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CHAPTER -1
INTRODUCTION





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INTRODUCTION
Management is the process by which people, technology, jobs, tasks and other
resources are combined and co-ordinated so as to effectively achieve organisational
goals.
The organisational structural training at THE WESTERN INDIAN PLYWOOD LTD.
is to study about organisational structure communication channel, span of control
culture etc. of the organisation. The relevance of the study is to understand the above
mentioned organisational 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.
The western Indian plywoods ltd., the monopolistic name and industry since 1945,
till 1995 in the wood processing establishment in Asia, is the present second largest
wood processing complex in South-East Asia. This company was established in 1945.
Late Sri. A.K. kadherkutty was the founder and promoter of the company. The
company is situated 7 Kms away from Kannur and is near to the valapattanam railway
station and the company covers 27 acres of land. The company is producing mainly
plywoods, hardboards, furniture, densified woods, blackboard etc.











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OBJECTIVES OF THE STUDY
To get a practical orientation of the company.
To understand about the industry and its operations.
To understand the nature, size and type of industry.
To understand the plywood manufacturing process.
To understand the functional areas of the firm.
To have general awareness of the functioning and management of the
organisation.
To know the mission and vision of the company.
To understand the organisation structure and working of various functional
departments.
To understand the strength and weakness of the company.
To study the organisational profile of the company.
To study the departmental profile of the company.
To find out the future plans the organisation wants to implement.
To interact with the highly qualified managers and study their duties and
responsibilities.
To understand the extent to which management theory matches with actual
practices observed.
To analyse the overall performance of the company.






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METHODOLOGY
The methodology used for this organisational study is mainly in two ways,
they are;
PRIMARY DATA
SECONDARY DADA

PRIMARY DATA
Primary data are those data which are collected first hand 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 managers
From the Office staff
From the worker

SECONDARY DATA
Secondary data are those data which have been already been collected from the
company such as
Business Journals
Annual report
Magazines broachers


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CHAPTER-2
INDUSTRY PROFILE


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INDUSTRY PROFILE
India was rich in its forest wealth having a huge land area under forests. Trees are
natures greatest bounty to man. They provide shelter, fuel, medicines and tools for
war or transport. It was timber from trees, which in the early days helped to conquer
the oceans and to fly in the air.
Nature develops trees as a mother brings up children, making each one a separate
individual. It is amazing sight to see the natural abstract rhythm of line, colour and
texture in wood. Nothing from nature indoors gives such a long lasting enjoyment as
the natural beauty of wood, flowers fade, but beauty of decorative wood is enchanted
by age.
Plywood has been made for thousands of years ;the earliest known occurrence
of plywood was in Ancient Egypt around 3500 BC when wooden articles were made
from sawn veneers glued together crosswise. This was originally done due to the
shortage of fine wood. Thin sheets of high quality wood were glued over a substrate
of lower quality wood for cosmetic effect, with incidental structural benefits. This
manner of inventing plywood has occurred repeatedly throughout history.
The plywood industry had been hit by the slump in the real estate industry,
which is a significant source of demand for plywood. The industry is also having hard
time holding its own against cheap imports from China.
Most high quality English furniture makers working in the eighteenth and nineteenth
centuries (and since) have used veneering as a technique. In addition to making the
most out of the highest quality materials available, it reduces prices and improves
stability of construction. The irregularities of grain which confer decorative interest
often result in uncontrollable warping and cracking if any attempt is made to use the
wood in thicknesses much greater than those characterizing cabinet-making veneers
(typically 1-2 mm).
Modern plywood in which the veneer is cut on a rotary lathe from soft wood
logs, is of relatively resent origin, invented by Immanuel Nobel. The first such lathers
were set up in the United States in the mid-19
th
century. Plywood has been one of the
most ubiquitous building products for decades. One of the earliest applications of
mass-produced manufacturing in the United Stated was recorded in Port Land,
Oregon by the Portland manufacturing company.


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In India, water proof plywood is also known as kit ply. Though kit ply is a
brand it has become a generic designation, since the company that makes it pioneered
the use of water proof plywood in India. The landscape historian John Stigler has
theorized that the 4
th
X dimensions of a standard sheet are due to the space required
for moving a mule into a barn.

GROWTH AND DEVELOPMENT OF PLYWOOD INDUSTRY
In India the modern sector of small, large scale manufacturer have played a significant
role in the social-economic development of country. Our country is blessed with
immense stock of natural resources both above and beneath the soil surface. Forest is
one of the important natural aspects of India. The various of wood processing
plywood manufacture is an important sector wing ti its employment potential and
value addition. In India plywood as a product was commercially develop first in
Assam and its neighbouring area by enterprising industrialist. Nearly a century ago
during those days when the India tea was introduce to Europe, many complaints such
as training of the tea, change of Oder, lack of resistance of boxes to wit stand
transport. To overcome these complaints Indian association set up a committee to go
up into details of tea packing and it was found that tea chest made from plywood
could be used packing tea.
The art veneering was in existence early as 1500BC in Egypt. Veneering is a thin
layer of sheet of wood uniform in thickness. Veneer is used in Greek during early
period of beautiful the furniture. The roman also used veneer during the time of 63
BC. During the reign of LUOIX XV in 1760 good decorative furniture was made in
France using veneer. The plywood which is seen in the present from was developed
after 1860 this veneer machine was first upgraded by French machine in 1812. The
factory for manufacturing of veneer was first established in Germany in the middle of
19
th
century. Nowadays a rapid development is taking place in this field.


