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Why is the leader not leading?

  • 14/10/2004

The Ballarpur Industries Limited (BILT), owned by the Thapar Group, is the biggest pulp and paper company of India with an annual production capacity of 0.56 million tonnes. It alone makes up 9 per cent of the paper industry's installed capacity. But unfortunately, this market leadership is not translated into environmental leadership. All the six mills of BILT were rated by GRP, and the combined average score was a low 30.5 per cent. In other words, the group would receive a two leaves award.

What is the problem?
It cannot be financial. During 1998-2002, BILT's average gross profits were 24.2 per cent of the annual turnover. In comparison, the average gross profits of the top 10 Indian mills, excluding BILT, was less than 10 per cent. But it has invested, so far, in expanding capacity in existing mills and buying new mills. Upgrading and improving technology in its plants is not a priority, so far. For instance, no plant, except for BILT AP Rayons, has even invested in a lime kiln to reduce its solid waste pollution.

In comparison, other Indian companies

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