A Study On Functional Areas In

Western India Plywoods.

A PROJECT REPORT

Submitted By,

SAR AAN JALEEL AHMED

REG NO: SS15BS0091

Under the Supervision of

MR. SHAFEEK AHMED

(PRINCIPAL MALABAR COLLEGE, PAYANGADI)

In partial fulfillment for the award of the Bachelor Degree in

COMMERCE

SUBMITTED TO SCHOOL OF DISTANCE EDUCATION

KANNUR UNIVERSITY

2018-19

1
 CERTIFICATE

This is to certify that this report entitled “A Study On Functional Areas In Western
India Plywoods” is the bonafide record of the project work done by Mr. Sar Aan
Jaleel Ahmed, Reg No SS15BS0091 towards partial fulfillment of the requirement for
the award of the Degree of Bachelor of B.COM Commerce from KANNUR
UNIVERSITY, who carried out the project work under my supervision.

Signature of Supervisor:

PLACE: Shafeek Ahmed

DATE: (Principal Malabar College)

2
 DECLARATION

I Sar Aan Jaleel Ahmed hereby declare that the project entitled “A Study on
Functional Areas in Western India Plywoods” submitted for the BCOM Degree is my
original work and the project have not formed the basis for the award of any degree,
associate ship, fellowship or any other similar titles before.

Sar Aan Jaleel Ahmed

Place:

Date: SS15BS0091

3
 ACKNOWLEDGEMENT

Expressing my profound gratitude & thanks to Western India Plywoods LTD.

Baliapatam and its Managing Director, P.K Mayan Mohamed for allowing us to
undergo our training in Western India Plywoods’s Ltd.

I am also indebted to Mr. Ratheesh (HR department) for his timely guidance and all
other Staff and Workers of the company for their kind co-operation for our successful
project completion.

I am grateful to Mr. Shafeek Ahmed, Principal of Malabar Institute, Payangadi) for

his throughout help in conducting the training in the most efficient way.

Above all I thank God to be able to complete this project successfully.

Sar Aan Jaleel Ahmed

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 ORGANISATION STRUCTURE

Managing Director

Executive Director

HD/PFP/PCPB

GM (Administration) GM (Production)

Store/P&A

Company Secretary Chief Accountant Officer

Electrical
Technical Manager Development Manager

Plywood, Flush door,

Marketing Head Works Manager Block Board

Central Excise Plant Manager

Sales Manger DWD Densified Wood Products

HD-Human Development

PFP-Personnel Fnance Planner

PCPB-Post-Conflict Peace-Building

P&A- Production and Administration

DWD- Densified Wood Department

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 List of Figures
SL NO CONTENTS PAGE
NO
01 Organizational Structure 05

02 Product Hierarchy 21

03 Human Resource Department Hierarchy 28

04 Flowchart of Plywood Process 32

05 Hierarchy of Production Department 37

06 Hierarchy of Purchase Department 43

07 Hierarchy of Sales Department 48

08 Structure of Marketing Department 54

09 Hierarchy of Exports Department 57

10 Structure of TQM Department 63

11 Balance Sheet 70

12 Hierarchy of Finance Department 72

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 CONTENTS

SL NO CONTENT PAGE NO

01 INTRODUCTION 08

02 INDUSTRY PROFILE 10

03 COMPANY PROFILE 15

DEPARTMENTS
A. Human Resource
B. Production
C. Purchase
D. Sales
04 21-65
E. Marketing
F. Export/Imports
G. Stores
H. TQM
I. Finance

05 SWOT ANALYSIS 71

06 FINDINGS 74

07 SUGGESTION 74

08 CONCLUSION 75

BIBLIOGRAPHY 75

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Introduction

Management is the process by which people, technology job tasks and other resources
are combined and coordinated so as to effectively achieve organizational goal.

The organizational study conducted at ‘THE Western India Plywoods LTD.’ Is to

study about organizational structure communication channel , span of control
,organizational culture etc. of the organization .The relevance of the study is to
understand the above mentioned facts through a real organizational scenario.

The chief objective of the organizational study is to familiarize with the working of
various departments for a particular period, so that one can have exposure to the
practical side.

Objective of the study

 To have general awareness of the functioning and management of the

organization.
 To understand the organization structure and working of various functional
departments.
 To analyze the overall performance of the company.
 To understand the extent to which management theory matches with actual
practices observed.
 To understand and study the organization objectives and goals.

Methodology

The methodology used for this organization study is mainly in two ways. They are;

Primary data,

Secondary data.

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Primary Data

Primary data are those data which are collected first hand and thus happen to be in
original character. The primary data includes the data by questionnaires, by observing
and by interviews with the company personnel at different levels of management.

From the managers

From the office staff

From the workers.

Secondary Data

Secondary data are those data which have already been collected from the company
such as

 Business Journals
 Quality Manuals
 Annual Report
 Magazines, Brochures etc.

Limitations Of The Study

1. Due to shortage of time and other constraints, interviews with workers

were short.
2. Both managers and employees are not ready to fully reveal the data
required for the project and the document of the company are not open for
the public scrutiny.
3. Lack of availability of secondary data from published journals and reports.
4. Another limitation faced was the respondents sometimes were too busy to
answer questions in detail.

9
INDUSTRY PROFILE

10
 India is one of the developing countries in the world. The small and large scale
manufacturers of the modern days played a significant role in the Socio-economic
development of the country. Our country is blessed with immense stock of natural
resources both above and beneath the soil surface. Among that trees are great bounty
to man. They provide shelter, fuel, medicines and tools for war, commerce, or
transport. Nature develops trees as a mother brings up children, making each one a
separate individual. It is an amazing sight to see the natural abstract rhythm of line,
color and texture of wood. Nothing from nature indoors gives a long lasting
enjoyment. That is why decorative wood had as much importance in the past, having
in present and will be in future also. And another fact was that it was timber from
trees, which in the early days helped man to conquer the oceans and to fly in the air.

Wood Based Panel Industry In India

Wood panel products effect considerable saving of scarce wood as compared to solid
timber. The basic types of wood based panels are;

1. Plywood
2. Particleboard
3. Hardboard and Medium Density fiberboard

Plywood

The history of plywood industry in India is old. It is more than 75 years old that this
industry started here on a very modest scale. It was in the year 1906-07 that plywood
was imported in India for the first-time valued at Rs.32 lakh. Imports rose steadily and
by 1924-25 it were worth Rs.90 lakh. Tea industry in Assam, West Bengal and Kerala
was steadily developing and it was thought that plywood industry in the form of Tea
chests production mainly for export should be developed. Accordingly two plywood
factories were started in Assam in 1923-24 but their development was steady, slow
and not potential. These were the pioneers and the resourcefulness and courage shown
by them in the early stages of growth of Plywood industry was remarkable and the
industry owes gratitude to these courageous entrepreneurs.

With the outbreak of Second World War, necessity of manufacturing tea chests
locally was very much felt and plywood industry in India is a gift of Second World
War. Now that tea chests must be produced, Forest Departments in various states
started thinking in terms of finding suitable timber for manufacturing tea chests.

11
Experiments were made at Forest Research Institute, Dehra Dun and it was found that
plywood made from Indian timbers were good as imported products and therefore
advised forest entrepreneurs to set up modern factories in different States.
Accordingly well-equipped plants were started at different places like Sitapur,
Bangalore, Baliapatam (Valapattanam), Dandeli and Coochbehar. Some of these
factories suffered setbacks in the post war years, as after cessation of war the vested
interests tried to sabotage these industries by trying to restart imports of tea chests.
Tariff Board enquiry was held and the Government imposed a lien on the importers to
purchase Indian products equivalent to the quantity allowed to be imported. Slowly,
the Government encouraged the Indian entrepreneurs to modernize their plants and
invest substantial capital in this industry.

After 1947-48, the industry resorted to diversification of its products and block
boards, flush doors, commercial plywood, marine and aircraft plywood, produced in
Indian factories came into the market which were second to none in the world quality
and diversity of its products. Industrial licensing is governed by the Industries
(Developmental and Regulation) Act, 1951 under the wood based industry was
covered.

There was no restriction of putting up plywood Mill up to 1970. The only criteria was
that the applicant was required to obtain an Industrial License which was being
considered by Ministry of Industry after consulting various Ministries including
Ministry of Environment & Forests. Forest Ministry was being consulted for
ascertaining sustainable raw material of Timber for a particular project; the wood
based industry was more or less in medium and large scale. The wood based industry
was under Compulsory Industrial Licensing 1988 whether a small scale unit or a
medium/ large unit, new undertaking or substantial expansion would require
Industrial License.