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PLYWOOD INDUSTRY IN INDIA
The Indian plywood industry owes its origin to the development to tea industry in the
state of Assam, West Bengal, Kerala and the difficulty created by the two World wars
in the way of imports of tea chest plywood. Except for the setbacks suffered in the
post war period, the plywood sector was booming since 1947.
In 1947 India was a net importer of plywood, mainly tea chest plywood of
approximately Rs.2 crore per annum. During 1992 India manufactured 150 million
sq. meters of plywood types that earned approximately Rs.100 crore. The industry has
grown both in medium, large scale and small-scale sector. The plywood industry has
provided main outlet for the maximum utilisation of secondary species, the plywood
industry aided for the development of farm forestry sector plantation, which benefits
the ordinary farmers in the country.
The other main raw material requital by the plywood industrial is synthetic rasin,
which is available within the country. The materials required for manufacturing resins
are Urea and formaldehyde. The industry also excise duty to the extent as Rs.50 crore;
provides employment to about 30000 people and has total investment as Rs.400 to
500 crores.
INDUSTRIAL TRENDS
Competition is keen in the furniture 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, such as Chinese mainland. On the
other hand, foreign manufacturers are talking steps to strengthen their domestic
production through product speciation.
To stay globally competitive, Hong Kong furniture manufactures 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 applying for ISO9000/9002 certification.
Hong Kongs furniture makers also started to develop their own brands. Furniture
manufacturers also become more careful about the choice of raw materials to meet


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international also become more carefully about the choice of the raw materials to
meet international standard, 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 exporters 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, 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. In China, most of the production is on OEM basis. China also
offers a huge potential market for furniture maker.


















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CHAPTER -3
COMPANY PROFILE













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COMPANY PROFILE
NAME : THE WESTERN INDIA PLYWOODS LIMITED

REGISTERED OFFICE : MILL ROAD.BALIAPATTAM.KANNUR,
PIN: 670 010
TELEPHONE : 0490-2778151
E-MAIL : westernply@gmail.com
mail@wipltd.in
WEBSITE : www.wipltd.org
BANKS : STATE BANK OF INDIA
CANARA BANK
BANK OF INDIA
INDIAN OVERSEAS BANK
AUDITORS : M/S VARMA AND VARMA
(CHARTERED ACCOUNTANTS,COCHI)
REGISTERS : M/S CAMEO CORPERATE SERVICES LTD
SUBHRAMANYA BUILDING, CHENNAI
LEGEL ADVISORS : MS.PUSHYA SITARAM
ADVOCATE, CHENNAI






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COMPANY PROFILE
The Western India Plywoods Ltd is a widely held public limited company
listed in Cochin and Madras stock exchanges. Its capital is;
a) Equity share capital (8.49 crores)
b) Preference share capital (2.10crores)
The company is located at Valapattanam in Kannur, one of the upcoming
industrial cities in Kerala. The company was established in 1945 as a manufacturer of
sawn timber ply wood on a modest scale with a few indigenous and lend-lease
machinery. Mr.A.K.Kaderkutty the Founder and the prompter of the company have
been the guiding light of the firm.
The Western India Plywoods Ltd has two subsidiary companies. They are
Kohinoor saw mill Co Ltd. And South Veneers Wood Works Ltd. The company is the
largest manufacturer of plywood and hard boards. The company is having continuous
expansion and development in making plywood of exceptional strength and variety to
meet all kinds of demand for industry, architecture, defence, railway, shipbuilding,
aircraft, etc.
The Western India Plywoods Ltd is Indias largest wood processing complex
manufacturing, a highly dandified range of wood based panel products. In India,
making of plywood of exceptional strength and variety to meet all kinds of demands
from industry, defence, railway, shipbuilding, etc.
The manufacture of plywood stepped-up steadily by adding new machinery
mostly imported .The company was diversified from tea chest and commercial
plywood, block border, flush doors shuttering and the marine plywood ,aircraft
plywood, etc.
Western India Plywoods products to over 29 countries spread across 4
00continents to buyers associated with the company forever three decades. Western
India Plywoods export is mainly to the developed and quality conscious.
A hard plant with an installed capacity of 12.5 t was setup in the year 1956-60
with West German technical collaboration. Like hardboard of Western India


