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An Organisational study on the


Baliapattam , Kannur

Submitted by

Anan Kri!"nan K

A pr#$%&t r%p#rt !u'mitt% t# C"ri!t Uni(%r!it), in partial *ul*ilm%nt #* t"% a+ar #* ,a!t%r #* Bu!in%!! A mini!trati#nUn %r t"% .ui an&% #* ,r- N%%ra$ Dinanat", p%r!#nal %ptWIP Lt -

,a!t%r #* Bu!in%!! A mini!trati#n, C"ri!t Uni(%r!it)



I hereby declare that the project wor done on the western India plywood ltd! "or #$ days under the guidance and super%ision o& 'r! Neeraj (inanath)*ersonnel (ept!+, is an original and bona&ide wor done by me in re-uirement o& the award o& 'aster o& Business Administration at CHRIST UNIVERSITY- 30454/011

Anan Kri!"nan K


I am greatly indebted to many people who ha%e e.tended their ind help and %aluable cooperation directly or indirectly in completion o& this project wor ! /e than the management o& /I* Ltd! "or gi%ing me permission &or conducting the project wor in their esteemed organisation!i am e.tremely great&ul to 'r!*!0!'ohammed,the managing director o& /I* Ltd! "or helping me in the completion o& this project wor ! I ta e this opportunity to than 'r!Go%indan 0utty, Accounts o&&icer o& /I* Ltd! &or his ad%ices and guidance! I my gratitude to 'r!Neeraj (inanath )*ersonal (ept!+ &or his %aluable Ad%ices and cooperation! I also out special than s to 'r!1!'ajeed,plant Super%isor &or his guidance and ad%ices during our project wor !


2he W%!t%rn In ia Pl)+## lt - is a widely held public limited company listed in 1ochin and 'adras stoc e.changes! Late 'r! A 0 0ader utty was the &ounder and promoter o& this company! 2he company is situated 3 0ms away &rom 0annur and is near to the 4alapattanam railway station and ri%er! 2his 1ompany co%ers 53 acres o& land!

2he organi6ational study conducted at 728E /ES2ERN IN(IA *L9/OO(S L2(!: Is to study about organi6ational structure communication channel , span o& control ,organi6ational culture etc! o& the organi6ation !2he rele%ance o& the study is to understand the abo%e mentioned &acts through a real organi6ational scenario! 2he chie& objecti%e o& the organi6ational study is to &amiliari6e with the wor ing o& %arious departments &or a particular period, so that one can ha%e e.posure to the practical side!


Name o& the company Registered o&&ice

; ;

2he /estern India *lywood Limited 'ill Road, Baliapattam, 0annur, <3$$=$!

2elephone Ban ers

; ;

$>?3 533@=A= State Ban o& India (ena Ban *unjab National Ban


'Bs 4arma C 4arma 1hartered Accountants, 1ochin


'Bs 1ameo 1orporate Ser%ices Subramanian Building, No!= 1lub 8ouse Road, 1hennai, <$$$$5!

2rees are nature:s greatest bounty to man! 2hey pro%ide shelter, &uel, medicines and tools &or war or commerce or transport! It was a timber &rom trees, which in the early days helped man to con-uer the oceans and to &ly in the air! Nature de%elops trees as a mother brings up children, ma ing each one a separate indi%idual! It is an ama6ing sight to see the natural abstract rhythm o& line, colour and te.ture in wood! Nothing &rom nature indoors gi%es such a long lasting enjoyment as the natural beauty o& wood! "lowers &ade, but the beauty o& decorati%e wood is enhanced by age!

6ROWTH AND DEVELOP,ENT O7 PLYWOOD INDUSTRY In India the modern sector o& Small, large scale manu&acturer ha%e played a signi&icant role in the socio;economic de%elopment o& the country! Our county is blessed with immense stoc o& natural resources both abo%e and beneath the soil sur&ace! "orest is one o& the important natural assets o& India! O& the %arious areas o& wood processing plywood manu&acture is an important sector wing to its employment potential and %alue addition! In India plywood as a product was commercially de%eloped &irst 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 tanning o& the tea, change o& odour, lac o& resistance o& to withstand transport! Landings were recei%ed! 2o o%ercome these complaints Indian association set up a committee to go up into the details o& tea pac ing and it was &ound that tea chest made &rom plywood could be used &or pac ing tea!

2he art o& %eneering was in e.istence as early as =A$$ B1 in Egypt! 4eneering is a thin layer o& sheet o& wood uni&orm in thic ness! 4eneer is used in Gree during early period to beauti&y the &urniture! 2he Roman also used %eneer during the time o& <# B1! (uring the reign o& LDOIE E4 in =3<$ good decorati%e &urniture was made in "rance using %eneer! 2he plywood which are seen in the present &orm was de%eloped a&ter =@<$ this %eneer machine was &irst upgraded by "rench mechanic in =@=5! 2he &actory &or manu&acturing o& %eneer was &irst established in Germany in the middle o& =?th century! Nowadays a rapid de%elopment is ta ing place in this &ield! At present wood products are used &or manu&acture o& modern ind o& &urniture, Building material, material &or interior decoration, ship building, automobile manu&acturing, and re&rigerator and meant &or many other purpose!

PLYWOOD INDUSTRY IN INDIA 2he Indian plywood industry owes its origin to the de%elopment o& tea industry in the state o& Assam, /est Bengal, 0erala and the di&&iculty created by the two /orld wars in the way o& imports o& tea chest plywood! E.cept &or the setbac s su&&ered in the post war period, the plywood sector was booming since =?>3! In =?>3 India was a net importer o& plywood, mainly tea chest plywood o& appro.imately Rs!5 crore per annum! (uring =??5 India manu&actured =A$ million s-! meters o& plywood types that earned appro.imately Rs!=$$$ crore! 2he industry has grown both in medium, large scale and small;scale sector! 2he plywood industry consumes about =A million m# timbers o& primary and secondary species! In &act the plywood industry has pro%ided main outlet &or the ma.imum utili6ation o& secondary species o& timber there by ma ing a%ailable contribution in the &orest economy! Later, the plywood industry aided &or the de%elopment o& &arm &orestry sector plantation, which bene&its the ordinary &armers in the country!

2he other main raw material re-uired by the plywood industry is synthetic resin, which is a%ailable within the country! 2he materials re-uired &or manu&acturing resins are Drea, *henol and "ormaldehyde! 2his industry also pays e.cise duty to the e.tent as Rs!A$ croreF pro%ides employment to about #$$$$ people and has total in%estment as Rs!>$$ to A$$crores!