During 1970 there was clear cut definition of Small Scale Sector and units having an
investment of less than 7.5 lakhs in plant and Equipment were covered under the
definition of Small Scale Sector which would be registered with the respective State
Director of Industries. At that particular stage some of the units with such investment
got themselves transferred to small scale sectors. Meanwhile there were modern

12
technology and machinery equipped plywood units coming up in different places in
India like North East Zone.

In 1997 the Government of India totally delicensed wood based industry as a result
more than 2000 small scale units coming up.

The potentialities of the industry can be judged from the many uses to which plywood
can be put. Apart from tea chests plywood marine and aircraft plywood there are
specific demand for the following articles from the consumers.

1. Shuttering Plywood
2. Packaging Plywood
3. Plywood drums
4. Flush doors
5. Commercial & Decorative Plywood
6. Block Boards
7. Molded Plywood furniture and chair seats
8. Laminated picking sticks for cotton and jute textile industry
9. Sliced decorative veneers of walnut, teak, rosewood etc.
10. Compregnated wood veneers required for heavy chemical industry and
electrical industry and electrified railways.

Particle Board

Particle board is a reconstituted constructional panel particularly developed as a

substitute for natural construction wood and is made from low grade waste woods or
from certain agricultural ligneous wastes. In that respect particleboard assumes one of
the greatest importance in the wood panel products industry from the point of view of
conservation of scarce forest resources in a country.In India the first particleboard
plant was set up in late 1950s at Sitapur in UP. There are presently about 12 wood
based and agriculture ligneous waste based particleboard units in India.

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Hardboard and Medium Density Fiberboard (MDF)

Fiberboard is a board encompassing sheet materials of widely varying diversities

manufactured from refined or partially refined wood fibers or other vegetable fibers.
Bonding agents and other materials may be incorporated in the manufacture to
increase strength, resistance to moisture, fire or decay.

The first fiberboard (Hardboard) Industry was established in India during late 1950s
and first Medium Density fiberboard plant was set up in India about 20 years back.

Furniture Industry

The other important field is the furniture industry. Competition is keen in this
industry. Furniture manufacturers and exporters are suffering from decreasing profit
margins. Many companies strive to reduce their cost of production and increase
efficiency. Some relocate their manufacturing operations to other areas with lower
operation cost. On the other hand, foreign manufacturers are taking steps to strengthen
their domestic production through product specialization.

To stay globally competitive, Hong Kong furniture manufacturers strive to reduce

costs, initiate quality control, improve design concepts and capability, and upgrade
management skills and increase marketing and sales effectiveness. Many
manufacturers have obtained or are applying for ISO 9000/9002 certification.

Hong Kong's furniture makers also started to develop their own brands. Furniture
manufacturers also become more careful about the choice of raw materials to meet
international standards, such as compliance with legal or other environmental
requirements in their target markets. China is the largest furniture exporter to many
countries, including the US and Japan. The total furniture exports of China exceeded
US$6,683 million in 2002, with the US being its largest market. Guangdong province
is the major manufacturing centre of furniture on the Chinese mainland. Apart from
Hong Kong, manufacturers from Taiwan and even the US have also set up production
plants on the mainland. China also offers a huge potential market for furniture
makers.

14
COMPANY PROFILE

15
Founder

Mr. A.K. Kaderkutty, the founder of the company passed away on the 14th February,
2001. He was the Managing Director of the company from its inception up to January
1993 and afterwards he continued as Director and Technical Adviser to the company
up to time of his demise in February, 2001. Mr. A.K. Kaderkutty was considered to be
the doyen of the wood working industry in the country. Not only he built up a wood
based panel product empire in the remote part of Kerala, which became a model for
the industry within this country, and also outside, he was also instrumental in
transferring the latest technology in wood working industry into reality. He was a
member of the International Academy of Wood Science. He was very closely
associated with the Federation of Indian Plywood and Panel Industry (FIPPI), The
Indian Plywood Industries Research and Training Institute (IPIRTI) and South Indian
Plywood Manufacturers Association (SIPMA). He was closely associated with the
Bureau of Indian Standards and was the chairman of the subcommittee (BDC : 20)
dealing with wood based panel products. The Government of India recognized him
and nominated him to the National Credit Council and other committees of Central
Government on different occasions. In Kerala, he had served on the State Planning
Board, State Advisory Committee on Technical Education, Kerala State Industrial
Development Corporation, and Kerala State Electronic Development Corporation. He
had also on the Board of Kerala Forest Research Institute, Peechi and the Kerala
Government sponsored Institute of Management. He was the first Dean of the Faculty
of Wood Technology of University of Calicut.

He pioneered a lot of research programmes in wood working industry and one area to
be highlighted is the application of Radio Isotopes for upgrading the quality of
ordinary timber, for which he set up a pilot plant at Baliapatam. He was recognized by
NAARI in 1984 for the pioneering efforts in this connection. He has been received
various awards, Kerala Management association Award for Outstanding Excellence,
Management Science Award and Vyavasaya Sree Award in 1993. He was basically
instrumental in placing the wood working industry in India on the international map
with his pioneering efforts. He has served on the board of various industries within

16
and outside the state, besides on the Government body of IIT- Chennai, Regional
Engineering College- Calicut and Regional Engineering College- Suratkal.

Vision

Continue to remain the best Plywood-Panel Corporation in India with growth in allied
areas.

Mission

 To provided utmost satisfaction to the consumer through best quality and

customer care.
 To continuously upgrade the product through innovations and convergence of
new technology and to produce the best quality at the lowest cost
 To safeguard and enhance shareholders value
 To respect the dignity of all employees and together to become instrumental in
the development of the country while protecting the environment.
 To utilize the surpluses for the welfare of employees and the society at large.

Infrastructure Facilities

Western India Plywoods found an optimum location. It is located on the bank of

Valapattanam River, through which water transport is possible. The factory is located
near by NH 17 and also very near to the railway station. The company is having the
following infrastructural facilities;

1. Western India Plywoods is having a separate plant and sophisticated

imported machineries from Germany, Italy, USA, Sweden
2. It has a co-operative store exclusively for employees
3. Employees State Insurance is undertaken
4. Subsidies canteen facility is available both for administrative staffs and
workers
5. Rest room
6. R & D with sophisticated equipments and library
7. Separate office for each department
8. The company owns trucks and other transportation vehicles
9. Other statutory infrastructural facilities.

17
Product Profile

The major product for which the company has been the leaders in quality since 1945
is just because of its finest quality products produced as per international standards.
The products of the company are globally accepted. Over the last 50 years, through its
close knit co-ordination of various processing units, professional management and
maximum utilization of facilities available, the company has made an indelible mark
in the wood industry – a mark of glorious achievement.

Plywoods

Following are the plywood products

 Air craft plywood

 Marine plywood
 Shuttering plywood
 Cold Water Resistant Plywood
 Warm Water Resistant
 Boiling Water Proof
 Block board
 Super Block board
 Flush Door
 Inlay board

Product Mix

 Hardboard 58.32%
 Plywood 15.13%
 Densified Wood 17.60%
 Pre-Compressed Press Board 04.15%
 Others 04.80%

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Competitors

The company’s competitors include medium and small scale plywood industries. The
main competitors are

1. Jolly board
2. Century plywood
3. Rubco
4. Novopan
5. Bhutan Board
6. Duratuff
7. Hibond
8. Kit ply

Achievements and Awards

1. First to obtain ISO-9002 certification for hard board and pre-finished

boards
2. It receives the CAPEXIL Export award for 2002-03 with this the company
has become eligible to be recognized as an export house
3. First to make the irradiate wood
4. First to make the aircraft plywood
5. First to make Fire Retardant plywood confirming to BS: 476 specifications
6. First to develop weather proof, marine and Fire Retardant Hard boards
7. First to make metal faced plywood
8. First to make pre finished plywoods and hard boards using OV-Cured
surface finishing technology
9. First to manufacture DAP resin in the country with indigenously
developed know how.

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 Functional Areas
Wood

For general purpose, the wood used are Kalpine, Vellapine, Neeli, Eucali, Mullanpali
Pasupali, Red Cidar, Pula, Red Pine, Cher etc.

For decorative purpose, the woods used are Rose Wood, Teak, Mahogany, Padauyk,
Silver Oak Dhavala and Champak.

Steam

Steam is the energy used to operate the machines. The steam comes from the boiler.