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Plywoods, plywood product commands a premium in the market due to intrinsic
quality that is recognized by loyal customers. Besides the plywood and hardboard the
company also produce quality flash door, blackboard. Modern furniture items and a
host of other product to suit the end market needs.
GROWTH
WIP has 55 years of existence; WIP has been singularly responsible for the
most significant product innovations in the Indian plywood planel industry. The
company with a capital of 11.50 lakhs consisting of 9199 Equity shares of Rs.100
each and 2301 preference share of Rs.100 each. The company made steady progress
year after by addition share of new machinery and also introducing modern
technology. The company has 3 divisions, hardboard, plywood and furniture with
employees strength of 1200. A hardboard plant with an installed capacity of 12.5
tonnes was set up in 1959-1960 with West German technical collaboration.
Today WIPs hardboard division is a market later in hardboard with state of
art production lines Manufacturing 120 tonnes per day. From 1971 this company has
been exporting decorative plywood and veneers to U.S.A, Canada, Germany, France,
Dubai and other countries of Middle East. Since its inception, WIP has promoted and
maintained the motto of cent percent utilisation of wood raw material. This has great
significance today when the scarcity of quality timber is keenly felt with the country
and we are totally dependent on impotent.
The manufacturing of plywood was stepped up steadily by addition of new
machinery, mostly imported. The company also diversified from tea chests and
Commercial plywood to Decorative plywood, block board, flush doors, shuttering and
marine plywood , Aircraft plywood, etc. the company planned and executed the
hardboard plant between the years 1956 and 1958 with an installed capacity of 1205
tons of hardboard per day. The company also installed its own synthetic resin unit in
1959 with a capacity of 200 tonnes per annum, which gradually increased to 2400
tons per annum by 1975. Manufacture of densified wood was commenced on a small
scale initially as part of the plywood plant. An industrial license was obtained in 1974
for manufacture of densified wood with a capacity of 2000 M.T per annum. Mainly


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by the electrical, textiles and chemical industry, railways etc. in 1974 a plant for
manufacture of furniture was added.
A reverse osmosis based desalination plant, the first in Kerala with the most
modern technology to purify brackish ground water and sea water, having a capacity
of 300 cum per days was successfully commissioned in the year 1996 thus
overcoming the acute shortage of water required for production during summer.
NATURE OF BUSINESS
WIP is the fourth biggest plywood factory in Asia. The factory is situated in
Kannur district in Kerala state. WIP collects timber and firewood through import from
Malaysia, Africa, Burma, Russia etc. and local purchase. Thus it is being processed at
the factory and converts into various finished products such as different varieties of
plywood, hardboard furniture, wood etc. WIP exports 80% of total production to
Germany, USA, Canada, Italy, Australia, and Italy, Japan, Sweden, Middle East and
Gulf countries regularly. The rest of 20% is being through retail outlets and
Companys sales deports through the country WIP Ltd., the largest integrated wood
processing complex in the country, was incorporated in 1945immedeatly after second
world war.
Thanks to the dynamism and vision of the founder-Managing director Mr.
A.K. Kaderrkutty, who is the acknowledged doyen of the Indian working Industry?
WIP grew over two a well-integrated wood processing unit with finally turned skills
in the new product development and manufacture. Through its 60 years of existence,
WIP has been singularly responsible for the most significant product innovation in the
Indian plywood panel industry.
AHARDBOARD plant with an installed capacity of 12.5 tonnes was set up in
1959-60 with German technical collaboration. Today WIPs hard board division is the
market leader in hardboard with state of the art production lines manufacturing over
120tones today. WIPs hard board like its plywood products, commands a premium in
the market, due to its intrinsic which is reorganized by loyal customers.




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WIPS LIST OF FIRST SIN THE COUNTRY
First to make irradiated wood.
First to make aircraft plywood.
First to make synthetic resin adhesive plywood using hot pressing techniques.
First to make high pressure industrial laminates.
First to make quality hardboard way in(1959-60).
First to manufacturing di Allyphthalatemolding power.
First to manufacture GI- plywood GI sandwich oanelanechoc chamber.
First to make pre-finished plywoods and hardboard using UV cured surface
finishing techniques.
First to get ISO9001 certification of hard board and prefinished boards.
The company has earned special appreciation from leading industry in the
automotive sector, footwear sector, ISRO BARC, Indian railways etc.











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CHAPTER-4
PRODUCT PROFILE


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PRODUCT PROFILE
WIPWOOD:
Densified wood used in the manufacturing of textile and jute mill accessories.
WIPLAM:
Densified wood used in the manufacture of insulation components for transformers
and switchgears.
WIPCHEK:
Densified wood used in the manufacturing of high precision jig formatting tools in
aeronautical industry and shields in reactors.
WIPBEAR:
Densified wood used in the manufacture of bearing and gears.
WIPCHEM:
Densified wood used in the manufacture of electrical insulation components like
studs,nuts, cleats, and other segments.
WIPRESS:
Rigid and high purity densified wood with excellent electrical and mechanical
properties, for use in the transformer industry.
WIPLAC:
Pre-finished plywood and hardboard, used in the manufacture of panel coiling and
furniture.
ULTRACLICK:
Engineered wood flooring.




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COMPREG SLATS:
Used for railway coaches, panelling and as a building material.
DENSIFIEDMOULDED SEATYS:
Use for railway coaches, auditoriums and restaurant.
WESTINDIPLY:
Decorative finished and commercial finished BWR and BWP grade plywood
manufactured from selected species of timber, water proof quality used for boat
building, concrete shuttering, furniture, partitions, panelling, etc.
HARDBOARDS:
Used extensively by automobile industries fibber drum manufactures shoe
manufactures photo frame backing clock manufactures schools writing parts and also
for partitions.
FURNITURE:
All types of furniture including desk chair, low chair both single seated and double
seated, higher back chair, executive sofa, writing tables, dining table, cupboard, side
case rack, cloth hanger, room cabinet, TV cabinets, dewan coat, club chair, utility
tables, centre tables, side tables, telephone tables, study tables, etc.
AWARDS AND RECOGNIONS
National Association for Application of Radio Isotopes and Radiation in
Industry Award 1984
National Award Certificate of Merit Government of India 1977-1998
CAPEXIL certificate of merit for the year 1976-77, 1985-86, 2002-03, 2003-
04, 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 (for best export
performance of chemical and allied products)
CAPEXIL Special export award for the years 1975-76, 77-78, 82-84, 84-85,
85-86, 86-87, 87-88, 88-89, 89-90