INDUSTRY TRENDS 1ompetition is een in the &urniture industry! "urniture manu&acturers and e.porters are su&&ering &rom decreasing pro&it margins! 'any companies stri%e to reduce their cost o& production and increase e&&iciency! Some relocate their manu&acturing operations to other areas with lower operation cost, such as the 1hinese mainland! On the other hand, &oreign manu&acturers are ta ing steps to strengthen their domestic production through product specialisation! 2o stay globally competiti%e, 8ong 0ong &urniture manu&acturers stri%e to reduce costs, initiate -uality control, impro%e design concepts and capability, and upgrade management s ills and increase mar eting and sales e&&ecti%eness! 'any manu&acturers ha%e obtained or are applying &or ISO ?$$$B?$$5 certi&ication! 8ong 0ongGs &urniture ma ers also started to de%elop their own brands! "urniture manu&acturers also become more care&ul about the choice o& raw materials to meet international standards, such as compliance with legal or other en%ironmental re-uirements in their target mar ets! 1hina is the largest &urniture e.porter to many countries, including the DS and Hapan! 2he total &urniture e.ports o& 1hina e.ceeded DSI<,<@# million in 5$$5, with the DS being its largest mar et! Guangdong pro%ince is the major manu&acturing centre o& &urniture on the 1hinese mainland! Apart &rom 8ong 0ong, manu&acturers &rom 2aiwan and e%en the DS ha%e also set up production plants on the mainland! In 1hina, most o& the production is on an OE' basis! 1hina also o&&ers a huge potential mar et &or &urniture ma er


/estern India plywood ltd is the largest integrated wood processing comple. in the country as well as in southern Asia !It was established in =?>A and it started manu&acture o& sawn timberland plywood on a modest scale with a &ew indigenous and lend lease machinery! 2he &ounder o& western India plywood was 'r!0unhimon 8aji! Later he handed o%er the company to his son in law 'r!A!0!0ader utty Sahib, the company grew o%er the ne.t two decades into a well;integrated wood processing unit with &inely tuned s ill in new product de%elopment and manu&acturing and it has employee strength o& =55$! 2he company made a steady growth in the present world!

ORI6IN O7 THE CO,PANY 2he manu&acturing o& plywood was stepped up steadily by the addition o& new machinery mostly imported, the company also di%ersi&ied &rom the production o& tea chest and commercial plywood to decorati%e plywood, bloc board, &lush doors, shuttering plywood, aircra&t plywood, etc! the 1ompany also installed its own synthetic raisin unit in =?A? with a capacity o& 5$$ tons p!a! which gradually to 5>$$ tons per annum by =?3A! 'anu&acture o& densi&ied wood was commenced on small scale initially as a part o& the plywood plant! An industrial license was obtained in =?3> &or manu&acture o& densi&ied wood with a capacity o& 5$$$ '2 p!a! since then the company has been producing components o& densi&ied wood re-uired mainly by the electrical te.tile and chemical industry, railways, etc! in =?3> a plant &or manu&acture o& &urniture was added! A re%erse osmosis based desalination plant, the &irst in 0erala with the most modern technology to puri&y brac ish ground water and sea water, ha%ing a capacity o& #$$ cum per day was success&ully commissioned in the year =??< thus o%ercoming the acute shortage o& water re-uired &or production during summer!

2o continue to remain the best plywood panel corporation in India with a growth in allied areas!

2o pro%ided utmost satis&action to the consumer through best -uality and customer care! 2o continually upgrade the product through inno%ation and con%ergence o& new technology and to produce the best -uality product! 2o sa&e guard and enhance share holders %alue! 2o respect the dignity o& all employees and together to become instrumental in the de%elopment o& the country while protecting the en%ironment! 2o utili6es the surpluses &or the wel&are o& employees and the society at large!


"irst to ma e irradiated wood "irst to ma e aircra&t plywood "irst to ma e synthetic resin, adhesi%e bonded plywood using hot pressing techni-ues! "irst to ma e high pressure industrial laminates "irst to ma e -uality hardboard way bac in =?A?;<$ "irst to manu&acture (i Ally phthalate molding powder "irst to manu&acture GI J*lywood;GI sandwich panel &or anechoic chamber! "irst to ma e pre;&inished *lywood:s and hardboards using D4 cured sur&ace &inishing techni-ues! "irst to get ISO ?$$$ certi&ication &or hardboard and pre&inished boards 2he 1ompany has earned special appreciation &rom leading industries in the automoti%e sector, "ootwear sector, ISRO, BAR1, Indian Railways etc!














=+ RESER18 AN( (E4OLE*'EN2 (E*AR2'EN2 5+ 2O2AL KDLI29 'ANAGE'EN2 )2!K!'+ #+ 8D'AN RESODR1E (E*AR'EN2 >+ *DR18ASE (E*AR2'EN2 A+ *RO(D12ION (E*AR2'EN2 <+ "INAN1E (E*AR2'EN2 3+ 'AR0E2ING (E*AR2'EN2 @+ SALES (E*AR2'EN2

?+ EE*OR2; I'*OR2 (E*AR2'EN2



2he /I* has an in;house RC( (epartment appro%ed by the (epartment o& Science and 2echnology and 1ouncil o& Scienti&ic and Industrial Research! )1SIR+ It has the re-uired analytical, conditioning and testing &acilities &or product or process e%aluation, rigid -uality control and new technology analysis! 2he testing e-uipment a%ailable consists o& the standard machines &or conducting physical, mechanical and electrical test o& all inds! 2hey include a weather;o;meter in which the e.treme weather conditions o& the world can be simulated in an accelerated manner in order to arri%e at -uic in&erences! Sophisticated analytical e-uipments li e the Spectro;*hotometer, Gas 1hromatograph, 0ari "ischer, 2itration e-uipment, 2or-ue Remoter, and *ermeable gel! 1hromatograph is a%ailable in the testing lab o& /I*:s RC( di%ision &or accurate analysis o& raw material and &inished products! 2he products de%eloped and modi&ied by the R C ( di%ision include (A* )(iAllyl *hthalate+ moudling powder and &iber glass rein&orced plastic, sheet moulding compound )S'1+ which &ind use in the manu&acture o& the sophisticated products re-uired in highly speciali6ed electrical and electronic applications! S'1 can also be o%erlaid on *lywood and 8ardboard! 2he manu&acture o& (A* molding has been achie%ed &or the &irst time in South East Asia in the /I*! 2his has put India on the road to sel&;reliance in the material o& strategic importance! /I* had conducted con%ersion o& non;durable species o& timber li e 1heru, Bunati etc! into stable and durable wood polymer composites by radiation with gamma rays with the acti%e assistance o& Bhaba Atomic Research 1enter, 2rombay! It is one o& the greatest achie%ements o& /I*:s RC( (epartment! But recently it is not &ollowed by /I*! /I*:s RC( Scientists ha%e de%eloped weather proo&, marine and &ire retardant, grades o& 8ardboard!

,at%rial T%!tin. la' /I* possesses a &ull;&ledged material testing lab which is monitored by its go%ernment recogni6ed RC( di%ision! 2he lab is e-uipped to per&orm %arious physical mechanical and electrical test speci&ied in the IS speci&ication! E%ery day random samples drawn &rom panels produced in /I*:s plants are tested &or con&ormance to the rele%ant IS speci&ications! 2he integrity and -uality o& /I*:s testing di%ision can be gauged by the &act that representati%e samples drawn &rom material to be supplied to the Indian Railways, (e&ense and other go%ernment organi6ations are tested its own material testing lab under the super%ision o& o&&icials deputed by the respecti%e Inspection Agencies!


/I* ltd has a separate department &or total -uality management and is well nown &or its -uality throughout! It has recognition o& ISO ?$$$ &or one o& the best and standardi6ed production system in the world! /I* ltd has both internal and e.ternal auditing system! Internal auditing is done e%ery si. months by the department heads! E.ternal auditing is conducted mainly by the S1G certi&ying body! 2he re-uirements satis&ied by the /I* ltd in order to get the ISO certi&ication are as &ollows! Kuality manual 1ontrol o& -uality Resource management *roduct reali6ation 'easurement analysis and impro%ement! In order to assure the -uality section, techni-ues li e control charts are used! 2he mainly used charts are the E chart and R chart! 2he plant capacity utili6ation, plant stoppage analysis, brea down analysis are done using bar charts!