There are four to five types of boiler.

1. Saw Dust Boiler

2. Fire Wood Boiler
3. Indusial Engineering and Agricultural Corporation Boiler
4. Fuel Bed Combustion Boiler
5. Thermo Path Boiler

Chemicals

The various chemicals used in the preparation of plywood are

1. Formaldehyde
2. Aerolyte
3. Phenyl Formaldehyde etc.

Product Hierarchy

Log Yard Cross Cutting Boiling Peeling Clipping

Pre-Pressing Assembling Gluing Edging & Joining Drying

Hot Pressing Conditioning Trimming Sanding Finishing

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HUMAN RESOURCE DEPARTMENT

21
 Western India Plywoods is highly successful in management its productive human
asset. Mutual understanding between the management and workers is appreciable in
of the matter of the attainment of company’s ultimate goal.

Western India Plywoods looking is a forward looking organization, committed to

identify, train, develop and sustain its human resource in such a manner so as to
integrate the individual career aspiration of its executives with the fulfillment of the
objectives. Towards this, Western India Plywoods accepts basically that of fair,
equitable and performance oriented policy with respect to its human resource

Human Resource Structure

General Manager is the head of the HR Department followed by the factory executive,
who deals with all the matters in the HR Department. The Personnel Officer. The
Chief Time Keeper and The Time Clerks assist him. The Time Clerk deals with
attendance, leave and time management of the workers in shifts and in general shifts.
Besides there are also people dealing with ESI, PF Canteen Token Wages and Salary
Administration and disciplinary action.

Purpose

 The purpose of the HR Department is:

 Recruitment and selection
 Job analysis, job description and job specification
 Placement and induction
 Training and development
 Performance Appraisal
 Other HRD functions

Candidates are evaluated and selected on the basis of scrutiny of application, personal,
interview and other means. Employee’s referrals are the main sources of recruitment.
Job or skill requirement has been defined department wise to clarify responsibility,
authority, and inter-intra department communication.

22
Training needs are identified and plans are prepared accordingly. Training is provided
according to availability of faculty and considering operational constraints.

New employees are inducted on the basis of Western India Plywoods Induction
Manual on-the-job training and informal guidance. Apart from these employees
attends the seminar/training programs conducted by the external agencies.

Classification Of Workers

In Western India Plywoods Ltd., workers are classified as follows;

1. Permanent
2. Probationers
3. Substitutes
4. Temporary
5. Casual
6. Apprentice

Shifts

Shift working shall be regulated in accordance with the provisions of the Factory Act.
Company’s shift includes:

1st shift : 6.30 am to 2.30 pm.

2nd shift : 2.30 pm to 10.30 pm.

3rd shift : 10 pm to 6.30 am.

General shift : 7.30 am to 4 pm.

Office time : 9 am to 5 pm

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Ticket Or Attendance Card

Every workman shall be given a ticket or attendance card, free of cost, showing his
number or name, classification etc. Every workman shall punch his attendance card at
the punching machine and deliver up his card or ticket at the place provided in the
time office before the commencement of each session of the shift in a day.

Entrance And Exit

The workman shall not enter or leave the premises of the factory except by the gate or
gates appointed for the purpose.

Leave And Holidays

1. Leave with wages will be allowed to workmen as provided for in the

chapter of Factories Act.
2. Leave for sickness, maternity and accident will be allowed to the workmen
as provided for in the Employees State Insurance Act.
3. National and festival Holidays with wages will be allowed to the workmen
as provided for in the Kerala Establishment Act.

Wage And Salary Administration

In Western India Plywoods Ltd., the managers analyze and interpret the needs of the
employees so that reward can be individually designed to satisfy their needs. Here the
workers are paid wages and the staff officers managers etc are paid salary. The wage
/salary system which Western India Plywoods which follows is time rate system.
Under this system workers are paid according to the work done during a certain
period of time. He is paid at the settled rate as soon as the time contracted for is spent.
The basic purpose of salary administration is to establish and maintain an equitable
wage and salary structure.

Disciplinary Action

Any workman who is found guilty of misconducts is liable to be summarily dismissed

without notice or compensation in lieu of notice or alternatively to be suspended for
period not exceeding 4 days or to be fined up to 2% of his wages in a wage period in

24
accordance with the provisions of the Payment of Wages Act. Wages and other dues,
if any, due to workman whose service is terminated by way of dismissal or discharge
or retrenchment shall be paid to the workman within 2 days of termination of his
service.

Trade Unions

Trade unions are an inevitable part of a modern industry set up. Trade union influence
industrial democracy, morale, productivity. There are four trade unions in Western
India Plywoods Ltd. They are;

 CITU (Affiliated to CPM)

 INTUC (Affiliated to Congress)
 AITUC (Affiliated to CPI)
 STU (Affiliated to Muslim League)

Retirement

Any workman who is declared mentally unfit or found to be on continued ill-health or

reached the age of 58 (fifty eight years) shall be retired from the service according to
the Gratuity Act.

Voluntary Retirement Scheme

 To achieve the optimum level of manpower with the desirable average age
mix as per the changing needs of the organization.
 To provide necessary manpower adjustments.
 To provide monetary benefits in terms of terminal benefits and voluntary
retirement, compensation to those who opt for voluntary retirement.

Benefits

Statutory benefits including ESI, PF, Gratuity etc. are provided to all the employees.
Besides that Western India Plywoods Ltd., provides food at subsidized rate to the
workers. Whenever any employees meet with any accident, all the expense in the
course of treatment borne by the company.

25
Various Acts Followed By The Company

1. The Companies Act 195

2. The Factories Act, 1948
3. The Industrial Disputes Act, 1947
4. The Minimum wages Act, 1948
5. Payment of Wages Act, 1936
6. The Contracts Labor (Regulation & Abolition) Act, 1970
7. Employees’ State Insurance Act, 1948

Welfare Measures

1. Employee Provident Fund [EPS]

The EPF Act was enacted in 1952. The Act is now applicable to employees drawing
pay not exceeding RS.6500 per month.The pay includes basic wages and Dearness
Allowance. Threee schemes are framed under the Act

 The Employees PF Schemes 1952

 The Employees Pension Scheme 1995
 The Employees Deposit Linked Insurance Scheme 1976

This Act is applied to every factory in which 20 or more persons are employed
without the aid of power or 10 more workers with the aid of power. 12% of
employee’s wages and equal of employer’s contribution is transferred to PF of
employee’s wages from this to Pension Fund of the employee.

2. Employee State Insurance Scheme (ESI)

ESI ACT, 1948 is social security legislation .The Act provides certain benefit to
employees in case of sickness, maternity and employment injury. The coverage under
the Act is at present restricted to employee’s drawing wages not exceeding Rs.7500
per month. The pay includes salary, DA and HRA. The employee’s contributes 1.75%
of the wages and 4.75% of the wages is contributed by the employer.

26
Canteen Facility

Tokens are given to the workers for the food for one week. In each day they are
remitting the token in Time Office. Food is available to workers at a concession rate
of Rs.2.50 for meals and 60 paise for snacks.

Hierarchy Of Human Resource Department

Managing Director

GM
(Administration)

Factory Executive

Personal Officer Welfare Officer

27
PRODUCTION DEPARTMENT

28
 Production involves conversion of raw material into finished products/ goods.
It can be briefly explained as follows.

Input Conversion process Output

In the Western India Plywoods Ltd, the raw material that are used to the output is
steam wood, and chemicals. After introducing these raw materials to a series of
process the finished goods are obtained. Western India Plywoods produce three
categories of products, namely, plywood, hardboard and furniture. The wood that is
required for the production is acquired from both local as well as international
markets. Western India Plywoods imports wood from Malaysia, South Africa, and
South America etc. In India wood is obtained from Kashmir, Mysore, Wayanad,
Andaman Iritty etc.

Indian Timber Species Used In Western India Plywoods

Commercial Timber Decorative Timber

Vellapine Teak

Kalpine Rose wood

Pali Mahagany

Mullanpali White Cedar

Pashupali Kussia

Padapine Poom

Kulirmavu Beech

Mango Silver Oak

Badham Gombia

Red Cedar Chembak

29
Following are the various machinery and process involved:-

Chipping Machine for the formation of wooden chips:

These chips are transferred to the head tank for washing it using conveyor belts.

Cleaning of chips:-

This is done using boiling water. It also provides sufficient softness for the chips.
Passing through sieve does the separation of water from the chips.