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ISO 9002 certificate for the quality given by the SGS yearly international
certification LTD(UK)
PRODUCT HIRARCHY


WIPS LIST OF FIRST IN THE COUNTRY
First to make irradiated wood
First to make aircraft plywood. First to make synthetic resin adhesive bonded
plywood using hot pressing technique
First to make high pressure industrial laminates
First to make quality hardboard way back in 1959-60
First to manufacture Di Ally phthalate moulding powder
First to manufacture GI-PLYWOOD-GI sandwich panel for anechoic chamber
First to make pre-finished plywood and hardboard using UV curved surface
finishing technique
First to get ISO 9000 certification for hardboard and pre-finished hardboards.



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CHAPTER-5
ORGANIZATION STRUCTURE












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ORAGANIZATION STRUCTURE






















Managing director
Executive Director
GM
(Administration)
GM
(Production)
HD/PEP/PCP
B
Store/ P&A
Electrical
Company Secretary
Chief Accountant
Officer
Marketing Head
Technical Manager
Development Manager
Works Manager


Central excise
Plant Manager
Sales Manager
DWD
Densified Wood
Product
Plywood, flush door,
Block board


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CHAPTER-6
FUNCTIONAL AREAS











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FUNCTIONAL DEPARTMENTS
Following are the functional departments in Western India Plywoods Ltd;
Purchase department
Production department
Marketing department
Sales department
Finance department
Human resource department
Store department
Research and development department















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3.1 PURCHASE DEPARTMENT

Western India Plywoods Ltd deals with a number of products. Thus it has to
purchase many goods. They include purchase of raw materials, spares, tools for
furniture, nuts and bolts, furnace oil lubricants etc. WIP generally makes 2 kinds of
purchase.
They are;
1. Local purchase
2. Purchase through banker

STRUCTURE OF THE PURCHASE DEPARTMENT













MANAGING DIRECTOR
GENERAL MANAGER
PURCHASE EXECUTIVES
PURCHASE ASSISTANCE


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PURCHASE PROCEDURE
1. Purchase requisition or indenting of materials:
With the help of purchase requisition the 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 and store indent which is duly signed by the store manager.
2. Purchasing enquiry:
Purchasing enquiry is sending in the prescribed enquiry from quoting the quality,
item, rate/unit etc. After checking whether the required specifications are met or not
they invite quotations.
3. Receiving quotations:
Quotations are invited from the suppliers usually the suppliers usually the
purchase addresses. The received quotation is send to respective sectors. After
checking whether their required specifications are not or not the quotations are
accepted or rejected.
4. Purchase order:
Once 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 of payment.
5. Receiving materials:
When the goods ordered are delivered, the stores department will receive the
material. Before receiving the material a detailed inspection is sent to the product
department which will be signed by works manager.






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Timber Purchase Department
Timber purchase
Fire wood purchase
Veneer purchase
The timber and veneer are purchased from the local places as well as imported
or will be procured from the government sources. The company MD or the executive
director visits the places and makes the assignment for purchasing the materials.
While purchasing, there will be making a letter of the credit. If the goods are
importing, then they may be delivered in docks either in the Mangalore port or in
Cochin port.
The fire woods are procured from the local places on contract basis. The
company will invite quotations from the interested parties and then favourable
contracts will be accepted.














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3.2 PRODUCTION DEPARTMENT
RAW MATERIALS
Wood
Steam
Chemicals
Wood:
Two types of goods are used for the purpose of production. They are commercial and
decorative.
For commercial purpose woods used are Calpine, Vellapine, Mango, Neeli, Pali and
Mullanpali.
For decorative purpose Rosewood, teak, Mahogany, Peed auk, Oale, Beach silver,
kussia, Dhaala, and Champhak are used.
Steam:
Steam is generated with the help of boilers. There are three types of boilers.
1. Saw dust boilers
2. Fire wood boiler
3. FBC boiler
Chemicals:
Chemicals include glues and moulding powder, phenol, formaldehyde and
arealist.


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PRODUCTION PROCESS
1. Log yard:
Log yard is a takes or resources where the timber logs for production and stored.
The stored timbers are manually or automatically collected using the left conveyor.
2. Cross cutting:
Cutting is done by large row machine. The timber is cut into length of normally
three feet to eight feet.
3. Boiling:
Timber is normally hardwood so in order to soften the timber log it is lolled in
lories for a minimum of 24 hours @ 80-160C stream lording is mainly done to make
the cutting and peeling of logs early.
4. Peeling:
This is an important process. Boiled logs is put in to peeling machines and
peeled. The peeled layer is rolled up on to rollers. These layers are called as veneers.




