AN ORGANIZATIONAL STUDY OF WESTERN INDIA PLYWOOD LTD

A INTERSHIP REPORT

Submitted by VISRUTH KSHEMANANDAN REG NO: 11AB45

UNDER THE SUPERVISION OF R.JAGAJEEVAN (Faculty PSG IM)

COURSE: MBA (AU) BATCH : B

DATE : 3.7.2012 PLACE: COIMBATORE

PEELAMEDU, COIMBATORE-641004 JULY-2012

ACKNOWLEDGEMENT

I express my gratitude to the almighty for his blessing without which this project would not have been possible.

I would like to take this opportunity to express my sincere gratitude to Mr. R Jagajeevan my mentor for his valuable guidance in this project. He has been a constant source of inspiration and I sincerely thank him for the suggestions and help to prepare the report.

I place my gratitude to Mr. Mohamed, Managing Director of Western India Plywoods Ltd for giving me the permission to carry on this project work in the company and also Mr. Mehboob head of the marketing department for their sound counsel and patience during the course of study.

I also express my deep sense of gratitude to Ratheesh Sir, Head of Human Resource Department for guiding me in the conduct of this project. I also sincerely acknowledge all the direct and indirect support and help received from the employees of Western India Plywoods Ltd.

I am also thankful to my parents and friends for their valuable help and cooperation in doing this project.

BY VISRUTH KSHEMANANDAN

CONTENTS

CHAPTER NO 1

PARTICULARS

PAGE NO 6

INTRODUCITON

INDUSTRY PROFILE

COMAPNY PROFILE

13

PRODUCT PROFILE

24

PRODUCTION DEPARTMENT

28

HUMAN RESOURCE DEPARTMENT

39

PURCHASE DEPARTMENT

48

SALES DEPARTMENT

55

MARKETING DEPARTMENT

62

10

IMPORT EXPORT DEPARTMENT

71

11

CENTRAL EXCISE DEPARTMENT

81

12

FINANCE DEPARTMENT

86

13

RESEARCH AND DEVELOPMENT DEPARTMENT

94

14

TOTAL QUALITY MANAGEMENT DEPARTMENT

99

` 15

LOGISTICS DEPARTMENT

103

16

SWOT ANALYSIS

108

17

FINDINGS, SUGGESTIONS AND CONCLUSIONS

112

18

BIBLIOGRAPHY

116

INTRODUCTION

INTRODUCTION: As a final year MBA student in PSG Institute of Management, I had to undertake a internship as a part of my curriculum. I undertook my internship at Western India Plywood Ltd Baliapatam. The internship is mainly concerned with the departmental study and the overall working of the organization as a whole. The intership report contains in depth details about each department of the company. OBJECTIVES OF THE STUDY: The main objectives of the report are as follows: 1) To study the overall functions and working of the company. 2) To study in detail about each department of the company, the functions and the important work done in every department. 3) To study the organizational structure of the company. 4) To understand how effectively and efficiently the company is implementing its plans and procedures. 5) To interact with highly skilled managers of every department and study their rules and responsibilities. 6) To understand the strengths and weakness of the company. 7) To know the company and its workings as a whole.

DURATION OF THE STUDY: The main duration of the study is 8 weeks. Starting from May 4th to July 2nd. SCOPE OF THE STUDY: The study was conducted in Western India Plywoods Ltd, Baliapatam. The study mainly gives us an idea about the various functions about the company. The study covers all the major departments of the company and helps in getting a clear view about the departments. It helps us to understand the department and shows an overall view of the functioning of the company through its various departments.
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METHODOLOGY OF STUDY: The following are the main methods used for the study: 1) PRIMARY DATA: The main source of the primary data was through observation. Each department was studied for a specific number of days and observation of the day to day activities and workings of the department was made. Interviews and personal visits were made to the departmental heads as well as the departmental staff. Questions, opinions and overall idea about the functioning of department was gathered by this way. 2) SECONDARY DATA: Secondary data was obtained from company magazines, company records, annual reports, departmental books, company manuals, internet etc. The present market scenario of the plywood industry, the companys financial performance over the years was obtained through these sources. Reliability LIMITATIONS OF THE STUDY: 1) TIME CONSTRAINTS: The study was limited to a period of 8 weeks. So an in depth study could not be possible due to time constraints.