Cyclone

Chips from the deliberating machine are transferred to a conical chamber called
cyclone using steam.

Defibrator

The Defibrator used in the plant is the aspluent Defibrator. The moisture content in
the chips is removed by increasing the temperature and the cleaned chips are
converted into fine powder. After grinding it with two grinding wheels of which one
is kept stationary while the other is rotating.

Pulp formation:

The powder form of wood is converted into pulp by adding sufficient quantity of
water and chemicals. The chemicals used are dilute sulfuric acid, paraffin wax and
certain resin. The pulp is then pumped into board forming section.

30
 Flow Chart Of Plywood Process

Log Yard

Cross Cutting

Boiler

Cross Cutting Chipping Slicing

Drying Boiler Drying

Edging

Splicing

Glue Spreading

Assembling

Pre-Pressing

Hot Pressing

Conditioning

Trimming

Sanding

Finishing

Grading

Plywood

31
Log Yard

Log yard is a lake near Baliaparam River where the logs are stored for 2 months to 5
years. Logs are arrived from all over the countries like Malaysia, Africa Andaman and
South America. Before dipping into water, the length and diameter of the logs are
noted and given a specific number. According to necessity the logs are taken out.
Storing of wood in water make wood durable and prevents from fungus attack and
softening the wood before peeling. In Western India Plywoods the layout of the log
yard is such that it is able to facilitate the free movement of the transport from one
part to another. Trolley lines are provided for easy transport of timber.

Cross Cutting

The wood from the log yard is brought in for cross cutting. The long wood is cut into
block of varying sizes ranging from 3 to 8 feet as required. Chain saw is used for
cutting the logs that works on a hydraulic system.

Boiling

This is to convert the hard timber into soft and remove the oily material. In order to
make the hardwood soft and to remove its oil content, the blocks are boiled with the
help of steam at a temperature ranging from 1200C to 1800C. The wood is
boiled for a minimum of 24 hours. The steam that is required is produced in boilers.
After boiling logs are cleaned and bark is removed manually and the metallic particles
are also removed which may damage the knife.

Western India Plywoods has 4 types of boilers. They are,

1. Saw dust boiler

2. Firewood Boiler
3. FBC (Fuel Bed Combusting)
4. IAEC (Industrial Agricultural and Engineering Corporation)

Peeling

After boiling, the logs are peeled with the help of the peeling machine. The output is
called the veneer. Two kinds of veneers are obtained – Face and core. Both of them

32
have the same quality, but the soft and smooth part is known as face and the hard and
the rough is called as core. The thickness of veneers ranges from 0.4 mm to 2.8mm.
Sometimes the slicing machine is used instead of a peeler. This is mainly used in
decorative plywood.

Slicing

Mainly decorative veneers are sliced in a slicing machine. For slicing the logs are first
cut in the form of flitches from the Kohinoor Saw Mill. There are two slicing machine
vertical and horizontal. Western India Plywoods uses horizontal slicing machine. This
flitch is fixed on bed and the knife is moved. Each veneer produced is stocked
manually from the machine in an order.

Clipping

The next process is called clipping. Clipping is the process of converting the veneers
into required size and also remove the detective part of the veneer. Here the veneer
produced from the peeler is passed through clipper. Clipped veneers are moved to
transfer which are selected on to faces, cores, cross band and then dried.

Drying

Drying is the next process. Drying process is conducted by considering time, steam,
and thickness of wood. The machine used for this process is known as Dryad. Usually
the moisture content is reduced to 6% to 10%.

Edging & Joining

The majority of veneers obtained after clipping would be relatively narrow in width,
so edging and joining necessary for plywood manufacture. It includes edge cutting,
joining, taping and spicing. The dried veneer may not straight edge. Edge cutting
machine is for straightening the edge of veneer after cutting. For this Western India
Plywoods has two edge cutting machine. It is working under hydraulic or air pressure.
After cutting, the UF resin is applied on the edge of the veneers. Electric heat is used
for joining the veneers. A gummed tape is also used for joining the veneers. After
joining, it is cut into required size.

33
Glue Spreading

Uniform distribution of glue on the surface if veneers is called glue spreading. In

Western India Plywoods the roller is used for spreading of adhesive. Both side of
veneer can be glued at a time. Each machine consists of two spreading roller made up
of steel covered with rubber. The distance of the roller can be adjusted. Minimum
thickness of the veneer that could be glued on this machine is 0.3mm. Glue spreaded
veneers are again dried in the dryer. The glues used are – Urea formaldehyde,
Areolyte, Melanine formaldehyde.

Assembling

In assembling the core veneers are places in between the face veneers. The adjacent
veneers are placed in such a way that the gains are across each other. Minimum three
plies should be there in plywood. In this process, several boards are pressed in certain
temperature. The main element that should be taken as important in this process are
steam, thickness and time.

Pre-Pressing

Pre-pressing is the compression of panel assembly to attain to attain its final thickness
without obtaining the final polymerization or cured state of glue line. Pre-pressing is
done on the siempel kamp press. The duration of pre-pressing may vary from 20-30
minutes depending on the adhesive.

Hot Pressing

It is an important process in plywood manufacturing. In hot pressing high temperature

and pressure will be applied. The temperature and pressure will be different to each of
plywood. Temperature is used for curing the resin and pressure is used for reducing
the thickness. There are 3 types of presses used for plywood manufacturing. They are
multi daylights and working under hydraulic pressure. The pressing time may vary
according to the thickness.

Conditioning
After pressing commercial plywood are dipped into the chemical tank for 2.5minutes.
It provides resistance and gives strength to the board. Conditioning is the process in

34
which the pressed plywood are treated with chemical water to avoid termites and
fungal attacks.

Trimming

In trimming the plywood is passed into the trimming machine for cutting the sides
according to the sizes required.

Sanding

This is the process in which the trimmed surface of the plywood is smoothened and
softened by using sandpaper or belt sender or drum sander.

Finishing

Finishing is the final step in the plywood production process. All the finishing works
such as repairing of face veneer and patch works are done carefully, fine splits,
checks, and small gaps on the surface plywood are filled with French choke powder
and airtight powder. The boards are sealed and labeled and made ready for dispatch.

Speciality Plywoods

1) AIRCRAFT PLYWOOD:

Aircraft plywood is used for the interior of the aircraft like in military and field. It is a
3 ply construction and its thickness ranges from 1mm, 1.2mm, 1.5mm. Because of its
small thickness it can easily bend as desired. Pali & White Cedar is only used for its
construction with PF resin.

2) MARINE PLYWOOD:

Marine plywood is used in the application of marine vessels. Main species for its
construction are kussia (used as face), kalpine (used as core & cross band), Red Cedar
as a whole. Sometimes Kalpine is also used as all veneers in its construction. Kussia
has good bonding strength and resistant to microorganisms. Usually 7ply of 9mm is
taken and PF resin is used for its construction.

35
 3) SHUTTERING PLYWOOD:

Shuttering plywood are used for concrete shuttering. 3 types of shuttering plywood
are manufactured in Western India Plywoods.

4) FIRE RETARDANT PLYWOOD:

Fire retardant plywood has a quality to resist the fire. BWR plywood are treated with
fire proofing chemicals such as boric, boarxetc and treated in vaccum pressure for 72
hours to get the fire proofing property.

Densified wood division:

Densified boars are of 3 types- low Densified board, medium Densified board, and
high Densified board. Density of these boards is 0.97 g/cc, 1-77g/cc respectively.
Kalpine and vellapine are the mainly used species. The method of manufacture of
Densified boards is slightly different from plywood in glue spreading. All the veneers
including face are also glued. PF resin is used. The viscosity of the resin is 30-45
second. After glueing veneer is dried to reduce the moisture content present in the
glue.

Furniture

Furniture is another product which is produced in Western India Plywoods. The furniture is
used by using decorative woods like Teak, Mahogany, and Rosewood etc. The veneers are
molded in various shapes to make different types of furniture. All the furniture is long-lasting
and is with best quality. Along with this, the wastes of decorative veneers are used to make
various handicrafts products. Inlay board is an example.

HEIRARCHY OF PRODUCTION DEPARTMENT

Production Manager

Production Assistant Skilled

Production Executive Semi-Skilled

Production Supervisor Unskilled

Workers Casual

36
PURCHASE DEPARTMENT

37
Purpose

To lay down the procedure for procuring/purchasing of items from domestic supplier
as well as import.

Scope

Procurement items like timber, chemicals, spares, instrument, oils, lubricants, fuel,
Equipment, and machinery.