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5. Clipper:
The rolled up veneer is passed through clipper machines and cut in to various
sizes. Cutting is done separate. The various types of veneers or with damage,
thickness etc.
6. Drying:
The clipped veneers are wet to dry them. This veneers are passed through hot
steam driers. On the basis of thickness veneers are dying.steam is passed at high
degree celciuoce and veneers is passed through this hot steam.
7. Edging and joining:
The dried up veneer edges are always irregular. It is edged on all sites using
machine to make the size regular and then sides are glued. The glued veneers are
placed together and passed through a machine to joining together.
8. Gluing:
This is the process where the core veneer is glued uniformly and equal son both
sides. The glue roller machine is used for spreading of adhesive both side of the
veneer are can be glued at time.
9. Assembling :
This is an important processing in plywood manufacturing minimum of 3
plywood is required 2 face and 1 core. Face veneers is placed across for veneers grain
according to thickness of plywood required the size of veneer and number of cores
also changes every plywood consist of odd number of veneers for finding the
thickness of veneers.
10. Hot pressing:
The assembled veneers are now ready for pressing. The operation is carried out
in layer hydraulic press. The packs of veneers are loaded in to the press either by
hands or automatic feeders. Pluten-temperature, moisture content, pressure and time
are rigidly controlled to suit the particular batch being pressed. When steam is
applied, glue melts to hold the veneer together.


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11. Conditioning:
Here the plywood panels are closely stacked and are treated with chemicals in
order to prevent decay.
12. Trimming:
The pressed plywood panels may not be of proper dimension. Trimming and
levelling of plywood to proper dimension is done by panel sizes. A panel sizes consist
of two circular saws adjusted on a shaft. A rectangular steel frame travel on a two
blades, the travel being parallel to the plane of saws. Two different panel sizes are
used to trim the plywood.
13. Sanding
Here the plywood panels are made soft by the removal of surface imperfection
and giving a smooth finish.
14. Finishing:
Here, a final touch is given to the plywood to make it more attractive. There will
be cracks, splits or pores on the surface of the plywood after sanding. These are filled
with the putty of the same face veneer species and then the panel undergoes manual
sanding.
15. Grading:
The plywood is graded according to the quality of panel wood species used,
preservatives, chemical properties etc.
16. Inspection and testing:
The plywood is inspected and tested in order to make sure it is of pre-determined
quality.



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WORK FLOW MODEL






















Log cutting Boiling
Peeling
Clipping Drying Edging and
Joining
Assembling Gluing Hot Pressing
Conditioning Trimming Sanding
Finishing Grading Inspection &
Testing


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HARD BOARD- Flow chart of hard board production






















Log yard
Chipper
Chip washing
Chip silo
Machine Chart
Chip heater
Conditioning
Equalizing Chart
Defiderator
Cyclone
Defierator Chest
Head Box
Board Forming
Hot press
Trimming
Special Treatment
Hard board


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3.3 MARKETING DEPARTMENT
HIERARCHY OF MARKETING DEPARTMENT









MARKETING MIX:
Product:
WIP produce a range of plywood to suit specific requirement 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 WIP.
BWR treated plywood conforming to IS:303
BWP treated 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:B28
Pricing:
Hard Board
Marketing manager
Marketing coordinator Marketing officer
Marketing executives
Representatives
Business
development
officer


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Consequent to superior raw materials and additional processing corporative, the
manufacture of WIP panel. They are more expensive than product offered by others
and state of the art technology also adds to final products 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 WIPs product.
Place:
WIPs 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 product.
Company directly deals with customers regarding high density industrial laminates.
Promotion:
Long term brand building is conducted through personnel selling and direct mail
marketing besides promotional visits by selling agents. In the company there is a
separate department for public relation. The main promotional activities of WIP
include conducting and participating exhibitions, trade fair etc. They have more of a
direct selling approach.
PRODUCT STANDARDISATION:
The WESTERN INDIA PLYWOODS LTD is an ISO 9001-2008 certified
company the status conforms that its customers can rely on continues high quality
service. It also provided that WIP is a company with strong customer satisfaction. The
company is having two kinds of standards.
1. Product standards
2. System standard
The company system standard is ISO: 9001-2008 and the products are having ISI
standards. WIPs BWR plywood is having IS: 303-1989 specification and its Western
hardboard is having IS: 1658 certification.




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DISTRIBUTION CHANNEL
Distribution channel is just like a pipe line through which water flows from a
source to final destination. Marketing channel 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 sales department customers
Company agents sales agent customers

MAKET SEGMENTATIN AND PRODUCT POSITIONING
Market segmentation:-
The Western India Plywoods LTD 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 WIPs products are comparatively high, but
of high quality. The company is targeted at the high income level groups, other
industrial buyers and export market. WIP is marketing more than 300 products.
The market has been segmented as;
1. Domestic market
2. Industrial market
3. Export market




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Product branding and loyalty:-
The WIP LTD is reputed public company in producing wood based products.
The company is trying to utilize, this goodwill in marketing their products. They are
not trying to sell their products using brand loyalty. WIP has given the name
WESTIND for their plywood products, furniture and decorative flooring. The
companies hard board is branded as WESTON, the densified wood and pre finished
boards are individually branded. Most of the customers are showing brand loyalty as
the company is having up to mark quality in all of their products.


















