CHAPTER-ONE

INTRODUCTION
 Introduction
Introduction to Study

An Organization refers to consciously coordinated social unit composed of two or more

people that functions on relatively continuous basis to achieve a goal.

Organization study is “the examination of how individuals construct organizational

structures, processes and practices and how these, in turn shape social relations and create
institutions that ultimately influence people.

The wood industry is one of the industries with great potential and it is mainly concerned
with furniture, plywood, hardboard, decorative wood, densified laminates, wood floorings,
Building material, material for interior decoration, ship building, automobile
manufacturing etc.

The Western India Plywoods is one of the pioneers in Plywood and Hardboard Industries
in India. They have increased their product range from plywoods to all kinds of wood
products. The products of WIP are high in demand since their inception, and it is all due to
the stringent quality controls and reputation in the market. The purpose of the study is to
get an exposure about the industry and its functioning and to know how it feels to be a part
of an organization.

Scope of the study

This study is aimed at understanding the functioning of different departments of the

organization. It provides a better understanding about each functional department of the
organization and how they cooperate and coordinate with other departments to achieve the
organizational goals. To obtain information regarding strength, weakness, opportunity and
threats of the organization and to gather information about the market position and financial
position as well as the employees opinion about the organization. The study is limited to
ten departments of the organization and to the details that could be collected during the
period of study.
Objective of the Study

• To know about the basic functioning of an organization.

• To get practical and theoretical knowledge about various departments of an

organization.

• To study about the organizational culture and its influence on employees.

• To learn about the mission, vision, policies and procedures of the organization.

• To understand the strength, weakness, opportunity and threats of the organization.

• To study the relationship between management, employees and customers.

Methodology

The methodology of study involves collection of data through primary and secondary
sources and analysis of activities of individuals by the means of constant observation and
enquiry. This task was carried out by building formal and informal relationship with the
staff members of the organization.

Primary Data. Data was collected through formal and informal discussion and
exchange of views with the company officials and employees. Technical data was collected
from the technicians and supervisors of the respective domains.

Secondary Data. Data which are originally collected but rather obtained from
published and unpublished sources such as annual reports, quality manuals, periodicals,
Company Newsletters, Organizational documents and Internet.
Limitations of the Study

 As a public sector enterprise, the official has many constrains in disclosing all the
factors related to the organization.
 Information collected was mainly from the employees under their busy schedules.
 The study is made from more concentration to the secondary data than primary
data, hence it has all demerits of secondary data.
 The time given was sufficient but if more time was given then it would be helpful
to blend in the organization and feel the organization culture.
 CHAPTER-TWO
ANALYSIS OF THE BUSINESS
ENVIRONMENT
 Analysis of Business Environment

Analysis of Remote External Environment

Political. The Government of India doesn’t permit cutting of trees directly for
timber. However the forest department allocates certain amount of timber through
quotations. Excise duty is levied for finished goods that are manufactured in WIP.

Economical. Better employment opportunities for local people. WIP is situated at

vallapattanom. The company employs residents of Kannur district mostly. Earning of
foreign currency through exports. WIP exports its products to various parts of world and
trade in foreign currency. Improved growth and development through industrialization.
Improved standard of living.

Social. WIP conducts special games and social activities for employees every year.
The education level of employees is limited to primary level in WIP. WIP provides breaks
for Muslims to visit mosque on Fridays and special prayer rooms are available for Muslim
workers. Most of the workers are men and one fourth of the workforce are women.

Technological. WIP uses imported machineries and equipments in the factory. They
also take care of product quality and safety of employees. The factory works for 24hours
in three shifts showing that its production capacity is huge. Machineries are mostly
imported from US, Germany.

Environmental. The environmental segment involves the physical conditions

within which the organization operates. The company has not yet faced any problems due
to natural disasters and weather patterns. The company has adopted the policy of giving
the waste to a recycling unit instead of dumping it, thus maintaining an eco-friendly
environment.

Legal. The company has integrated production technique. This technique has to be
protected from other firms so as to enjoy the profits. If it is not protected, new firms will
copy the technique and reap away the profits. Thus in order to protect these rights company
can go for patents rights and intellectual property rights.
Industry Profile and Analysis

Trees are the nature’s greatest gift to mankind. They provide us with shelter, fuel,
medicines, tools, timber and much more. Nature develops trees as a mother brings up
children, making each one a separate individual. It is an amazing sight to see the natural
abstract rhythm of line, colour and texture in wood. Nothing from nature indoors gives
such a long lasting enjoyment as the natural beauty of wood. Flowers fade, but the beauty
of decorative wood is enhanced by age.

Global Scenario. Competition is keen in the plywood industry. Plywood

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 the Chinese
mainland. On the other hand, foreign manufacturers are taking steps to strengthen their
domestic production through product specialisation.