Purchase department deals with all purchase of the organization, Western India
Plywoods has two purchase departments:

1. Purchase department-Stores and spares

2. Purchase department-Timber

Purchase Procedure

1. Purchase Requisition or Indenting of materials

With the help of purchase requisition purchase officer come to know the type of
materials needed in the organization. Purchase requisition is a written request sent to
inform the Purchasing Department of a need for material and surplus. Both the stores
send Stores Indent, which is duly signed by the Stores Manager and Works Manager
and is authorized by GM. The particulars of the stores Indent are entered in the Stores
Register in the purchase Register and Purchase Register in the Purchase Department,
with reference to its serial number

2. Purchasing Enquiry

Purchasing enquiry is sending in the prescribed enquiry from quoting the quantity,
item, rate/unit etc. After checking whether the required specifications are met or not
they invite quotations.

3. Receiving Quotations

A source of supply of material is selected after the receipt of the Stores Indent.
Enquiry is sent and quotations are invited from the suppliers. Usually the Purchase
addresses. The received quotation is sent to respective sections. After checking

38
whether their required specifications are met or not, the quotations are accepted or
rejected.

After receiving the quotation, in order to decide to whom the order should be placed,
the relevant file with Stores Indent, enquiry and quotation are sent to Works
Department, does final decision regarding the placement of order.

4. Purchase Order

Once the quotations are accepted, the Purchase Department sends the Purchase Order.
Purchase Order is the written request to supplier for specified goods at an agreed
price. It stipulates terms of delivery and terms of payment.

Three copies Purchase Department sends the Purchase Order. The original order is
sent to the supplier. The copies are sent to Accounts/Finance and respective stores

5. Receiving Materials

When the goods ordered are delivered, the Stores Department will receive the
material. Before receiving the materials a detailed inspection is carried out. The
invoice is sent to the Production Department, which will be signed by Workers
manager.

Government Orders

Orders are met against enquiry from Railways and Government. The procedure
includes:

Government notification inviting quotation

Government sends quotation

Government quotation

Government carries out inspection

Government gives the order

The sales will be 95% cash sales and 5% credit sales. In the case of Government
orders normal credit period allowing is 30 days.

39
The details of purchases are entered in Purchase Day Book kept in the Purchase
Department.

Purchase – Timber Section

This Department does the purchase of timber. There are three sources for the purchase
of timber:

1. Local Purchase
2. Importing or Outside/interstates Purchase
3. Purchasing from Government Source (very rarely)

Local Purchase

The dealer may be registered or Non-registered. Registered dealer will give Bill to
Western India Plywoods Ltd. In the case of Non-Registered dealer Western India
Plywoods prepares a Bill and pays cash.

List Of Timbers Used

Commercial Timber Decorative Timber

Vellapine Rosewood

Kalpine Teak

Redpine Mahagany

Penta Pine Pecca

Ekoba Silver Oak

Mango Kuacia

Neeli Jombi

Eucalyptus Dhavala

Pali Chemaka

40
Inter State Purchase Or Importing
In the case of interstate purchase there will be 4% sales tax. The Central State Tax
Number should be provided in the Bill.

Timber is imported as per import procedure after the MD/ED or an assigned

representative does on-site evaluation and selection. The timber logs cleared from the
port are transported to the log yard and stored in water.

Government Source

Now in the case of Western India Plywoods Ltd this is very rare. It can be said that it
is almost nil. For this there will be notification from the Government. The company
verifies this notification and report to the management. If the company is willing
attends the auction the Government will give the Bill.

The timber is purchased as and when it is available. After purchasing Mopoanes take
care of the timber. As and when required the timber moves to the Production
Department.

Purchasing Process

The extent control on suppliers and their products/services, is the dependent on the
relative importance of the product/services on Western India Plywoods’s operations.

 Suppliers are selected on the basis of qualification/past experience

 Supplier’s information is available with respect to records of their
qualification and subsequent performance.
 Suppliers can be re-evaluated and/ other disqualified for non-performance or
other justifiable reasons, during a Manager Review.
 Material specifications are referred to in enquiries and purchase orders.
 Emergency purchase can be authorized by Managing Director/Executive
Director.

41
Purchasing Information

Appropriate and adequate information about the product is provided in the purchase
order or other documents. Requirements for approval of product/process/equipment as
applicable, reference to drawing if any, qualification requirements of personnel if any,
are intimated to the suppliers.

Hierarchy Of Purchase Department

Managing Director

GM (Administration)

Purchase Executive

Assistants

42
SALES DEPARTMENT

43
 Sales department is a part of Marketing Department and starts only after the
production of finished goods.

The Western India Plywoods products mainly takes the form of DIRECT SALES
AND DEPOT SALES and also through COMPANY AGENTS AND
REPRESENTATIVES, Agents are paid service charges against sales, there is an
agency agreement with the agents.

Sales Procedure

 Receiving the order

 Placing the order

Three copies of placement order are maintained, one copy is sent to the works
department, one copy to dispatch section and one copy s kept in the Sales Department
itself.

 Preparation of Dispatch Invoice

Billing section receives dispatch invoice from the dispatch section. Four copiers are
prepared, one is kept in the sales department, if the order is booked, a copy is kept in
the hands of transporter, one copy is sent to the party who placed the order and
another copy is given to the agent.

 Preparation of Dispatch Document

Dispatch Document are prepared by the Central Excise Department and Billing staff
of Sales Department as per Base documents issued by Dispatch Section.

 The Depots Return Stock

Transfer invoice copy after receipt of the material. They are filed in head office depot
wise files.

 Depots supply indented products to the respective customers. Sufficient no. of

copies of bills including original to customer and copy to Head Office. Depots
sent sales day book.

44
Western India Plywoods Sales Summary

When a customer approaches to purchase the products of Western India Plywoods,

they first place a purchase requirement asking about the details of the department and
the conditions of sales. Then they place a purchase order specifying their
requirements. The sales department then make arrangements to schedule the
manufacturing process according to the specification and requirements in the purchase
order. They prepare a production order in triplicates, the original is sent to the factory,
duplicate to the dispatching section and triplicate is kept by the sales department.

After the production of the required quantity of products the dispatch section prepares
a dispatch advice in triplicate. The original is send to the factory side, the duplicate is
to the billing section and the triplicate is to the dispatch section manager.
After receiving it the billing clerk prepares the bills. In case of cash sales, the cashier
sends the 1st bill to the customer and the duplicate is kept by the accountant. In case
of credit sales the dispatch section prepares a gate pass in order to release the goods
from the factory. In short the document connected with the sales are

 Purchase requisition:-asking about the details of the products and conditions of

the sales.
 Purchase Order:- if the customer satisfies with the conditions of sales he will
place a purchase order.
 Production Order:- it is prepared only at the time of stock out of demanded
goods.
 Delivery Order:- it is prepared when the demanded goods are in stock.
 Gate Pass:- in case of credit sales in order to release the goods from the
factory a gate pass is produced.

The Western India Plywoods Ltd has branches or depose all over India. The branch
managers prepare the intend. The first, second and third copies are send to the head
office and the fourth copy is kept by the depose itself.

45
The sales department maintains the following records to keep the daily transactions:

 Daily Sales Report

 Sales Day Book
 Stock and Sales Statement

Selling Techniques Used By Western India Plywoods

Western India Plywoods concentrates more on industrial market than on consumer

market as its products are semi-finished and are used by the industries for further
production. 80% of its total sales are of hard boards.

The techniques used by Western India Plywoods are:-

 Direct Sales
 Agency Service

Direct Sales-

It means sales through the company directly. Many of the sales of Western India
Plywoods are through direct sales. The process of the direst sales in Western India
Plywoods are as follows:

 Western India Plywoods get enquires from the market through different media
of communication and they sent their quotations to them/ the Western India
Plywoods makes follow p to their quotation and make sure that the customers
are interested in their products.
 When the firm receives a Receipt of Order in which the details of the
department and their units etc would have been mentioned, the sales manager
makes his order to the production department. Here any specific suggestions
made by the customers and the date of issue etc are also mentioned, the sales
manager of Western India Plywoods also follow up with the production
department check that the production processes are going well.
 On completion of the production the sales manager of Western India
Plywoods give a Dispatch Order to the concerned department to make issue of
the ordered products and is sent to the respective customers.