2he main reasons &or plant stoppage are 'echanical brea down Electrical brea down Bloc age o& chip Bloc age o& pulp Shortage o& &uel Shortage o& timber 2he non con&ormance o& both process and product are analy6ed by the means o& the cause and e&&ect diagram and the corresponding correcti%e B pre%enti%e actions are ta en!

9ualit) p#li&)
2o manu&acture products as per national andBor international standards and ma e them a%ailable as per customer re-uirements! /I* ltd endea%or to upgrade the -uality o& its products related ser%ices on a continual basis through regular impro%ement e&&orts! A well de&ined -uality management system has been implemented! 2his system is continually re%iewed to enhance its e&&ecti%eness and updated to meet the changing needs!

9ualit) #'$%&ti(%
Suitably e-uipment and machinery &or process control at all stage!

*ro%ision o& ade-uate resource including raw material and personal to ensure consistent product -uality will de&ine process and product characteristics to enable monitoring analysis and continual impro%ement! 1ommunication o& re-uirement o& product including customer re-uirement statutory, regulatory re-uirement to aspect o& -uality management system includes policy and objecti%es among all employees!

Or.ani:ati#n &"art ; T9,


2he main objecti%e o& international organi6ation &or standardi6ation is to produce and publish international standards! 2he /I* ltd is an ISO certi&ied company! 2he ISO J =??> certi&ication was awarded to the company in =??< &or the -uality management system o& the hardboard and /I*LA1 pre &inished boards has been re certi&ied in 'A9 =??< &or another # years! 2he company has also recei%ed the same certi&ication &or ISO ?$$=;5$$$ was done by 'BS Bureua 4ertias Kuality international )B4KI+ and the certi&icate o& manu&acturing and sales o& hardboard and /I*LA1 pre &inished boards, plywood, bloc boards, &lush door and densi&ied wood products was issued &or a period o& three years!


An organi6ation is a human grouping in which wor is done &or the accomplishment o& speci&ic goal or mission! 2he goal o& a manu&acturing concern might be to produce and supply the goods and ser%ices to satis&y the demand o& mar et! /I* L2(! aims at producing plywood, hardboard, and &urniture to meet the demands o& both national and international mar et! /I* L2(! is ha%ing the best go%erned 8uman Resource (epartment, which is the heart and soul behind the success o& the gigantic establishment! 'anaging (irector is the head o& the department &ollowed by the &actory e.ecuti%e who deals with all the matters in the personnel department! 8e is assisted by the *ersonnel O&&icer and /el&are O&&icer!

JOB ANALYSIS 2his is the process determining, by obser%ation and study and reporting pertinent in&ormation relating to the nature o& a speci&ic job! It is the determination o& the tas which comprise the job and o& the s ills, nowledge, the and responsibilities re-uired o& the wor er &or a success&ul per&ormance and which di&&erentiates one job &rom all other!

J OB SU,,ARY 'onitoring the wor s o& time eepers *rocessing o& joining and separation o& employees *rocess contacts and reemployment!

*rocessing o& disciplinary action JOB ACTIVITIES Super%ise and coordinate the daily wor o& time eepers! 'onitor and control the attendance recording to eliminate chance o& pro.y 4eri&y &or correctness the statutory documents concerning attendance and other wor proceeds o& employees! 4eri&y documentation o& lea%e o& absenceF o%ertime gi%en, wee ly o&&, compensatory o&& etc, %eri&ication as to con&irming to norms laid down! 'onitor the preparation o& wageBsalary statements &or each month, ensuring Incorporation o& allowed deduction in respect o& each employee! Ad%ance intimation o& personnel retiring &or ser%ices and process the papers connected with the separation and payments o& be&its associated with the same! *repare appointment orders &or &resh recruitments and the process the joining papers, including issue o& identity cards and arranging &or enrolment under *", ESI etc! JOB RESPONSIBILITY Ensure recording and documentation o& attendance o& employees at all le%els! Ensure maintenance o& lea%e records, o%ertime records, wee ly o&&, compensatory o&& records etc! Ensure monthly salary wages statements in time! Issue o& appointment orders, con&ormation orders, separation orders etc &or all categories o& employees Ensure the disciplinary proceedings are &ollowed up till the issue o& punishment orders! JOB ENVIRON,ENT Reporting to &actory e.ecuti%eBhead o& personnel &unctionsF howe%er eep rapport and liaison with section in chargers in all &unctional areas! 1urrent in&ormal ways o& wor ing Fpractice o& wor ing on oral instructions and getting such actions rati&ied in due course

/ant o& documentation by way o& proper system and procedures! 8abitual cases o& absenteeism and in discipline! 2he slow pace o& wor among the sta&&, as a part o& past wor practice!

WORKIN6 HOURS In /I* Ltd!, there are three shi&ts o& wor ! 2he production process starts on 'onday and ends on Saturday <!#$ A' ; 5!#$ *' 5!#$ *' ; =$!#$ *' =$!#$ *' ; <! #$ A'

In /I* Ltd!, the sources o& recruitment includes both internal and e.ternal! /hene%er any %acancy occurs somebody &rom within the organi6ation is upgraded, lie outside the organi6ation, which includes new entrants to the labor &orce, retired e.perienced person:s etc! "or the selection process a panel o& inter%iewers inter%iews candidate! 2he apt candidate is then selected &or the job!

TRAININ6 One J year training is gi%en to the new entrance! 2raining is restricted not restricted just &or a speci&ic wor but an o%erall training is gi%en to wor ers so that they can &ill in the post o& absentee! 2his ma es the wor er more %ersatile! Stipend is gi%en to the employees during the training period!

CLASSI7ICATION O7 WORKERS In /I* Ltd!, wor ers are classi&ied as &ollowsF

=! *ermanent 5! *robationers #! Substitutes >! 2emporary A! 1asual <! Apprentice Ti&<%t #r Att%n an&% Car = E%ery wor man shall be gi%en a tic et or attendance card, &ree o& cost, showing his number or name, classi&ication etc! E%ery wor man shall punch his attendance card at the punching machine and deli%er up his card or tic et at the place pro%ided in the time o&&ice be&ore the commencement o& each session o& the shi&t in a day! Entran&% an %>it 2he wor man shall not enter or lea%e the premises o& the &actory e.cept by the gate or gates appointed &or the purpose! L%a(% an H#li a)! =! Lea%e with wages will be allowed to wor men as pro%ided &or in the chapter o& "actories Act! 5! Lea%e &or sic ness, maternity and accident will be allowed to the wor men as pro%ided &or in the Employees State Insurance Act! #! National and &esti%al 8olidays with wages will be allowed to the wor men as pro%ided &or in the 0erala Establishment Act! Wa.% an Salar) a mini!trati#n In /I* Ltd!, the managers analy6e and interpret the needs o& the employees so that reward can be indi%idually designed to satis&y their needs! 8ere the wor ers are paid wages and the sta&& o&&icers managers etc are paid salary! 2he wage Bsalary system which /I* which &ollows is time rate system! Dnder this system wor ers are paid according to the wor done during a certain period o& time! 8e is paid at the settled rate as soon as the time contracted &or is spent! 2he basic purpose o& salary administration is to establish and maintain an e-uitable wage and salary structure!

