 53 of this annual report. The internal control environment includes an enterprise-wide attitude of integrity and control consciousness that establishes a positive ‘tone at the top. This is exemplified by our ethics program that includes long-standing principles and policies on ethical business conduct that require employees to maintain the highest ethical and legal standards in the conduct of International Paper business, which have been distributed to all employees; a toll-free telephone helpline whereby any employee may anonymously report suspected violations of law or companys policy; and an office of ethics and business practice.

The internal control system further includes careful selection and training of supervisory and management personnel, appropriate delegation of authority and division of responsibility, dissemination of accounting and business policies throughout the company, and an extensive program of internal audits with management follow-up.

The Board of Directors, assisted by the Audit Committee, monitors the integrity of the Companys financial statements and financial reporting procedures, the performance of the Companys internal audit function and independent auditors, and other matters set forth in Audit Committee charter. The Committee, which consists of independent directors, meets regularly with representatives of management, and with the independent auditors and the Internal Auditor, with and without management representatives in attendance, to review their activities.

The Committee has reviewed and discussed the financial statements for the year ended March 31, 2019, including critical accounting policies and significant management judgments, with management and the independent auditors.

INFORMATION TECHNOLOGY (IT)

The Company continued its focus on enabling business processes and systems through strategic adoption of IT. These covered all the operating areas including manufacturing, sales and marketing, human resources and forestry. Select staff were trained on new data analytics and data automation tools to enhance productivity, reduce manual work and increase accuracy. The focus areas include Finance, Sales, Marketing, Forestry and Manufacturing. New process automation in our Farm forestry operation has enhanced our capability to track saplings from production to delivery. Further process automation within our environmental management operation has reduced manual work and improved our data management and our ability to ensure that we operate in compliance to the Regulations. We have provided new analysis and report tools for our commercial team to better understand key market and customer trends, thus leading to better decisions. The Company is also focusing on innovation within IT to further reduce the costs and introduce new tools.

OUR PEOPLE

We strongly believe people are the foundation of our Company, so investing to develop capabilities is important to achieve our goals. The IP Leadership Model of 3 Cs – Character, Capability and Catalyst – have become a natural part of our leadership language and are well integrated into our people development tools and systems. We have robust talent management processes that include individual performance & development plans, organization assessments and succession planning for leadership positions. We use a balance of approaches to develop our teams including engagement plans, training & skill development, career planning and health & wellness programs to build a strong organization and strong individuals. With safety as a top priority, we make extensive investments in training and skill development to raise awareness of risks and certify knowledge for procedures and conditions.

Our Manufacturing Excellence (ME) program trains and certifies expertise in techniques using 6-sigma, Lean, RCFA and process improvement. We have ~94 certified green and black belts who take on improvement projects to make our operations better, while another ~50 trained yellow belts inculcate lean culture into everyday practices. To encourage health and well-being of our workforce, we provided free annual health check-up facility for all employees during the year. Leveraging IPs Global Leadership Institutes resources and training methodology, we provided leadership and management development trainings during the year. This included behavioural programs aimed at skill enhancement, and leadership programs specifically designed for front-line leaders, so they learn how to engage and lead our employees to perform to their fullest potential. We invited our top 70 leaders to an annual leadership conference to challenge their thinking, broaden their knowledge on key industry and technology updates and seek alignment on our goals and expectations. We utilize International Papers global training platform to develop leaders with their international colleagues across various disciplines including strategy, commercial excellence and best practice sharing. We advocate diversity and inclusion including diversity of experience, background, gender and race. People with diversity of background and experience bring new ideas, challenge the old norms and better prepare us to compete and serve our diverse customers and markets.

IP APPM has ~1,900 employees and ~3,200 contract workers.

IP APPM OUTLOOK

IP APPM has created a platform for sustainable growth while working with the core priorities. Despite the competitive challenges in the external environment, the team at IP APPM is committed to making sure that the present momentum is maintained in the future as well.

In order to create a vibrant organization that works for sustainable growth, considerable up-gradation has been done to the systems and processes to enhance safety, productivity, performance and accountability; significant investment has been made in people development, operational excellence, customer contact and sustainable solutions; increased employee engagement; considerable work done to become a low cost producer; improved manufacturing reliability levels; and overall created a winning organization. All of these are being put together to make IP APPM an increasingly better and a more competitive Company.