46
  After supplying the billing is made, an invoice is prepared which contains all
the relevant details.

Depot Sales-

It means sales through depots. The sales procedure of the depots is same as that of the
direct sales. The goods are recorded as sold just on transfer than the sales. The price
list in each depot. Which are added with the transportation cost, carriage & freight
charges etc, excise duty is not included as they are charged at the time of actual sales,
Western India Plywoods has got depots in all parts of the country.Western India
Plywoods also attends Many Exhibitions and Trade Fair to improve its sales. They
also have many agents who are paid commissions on the basis of the sales they
market. Some of the organization also act as its agents. They take the company
products and makes payment only after the actual sales.

Hierarchy Of Sales Department

Managing Director

Executive Director

Sales Executive

Sales Assistants Dispatch Assistants Depot Assistants

Sales Agents

47
MARKETING DEPARTMENT

48
 Marketing is the art of selling products. It is also defined as societal process by
which individual and groups obtain what they need and want through creating,
offering and freely exchanging products and services of value with others.

Western India Plywoods Marketing

Due to the high standard of quality maintained by the quality control department of
this company, the product of the company have found ready acceptance in markets
both in India and abroad. The company has succeeded in arranging manufacturing
programs on the basis if firm orders, which in regularly for all types of products. The
plywood manufactured by the company is being regularly used for manufactures of
T.V cabinets, bus bodies, building constructions, railways, furniture industry etc. The
hardboard is used for partition walls, false ceiling, furniture industry etc. The
densified wood is being supplied to the electrical industries in various forms and also
to the textile and chemical industries in the form of filter plates and as checkered
boards for flooring in buses and railway coaches. The DAP and FRP compounds are
being used by the electronic and molding industries. The furniture manufactured by
the company is being absorbed the market in drawing rooms, bedrooms, schools,
office etc. The products of the company are being exported West Germany, France,
U.S.A Sweden, West Asia and South Asian countries regularly.

Marketing Strategy

The strategy that has been adopted by the firm is customer oriented Western India
Plywoods’s marketing strategy evolves around its product quality. The company does
not aim at making profit by competing with the local manufacturers, rather aims at
Niche Marketing. Niche marketing is typically a small market whose needs are not
well secured. The Western India Plywoods Ltd follows high quality with high price
policy but the consumers are still ready to buy their products at high price because of
its quality. So the company mainly aims quality conscious customers.

Western India Plywoods Ltd has three segments namely industrial market, domestic
market and export market. About 50% sales constitute industrial sales. Western India

49
Plywoods has positioned its brands in upper end of market and targets those segments
that require the quality it offers backed by willingness to pay. Western India
Plywoods’s positioning stands in product performance and resultant value for
processing stands in product performance and resultant value for money. It is backed
by Western India Plywoods’s commitment to harness the latest technologies in wood
processing field and continuously upgrade its process and machinery.

Market Segmentation

Western India Plywoods is well-established organization manufacturing high quality

goods. Company believes in quality. In order to ensure the quality each batch of the
products will undergo quality tests. Company has an efficient marketing strategy. The
prices of Western India Plywoods’s products are comparatively high, but of high
quality. The company is targeted at the high income as well as at the low-level income
groups Western India Plywoods is marketing more than 300 products.

Products are segmented as;

1. Domestic

2. Institutional

3. Automotive

4. Export

Promotion

Long term brand building is undertaken through personal selling and direct mail
marketing besides promotional visits by selling agents. In general promotional
activities include advertising, public relation and publicity. In the case of Western
India Plywoods’s there is a separate department for public relations. But the very
important point to be noted is that till now there has been no advertising. The main
promotional activities of Western India Plywoods include conducting and
participating exhibitions, trade fair etc.to attract potential customers. They have more
of a direct selling approach. It has around 40 sales depots nationwide.

50
Distribution Channel

Distribution channel is just like a pipeline through which water flows from a source to
final destination. Marketing channels make possible the flow of goods from a
producer through intermediaries to a buyer.

1. Zero level channel

In which the company sends catalogues, price list, data regarding major certification
etc.to the potential customers. In direct marketing company gives a cash discount of
5%-10%.

2. One level channel

Company Agents Customers

Company Sales depots Customers

Marketing Mix

Plywood Section

Product

Western India Plywoods produce a range of plywood to suit specific requirements in

both industrial as well as domestic sector of the market. To support its philosophy of
providing value added products, only Phenol bonded boiling water resistant plywood
and other superior grades are manufactured by Western India Plywoods. Some of the
plywood manufactured by Western India Plywoods are:

 BWR treated Plywood conforming to IS:303

 BWP treated Plywood conforming to IS:303
 Marine Plywood conforming to IS:710
 Resin Surfaced Shutting Plywood conforming to IS:4990
 Fire Retardant Plywood conforming to IS:5509
 Decorative Plywood conforming to IS:1328
 Aircraft Plywood conforming to IS:709

51
Pricing

Consequent to superior raw material and additional processing incorporated in the

manufacture of Western India Plywoods panel; they are more expensive than product
offered by others and state of the art technology also adds to final product cost.
However the additional perceived value arising out of such investment is more than
marginal cost addition and hence customers are willing to retain loyal to Western
India Plywoods’s products.

Placement

Western India Plywoods’s products are sold through exclusive retail outlets, which
are either owned by the company or commission agents representing the company. In
some areas, established dealers are appointed to increase availability and reach of the
products. Company directly deals with customers.

Substitute Product

Western India Plywoods’s products have heavy duties, but still it

has no cost-effective substitutes for the reason that the end user does not allow any
compromise regarding its quality.

Hardboard Section

Product

Western India Plywoods’s board ‘WESTON’ possesses superb physical and

mechanical properties and is indispensible to manufactures of automobiles, door pads,
shoe heels, clocks, fiber and drum lids among many other application. Western India
Plywoods’s hardboard is exported to many countries in the world where it holds its
own position against the best brand in the world.

The commonly demanded kinds of hardboards are:

 Standard hardboards conforming to IS:1658

 Oil tempered hardboard conforming to IS:1658
 Perforated hardboard conforming to IS:1658
 Pre finished WIPLAC hardboard

52
Pricing

Western India Plywoods is able to offer its hardboard at a very competitive price due
to an efficient production process using the latest machinery. As a result of this,
product is being sold at huge premium in the retail market.

Promotion

The hardboard produced by the Western India Plywoods is short in supply, but the
market it serves is rapidly growing. As a result of this there is absolutely no need for
any short term promotion practices.

Placement

Hardboard is a product of mass consumption. So Western India Plywoods in addition

to its own outlets utilizes the established dealer networks in various towns and cities
to increase availability and product reach.

Substitute Products

Being the most economical building material used today, hardboard has cost effective
substitute material. When its economy is compared with quality control that Western
India Plywoods is able to offer, hardboard offers tremendous value for money.

Structure Of The Department

Managing Director

Marketing Manager

Marketing Coordinator

Business Manager

Marketing Officer

Executives

53
EXPORT / IMPORT DIVISION

54
Purpose

To popularize the products to the international level. The company’s Exports are
carried out as per the export policy of Government of India and responsibilities lies in
the hands of the Import /Export Executive of the company.

Functions

Export functions are carried out by the General Manager and the Import / Export in
charge. Quotation or Performa invoice is sent to customs along with the details of the
products to be supplied with samples wherever required for the approval.

Export orders are obtained against payment through Letters of Credit. (LC) or other
terms of payment.

Once the price is approved, the customs offer L.C, covering value, quantity,
destination of supply, specification etc, and arrange for payments according to the
terms.

On confirmation of order and consequently on the placement of order and opening of

L.C or arranging for payment according to terms of the L.C, foreign buyer’s product
note is sent to the production department to start production strictly as per the
requirement for the foreign buyer as per the delivery schedule given by them.

As soon as the cargo is ready, necessary clearance is obtained and cargo is moved to
the nearest post or the shipment to the destination port. As desired house stuffing is
also arranged according to requirements of the import in Western India Plywoods
factory by container from the port to works.

The cargo is handed over at the port to Western India Plywoods’s clearing agents and
they are undertaking all the customs formalities to get a clarity for the shipment
within.

The least possible time, including getting back to the ARM from the customs
immediately after shipment for submissions to the Central Excise Department.

55
Once the shipment is effected and bill of lading obtained from the customer agent, the
shipment documents are prepared for foreign buyer and negotiated with Western India
Plywoods, bankers immediately.

After negotiation of L.C of arrangement for payment according to the terms, the
payment for the cargo dispatch to the customs is obtained, customs takes realize to the
cargo on its arrival at the destination port and also takes recent of original documents
from their banker.