Di!&iplinar) A&ti#n Any wor man who is &ound guilty o& misconducts is liable to be summarily dismissed without notice or compensation in lieu o& notice or alternati%ely to be suspended &or period not e.ceeding > days or to be &ined up to 5L o& his wages in a wage period in accordance with the pro%isions o& the *ayment o& /ages Act! /ages and other dues, i& any, due to wor man whose ser%ice is terminated by way o& dismissal or discharge or retrenchment shall be paid to the wor man within 5 days o& termination o& his ser%ice!

Tra % Uni#n! 2rade unions are an ine%itable part o& a modern industry set up! 2rade union in&luence industrial democracy, morale, producti%ity! 2here are &our trade unions in /I* Ltd! 2hey areF

1I2D )A&&iliated to 1*'+

IN2D1 )A&&iliated to 1ongress+

AI2D1 )A&&iliated to 1*I+

S2D )A&&iliated to 'uslim League+

R%tir%m%nt Any wor man who is declared mentally un&it or &ound to be on continued ill; health or reached the age o& A@ )&i&ty eight years+ shall be retired &rom the ser%ice according to the Gratuity Act! V#luntar) R%tir%m%nt S&"%m% 2o achie%e the optimum le%el o& manpower with the desirable a%erage age mi. as per the changing needs o& the organi6ation! 2o pro%ide necessary manpower adjustments! 2o pro%ide monetary bene&its in terms o& terminal bene&its and %oluntary retirement,compensation to the who opt &or %oluntary retirement!

B%n%*it! Statutory bene&its including ESI, *", Gratuity etc! are pro%ided to all the employees! Besides that /I* Ltd!, pro%ides &ood at subsidi6ed rate to the wor ers! /hene%er any employees meet with any accident, all the e.pense in the course o& treatment borne by the company! 4arious acts &ollowed by the company =! 2he 1ompanies Act =?A< 5! 2he "actories Act, =?>@ #! 2he Industrial (isputes Act, =?>3 >! 2he 'inimum wages Act, =?>@ A! *ayment o& /ages Act, =?#< <! 2he 1ontracts Labor )Regulation C Abolition+ Act, =?3$ 3! Employees: State Insurance Act, =?>@ Editions o& the &ollowing statutoryBregulatory re-uirements guide /I*

PERSONNEL AND WEL7ARE 7UNCTIONS Hob (esign E%aluation and Selection o& 1andidates! *lacement! Induction, On;the job training 2raining and de%elopment Appraisal Increment, promotion !

WEL7ARE ACTIVITY 2he &ollowing wel&are &acilities are there in our Organi6ationM E!S!I! Scheme! N/or ers 1anteen at subsidi6ed rates! Sta&& 'ess 1o;operati%e 1redit Society! 'edical Re;imbursement &or those not co%ered under E!S!I Ambulance "esti%al Ad%ances Boo Ad%ance Sta&& Recreation 1lub







*roduction in%ol%es con%ersion o& raw material into &inished productsB goods! It can be brie&ly e.plained as &ollows! Input 1on%ersion process Output

In the /estern India *lywood Ltd, the raw material that are used to the output is steam wood, and chemicals! A&ter introducing these raw materials to a series o& process the &inished goods are obtained! /I* produce three categories o& products, namely, plywood, hardboard and &urniture! 2he wood that is re-uired &or the production is ac-uired &rom both local as well as international mar ets! /I* imports wood &rom 'alaysia, South A&rica, and South America etc! In India wood is obtained &rom 0ashmir, 'ysore, /ayanad, Andaman, Iritty etc!















LO6YARD It is the place where the wood is ept! "ollowing are the woods that are usedM/elapine , *ali, *ashupali, 0alpine, *adapine, 'ango, Badam, Sil%er, Neeli, Redcedar, /hite cedar, Swisspine etc! CROSSCUTTIN6 2he wood &rom the log yard is brought in &or cross cutting! 2he long wood is cut into bloc o& %arying si6es ranging &rom # to @ &eet as re-uired! 1hain saw is used &or cutting the logs that wor s on a hydraulic system! BOILIN6 In order to ma e the hardwood so&t and to remo%e its oil content, the bloc are boiled with the help o& steam at a temperature ranging &rom =5$$ 1 to =@$$1! 2he wood is boiled &or a minimum o& 5> hours! 2he steam that is re-uired is produced in boilers! /I* has > types o& boilers! 2hey areF =!Saw dust boiler 5! "irewood Boiler #! "B1 )"uel Bed 1ombusting+ >! IAE1 )Industrial Agricultural and Engineering 1orporation+ PEELIN6 A&ter boiling, the logs are peeled with the help o& the peeling machine! 2he output is called the %eneer! 2wo inds o& %eneers are obtained J "ace and core! Both o& them ha%e the same -uality, but the so&t and smooth part is nown as &ace and the hard and the rough is called as core! 2he thic ness o& %eneers ranges &rom $!> mm to 5!@mm! Sometimes the slicing machine is used instead o& a peeler! 2his is mainly used in decorati%e plywoods!


2he ne.t process is called clipping! 8ere the %eneer produced &rom the peeler is passed through clipper! In clipping the %eneer o& the re-uired length is cut!

DRYIN6 (rying is the ne.t process! (rying process is conducted by considering time, steam, and thic ness o& wood! 2he machine used &or this process is nown as (ryyrad! ED6IN6 AND JOININ6 In this process o& edging and joining, three two sides o& %eneers are cut and remo%ed &or a%oiding damages! A&ter this, the %eneers are joined by using gum! 6LUEIN6 In this section glue is applied o%er the core %eneers, the glue spreading machine consists o& 5 rollers rotating in opposite direction between which the glue is ept! 2he glues used are J Drea &ormaldehyde, Areolyte, 'elanine &ormaldehyde! ASSE,BLIN6 In assembling the core %eneers are places in between the &ace %eneers! 2he adjacent %eneers are placed in such a way that the gains are across each other! 'inimum plies three should be there in plywood! In this process, se%eral boards are pressed in certain temperature! 2he main element that should be ta en as important in this process are steam, thic ness and time! CONDITIONIN6 1onditioning is the process in which the pressed plys are treated with chemical water to a%oid termites and &ungal attac s! TRI,,IN6 In trimming the plywood is passed into the trimming machine &or cutting the sides according to the si6es re-uired SANDIN6 2his is the process in which the trimmed sur&ace o& the plywood is smoothened and so&tened by using sandpaper or belt sender or drum sander 7INISHIN6

"inishing is the &inal step in the plywood production process! All the &inishing wor s are done in this step! 2he boards are sealed and labeled and made ready &or dispatch! 2he &ollowing are the important products produced with the help o& plywood! 1old /ater Resistant )1/R+ Boiled /ater Resistant )B/R+ Boiled /ater *roo& )B/R+ /arm /ater Resistant )//R+ /arm /ater *roo& )//*+ Aircra&t plywood 'arine *lywood Shuttering *lywood "ireproo& *lywood "lush door plywood Inlay board 8igh (ensity *lywood 'edium (ensity *lywood Low (ensity *lywood Super Bloc Board

CO,PRE6 STATES 2hese are resin impregnated and compressed wood based laminates! 2hey are manu&actured &rom selected %eneers obtained &rom -uality timber specious! 2he %eneers are seasoned to optimum moisture content, treated,

passed through e%aporation chambers, assembled in the re-uired grain construction and pressed! Dnder high pressure and temperature to produce the 1ompreg stats! 1ompreg stat is a uni&orm homogenous material &ree &rom sur&ace de&ects, chec s, splits, discoloration, blisters, o%erlaps gaps etc! 1ompreg stats is a uni-ue material ha%ing strength o& metals, resistance o& natural timber and the sur&ace &inish, stability and hardness o& modern plastics! Both sur&aces ha%e the uni&orm phenolic resin coating with e.cellent resistance against abrasi%e action!

