Interview with Mr. Ajay Agarwal Managing Director, Nipco Group
Purbanchal Paper Mill was born from a simple goal to make the North East self-reliant with locally made, sustainable kraft paper.
Paper Desk : What inspired the founding of Purbanchal Paper Mill LLP and how did the vision for the mill take shape in the North East region of India?
Ajay Agarwal : The idea of starting Purbanchal Paper Mill came from a very practical observation. During our project study, we found that the North East had a clear gap between demand and supply of kraft paper. Most of the quality paper used here was coming from other parts of India, which made it expensive due to transport and often caused irregular supply to local industries. At the same time, we noticed that waste paper — which is our main raw material — was available locally at a lower cost, and the market price for finished kraft paper was quite reasonable. So economically, the project made good sense. Also, there were a few government and industrial schemes that encouraged local manufacturing, which gave us more confidence. Since we are already into manufacturing through Nipco Group, we wanted to extend that experience into something sustainable and eco-friendly. That’s how the vision of Purbanchal Paper Mill took shape — to make the North East more self-reliant, create local employment, and produce quality kraft paper within the region itself.
PD : What core values or guiding principles have driven Purbanchal Paper Mill toward excellence in kraft paper manufacturing?
AA : What really drives us at Purbanchal Paper Mill are a few simple but strong principles — good management, quality, sustainability, and teamwork.
Our Daily operation Managing Team — myself, Ajay Agarwal, along with Mr. Bikash Agarwal and Mr. Shyam Patwari — are all qualified engineers with over 10 years of experience. From the beginning, we’ve focused on quality over short-term profit. We believe that consistent quality builds long-term customers, so we’ve invested in good machinery, skilled manpower, and strict process control.
The next important value is sustainability. Since we use waste paper as raw material, we ensure our operations are eco-friendly — recycling, reusing, and minimizing waste wherever possible. We also believe in continuous improvement, upgrading our process and technology to meet new market demands — like better GSM strength, finish, and cost efficiency. Lastly, teamwork and community growth are very close to us. We encourage a culture where everyone works together toward one goal and also focus on creating local jobs and skill development. These values have helped us steadily build a strong reputation for quality kraft paper in the North East region.
PD : Can you share major milestones achieved by the company since its inception (e.g., capacity milestones, commissioning dates)? For instance, PPM claims a capacity of 53,000 tons/year?
AA : The journey of Purbanchal Paper Mill has been quite interesting. We started planning around 2020, and even during the COVID period, we stayed focused and kept the project moving. Trial production began in late 2022, and by early 2023, we achieved full commercial operations.
Our installed capacity is about 150 tons per day, which is roughly 53,000 tons per year. Over time, we’ve upgraded our plant with Double Wire technology, a pressurized head box, and automation systems, along with better stock preparation and drying sections — all to improve strength, GSM consistency, and overall quality.
We started with the Assam market and now supply to West Bengal, Bihar, and even Delhi-NCR. Our next goals are to improve energy efficiency, water recycling, and explore export opportunities. Overall, we’ve achieved strong growth in both capacity and quality within a short time, and that gives us good confidence for our next expansion phase.
PD : What are the key product offerings of Purbanchal Paper Mill (e.g., multilayered kraft paper, both medium and liner) and what applications do they serve?
AA : We mainly manufacture multilayered kraft paper, both medium and liner grades, ranging from 90 GSM to 300 GSM. Our papers are used for corrugated boxes, carton packaging, wrapping, and other industrial uses. We focus on strength, uniform finish, and better runnability for automatic corrugation plants. So our kraft papers are preferred by corrugated box manufacturers, FMCG packaging units, and logistics suppliers.
PD : How does the company ensure product quality, for example uniform grammage, moisture control, surface finish, glue absorption?
AA : We maintain product quality through strict process control and automation. Our plant is equipped with online monitoring systems for grammage and moisture control. We use a pressurized head box and Double Wire technology, which ensure uniform GSM and surface smoothness. The drying and sizing sections are optimized for controlled moisture and good glue absorption, making our paper perform well in corrugation.
Additionally, our quality team regularly checks samples for burst factor, ring crush strength, and Cobb value to ensure consistency in every roll.
PD : What technological investments or upgrades have you implemented to give Purbanchal Paper Mill a competitive edge in paper production?
AA : We’ve invested in modern technologies to stay ahead in quality and efficiency. Our key upgrades include a Double Wire Paper Machine for better strength and smoothness, a Pressurized Head Box for accurate GSM control, and automation in stock preparation and chemical dosing for consistent pulp quality.
We also use energy-efficient boilers and water recycling systems to reduce costs and support sustainability. Now, we’re planning a production expansion and a captive power plant to ensure reliable power and higher output.
PD : Who are your primary customers and target markets (domestic, regional, export)? For example, you are located near borders of Bhutan, Bangladesh and the upcoming logistics hub in Assam.?