Proper care and supervision are taken in all process of production, packing and
sufficient care taken to ensure the product exported are of top most quality and to
keep up its product image high in the international market.

The section takes sufficient care to fix the price for export and ensure cost reduction
in all stages where ever possible such as packing, transport etc. to obtain better
financial return in each and every transaction.

Most of the products are exported to UAE, Africa, Australia, China, Sweden, USA,
Newzealand, Srilanka and other parts of the world.

Hierarchy Of Export / Import Department

Export/Import In charge

General Manager (Admin)

56
STORES DEPARTMENT

57
 Western India Plywoods has two separate stores-Hard Board Stores and
Plywood store. Hard board store keeps all the materials and spare parts necessary for
the production of hard board (except timber). Ply wood stores keep all the materials,
and spares needed for the production of plywood (except timber).

Functions

 To send Stores Indent or Purchase Requisition to Purchase Department

 To receive materials, spares, tools and equipment ordered by purchase
department
 To ensure inspection of purchase material
 To enter the receipts of accepted items in records and return the rejected ones
 To keep the materials at proper place in the stores
 To maintain the safety of items from damage, pilferage etc.
 To issue materials on authorized requisitions
 Valuation of stock

Procedure

 Indenting of Materials
 Making purchase order by Purchase Department
 After reaching the materials checking the quality, quality etc.
 Receiving the materials
 Materials go to stock

Documents

 Stores Indent
 Goods Inward note
 Positive Recall
 Goods Register Note
 Card X
 Issue Slip
 Stores Warrant

58
TOTAL QUALITY MANAGEMENT

59
 Western India Plywoods’s has implemented a quality management system
considering the aspects of personnel, inputs, appropriate technology and machinery
for the various operational functions such as production, marketing, purchase,
maintenance etc. The quality policy of Western India Plywoods has been defined by
the Managing Director as appropriate to the long-term vision, commitment to quality,
customer perception of Western India Plywoods products and other aspects of the
industry. The policy is reviewed periodically during management review for its
continuing suitability. The policy is communicated to all the employees for a clear
understanding and deployment.

Western India Plywoods Ltd. has separate department for total quality management
and is well known for its quality throughout the world it has recognition of ISO 9001-
2000 for one of best and standardized production system in the world. ISO provides a
lot of standard for the quality assurance. Western India Plywoods has both internal
and external auditing system. Internal auditing is done every six month by the
concerned department head. External auditing is conducted mainly by the external
certifying body.

The processes needed for the quality management system have been identified and
applied through out Western India Plywoods. The criteria and methods needed to
ensure effective operation and control of the processes are in place

Quality Objectives

 Suitable equipment and machinery for process control at all stages

 Provision of adequate resources including raw material and personnel to
ensure consistent product quality.
 Well-defined process and product characteristics, to enable monitoring,
analysis and continual improvement.
 Communication of requirements of products including customer requirements,
statutory / regulatory requirements, aspects of Quality Management System
including policy and objectives among all employees.

60
Work Instructions

The requirement satisfied by the Western India Plywoods in order to get ISO
certification is the following

 Quality Control
 Resource Management
 Management Review
 Product Realization
 Measurement analysis and improvement

Quality Manual

The system procedures deemed necessary by the quality management system are
referred in this manual. Any other document for planning/operation/control of
processes is referred in this manual. The instructions for the specific tasks that are
contributing to quality of product are referred to as work instructions. The data
generated by implementation of the system are maintained as records, which have
been referred to in the appropriate document

Resource Management

Western India Plywoods management is committed to identifying, providing and

reviewing the resources required to sustain the quality management system and
improves its performance from time to time. Resources needs also include those
required to enhance customer satisfaction by meeting customer requirement. It is
ensured that adequately skilled personnel are assigned to various operations.

Management Review

The Management Review is held by a committee headed by the Managing

Director/Executive Director, Management Representatives and all Heads of
Departments. Management Review is performed once in six months and the minutes
of the review meeting are maintained. The Management reviews the continuing
suitability of quality policy, objectives and overall quality management system with
respect to information on performance and feed back from various review inputs.

61
Product Realization

Realizing the product that meets the requirements involve translating the customer’s
needs and schedule into product requirements within the facilities available, carrying
out various production operations and ensuring that the acceptable products reach the
depots/dealers and customers. Systems are in place to provide adequate confidence
about these functions.

ISO Certification

The main objective of International Standards Organization is to produce and publish

international standards.

The Western India Plywoods Ltd is an ISO certified company. The ISO certification
was awarded to the company IN 1996 for the quality management system of the hard
board and Western India PlywoodsSLAC prefinished boards. In May 1999 for another
three years and the company has also received the same certification for its plywood,
classified wood, flush loan and block boards. .

Structure Of TQM
Managing Director

Management Representative

Quality Engineer

Trainee

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RESEARCH AND DEVELOPMENT

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 The Western India Plywoods has an in-house R&D Department approved by
the Department of Science and Technology and Council of Scientific and Industrial
Research. (CSIR). It has the required analytical, conditioning and testing facilities for
product or process evaluation, rigid quality control and new technology analysis. The
testing equipment available consists of the standard machines for conducting physical,
mechanical and electrical test of all kinds. They include a weather-o-meter in which
the extreme weather conditions of the world can be simulated in accelerated manner
in order to arrive at quick inferences. Karl Fischer, titration equipment, Torque
Rheometer and Permeable gel, Chromatogtaph are available in the testing lab of
Western India Plywoods’sR&D division for accurate analysis of rawmaterail and
finished products, the products developed and modified by the R&D division include
DAP (Di-Allyl phthalate) Moulding powder and fibre glass reinforced plastic, sheet
Moulding Compound (SMC). which find use in the manufacture of sophisticated
products required in highly specialized electrical and electronic applications.SMC can
also be overlaid on Plywood and Hard board. The manufacture of DAP moulding has
been achieved for the first time in South East Asia in the Western India Plywoods.
This has put India on the road to self-reliance in the material of strategic importance.

Material Testing Lab

Western India Plywoods possesses a full-fledged material testing lab which is

monitored by its government recognized R&D division. The Lab is equipped to
perform various physical, mechanical and electrical test specified in the IS
specification.

Every day random samples drawn from panels produced in Western India Plywoods’s
plants are tested for conformance to the relevant IS specifications.

The integrity and quality of Western India Plywoods’s testing division can be gauged
by the fact that representative sampes drawn from material to be supplied to the
Indian Railways, Defence and other government organizations are tested on its own
material testing lab under the supervision of officials deputed by the respective
inspection Agencies

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FINANCE DEPARTMENT

65
 The Western India Plywoods LTD IS A WIDELY HELD PUBLIC
COMPANY. Its share is listed in Cochin and Madras Stock Exchanges. On 31st
March 2003 Company has 13 Crores Paid Up Capital of which 8.5 Crores are Equity
Shares and the remaining are Preference Shares.

The Western India Plywoods Ltd follows the Double Accounting System. Various
accounts are prepared by them to keep their transactions. The following are the main
types of accounts kept by Western India Plywoods Ltd.

 Journal
 Ledger
 Sub ledger

To record receipt and payment they maintain 4 records. These include the following
Accounts.

 Total debtor account

 Total creditor accounts
 Purchase day book
 Sales day book

They also prepare a commission register. For charging depreciation against fixed
assets straight line method was used.

Western India Plywoods publishes Annual Report every year, which includes the
Profit and Loss Account, Balance Sheet, Accounting Policies of the business etc.

Source Of Finance

1. Shares
2. Reserves and Surplus
3. Loans Secures loans
4. Unsecured loans

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Accounting Procedure

Western India Plywoods follow double accounting system and also maintain four
types of journals. They are;

 Cash payment book (CPB)

 Bank payment book (BPB)
 Cash receipt book (CRB)
 Bank receipt book (BRB)

For these four types of journals, a sub ledger is prepared. This sub ledger are
classified into three;

 Accounts Receivable Book (ARB)

 Accounts Payable Book (APB)
 Personal ledger (PL)

At the end of every month the sum total of the sub ledgers are transferred to the main
ledgers. Then there should have the equality in the amount of the sub ledger and main
ledger, i.e. total amount of sub ledger= Total Amount of Main Ledger

The next accounting procedure is preparing the trail balance. At the end of every
financial year, profit and loss account and Balance Sheet is prepares, from which
financial position of Western India Plywoods is noticed

Capital Structure

The capital structure Western India Plywoods Ltd was made up of equity shares and
preference shares having value of Rs.100 each. They issue only redeemable
preference shares. They also issue bonus shares at the time of high profit. Their shares
are registered in the madras stock exchange. They transfer a certain percentage of
profit to the following reserves

 Export-profit reserve
 Share premium reserve
 General reserve

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Loans

The Western India Plywoods Ltd has the following Loans for financing the long term
requirement of funds.