8ardboard manu&acturing in%ol%es a series o& well;designed se-uential process which with the inta e o& wooden pieces &rom one end and &ormation o& 8ardboard at the other end ready &or supply! "ollowing are the %arious machinery and process in%ol%edM; C"ippin. ,a&"in% *#r t"% *#rmati#n #* +## %n &"ip!= 2hese chips are trans&erred to the head tan &or washing it using con%eyor belts! Cl%anin. #* &"ip!=2 2his is done using boiling water! It also pro%ides su&&icient so&tness &or the chips! *assing through sie%e does the separation o& water &rom the chips! C)&l#n% 1hips &rom the deliberating machine are trans&erred to a conical chamber called cyclone using steam! D%*i'rat#r 2he (e&ibrator used in the plant is the aspluent (e&ibrator! 2he moisture content in the chips is remo%ed by increasing the temperature and the cleaned chips are con%erted into &ine powder! A&ter grinding it with two grinding wheels o& which one is ept stationary while the other is rotating!

Pulp *#rmati#n= 2he power &orm o& wood is con%erted into pulp by adding su&&icient -uantity o& water and chemicals! 2he chemicals used are dilute sulphuric acid, para&&in wa. and certain resin! 2he pulp is then pumped into board &orming section! B#ar 7#rmin. S%&ti#n 2here are three sets o& machines that are used in the plant! I *ress II *ress III *ress 2he &irst and second presses are under the electrical pneumatic control and the third is computeri6ed! 2he percentage o& pulp in the mi.ture is abo%e 5$ L and the rest @$L o& water which is absorbed by suction bo.! It is then passed through 2he pulp roller press where boards ha%ing thic ness 5!A mm to <mm are obtained which are called wet laps! 2he wet laps are then places o%er the sie%e net and trans&erred to the press! A&ter pressing &or the re-uired time, the board is ta en out and is trans&erred to the edging and trimming section! 2he cleaning o& net is per&ormed by a washer which uses a water jet o& pressure #$$ 0gBcm#! 2he inta e o& wet lap &eeding in to the press and then trans&erring it to the edging section is automatically per&ormed by the belt con%eyor! 'ain di&&erence between *lywood and 8ardboard is that resin is not coated in hardboard as in the case o& *lywood

7URNITURE "urniture is another product which is produced in /I*! 2he &urniture is used by using decorati%e woods li e 2ea , 'ahagony, and Rosewood etc! 2he %eneers

are molded in %arious shapes to ma e di&&erent types o& &urniture! All the &urniture are long;lasting and are with best -uality! Along with this, the wastes o& decorati%e %eneers are used to ma e %arious handicra&ts products! Inlay board is an e.ample ! "urniture is another product which is produced in /I*! 2he &urniture is used by using decorati%e woods li e 2ea , 'ahagony, and Rosewood etc! 2he %eneers are molded in %arious shapes to ma e di&&erent types o& &urniture! All the &urniture are long;lasting and are with best -uality! Along with this, the wastes o& decorati%e %eneers are used to ma e %arious handicra&ts products! Inlay board is an e.ample !

2he major product &or which the company has been the leaders in -uality since =?>A is just because o& its &inest -uality products produced as per international standards! 2he products o& the company are globally accepted! O%er the last A$ years, through its close nit co;ordination o& %arious processing units, pro&essional management and ma.imum utili6ation o& &acilities a%ailable, the company has made an indelible mar in the wood industry J a mar o& glorious achie%ements

O /I*/OO( (ensi&ied wood is used in the manu&acturing o& te.tile C jute mill accessories O /I*LA' (ensi&ied wood is used in the manu&acture o& insulation components &or trans&ormers C switchgears O /I*18E10 (ensi&ied compressed &loor board, with both che-ured and plain sur&aces, building C chemical industries O /I*RO1 (ensi&ied wood used in the manu&acture o& high precision jig &ormatting tools in aeronautical industry C neutron shields in reactors! O /I*BEAR (ensi&ied wood used in the manu&acturer o& bearing and gears O /I*18E' (ensi&ied wood used in manu&acture o& electrical insulation components li e studs, nuts, cleats C other segments O /I*RESS Rigid and high purity densi&ied wood with e.cellent electrical and mechanical properties, &or use in the trans&ormer industry!

O /I*LA1 *re;&inished plywood C hard board, used in the manu&acture o& panel coiling and &urniture! O DL2RA1LI10 Engineered wood &looring O 1O'*REG SLA2S! Dsed &or railway coaches, paneling and as a building material! O (ENSI"IE( 'ODL(E( SEA2S Dsed &or railway coaches, auditoriums C restaurant! O /ES2IN(*L9 (ecorati%e &inished and commercial &inished B/R and B/* grade plywoods, manu&actured &rom selected species o& timber, water proo& -uality used &or boat building, concrete shuttering, &urniture, partitions, paneling etc! O 8AR(BOR(S Dsed e.tensi%ely by automobile industries, &iber drum manu&actures, shoe manu&actures, photo &rame bac ing, cloc manu&actures, school writing parts and also &or partitions! O "DRNI2DRE All type o& &urniture including molded a noc down &urniture

2he /estern India *lywood Ltd!, has well;de%eloped and e&&icient purchase department, which deals with the purchasing o& raw materials! 1ompany usually ma es three inds o& purchasingM Local *urchase! (irect *urchase! *urchase through Ban ! 1ompany has broadly classi&ied its purchase department into 2imber purchase department and all other purchase departments! Other department does the buying o& all other items other than wood i!e! timber! It is in%ol%ed in purchasing o& consumer product, spares, oils, acids, chemicals and other ancillary raw material used &or manu&acturing its products!

2imber purchasing department deals only with the purchase o& 2imber! 2imbers are purchased through ban or direct purchasing! An intend will be recei%ed &rom the stores department about the item to be purchased! 2he production manager should sign it! An en-uiry will be made and &ollowing that the -uotation will recei%e! Suitable -uotations will be selected and it will be sent to the production department mentioning the criteria o& selection! A&ter recei%ing the -uotation the purchase department will ma e order with speci&ied conditions! I& the goods are sending through ban , intimation will recei%e &rom the ban that the goods are ready &or deli%ery! 2he money is paid as per the terms and conditions and the goods are deli%ered! In the case o& direct purchasing money is directly paid to the supplier and the goods are recei%ed!

