In an interview with Lex Witness, Brigadier SK Mutreja, CMD, NEPA Limited, retiring this month, talks about the journey of the revival of a sick NEPA Limited into a growth oriented company.
In the beginning, when I joined, my focus was in building confidence amongst employees through direct contact i.e. meeting collectively, individuals. Used Human Resources approach , i.e. training for all as a Mantra for development. In nutshell ,on job and off job trainings organised internally and externally through experts/institutions. Employees compensation, participation, performance management and health and safety policies were introduced. Through NIIT computer training introduced in the company for employees and their families. These interventions helped in shifting the focus of employees and their families towards company’s processes, profit and people i.e. towards all stake holders. One-o- one meetings held with suppliers and vendors to boost their confidence. These strategic approaches resulted into performance of F.Y. 2007-08 and 2008-09 and for the first time company was able to book 88 lac of operational profit for which production bonus was also disbursed to employees.
At present company is on revival mode, under which renovation of both the paper machines and old captive power plant are to be renovated and 300 TPD DIP line has to installed. On 21/09/2015,the Environmental clearance received MPSEIEC and earth work for foundation is in progress under the guidance of project department and TATA Consultancy Engineering Services. Tenders for DIP line and paper machine refurbishment have been awarded to Andritz China and Papcel Czech Republic. In terms of production and productivity, the company’s performance is average due to old machines and undergoing execution of revival plan. By June, 2016 or so, after completion of renovation work the company will be producing 83000 MT per annum paper which includes 46700MT Writing and Printing and 36300MT Newsprint.
Yes you are right, at the moment, revival plan’s execution is underway, when my second stint in the company is going to end on 30/11/2015. I feel satisfied with the performance and contribution of employees, but a lot needs to be done to take company forward at this juncture. At this testing time, yes, one would have expected leadership to continue in the company. Its a prerogative of GoI, to mull it over. My good wishes will always remain with employees and for the company. And I also thank to all employees for their whole hearted support and officials of Govt. of India, for their timely guidance.
The oldest newsprint company in India, catering to media giants such as HT and host of other publishing and media companies, NEPA Limited found itself impacted when economic reforms started by Narasimha Rao government in 1992. Because of OGL policy of GoI, the administered price mechanism system was abolished and free imports allowed to publishers. So the Indian market flooded with the good quality imported newsprint produced from latest technology machines. The company’s products could not compete with global players, which resulted in the erosion of working capital and subsequently the performance over these years declined. Brig. S.K. Mutreja was appointed as Chairman-cum-Managing Director of NEPA in October, 2005 for a period of three years. With his 3 P’s centred approach (People, Process and Profit), he started operations of shut machines and plants. His focus area was not confined to the company but also looked beyond for social and economical well beings of citizen and tribal. The company achieved near turnaround situation between the periods 2004–2005 and 2008–2009.
After his tenure ended, the next two years scenario remained gloomy as the company’s performance in all areas came down drastically and on 13.10.2010 he was given additional charge of Nepa Limited by Government of India in addition to full time CMD in TCIL. He was appointed full time CMD in Nepa Limited in 2013 and this time he was more resolved to see Nepa Limited as a premier paper industry in India. Today Nepa is making tremendous progress with a revival plan by the government of India.
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