AP Paper Mills of India has made a conscious effort to become an environmental industry leader, winning awards from government agencies and environmental oversight groups for its work. Farm forestry is a cornerstone of company operations—supply comes from fast-growth species, planted on unproductive land in a buy-back arrangement with local farmers. More than 30,000 poor farmers support their families with a reliable income through the farm forestry program. As the company continues to grow, more farmers will be brought in to the program, further reducing rural poverty.
IFC role and development impact:
- IFC’s $40 million in financing and advisory services support plan to replace an obsolete, non compliant mill with a state-of-the-art, environmentally safe manufacturing plant. New energy-efficient processes will lower production costs; the new processes will significantly reduce chlorinated organic pollutants
- Leading Indian pulp and paper mill demonstrates the business case for sustainable forest plantation: as commitments to the environment and to the local community have grown, so have profits. Since 2000, profit has more than doubled. In 2006, net pro?t increased 38 percent over 2005
- 3,200 full-time jobs at the mill, plus 30,000 indirect, part-time jobs for poor farmers.
- Social responsibility initiatives include HIV/AIDS awareness programs
- Environmental technology initiatives include partnering with a research institution to develop a process for desilication and recovery of straw pulp mill black liquor