Our Companys priority is to delight our customers with high quality products and best in-industry service. To do this, we will ensure the highest standards of people, safety, ethics, talent development, sustainability of forests, increased volume and revenue, higher productivity, become cost competitive and enhance profitability.

RISK & RISK MITIGATION

Risks and uncertainties are an inherent part of every business, and yet it is important to identify the risks and take proactive steps to mitigate and minimize them. IP APPM identifies and evaluates risks as early as possible and limits business losses by taking suitable measures. The Company aims to avoid risks that pose a threat to its sustainable growth.

IP APPM understands that risks can negatively impact fruition of both short-term operational and long-term strategic goals. Risk management is a part of the Companys business planning and controlling process.

The Company operates a framework created in line with its parent organization, customizing to fit into the local requirement, through which financial risks have been identified based on their severity. These risks are identified on a continuous basis through business process studies, internal audits, financials reviews etc. IP APPM understands certain inherent financial risks which are imperative due to the environment in which it operates.

Depending on the dynamics and severity, risks are documented and prioritized for assessment of their impact. Various financial risks such as credit risks, treasury risks, finance transactional risks, reporting risks are measured vis--vis regulatory risks. Compliance risks are embedded into IP APPMs overall enterprise risk framework depending on their severity and are reviewed for their impact on the business objectives of the Company.

IP APPM proactively manages finance risks to maintain prudent operations. These risks are classified as short to medium to long depending upon their impact and remedial options. They are reported and reviewed at appropriate managerial level. Depending upon severity of such risks, they are further reported to the Audit Committee and Board of Directors as applicable. IP APPM effectively uses management reporting tools to report material financial risks at appropriate levels. The following factors are considered for determining the materiality:

• Some events may not be material individually but may be found material collectively;

• Some events may have material impact qualitatively instead of quantitatively;

• Some events may not be material at present but may have material impact in future.

The industry specific risks are broadly discussed below:

Risk Risk Definition Risk Impact (Low, Medium, High) Risk Mitigation
Safety Occupational illness and accidents may result in fatal injury including loss of life of our employees, workmen or contractors, apart from direct and indirect loss of production and property Medium/High Continuous efforts are being made to comply IP global EHSS standard with Safety Leading indicator and appropriate training with assessment.
Raw Materials The paper industry requires a sustainable supply of wood to survive and flourish. Wood accounts for approximately 40% of the cost of production. Any threat in supplies would adversely affect the survival of the paper industry. High The Company has implemented a Farm Forestry program through partnership with farmers, Research institutions and vendors. The company pro-actively build special bond with farmers in our vicinity of 150 km through large scale plantation and ensuring remunerative prices for the harvest. To develop sustained fiber supply within catchment of 150 km radius, company also partnered with private nursery growers for capacity building for production and distribution of clones. Company also continued to partner with Institute of Forest Genetic & Tree Breeding, Coimbatore (IFGTB) to ensure the broadest approach to sharing best practices, gaining knowledge and performing R&D for enhancing productivity.
General Economic Factors Adverse business developments could have a negative effect on the demand for paper products, financial conditions and results of operation. The paper industry has a positive correlation to economic development and lower GDP growth could affect business fortunes. High /Medium - Strong management and leadership capabilities in forecasting - Strong focus on market penetration, sales training and product innovations
Cyclicality of Industry Cyclical demand for paper could have an adverse impact on sales. The reduction in sale prices will affect IP APPMs operations. The cyclicality of the business could depress margins or growth. Medium IP APPM has continuously rationalized and strived to improve efficiencies to lower its costs, added to its scale of operations and stepped up its volume of value-enhancing products. Efforts are being made to scale up the operating leverage as well as by lowering the fixed costs per ton of paper to protect margins.
Heightened Competition in the Industry, and threat from imports There is increased competition from manufacturers and addition to capacities by many of them will add to pressures in the market. Its a highly competitive field with several peers seeking to improve their market presence. Pressure of imports expected to grow moderately, inspite of lower sales price realisations in India compared to other export destinations. High IP APPM has grown into one of the most competitive producers of pulp and paper, and with its product development, investment in quality and branding, the Company retains a significant competitive edge in the market. IP APPM has been recognized for the branding and quality of its grades and the newly introduced varieties have been received well by the market. Leadership positions in terms of product quality have been earned over the decades in some of the key segments such as cut-size and high-grade writing and printing papers and the Company is rated amongst the top three in terms of quality in almost all its product segments.
Product Substitution Electronic medium has reduced the archiving needs that were met by lower grades of paper which could impact demand pull within the cream wove category. Low Growth in demand and consumption of both lower and high-grade writing and printing papers has outpaced the threats with higher usage in the copier and stationery segments. IP APPM sees no threat in the short and medium term within its product categories since all of them are growing, especially given the low base in paper usage and consumption.
Technology Failure to keep pace with production technology can lower the competitive edge indigenously and globally. High/medium Efforts are ongoing to enhance its processes and optimize on resources to meet the needs of the market. The Company is committed to consistently reduce its cost of production by adopting the latest in technology while improving the quality of its end-product.
Utilities The paper industry needs large quantities of power, fuel and water to operate. Lack of availability of any of these utilities can add to the cost sensitivities of the industry. Medium/High IP APPM has minimized its risk by investing in a recovery boiler, a coal-fired boiler and a 34 MW turbine that supplements the power drawdown from the grid. Availability and quality of coal supplies have improved. The Company salvages the residual lignin in wood in its pulping process to fire in the recovery boiler and hence uses every part of the wood. IP APPM has considerably reduced its need for fossil fuels and made adequate plans to protect its needs. There is adequate availability of coal for IP APPM as the Company has ties with producers such as Singareni Collieries and Mahanadi Coalfields Limited for uninterrupted supplies. Unit:Rajahmundry is adjacent to the River Godavari which has copious availability of water. Yet, the mill has invested in suitable processes to recycle water and strives to conserve the use of precious natural resource. As far as possible, the Company recycles water and, more important, minimizes wastages. Over the years, IP APPM has been consistently reducing energy and water costs per MT of product manufactured.
Exchange Rate Currency exchange rates could undergo changes with the Indian rupee turning volatile for part of the year. This could have a potential impact on the export earnings of the Company. Low IP APPM is conscious and watchful of the rupees movements. Hedging is done wherever necessary and forward covers are taken to protect the Companys interests. The Company is also conservative in booking the unfavourable impact of exchange fluctuations as soon as the impact is determined. Prudential accounting norms are followed in line with the Accounting Standards.
Environment The pulp and paper industry has a commitment to the environmental protection, and it would be essential to remain sensitive to the needs of the planet High As a responsible corporate citizen, IP APPM has hugely minimized the impact of mill operations by taking a proactive role. The Company encourages planting twice the number of trees than it harvests and reduces water consumption year after year. The latest technology has been adopted for elemental chlorine-free bleaching of pulp and recycling of water. Efficiency of the effluent treatment plant has been improved with diffused aeration system and by installing a cooling tower. IP APPM installed a Non-Condensable Gases (NCG) system, both for the collection and incineration of high volume low concentration and low volume high concentration gases. This has made the mill and surrounding environment odor free. IP APPM also installed high efficiency ESPs to contain suspended particulate matter to less than 50 ppm. Several such initiatives have been taken to ensure IP APPM meets high standards much before the standards are laid down or implemented by all regulatory authorities.
Human Resources Failure to attract, retain or develop talent in a competitive market or in managing cordial industrial relations may impact our long term growth. Failure to keep focus on safety, compliance, and Engagement which can lead to poor performance. Talent retention is another risk associated with human resources as other competitor may opt to recruit our capable employees. Medium IP APPM constantly maintains a strong focus on improving employee engagement and employee experience – through robust safety culture, multiple training and skill enhancement avenues, regular employee engagement and fostering a culture of empowerment and inclusion. IP APPM has minimized this risk by focusing on training and engagement programme. We have been conducting training in various areas like Manufacturing Excellence, Leadership trainings, Mill technical trainings (Mechanical Precision Measurement, Instrumentation & Electrical Precision Measurement) . These helped us to improve capability of people to work efficiently and to improve engagement.