37

3.4 SALES DEPARTMENT
SALES DEPARTMENT
Western India Plywoods sales its products through;
Direct sales
Company owned depots
Agency service
Direct sales means company receives the order from the customer and supplies the
goods directly from the company. Usually the customers are not allowed credit.
Company owned depots are managed by the company. Company receives the orders
through the depots and supplies the goods through it. Company has 42 sales depots
throughout the country.
Agency sales mean company has authorised agency depots and these agencies receive
orders from the customers and company supplies goods through depots to the
agencies. Agencies are given commission at a certain percentage. The agency should
periodically made a report about the sales and submit it to the company.
Each year company will make a sales target and using as well as the sales using
makes and takes necessary steps to achieve the target. A sales day book is prepared by
the department to know about the sales per day.
Types of sales
1. Industrial sale
2. Export
3. Local or domestic sales
Main customers of the company are Indian Railway, HMT, KSRTC, shipyard,
Marathi, Toyota, etc. Products are mainly exported to countries like USA,
Netherlands, Srilanka, Japan, Canada, France etc. Domestic buyers are mainly
carpenters, furniture companies and local people for their domestic use.


38

3.6 FINANCE DEPARTMENT
The Western India Plywoods Ltd has 13crores paid up capital of which 8.49 crores
are equity shares and the remaining are preference shares. The WIP LTD follows the
double entry system of accounting. Various accounts prepared by them to keep their
transactions. The following are the main books kept by the company.
1. Bank payment
2. Bank receipt
3. Cash payment
4. Cash receipt
5. Cash analysis book

STRUCTURE OF THE FINANCE DEPARTMENT



Managing director
Company secretary
Chief accountant officer
Finance
Cashier


39

Ledgers maintained:
Following are the ledgers maintained by the company
1. Main ledger
2. Debtors ledger
3. Creditors ledger
4. Personnel ledger
Capital structure
The capital structure of 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.
Loans
The WIP LTD has the following loans, for financing long term requirements of trade.
Secured loans
Term loans
Foreign loans overdraft
Long term loans
Foreign currency transaction
Foreign currency liability outstanding as at the balance sheet date are translated to
exchange rate prevailing on the date and loss or gain arising out of the said
transactions relating to acquisition of fixed asset is adjusted to the cost of relative
assets and others are changed to the P & L a/c.





40

Revenue recognition
Revenue from sale has been recognised on raising of sales invoice on respective
parties and is inclusive of excise duty but exclusive of sales.

Transfer to reserve
An amount of Rs.15lakhs has been transferred to general reserve.










41

BALANCE SHEET AS AT 31.03.2013
Note
no.
As at 31
st

march
2013(Rs.)
As at 31
st
march
2012(Rs.)
EQUITY AND LIABILITY
Shareholders Funds
a)Share capital
b)Reserves and surplus

Non-Current Liabilities
a)Long Term Borrowings
b)Deferred Tax Liabilities(net)
c)Long Term Provisions

Current Liabilities
a)Short term borrowings
b)Trade Payables
c)Other Current Liabilities
d)Short Term Provisions


2
3


4
5
6


7
8
9
10


105,873,400
259,363,977
365,237,377

104,309,486
32,507,000
1,619,487


245,298,147
68,075,733
85,195,130
61,590,390



105,873,400
252,069,911
357,943,311

122,615,593
48,510,000
1,420,922


165,400,505
93,135,109
85,002,373
43,467,237
Total 963,832,743 917,495,050
ASSETS
Non-Current Assets
a)Fixed Assets
(i)Tangible Assets
b)Non-Current Investments
c)Lomg-Term Loans and Advances
Current Assets
a)Inventories
b)Trade Receivables
c)Cash and Bank Balances
-Cash & Cash Equivalents



11
12
13

14
15
16




221,562,437
46,055,429
51,188,691


361,806,932
149,337,154




265,740,562
22,829,970
16,387,719


359,273,203
138,948,591



42

-Other Bank Balances
d)Short Term Loans and Advances
e)Other Current Assets

17
18

82,584,140
5,829,944
28,792,891
16,675,125

64,439,206
15,247,377
23,976,445
10,651,978
TOTAL 963,832,743 917,495,050


STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED 31.03.2013
Note
No.
For the year
ended 31
st
march
2013 (Rs.)
For the year
ended 31
st

march 2012
(Rs.)
REVENUE FROM OPERATION
Revenue from operation(Gross)
Lesss: Excise Duty
Revenue from operation(Net)

Other Income

19



20

963,916,423
96,959,259

866,957,164
6,625,479

1,009,738,283
83,302,210
926,436,073
1,116,195
TOTAL REVENUE 873,582,643 927,602,268
EXPENDITURE
Cost of Material Consumed
Changes in inventories of finished goods
and
Work in progress
Employee benefits expense
Finance costs
Depreciation
Other expenses

21

22
23
24
11
25


396,738,739

(25,899,868)
148,341,787
36,694,228
478,776,081
245,120,351

397,669,229

(2,513,596)
110,474,005
32,949,126
48,211,970
273,455,557
Total Expenses 849,771,318 860,246,291
Profit before tax
Less: tax expense
23,811,325

67,355,977



43

-current tax
-less: MAT credit entitlement
-Deferred Tax
25,088,264
-
(16,003,000)

9,085,264
30,330,136
(15,223,000)
7,703,136

7,703,136
Profit for the year after tax 14,726,061 59,652,841
Earning per Equity Share (in Rs.)- (Basic
& Diluted)
Significant Accounting Policies and Notes
On accounts


