Aim of present paper is to evaluate the performance of a paper machine installed in a paper mill of Northern Haryana namely Sri Jagdumbe Paper Mills Ltd. located at Sirsa (Haryana) using stochastic modeling of a single unit considering three types of faults i.e. minor, major faults and power failure during operation of the machine. Minor/major faults are repairable as well as non repairable and for the purpose of calculations in this paper, it is assumed that there is facility of single repairman for inspection, repair and replacement etc. Considering all these aspects and using the real data collected from the mill, various measures of system effectiveness such as MTSF, Reliability, Availability and Busy period etc. are derived by using Semi-Markov process and Regenerative Point technique. The performance of the machine is evaluated using numerical results and graphs derived thereof. From the graphs so obtained, we get cut-off points of profit for different values of rates of minor, major faults/ revenue of availability/ costs etc., which will helpful for management team of Paper Mill to make the paper machine more yielding.