Business Strategies: Bhadrachalam Paper Boards Ltd

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Plantation and Forestry is the prime source of raw material for running a paper mill. The lack of forests and wood conceived the initiative to tackle the challenges posed by certain features, such as local farmers’ lack of knowledge of the market condition, a weak infrastructure, and the involvement of numerous intermediaries. The prime objective of the project was to bring efficiency to the procurement process; a significant derivative is the increased empowerment of rural farmers. Mr.Sanjeev, an IIT Kanpur graduate joined Bhadrachalam Paper Boards Ltd in the year 1977 in a team of 8 IIT graduates. Lack of motivation for higher studies turned into a blessing in disguise. Bhadrachalam Paper Boards Ltd then was promoted by ITC. In 2002 it became a division of ITC & the share base was increased from 32 to 51, and 49 %was the institution stakeholder and public Then in the year 2002 it became a 100% subsidiary and division of ITC known as Ballarpur speciality division. The pulp mill was started based on the assurance of ample supply of wood. But realisation dawned late that there was no wood available. Since land allocation & ownership was not an option, approaching the landowning farmers was seen as the only alternative. Faced with these dilemmas, the company had few alternatives; either to reallocate the pulp mill to Malaysia, where they had recently procured a functional pulp mill or cultivate a natural resource base to supplement the need of raw material. Though the first option was uncomplicated & rapid, long term viability was to cultivate forestry & plantation. The progression of convincing the unknowledgeable farmers was an uphill task. The primary challenge of persuading the farmers to grow eucalyptus trees for pulp mills was overcome, by linking them to the core business. The concept of sustainability combined with sharp business acumen & lot of research augmented high yielding plantations & forestry. As against the requirement of...
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