Maximisation of Profit Contribution in Private and Joint Sector Paper mills in A.P.

Abstract

The Paper industry is vital for social, cultural, economic and educational development of a country. As such, it needs to survive and compete with global giants in the world. Therefore, it has to produce standard products at minimum cost. Against this background and for maximisation of contribution, two paper mills i.e. private and joint sectors are brought into the sample. The optimal product mix for private sector paper mill is writing and printing paper and coated board while writing and printing, colour printing I process paper and newsprint for joint sector paper mill. The duality analysis shows that one hour of working in pulp mill and paper making departments increase profit contribution by Rs. 95,149 in the private sector paper mill whereas Rs. 82,621 in paper making department ofjoint sector paper mill.