Hindustan Paper Corporation (HPC), a Government of India enterprise operates two papermills in Assam State: Nagaon Papermill (NPM) located at Kagajnagar, and Cachar Papermill (CPM) located at Panchgram. They produce a range of printing and writing papers for the Indian market.

These two mills employ similar equipment and started operation in the late 1980’s. The owner decided significant modernisations were need for these mills to continue to operate effectively and to control environmental discharges to acceptable levels. Without mill improvements to enable the production of higher quality papers, these mills risked declining sales and profitability.

Ausenco Sandwell was retained by HPC to prepare a pre-feasibility study (Mill Development Plan) and detailed feasibility study (Detailed Project Report) to plan in detail the modernisation of both mills.

The pre-feasibility study included assessment of the mill equipment, review of operating performance, analysis of India paper markets, and capital cost and financial projections. This information was used to develop alternative mill modernisation plans, and recommendation of the preferred modernisation program for each mill. It was recommended that production be expanded at NPM to make higher quality papers, and at CPM to make higher quality printing and writing papers.

The DPR presented a detailed feasibility study for the selected mill modernisation programs. It included design engineering and capital cost estimates based on drawings and process flow sheets developed by Sandwell, marketing and sales estimates, detailed cash flow projections and financial analysis. Ausenco Sandwell’s feasibility study was used to obtain governmental approvals and prepare tender documents for implementation of the mill modernisation programs at both mills.

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