PURCHASE PROCEDURE P In%ites &or -uotation &rom %arious parties! P "rom the -uotation the actual buyers will be identi&ied based on price and -uality! P Order &or the goods! P Goods will be sent to the nearest parcel o&&ices &rom there the customer company will collect the consignment! P (ocumentation through ban or direct supplier! Some time ad%ance payment is also underta en! P Emergency purchases can be authori6ed by '(BE( by passing the abo%e step!




'ar eting is the art o& selling products! It is also de&ined as societal process by which indi%idual and groups obtain what they need and want through creating, o&&ering and &reely e.changing products and ser%ices o& %alue with others! (ue to the high standard o& -uality maintained by the -uality control department o& this company, the product o& the company ha%e &ound ready acceptance in mar ets both in India and abroad! 2he company has succeeded in arranging manu&acturing programs on the basis i& &irm orders, which in regularly &or all types o& products! 2he plywood manu&actured by the company is being regularly used &or manu&actures o& 2!4 cabinets, bus bodies, building constructions, railways, &urniture industry etc! 2he hardboard is used &or partition walls, &alse ceiling, &urniture industry etc! 2he densi&ied wood is being supplied to the electrical industries in %arious &orms and also to the te.tile and chemical industries in the &orm o& &ilter plates and as chec ered boards &or &looring in buses and railway coaches! 2he (A* and "R* compounds are being used by the electronic and molding industries! 2he &urniture manu&actured by the company is being absorbed the mar et in drawing rooms, bedrooms, schools, o&&ice etc! 2he products o& the company are being e.ported /est Germany, "rance, D!S!A Sweden, /est Asia and South Asian countries regularly! ,ARKET SE6,ENTATION /ES2ERN IN(IA *L9/OO( is well;established organi6ation manu&acturing high -uality goods! 1ompany belie%es in -uality! In order to ensure the -uality each batch o& the products will undergo -uality tests! 1ompany has an e&&icient mar eting strategy! 2he prices o& /I*:s products are comparati%ely high, but o& high -uality! 2he company is targeted at the high

income as well as at the low;le%el income groups /I* is mar eting more than #$$ products! *roducts are segmented asF =! (omestic 5! Institutional #! Automoti%e >! E.port Brand and -uality are the main mar eting strategy &ollowed by /I* 2he /I* has a uni-ue product range that cannot be duplicated! 2he /I* has gained 3$L mar et share on 8ardboard itsel&! /I* is the price leaders in 8ardboard mar eting! Almost all 1ar 'anu&acturers li e 2A2A, "ord, 2oyota, 8yundai and 'aruthi are the customers o& /I*! Automoti%e segmentation is &ollowed by /I* towards this1ar manu&actures! 2he main sales promotion &ollowed by /I* is direct contact by Architects, Builders etc! 2he /I* also issue national maga6ines as promotion tools! 'ar eting segmentation adopted by /I* is niche is (A* manu&acturing /I* has got mar eting leadership in the /orld a&ter Hapan and America!







/I* mar et their products through agencies and depots! 2hey use sales representati%e also! 2heir main promotion method is direct contact by Sales representati%es to can%ass go%t! and railway! En-uiries are made through tenders! 2he main tool used to catch the go%ernment orders is by the lowest -uotation! 2he main ad%antage recei%ed &rom the go%t! is ?AL ready cash payment! Generally the /I* gi%es =A to 5$ days are credit &or parties! E%en though timber world is &acing crisis, the /I* is able to with stand by mar eting %ariety o& products li e plywood items )"ire Resistant, 'arine /ood, (ensi&ied /ood, (A*, 8ardboard, "urniture+ 2he main sales promotion method used by /I* is direct contact! 2he /I* has many dealers throughout India! /I* also conduct e.hibitions and issue international maga6ines! 2he /I* outstand &or their -uality! 2his -uality o& product is maintained by laboratory testing! E%ery batch o& product will go to testing &or identi&ying glue &ailure and other de&ects! E%en though the timber world is &acing scarcity, the /I* withstand with decorati%e board wood! 2he /I* has achie%ed ISI certi&ication &or their products! 2he regular customers o& /I* are India Railway, 2oyota, 8yundai, "ibre (rum 'anu&acturers, Shoe heals, Holly board is the only competitor o& the /I* in 8ardboard! So 8ardboard manu&acturing is mainly pro&itable as &ar as /I* is concerned!


1entral e.cise is a ta. le%ied by the central go%t! on the manu&acture or production o& any product! E.cise duty is due at the time o& production and is paid at the time o& clearance! Be&ore central e.cise duty can be imposed on any article it must satis&y to the basic conditionsM =! 2he articles should be QgoodsR 5! It should ha%e come into e.istence as a result o& manu&acture 2he rate o& duty o& tari&& %alue in relation to any e.cisable goods shall be the rate o& tari&&s in &orce on that date when such goods are remo%ed &rom the &actory! "or the manu&acture o& any product the company should attain a Registration 1erti&icate, &or which an application is gi%en declaring what is to be manu&actured! Based on this application the Registration 1erti&icate is issued, which is e-ui%alent to license! A&ter recei%ing this certi&icate the company starts manu&acturing! *ayments are made according to the classi&ication o& goods! /I*:s product comes under 1hapter >> i!e! wood and article o& wood! According to chapter >>!$@ e.cise duty charged on plywood is =<L!No duty is charged &or e.port as a result o& a rela.ation pro%ided by them &or the promotion! 2he payment o& duty is on &ortnightly basis by 5$th day &or the &ortnight and by &i&th day o& succeeding month &or the 5nd &ortnight e.cept &or the month o& 'arch! In order to a%oid double ta.ation 1EN4A2 )1entral E.cise 4alue Added 2a.+ credit is used!


OBJECTIVE 2o populari6e the products to the international le%el! E.port carries out as per the e.port policy o& go%t! o& India and responsibilities lies on the hands o& the Import B E.port E.ecuti%e! Pr#&% ur% Kuotations are sending along with the product details! In some cases samples are sent! Once the price is appro%ed o&, the customer opens the letter o& credit that contains details regarding %alue, -uantity, destination o& supply, speci&ication, etc once the order is con&irmed and placedF the product is not sent to the production department and production re-uirements! Once the cargo is ready, it is ta en to the nearest port &or shipment! In /estern India *lywood:s there is an arrangement called house stu&&ing where in the &actory brings the container &rom the port to the companies wor ! 2he clearing agents carry out all the customer &ormalities in order to get the clearance! 2his includes getting bac AR> &rom the customs a&ter the shipment &or submission to the central e.cise! Once the shipment is e&&ected and the bill o& loading is obtained the document &or the buyers are negotiated through the /I*:s ban ! Once the cargo reaches the destination the customers retrie%e the original documents &rom their ban s! 2he payment is then made accordingly! R%&#r ! maintain% "iling systemF separate &ile is opened against each en-uiry! All correspondence and relati%e shipping documents are &iled separately &or ready as well as &uture re&erence! Register that contains details regarding all e.ports a&&ected is also maintained!