26
1 to 36
1.56 6.84

















44

3.7 HUMAN RESOURCE DEPARTMENT
Human resource is the most valuable resource in any organization because it can
function only through people. The success of an organization depends upon the ability
of its human resources. Organization achieves competitive advantage by using its
people effectively and utilizing their expertise to meet clearly defined objectives.
Western India Plywoods LTD is a forward looking organization committed to
identify, develop and sustain its human resources and help them to achieve the
individual as well as the organizational goals. Objective toward this, WIP accept
basically that of far equitable, and performance oriented policy with respect to its
human resources.
STRUCTURE OF HUMAN RESOURCE DEPARTMENT



Managing director
General manager
(administration)

Faculty manager
Personal manager
Welfare officer


45

RECRUITMENT AND SELECTION
In Western India Plywoods Ltd both internal and external sources of
recruitment is used. Whenever any vacancy occurs somebody from within the
organization is upgraded, promoted or sometimes demoted. Most eligible candidates
are selected for work. Thus the company mostly adopt internal source of recruitment.
TRAINING
Training is the act of increasing the knowledge and skill of an employee. The
company follows on the job training methods. WIP give one year training to its
employees.
PERFORMANCE APPRAISAL
Performance appraisal is the process of evaluating the employees
performance on a particular job. In WIP rating methods are used for appraisal of
employees performance. Employees are assessed by their section managers and then
reviewed by GM or work manager.
SAFETY MEASURES
To maintain the health and safety of employees the company provide the
following safety measures.
Prevention of dust pollution at source
Providing walkways for movement of personnel
Effluent treatment
Mechanized material handling
Provision for personal equipment at appropriate areas
Covering, moving or rotating parts with protective covers
Sufficient light
First aid, medical attention, ambulance services
Sign boards


46

Celebration of safety day on march 4
Good house keeping

WELFARE MEASURES
Western India Plywoods LTD provides following welfare measures to the
employees
Employee provident fund(EPF)
Employees state insurance scheme
Canteen facility

RETIREMENT
Any workman who is declared mentally unfit or found to be a continued ill
health or reach the age of 58 shall be retired from the service according to gratuity
Act.
WAGES AND SALARY ADMINISTRATION
In the company managers analyse and interpret the needs of the employees, so
that reward can be individually designed to satisfy their needs. Here the workers are
paid the wages and the staff officers, managers, etc are paid salary.
The wages /salary system which WIP 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 he spends. The basic
purpose of salary administration is to establish and maintain an equitable wage and
salary structure.





47

TRADE UNIONS
There are 4 trade unions at WIP LTD. They are;
CITU (Affiliated to CPIM)
INTUC (Affiliated to CONGRESS)
AITUC (Affiliated to CPI)
STU (Affiliated to MUSLIM LEAGUE)



















48

3.8 STORE DEPARTMENT
The store department is responsible for stocking all necessary tools, spares, raw
material and equipment required for manufacturing. Material ordered are delivered at
the store house by the supplier. The stock keeper keeps these material in a particular
place and intimates the inspection department. The inspection department certifies
that the material are in accordance with the purchase order. After the inspection, they
prepare an inspection note. The inspection note contains the information regarding the
quantity inspected, quantity accepted, quantity rejected and reason for rejection if any.
In WIP intents are signed by work manager and store keeper. One copy will be
send to the purchase department, good rejection note, after receiving goods in to store
which send to sample or quality test in to particular department inspect them. Less
quality goods rejected and prepare GRN by store keeper and send to the purchase
section signed by work manager and General Manager. The WIP store is well
arranged to get the ISO 9002 certificate in 1996. The stores are inspected in 6 month
by ISO qualified team.
STRUCTURE OF STORE DEPARTMENT




General manager
Store officer
Store keeper
Store helper


49

3.9 RESEARCH AND DEVELOPMENT DEPARTMENT
The Western India Plywoods Ltd has a very eminent R & D department. It is an in
house research and development. It is mainly with the treatment of wood. It is
approved by the department of science and technology of Government of India. The
approval is for two years and the company has to renew it time by time. For getting
approval, the company has to submit the plan for the next two years along with the
result of last two years performance.
A pan bit irradiator was set up in the R & D department with the cooperation
and assistance of Bala Research centre, Mumbai, the only one of its kind in the
industry in India, Employee nuclear energy for peaceful purpose. One of the not
worthy features of this development is the employment of both thermoplastic and
thermosetting system for the up gradation of secondary pieces and achievement for
the first time in the world. The process further utilizes one of the residues that did not
find earlier and end use.
The company has diversified its activities into the manufacture of Resorcinol
based glues, daily phthalate and sheet moulding compounds, a raw material used in
the electronic compound industry, was a result of WIPs indigenous R & D effort. The
R & D effort helped India to become the third country in the world (others USA and
Japan) to produce the special item. The DAP moulding compound is an import
substitution and improved formulation and the in house technology enabled the
material to complete favourably with imported material.









50










CHAPTER-4
VISION, MISSION, GOALS AND
OBJECTIVES





51

VISION
The Western India Plywoods Ltd is committed to customer delight, through
total quality management and continuous improvement with the involvement
(cooperation and coordination) of all the employees. The vision of the company is
present in the document and it is displayed at important and prominent location across
every department. The goals are translated into action at all the levels of the
organization by proper planning at each and every department towards the
achievement of the goals by the organization.