2) DATA AVAILABLITY: Some of the data was not available as the companys rules stated they cannot be shared. Also some of the books and files were not accessible as they were sensitive.

3) RELIABILITY OF DATA: The secondary source of data is not completely reliable. The data is not fully reliable as it comes from the internet. However the best efforts have been made to make the data as accurate and reliable as possible.

INDUSTRY PROFILE

INDUSTRY PROFILE

Trees are one of the greatest gifts given to the man by the nature. Nature raises trees just like a mother who brings up her children, making each tree as a separate individual, just like humans. It is amazing to see the natural abstract of time, color and texture of wood. Trees are natures one of the most prized treasures given to man. They provide man with shelter, fuel, medicines. Trees can be cut and made into sticks, war tools, and build vehicles of transportation like ship. The trees have significantly played a large role in mans journey of conquering the seas and to fly in the air. According to archeologist, mans cultural and economic progress can be traced in the art of wood veneering. Relics found in ancient Egypt and Chinese tombs dating from 2000 BC indicate that veneering combines a new figure and beauty. Veneer was used in Greek to beautify the furniture. Today veneers produced from mass production technique build over 80% of furniture.

HISTORY OF PLYWOOD INDUSTRY: India is rich in its forest wealth. It has a huge land area under forests. All varieties of forest growth are found in India. They range from tropical hardwood to high altitude coniferous forests. However present India is facing increasing threat of the depletion of forest resources due to increase of population, greater demand for furniture, more land used for construction of buildings and other causes. So due to this various steps are taken by the Government of India, NGOs to increase tree plantation, conserving the natural forest and meet the demand for wood and wood products of Indias domestic as well as international markets. It was more than 75 years since plywood industry was started in India. It was started on a modest scale. In the year 1906-07 plywood was imported in India and it was valued over Rs. 30 lakhs. The imports of plywood rose after this in a steady manner and in the years 1924-25 it was worth Rs. 90 lakhs. Tea industry in West Bengal, Assam and Kerala was steadily developing in that period of time and it was thought that plywood industry of India should be developed as it can play a major role in production of tea chests mainly for the exports of the tea. In the period from 1923-25 the growth of the plywood industry in India was steady but slow. It did not dramatic increase for the next few years.