To stay globally competitive, plywood manufacturers strive to reduce costs, initiate quality
control, improve design concepts and capability, and upgrade management skills and
increase marketing and sales effectiveness. Many manufacturers have obtained or are
applying for ISO 9001/2008 certification.

Plywood Manufacturers also become more careful about the choice of raw materials to
meet international standards, such as compliance with legal or other environmental
requirements in their target markets. China is the largest plywood exporter to many
countries, including the US and Japan. In 2017 plywood industry in china is expected to
generate $107.2 billion in revenue, representing annualized growth of 12.7% over the past
five years. Exports played an important role in the development of the industry until 2007,
when anti-dumping policies in the US and the European Union hindered China’s plywood
export growth. In China, most of the production is on an OEM basis.
 Indian Scenario. The Indian plywood industry owes its origin to the development of
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.1000 crore. The industry has grown both in small-scale,
medium and large scale sector.

The plywood industry consumes about 15 million timbers of primary and secondary
species. In fact the plywood industry has provided main outlet for the maximum utilization
of secondary species of timber there by making available contribution in the forest
economy. Later, the plywood industry aided for the development of farm forestry sector
plantation, which benefits the ordinary farmers in the country.

Regional Scenario. The first raw mill in kerala was set up in early 1940’s by Mr.
Patel from Gujarat. The main centers of timber in northern kerala contain some of the
timber like Ponnappa, Whitepine and Kolava. The cheap availability of timber attracted
entrepreneurs like A.K. Kaderkutty to start mills. Till the mid 80’s the timber industry
flourished in kerala.

In the wake of liberalization in the country the industry in kerala began to face severe
threats from cheaper timber importers. The competition came up all other states in India as
well. The early latter part of the 80’s marked the beginning of the decline of the industries
in kerala. Today only 10% of the decline of the trade in the state is accounted for traditional
timbers.

After 1995 number of business enterprise got registered in the state. Due to crises in the
industry, there has been shift in the activities from raw milling to plywood manufacturing.
Rubber is the cheap wood use for plywood. For this rubber is the main wood traded in
kerala today. There are two stages in manufacturing plywood, the first is veneer making
and the second is making of plywood itself.
Industry Analysis
Industry Key Players
 CHAPTER-THREE
ORGANIZATIONAL ANALYSIS
 Organizational Analaysis
Overview of the Organization
Background and History. Western India Plywood Ltd, is the largest integrated
wood-processing complex in the country as well as in South-East Asia with an employee
strength of 1200. It was established in 1945 and it started manufacture of sawn timber and
plywood on a modest scale with a few indigenous and lent-lease machinery. Due to the
progressive outlook and relentless efforts of WIP’s founder Managing Director Shri. A.K.
Kaderkutty Sahib, a doyen of the wood based panel industry in India.

The Company made steady progress over seven decades and business expanded to its
present stature and is today one of the biggest wood based industrial. The company grew
into a well integrated wood processing unit with finely tuned skill in new product
development and manufacturing. WIP is an ISO 9001:2008 certified company.

Plywood manufacturing was stepped up steadily by addition of new machinery, mostly

imported. They also diversified from the production of the Tea-Chests and Commercial
plywood to manufacture of Decorative Plywood, Block board, Flush door, Shuttering and
Marine Plywood and Aircraft Plywood etc. The company also installed its own synthetic
resin unit in 1959 with a capacity of 200 tonnes per annum, which gradually increased to
2400 tonnes per annum, by 1975.

The company planned and executed the hardboard plant between the years 1956 and 1958
with an initial installed capacity of 12.5 tonnes of hardboard per day. Manufacture of
densified wood was commenced on a small scale initially as a part of the plywood plant.
An Industrial Licence was obtained in 1974 for manufacture of Densified wood with a
capacity of 2000 M.T. per annum. Since then, the company has been producing
components of densified wood required mainly by the electrical, textile and chemical
industries, Railways, etc. In 1974 a plant for manufacture of furniturebwas added. Process
employed in plant is totally environment friendly and does not involve any harmful
emission.

The company is the first in the country to put up a plant for irradiating wood in
collaboration with Bhabha Atomic Research Centre, Mumbai in order to aggregate the low-
grade timber.
Due to the high standard of quality maintained by the company, the products of the
company have found ready acceptance in market both in India and abroad. The products
of the company are being exported to Germany, Holland, France, USA, UK, Sri Lanka and
South East Asian Countries regularly.

Company Vision, Mission and Objectives

Vision:
Continue to remain the best plywood panel corporation in India with a growth in allied
areas.
Mission:
• To provide utmost satisfaction to the the consumer through best quality and
customer care.
• To continuously 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 the environment.
• To utilizes the surpluses for the welfare of employees and the society at large.
• To safeguard and enhance shareholders values.
Objective
• To promote the quality of products.
• To attain self reliance.
• To serve the national economy.
• To build the reputation of Western India Plywoods Ltd.
• To maintain the brand loyalty of its customers.
Poducts and Markets