MISSION
To build up the reputation of the company as satisfied its customers needs and
wants
To provide utmost satisfaction to the consumer through best quality and
customer care.
To continually upgrade the product through innovation and convergence of
new technology and to produce the best quality product.
To respect the dignity of all employees and together to become instrumental in
the development of the country while protecting environment.
To utilizes the surpluses for the welfare of employees and the society al large.
QUALITY POLICY
The quality policy of Western India Plywoods Ltd is to manufacture products as
per national or international standard and make them available as per the customers
requirements. Western India Plywoods endeavours to upgrade the quality of its
products and related services on a continual basis through regular improvement
efforts. A well-defined quality management system has been implemented. This
system is continually reviewed to enhance its effectiveness and updated to make
changing needs.



52

QUALITY OBJECTIVES
Suitable equipments and machinery for control at all stages.
Provision of adequate resources including raw materials and personnel to
ensure constant product quality.
Well defined process and product characteristics to enable monitoring analysis
and continual improvement.
Communication of requirement of products including customers requirement,
statutory/regulatory requirements as per aspects of QMS including policy and
objective among all employees.

SWOT ANALYSIS
Identification of the threat and opportunities in the environment and the strength
and weakness of the firm is the corner stone of business policy formulation. It is these
factors which determine the course or courses of action to ensure the survival and
growth of the firm.
STRENGTH:
The company is using highly sophisticated machineries, quality assurance,
innovative solutions for making customer requirements by wide range of
products and confidence of meeting challenges faced by the industry.
WIP Ltd is the largest plywood manufacturing company in South East Asia.
The company is claimed to be quality manufacture of plywood, hard board,
block board, etc.
Installation and licenced capacities is very high. So that it can increase its
production if need.
The company has a well-established R & D unit, one of the best in the wood
based industry.
The products of WIP are certified by ISO.
Operational experience of 65 years with dedicated work force.


53

The company is having the largest dealer network in India for plywood and
hard board sales.

WEAKNESSES:
There is an acute shortage of good raw materials which has forced the
company to import a substantial portion of its main raw material which has
seen a considerable increase in price.
Inventory management and administrative system is not yet computerized.
High cost of production leading to lack of profit.
Promotional activities are not sufficient to boot up the sales, promotion of
competitors are better than that of WIP. The company concentrates only on
industrial market.
A lot of factory premises are under-utilized.
High price for the products compared to their competitors.
Furniture department disorder of machinery.

OPPORTUNITIES:
The company is in a lucrative area where there is a lot of scope for
development and growth.
Wood is considered to be a very essential item, hence there are always
possibility of stable demand.
As the company establish the scares resources, importance of CSR
programme should be considered for attracting the company in the global
perspective.
The goodwill and reputation can be used for further diversification.


54

With the help of R & D department it can develop new products, process etc.\
Various modification and technological up gradation projects can be carried
out.
Factory buildings and administrative blocks can be modernized because the
company is having well-structured building premises.

THREATS:
The main raw material timber is considered to be a scares resources and there
will be shortage of timber in the long run.
Environmental threats are having a major problem of the company.
Each and every company facing threats in the market because the customer
requirement are changing day by day.
Through major competitors are medium and small scale plywood industries
imported items are available at a cheap cost.
High power tariff and increasing cost of furnace oil and other petroleum
products and chemicals.
The working of the company has been adversely affected by the effects of
globalization.









55












CHAPTER-7
SUMMARY, FINDINGS AND SUGGESTIONS











56

FINDINGS OF THE STUDY
Western India Plywoods Ltd is the largest plywood manufacturing company
in south-east Asia.
WIP is the market leader in hardboard and plywood manufacturing.
WIP has only one furniture showroom, within the factory itself.
Employees are having high morale therefore less absenteeism found in the
company.
WIP has a clear internal auditing system.
Effective R & D department
WIP has well established distribution network
The main objectives of the company is to ensure the quality of the products.
Promotional expenses is very less because of the minor contribution towards
advertisement and other sales boost.
Due to the high standard of quality maintained by the company, its product
cost is relatively high.
The companys various operations on raw material performed in sequence in
the machines are placed along the product flow line.
Skilled and experienced employees and they are well trained.








57

CONCLUSION
Western India Plywoods Ltd is the South Asias largest integrated wood
processing industry. The company achieved 100% utilization of raw materials due to
its integrated production system. The company does not aim at competing with the
local manufactures but wants a main player in the plywood exporter. Zero percentage
wastage is the main speciality of WIP Ltd.
From the inception to today the vision and professionalization of the founder
Mr.A.K.Kaderkutty catapulted the Western India plywoods Ltd as a premier wood
working industry setting new trends, defining quality in wood based industry and
achieving perfection in manufacture. WIP enjoys the confidence and support of its
dedicated employees. This is the reason that makes WIP Ltd South Asias largest
integrated wood processing industry.
The core competencies of the organization can be listed as below;
o Professional management
o Effective leadership
o Cordial relationship between employees and top level management
o The company has well established network in industry with sound
manufacturing and marketing experience.










58

SUGGESTION
More efforts should be taken on sales promotional activities.
Workers participation in management should be ensured for effective decision
making.
The company should focus on diversification activities.
Currently the recreation club and the activities are only meant for the
administrative staffs. Rather activities should be made available for the
workers also.
The company may introduce more measures such as fencing of machineries
which will protect the workers from accidents.
Steps should be taken for immediate collection of debt and payment to
creditors.
Advertisement campaign should be conducted













59

BIBLIOGRAPHY
Companys Annual Reports
www.Wipltd.in

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