GROWTH AND DEVELOPMENT OF PLYWOOD INDUSTRY IN INDIA: In India the plywood Industry consists of small, medium and large scale manufactures. They have also played a crucial role in the overall development of India in terms of social and economic development. Forests are one of the main natural resources of India. In India plywood was initially used to make tea boxes for exporting tea to Europe and it helped in overcoming the complaints of tanning of tea, change in color, lack of proper packing for transportation. Second World War was an important event in the growth of plywood industry in India. With the outbreak of Second World War there was increased demand for manufacturing of tea chests. So it increased the demand for suitable timber and this intern lead to the increase in the growth of plywood industry in India in a significant rate. Various experiments were made in forest research institute and it was found out that plywood made from Indian timbers were as good as imported products and thus various modern factories were set up in places like Bangalore, Baliapattanam, Dandeli and Bihar. PLYWOOD INDUSTRY IN POST INDEPENDENCE PERIOD: In years 1948-50 India was the net importer of plywood mainly plywood used for making tea chest was mainly imported to India. In these years plywood industry in India witnessed diversification of plywood products like commercial plywood, decorative plywood, marine and air craft plywood etc. during the 90s India was manufacturing more than 140 million square meters of plywood types and earning approximately over Rs 900 crore. Plywood industry has mainly grown in large and medium scale sectors. The growth in small scale industries is not as high as the large or medium scale. This industry provides employment to over 1 lakh people and has total investment over 700 to 900 crores. TRENDS IN PLYWOOD INDUSTRY: Plywood industry also has severe competition from inside. Many companies suffer due to this and are implementing reduction in costs and increasing the efficiency simultaneously. There is foreign competition as well looking to increase their strength of their domestic production through specialization of product. Many of the manufactures have obtained or are applying for ISO 9000/90002 certification. FUTURE OUTLOOK FOR PLYWOOD INDUSTRY: Indian plywood industry has a bright and shining future. In the past 15-25 years the increase in plywood products has been on the increase not only in India but also all over
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the world. So it opens a whole new market of opportunities and growth for plywood industries. They should also focus on improving the products they make simultaneously not compromising their quality. New plywood products are well accepted by the market in both India and abroad. At present time the industry is producing more wood than they have in the last 20 years. Plywood gives a more natural look and finish and it is the only non- cement wood composite that can be fully utilized in external and marine conditions. So overall the Indian plywood industry has come a long way since its inception, and it can be said that it has a very bright future in the coming years. PLYWOOD INDUSTRY: The necessity of making plywood arises out of the inherent defect in the wood. Unlike normal wood that is available purely in nature that is used, plywood is more like an engineered wood panel made from a thin layers of wood veneers assembled with grain direction of adjacent veneer as right angled to each other with layer of synthetic resins, adhesive and pressured under high heat pressure, thus imparting a great degree of strength. The plywood is dimensionally stable and has strongest sheet material weight ratio. It is designed especially for sturdiness and strength. Plywood is three times stronger than normal timber for the same use. However plywood industry also faces certain problems and challenges. This industry has become victim of a misconception. It is assumed that plywood industry is excessively using our natural resources. This is a false misconception as plywood industry as it plays an excellent role as economic substitute of solid wood thus prevention of natural forest and ecology. USES OF PLYWOOD: 1) Sheds and cladding are made from plywood 2) It may be used for wall paneling, flooring and furniture 3) Shuttering boxes used in construction industry are made from shuttering plywood 4) Marine plywood can be used underwater as it has waterproof adhesive.

11

COMPANY PROFILE

12

COMPANY PROFILE

ORIGIN: The Western India Plywood (WIP) Ltd, the largest integrated wood processing company in the country. It was established in 1945 in Balliapatanam Kannur. It is one of the emerging industrial cities in Kerala, India. It was started on a modest scale with a few indigenous and lends lease machinery. Western India Plywood grew over the next decades into a well integrated processing with well tuned skills in new product development and manufacturing. It was under the supervision and guidance of Mr. A.K Khaderkutty. BACKGROUND AND INCEPTION: Western India Plywood Ltd is a public limited company. It is also one of the largest integrated wood-processing complexes in the country as well as the southern Asia. The company was founded by Mr. A.K Kunhiman Haji, later he handed over the company to his son Mr. Kaderkutty Sahib, the company made progress through the years and expanded to its present status. It was under his guidance that the company grew to new heights and achieved major milestones. Plywood manufacturing was stepped up steadily by the addition of new machinery, they were mainly imported from Italy, USA etc. Diversification has also been made to decorative plywood, block board, flush plywood, etc. GROWTH: Western India Plywoods has over 60 years of existence. It has played an important role in main product innovations of Indian plywood industry. The company had an initial capital of 11.50 lakhs consisting of 9100 equity shares and 2300 preference shares. The company has made good progress year after year by introducing new machines as well as modern technology. The company has mainly 3 divisions: Plywood, Hardboard, and Furniture. In year 1960 a hardboard plant was installed by collaboration with West Germany. It had a capacity of over 12.5 tones. It has now increased to over 100 tons per day. From the late 70s Western India Plywoods have exporting decorative plywood and veneers to U.S.A, Canada, France, Germany, Dubai and other countries of the Middle East. In the year 1974 an industrial license was obtained for manufacture of densified wood with a capacity of
13