 Secured loans
 Term loans
 Foreign loans overdraft
 Long-term loans

Foreign Currency Transactions

Foreign currency liabilities outstanding as at the balance sheet date are translated to
exchange rates prevailing on the date and the loss or gain arising out of the said
transactions relating to acquisition of fixed assets is adjusted to the cost of relative
assets and others are charged to the profit and loss account

Revenue Recognition

Revenue from sales has been recognized on raising of sales invoices on respective
parties and is inclusive of excise duty but exclusive of sales tax.

Dividends

Due to shortage of operating profit, directors are not recommending any dividend for
the accounting year ended 30-09-10

Retirement Benefits:

Contribution to Provident Fund is made monthly, at the rate prescribed by the

Employees’ Provident Fund Act and charged to the Profit and Loss account on
accrual basis

The company has an arrangement with LIC of India under the Employees Group
Gratuity cum Assurance scheme to administer its gratuity scheme and the annual
premium paid/payable is charged to the Profit & Loss Account. The accruing liability
for Gratuity to employees is ascertained on actuarial basis and provided for.

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Leave encashment benefits payable to employees including the accrued thereon (taken
on estimate basis) are charged to the Profit & Loss Account.

Income Tax

Provision for income tax is made based on the assessable income as computed in
accordance with the provision of the Income Tax Act, 1961. Timing differences
between accounting income and taxable income capable of reversed in subsequent
years are recognized as deferred tax.

Western India Plywoods publishes Annual Report every year, which includes the
Profit and Loss Account, Balance Sheet, Accounting Policies of the business etc.

BALANCE SHEET AS AT 31.03.2017

Note As at 31st March As at 31st March
No. 2017 (Rs.) 2016 (Rs.)
I EQUITY AND LIABILITIES
1 Shareholders’ Funds
(a) Share Capital 02 103,873,400 103,873,400
(b) Reserves and Surplus 03 315,226,786 303,612,763
419,100,186 407,486,163
2 Non-Current Liabilities
(a) Long Term Borrowings 04 49,973,442 75,792,770
(b) Deferred Tax Liabilities (Net) 05 22,130,000 21,863,000
(c) Long Term Provisions 06 1,702,684 1,819,973
3 Current Liabilities
(a) Short Term Borrowings 07 235,226,789 200,846,685
(b) Trade Payables 08
i. Total outstanding dues of micro
enterprises and small enterprises ; and - -
ii. Total outstanding dues of creditors other
than micro enterprises and small enterprises 105,056,871 79,790,086
(c) Other Current Liabilities 09 67,306,584 77,633,583
(d) Short Term Provisions 10 11,238,783 20,407,612
TOTAL 911,735,339 885,639,872
II. ASSETS
1 Non-Current Assets
(a) Fixed Assets 11
(i) Tangible Assets- (Property, Plant and Equipment) 173,983,673 151,387,306
(ii) Capital Work-in-Progress 6,648,470 30,657,772
(b) Non-Current Investments 12 108,065,529 107,685,529
(c) Long-Term Loans and Advances 13 10,659,714 13,210,917
2 Current assets
(a) Inventories 14 375,582,717 371,884,182
(b) Trade Receivables 15 136,380,496 137,271,465
(c) Cash and Cash Equivalents 16 51,748,059 51,147,267
(d) Short-Term Loans and Advances 17 22,605,220 21,428,336
(e) Other Current Assets 18 26,061,461 967,098
TOTAL 911,735,339 885,639,872

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Bankers

(The Western India Plywoods has mainly 5 banks)

 SBI State Bank of India

 UBI (Urban Bank of India)
 IB (Indian Bank)
 SYB (Syndicate Bank)
 CB (Canara Bank)

Structure Of The Department

Managing Director

Company Secretary

Chief Accounts Officer

Finance Manager

Cashier

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SWOT ANALYSIS

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 SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths
and Weakness are the internal factors of the company where as Opportunities and
Threats are external factors. SWOT Analysis is the tool for auditing an organization
and its environment. It is the first stage as planning and helps marketers to focus on
key issues have been identified, they feed into marketing objectives. It can be used in
conjunction with other tools as audit and analysis.

Strength

 The company has been maintaining a high quality for its products and as its
products are well accepted in the market by quality conscious customers, it
does not anticipate any marketing problem. They are considered to be the
“The Leaders in Quality Since 1945”.
 The company has a well-established R&D unit, one of the best kinds in the
wood based industry.
 The company is duly equipped to develop new products to meet the
requirements of the market.
 The products of Western India Plywoods are certified by ISO.

Weakness

 There is an acute shortage of good raw materials which has forced the
company to import a substantial portion of its main raw material viz. timber,
which has also seen a considerable increase in price.
 Lack of good distribution network as compared to the competitors.
 Promotion of competitors is better to that of Western India Plywoods. The
Company concentrates only on Industrial Market.
 The price of Western India Plywoods’s products is high as compared to its
competitors.

Opportunities

 The company is a leading supplier to Railways, Defense, Automobile,

Electrical, Transport, Civil Aviation and other industries.

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  Several products have been developed for the specific requirements of the
Automobile, Transport and communication sectors such as Densified wood
etc. and these products which have technological advantages over competitive
products.
 The Company diversified from the production of chest and commercial
plywood to manufacture Decorative Plywood, Block Boards, Shuttering
Plywood and Aircraft plywoods.
 The products of the Company are being exported to Germany, France, U.S.A,
Sweden, West Asia and South Asian countries.

Threats

 The high power tariff and increasing cost of furnace oil and other petroleum
products and chemicals.
 There are many medium scale and small scale plywood industries. They fix
low price for their products.
 In some product ranges, imported items are available at lower cost than is
currently produced in India.
 In general, the working of the company has been adversely affected by the
effects of Globalization.

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Findings

 Because of the increasing demand, now the company has changed their
distribution system in order to reach more parts of the state.
 Due to the high standard of quality maintained by the company, its production
costs are relatively high so that company facing a serious problem and wants
to reduce the price.
 The company’s various operations on raw material performed in sequence and
the machines are placed along the product flow line. Because of this, the
company’s products get completed in lesser time and also have a smooth and
continuous work flow.
 The company gets 25% of the profit from the exporting.
 Company concentrate all over the market.
 Still the company is not computerized fully.
 The company maintaining 0 % wastage.
 Promotional expense is very less.
 Western India Plywoods focus on quality

Suggestions

 It is desirable to launch an advertising campaign to attract more customers

 It is advisable to maintain and efficient market intelligence system and advice
mgt of the changing needs of the market.
 The company may introduce more measures such as fencing of machineries,
which will protect the workers from accidents.
 The company may prepare budgets for each activity which will provide it a
better control and coordination mechanism. This will aid in reduction of
production costs.
 The company can save time and cost through the computerization.
 The company have to follow more safety measures because there is a risk of
fire in the factory layout.

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Conclusion

Western India Plywoods ltd., the second largest wood processing industry in South
East Asia, as a bright future in this field. During the running period since 1945, the co.
achieved various milestones. The high-end production technology of Western India
Plywoods is well acknowledged among the wood processing industries in India.

The Western India Plywoods Ltd., achieved 100% utilization of raw materials due to
its integrated production system. Therefore, it would be apt to call Western India
Plywoods Ltd., ‘a company with a conscience’. Western India Plywoods Ltd., stands
for superior product performance and provides value for money to its customers. It is
backed by Western India Plywoods’s commitment to harness the latest technology in
wood processing industry and continuously upgrade its processes and machinery. Due
to the high quality maintained, the company has found a ready market in both India
and abroad. The company does not aim at competing with the local manufactures but
wants a main player in the plywood export.

Now the company is producing more quantity is hardboards than plywood, because of
the development of technology. Presently the company is operating in loss- the major
cause being globalization. Another reason is the pricing policy of the company. The
price level of the products is higher as compare that of other companies
manufacturing similar products. The company should try to create brand awareness in
the local market by advertising in medias and conducting exclusive exhibitions etc.

Bibliography

1. www.wipltd.com

2. www.scribd.com

3. www.wikipedia.org

4. K. Aswathappa, production & operation mgt, 2007

5. K Aswathappa, human resources and personnel management, 2007

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