2he "inance (epartment is the heart o& any company! 2he general 'anager o& &inance heads this (epartment! 2he responsibility &or maintaining the accounts and e.ercising &inancial control is %ested with the "inance 'anager! 2he &inance department has direct interaction with all other departments since all the payments and collections are maid through here! 2his (epartment &ollows a written &orm o& communication! All (epartment payments and receipts are &inally reported to the "inance (epartment! /I* &ollow double accounting system and also maintain &our types o& journals! 2hey areF =! 1ash payment boo )1*B+ 5! Ban payment boo )B*B+ #! 1ash receipt boo )1RB+ >! Ban receipt boo )BRB+ "or these &our types o& $#urnal!, a sub ledger is prepared! 2his sub ledger is classi&ied into threeF a! Accounts Recei%able Boo s )ARB+ b! Accounts *ayable Boo )A*B+ c! *ersonal Ledger )*L+ At the end o& e%ery month the sum total o& the sub ledgers are trans&erred to the main ledgers! 2hen there should ha%e the e-uality in the amount o& the sub ledger and main ledger!2he ne.t accounting procedure is preparing the trial balance! At the end o& e%ery &inancial year, pro&it and loss account and Balance Sheet is prepares, &rom which &inancial position o& /I* is noticed!

S#ur&%! #* 7un
2he main sources o& &unds areF Int%rnal !#ur&%! 2he main internal sources o& &und o& /I* are income generated &rom sales Reser%es are the sources o& &und other than income &rom sales! 1urrent losses are adjusted by these reser%es!

E>t%rnal S#ur&%! 2he main e.ternal source o& &und is term loan &orm ban and &inancial institutions li e SBI, 1anara Ban , *unjab National Ban , I"1I etc! S"ar% Capital/I* is a widely held *ublic Limited 1ompany! Recently company issue authori6ed shares =#, $$, $$,$$$ &rom which @, >@, $$,$$$ are subscribed capital! 1ompany also adopt right issues )during crisis premium is gi%en to shares+, bonus shares )when company is undercapitali6ed+ 1ompany issues pre&erence shares to I1I1I, 8("1 li e &inancial institutions! 2hese pre&erence shares are redeemed! E-uity share capital is major source o& &inance &ollowed by the 1ompany! *re%ious year 5>L di%idend was gi%en to the share holders! But now the company is unable to pay di%idend to the share holders because o& the lac o& operating pro&it! Ban<%r! 2he /I* has mainly 3 ban s! SB2 State Ban o& 2RA4AN1ORE DBI )Drban Ban O& India IB )Indian Ban + S9B )Syndicate Ban + SBI )State Ban o& India+ 1B )1anara Ban + IOB )Indian O%erseas Ban








)Rs in =$$$+

PARTICULARS INCO,E sales Other income Increase in stoc TOTAL E?PENDITURE *urchase o& &inished goods 'aterial consumed *ower and &uel salaries repairs 'isc e.penses *ac ing and &orwarding 1ommission and discount Ad%ertisement e.penses Interest Ban charges E.cise duty *rior period adjustments Other e.penses (ecrease in stoc E.traordinary item TOTAL *B(2 (epreciation *B2 2a. PRO7IT A7TER TA?

/00A #5@$?= #<#@5 5$><< 3DFE3E #=$ ?A>$$ A>#$5 >3?>? ?$#= =<<A 5##5= AA3= >$A 5$3?A 5$?< #3##@ ; @A?= ; ; 30ACCF 3@=<A 55A$$ AA<<A 5?A< 5/C0E

/00C 3=?5AA =5@5 5=$$= CF153D 3?3 5$A?A$ =$?A@5 @#=@# 5$$=# #A=# #?3>5 =A=3? ==33 A3@?= #<<$ @5$<? =>>3 55##$ ; ; AFA533 ?A$$A ><<$3 >@#?@ A<#$ F/CAD

/00D @=<$A5 33$5 ; D/3C5F =$#3 5><55$ =5#=A@ ?<>>$ 553#5 >>@5 A==@5 =#$5< 5==< AA<<< 5$#5 <=@A$ #A#> #$<5< >A55 ??<> C/D5DC ?A=<3 ><A?? >@A<@ 553#5 /5D3A

/00E ?5<3<3 >555 ; E30EDE =#5< #$?=A3 =##$$> ==#<35 5<3A# >A># >##A3 ==<A> @?A >>3#= =<<@ >?5?3 ; A=3>= ?<=> ; D01F1/ =5?A33 ><3#$ @5@>3 5@$#5 5FD15

/010 ?$=?@> 33A? ; E0ECF3 ; #$@=A@ ==A=$= =$#$A# #A#@= A3=5 #3@=A =AA?$ #<=5 >#@55 =@@= A@=>5 ; 5@3>< ##A$# ; CE051A ==$?553 ><A>$ 35<@3 #A5AA 3CF3/


)Rs in =$$$+ PARTICULARS SOURCES O7 7UNDS CAPITAL E-uity *re&erence share Reser%es and surplus SECURED LOANS 2erm loan /or ing capital UNSECURED LOANS 1urrent liabilities *ro%isions (e&&ered ta. liabilities TOTAL APPLICATION O7 7UNDS "i.ed asset 1apital wor ing in progress In%estment INVENTORIES Raw materials "inished goods Semi &inished goods Stores and spares SUNDRY DEBTORS 1ash and ban Loans and ad%ances 'isc e.penses *BL TOTAL /00A @>@3# =#@#53 >=35$ 5>=$<$ 5#?#@A 5#?$> =?<33# <$<#> ; 10/AACA >?>A>3 ; A<#= =$@$< 5$@$#@ =$?#<3 A>@@# @##$< =#>5> ><<3> ; ; 10/AACA /00C @>@3# =#@#53 @>>@@ 5>=35? 5#@5@< =?<#A =@<<5# A?A$@ ; 1053FAE >A$3A> #>A< A<#5 53$@< 55<3<3 ===<#? A@<A# ?3<?A 5?535 >5A=A ; ; 1053FAE /00D @>@3# =#@#53 =5=3?$ 5#>3$> 5#A$@5 =@5A< =>A=$A A=#=< =<??? 10FAF5/ >=A$@= ; A<#5 5=5#? 5##5$@ =$$<3< <53>3 ==5355 >3AA@ >3A@? ; ; 10FAF5/ /00E @>@3# =#@#53 =#?A?> 5$?33> =?=>A# @@#? =5>53$ ?5=5$ >5=># 10313E3 #3#=?# #?< =$5=? #=>#3 5#=A5= ?53>? <3>A> ==#A#A <<#@5 #53=> ==3?# ; 10313E3 /010 @>@3# =#@#53 =@3>=A 5<AA<$ =$@#AA 3=#5 =$=@>= A=$35 <#33# 100D3FD ##?$53 #?< =$5=? =3A== 5$?@=3 @$?A$ <5@A< =5>5#= =5=@#< 5?3=5 ==3?# ; 100D3FD

S/O2 stands &or strength, wea ness, opportunities and threats! Strengths and wea ness are the internal &actors o& the company whereas opportunities and threats are e.ternal &actors! S/O2 analysis is the tool &or auditing an organisation and into en%ironment, its is the &irst stage as planning and helps mar eters to &ocus on ey issues and once they ha%e been identi&ied, they &eed into mar eting objecti%es! It can b used in conjunction with other tools as audit and analysis! 2he main aim o& S/O2 analysis is to ta e ad%antage o& strengths and opportunities and minimise wea ness and eliminate threats! It is use&ul only when action plans and strategies are de%eloped &rom the results!