AA : Our main customers are corrugated box manufacturers and packaging units in the Entire North East, West Bengal, and Bihar. We’ve also started supplying to North Delhi. Being close to Bangladesh, Bhutan, and the upcoming logistics hub in Assam, we’re well-positioned for future export opportunities.
PD : How does Purbanchal Paper Mill stay ahead of market trends in packaging, sustainability, and corrugated box demands?
AA : We stay updated through customer feedback, regular market studies, and visits to corrugation and packaging units. Our focus is on stronger, eco-friendly kraft paper with better runnability for automatic plants. We also keep improving process efficiency and align our product with sustainability trends in the packaging industry.
PD : What innovations (product, process, technology) has the company recently introduced or is planning to introduce to meet evolving demands in kraft and packaging paper?
AA : We’ve already adopted Double Wire technology, a pressurized head box, and automation for quality improvement.
Next, we’re planning to produce high BF multilayer kraft paper to meet the growing need for durable corrugated boxes. We’re also exploring digital monitoring and data-based process control for better consistency.
PD : What is your strategy for supply chain and raw-material sourcing (given you’re in Assam/North East) to manage costs, logistics and ensure smooth operations?
AA : Our main raw material, waste paper, is sourced from local collection centers and nearby states to keep logistics economical. For chemicals and starch, we work with reliable regional suppliers to ensure uninterrupted production. We maintain optimum stock levels to avoid shutdowns due to transport delays.
PD : How do you position Purbanchal Paper Mill in the marketplace, both in the North East region and broader India (and perhaps export)? What are your competitive strengths and challenges?
AA : We position Purbanchal Paper Mill as a quality-focused kraft paper manufacturer from the North East, backed by modern technology and reliable supply.
Our main strengths are consistent quality, strategic location, and professional management. The key challenges we face include high transport costs, limited availability of waste paper, and a drop in kraft paper demand due to the rise of new mills in the region.
There’s also a shortage of skilled local manpower, but we manage this through in-house training, better planning, and efficient logistics management.
PD : The company mentions “optimal capacity utilisation” and “smart cost control initiatives”. Could you elaborate on some of these initiatives and how they have impacted operational performance?
AA : We maintain steady machine uptime, proper maintenance, and balanced order scheduling to achieve optimal capacity utilization. For cost control, we focus on energy saving, reduced wastage, and efficient chemical dosing. These steps have improved our production efficiency and reduced per-ton cost, making us more competitive.
PD : What advanced technologies have you implemented for monitoring paper parameters (moisture, GSM, BF/RCT, surface finish) and how do they improve production outcomes?
AA : We use online sensors and automation systems for monitoring moisture, GSM, and BF/RCT during production. The Double Wire and Pressurized Head Box help maintain surface finish and uniform grammage. These technologies have improved quality consistency and reduced rejection rates.
PD : Are there plans to adopt or develop further technologies (capturing higher BF papers, multilayer kraft, automation, Industry 4.0) for future competitiveness?
AA : Yes, we plan to produce high BF multilayer kraft papers and adopt Industry 4.0 systems — such as digital data logging and automated quality control. We’re also exploring AI-based energy monitoring to further improve efficiency.
PD : What technical challenges have you encountered in producing high-strength kraft paper (for example for corrugated board) and how were they solved?
AA : Initially, we faced issues in GSM variation and burst factor stability. We solved these through better fiber mixing ratios, improved refining, and controlled drying. Continuous monitoring and operator training helped achieve stable high-strength kraft quality.
PD : Where do you see Purbanchal Paper Mill in the next 5 years in terms of product expansion, capacity growth or new market entry? (For example, mention was made of Phase-2 expansion earlier)?
AA : In the next five years, we aim to double our production capacity and start Phase-2 expansion with a captive power plant for energy stability. We also plan to enter export markets in nearby countries through the new logistics corridor.
PD : Are there plans to diversify into downstream markets (e.g., value-added packaging papers, coated kraft, speciality grades) or to integrate further along the value chain?
AA : Yes, we plan to diversify into value-added packaging grades, such as coated kraft, high BF paper, and specialty liner papers. We’re also studying possibilities for corrugated sheet or box units for integrated growth.
PD : How will sustainability and eco-friendly initiatives play a role in shaping future growth (e.g., recycled fibre use, certifications, reducing carbon footprint)?
AA : Sustainability is central to our growth plan. We use 100% recycled fiber, have water recovery systems, and are working towards zero liquid discharge. Our future goal is to obtain environmental certifications and continue reducing our carbon footprint through energy-efficient operations.
PD : How does the company ensure worker safety, training (the site mentions staff training) and local community engagement in its operations?
AA : We follow strict safety SOPs, conduct regular training on machine handling and emergency response, and provide proper PPE kits. We also hire locally and support skill development programs for youth around Goalpara Districts of Assam.
PD : What environmental measures has Purbanchal Paper Mill implemented (e.g., efficient use of raw materials, water, emissions control) given the manufacturing setting in Assam
AA : We focus on efficient use of raw materials, waste recycling, and water treatment systems to reduce environmental impact.