2he company has been maintaining a high -uality &or its products and as its products are well accepted in the mar et by -uality conscious customers, it does not anticipate any mar eting problems! 2hey are considered to be Qthe leaders in -uality since in =?>AR! 2he company has a well established RC( unit, one o& the best o& its ind in the wood based industry! 2he products o& /I* is certi&ied by ISO ?$$=M5$$$ 2he company:s dully e-uipped to de%elop new products to meet the re-uirements o& the mar et! 1ompany has su&&icient N/1 in order to meet the claim o& the creditors and meeting the day to day needs o& the business! 1onduct regular training programmes &or the employees to impress on them the need &or -uality, producti%ity and transparency! 2hese training programmes ha%e helped to achie%e the cost e&&ecti%eness and impro%e the o%erall wor ing o& the organisation and also constantly introduce latest comple. technology &or its impro%ed production and upgraded -uality!

As the company:s strength lies in technical e.pertise, -uality assurance and inno%ati%e solution &or meeting customer satis&action by surprising %ariety o& products and it is con&ident o& meeting the challenges &aced by the industry!

2here is acute shortage o& good raw materials which has &orced the company to import a substantial portion o& its main raw material %i6! 2imber,which has also seen a considerable increase in price! Lac o& good distribution networ as compared to its competitors! *romotion o& competitors is better to that o& /I*,the company concentrated only on industrial mar et and does not gi%e priority to ad%ertisement! 2he price o& /I*:s products is high as compared to its competitors! 1ost o& production in high!

2he company is a leading supplier to railways, de&ence, automobile, electrical, transport, ci%il a%iation, and other industries! Se%eral products ha%e been de%eloped &or the speci&ic re-uirements o& the automobile, transport and communication sectors sectors as dandi&ied wood etc and these products which ha%e technological ad%antages o%er competiti%e products! 2he company di%ersi&ied &rom the chest and commercial plywood to manu&acture decorati%e plywood, bloc boards, shuttering plywood and aircra&t plywood! 2he products o& the company are being e.ported to Germany, "rance, DSA, Sweden, /est Asia and South Asian countries!


2he high power tari&& and increasing cost o& &urnace oil and other ptrolium products and chemicals! 2here are many medium and small scale plywood industries! 2hey &i. price &or their products! In some product ranges, imported items are a%ailable at lower cost than is currently produced in India! In general the e&&ects o& globalisation and global &inancial crisis ha%e ad%ersely a&&ected the wor ing o& the company


C#mpan) i! plannin. t# r%pla&% t"%!% ma&"in%ri%! in t"% &#min. )%ar!
F TON STEA, BOILER 1urrently the plywood section is ha%ing > boilers all o& which are more than 5A years old and o& the Lancashire type which ha%e low e&&ecti%eness!/I* ha%e decided to go &or the new therma. > ton steam boiler to augment the steam generator capacity!this will help in sa%ing o& &irewood and also ensure steady temperature control! EL6I SCREW CO,PRESSOR At present the compressed air re-uirement in the hard board di%ision is carried out by A S1RE/ and two IR compressors! One o& the Ingersoll rand compressor is %ery old and the company is planning to replace it with a ELGI; model compressor PLATTERNS 7OR SK CO,PRE6 PRESS *roduction o& compreg is carried out in simple amp press ma e 5$$ ton o& platen si6e! 2he press had been installed in =?3= and running # shi&ts per day since then

2hough hydraulics and other mechanical products are periodically changed the platterns o& the press through which the steam is circulated needs replacement! O%er the years scaling has de%eloped in steam passage system and there are lea ages because o& this!it is en%isaged to change all the == platterns! PLATTERNS 7OR BVH /000 PRESS 2he Bec er and 4on hullen press is a 5$$ ton compreg press installed in =?<>!It runs continuously &or # shi&ts and &or reasons o& scaling and wear and tear it re-uires a &ull replacement! F 7EET PEELER At present /I* ha%e a > &eet peeler installed in =?>3!o%er the years wear and tear has caused 2hic ness %ariation in the %eneers peeled and this is creating %alue loss o& plywood production due to rejections! So /I* ha%e decided to go &or a new peeling machine to o%ercome these problems! DD SAW4BELT SANDER (( Saw currently wor ing is %ery old and needs replacement! 2he same in the case ii& belt sander which is used &or &ine sanding and decorati%e higher production output! BRI9UETTIN6 ,ACHINE Saw dust bri-uettes are used &or &iring wood &ired boilers and ha%e much higher e&&iciency when compared to &irewood! Also the cost o& saw dust is much cheaper than &irewood!


2hought /I* is b-asically a plywood manu&acturing company,due to scarcity o& raw materials the production o& plywood is less compared to hardboard,the raw material o& which is &irewood which is easily a%ailable and there&ore hardboard manu&acturing is the ey result acti%ity amounting to =AL o& the total pro&it!

Because o& the increasing demand, now the company has changed their distribution system in order to reach more parts o& the state! (ue to the high standard o& -uality maintained by the company, its production costs are relati%ely high so that company &acing a serious problem and wants to reduce the price! 2he company:s %arious operations on raw material per&ormed in se-uence and the machines are placed along the product &low line! Because o& this, the company:s products get completed in lesser time and also ha%e a smooth and continuous wor &low!

2he company gets 5AL o& the pro&it &rom the e.porting! 1ompany concentrate all o%er the mar et! Still the company is not computeri6ed &ully! 2he company maintaining $ L wastage! *romotional e.pense is %ery less! /I* &ocus on -uality

It is desirable to launch an ad%ertising campaign to attract more customers! It is ad%isable to maintain and e&&icient mar et intelligence system and ad%ice mgt o& the changing needs o& the mar et! 2he company may introduce more measures such as &encing o& machineries, which will protect the wor ers &rom accidents! 2he company may prepare budgets &or each acti%ity which will pro%ide it a better control and coordination mechanism! 2his will aid in reduction o& production costs! 2he company can sa%e time and cost through the computeri6ation! 2he company ha%e to &ollow more sa&ety measures because there is a ris o& &ire in the &actory layout!

/estern India plywood ltd!, the second largest wood processing industry in South East Asia, as a bright &uture in this &ield! (uring the running period since =?>A, the co! achie%ed %arious milestones! 2he high;end production technology o& /I* is well ac nowledged among the wood processing industries in India! 2he /I* Ltd!, achie%ed =$$L utili6ation o& raw materials due to its integrated production system! 2here&ore, it would be apt to call /I* Ltd!, 7 a company with a conscience :! /I* Ltd!, stands &or superior product per&ormance and pro%ides %alue &or money to its customers! It is bac ed by /I*:s commitment to harness the latest technology in wood processing industry and continuously upgrade its processes and machinery! (ue to the high -uality maintained, the company has &ound a ready mar et both India and abroad! 2he company does not aim at competing with the local manu&actures but wants a main player in the plywood e.port! Now the company is producing more -uantity is hardboards than plywood, because o& the de%elopment o& technology! *resently the company is operating in loss; the major cause being globali6ation! Another reason is the pricing policy o& the company! 2he price le%el o& the products is higher as compare that o& other companies manu&acturing similar products! 2he company should try to

create brand awareness in the local mar et by ad%ertising in medias and conducting e.clusi%e e.hibitions etc!