over 2000 M.T per annum. In 1974 a plant for the manufacture of furniture was added. In 1978 Western India moved into chemical plastic sector and set up a plant for this purpose. Western India Plywoods have also set up a reverse osmosis based desalination plant, first time in Kerala that can purify sea water and brackish ground water. It successfully helped the company in overcoming the acute shortage of water required for production during the summer. EXPANSION: Western India Plywoods hardboard became a quick success in the Indian market and the demand increased readily since its introduction. There was huge demand for the hardboard and it even rose higher than the supply of hardboard. So in order to meet the increasing demand, the company decided to go with an expansion program in the year 1977. Modern Swedish machinery from M/s Sunds Defibrator to increase the output of the hardboard to 20,000 tonnes per annum.The capacity was increased to over 25,000 tonnes per annum. The expansion was completed in 1986. In 2005, Western India Plywood has diversified its activities into manufacturing of Pre-Compressed Press Board for electrical insulation. The company also has a well equipped Research & Development Division which helps the company to get new developments for its product. VISION MISSION AND QUALITY POLICY: VISION: The main vision of Western India Plywood is to remain the best plywood panel corporation in India with a growth in allied areas. MISSION: The main mission of Western India Plywood is to provide the best customer satisfaction through quality and customer care, to protect, promote as well as safeguard the interest of the shareholders. To also continuously improve the products sold through latest technology and innovations and finally to respect the dignity of all employees and work together in a harmonious manner for achieving overall development of the company as well as the nation. QUALITY POLICY: The main quality policy of Western India Plywoods is to make their products according to national as well as international standard. The company focuses on making its products
14

available to the customers as per their requirement and to give the customers world class quality products at the right price. The company has well equipped Research and Development department as well as implementing a well defined to total quality management system. The main quality objectives of Western India Plywoods are: 1) Provision of adequate resources including raw materials and personnel ensuring constant product quality and overall improvement. 2) Suitable equipments and machinery equipped for handling process control at all stages. 3) Well defined process and product characteristics for monitoring analysis.

SUMMARY OF THE ANNUAL INSTALLED CAPACITY OF THE VARIOUS PRODUCTS BEING MANUFACTURED BY THE COMPANY: Plywood ( In Million sq.m of 3ply x 4mm basis) Hardboard (In M.Tonnes) Densified wood (In M. Tonnes) Resins (In M. Tonnes) Furniture (In units) Diallyl phthalate (In M. Tonnes) Prefinished boards (In lakhs sq. m) U. V Top coat and base coat (In kgs) Pre-Compressed press board (In M. Tonnes) : 2.5 : 34,000 : 2,000 : 2,400 : 15,810 : 10 : 9.0 : 82,600 : 600

MARKET: Western India Plywoods products are readily accepted all over the world because of its superior quality and lasting durability. So due to this the products have found ready acceptance inside India as well as outside. Plywoods are mainly used in automobile industry, building and construction purpose, shoe manufacturing, railways, packaging etc.
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Western India Plywoods exports its products to Germany, France, USA, West Asia, and Sri Lanka etc. POSITIONING: Western India Plywood mainly focuses on offering technically superior product to profitable Niche Market at a premium. These products cannot to duplicate easily as they require superior technology and expert handling and knowledge in order to retain their expected quality and durability. It also helps the company to expand its market and to make strong presence in the large segments. It has expanded to the upper end of the markets and targets those groups. TARGET SEGMENT: Western India Plywood properly classifies between industrial marketing, export marketing and retail level marketing. Some of the major target segments of Western India Plywood are Building construction segments, Boat building industry, automotive coachbuilding segments, interior design and furniture manufacturing segments.

AWARDS AND ACHEIVEMENTS OF THE COMPANY: WESTERN INDIA PLWOODS LIST OF FIRSTS IN THE COUNTRY: 1) First to make aircraft plywood. 2) First to make irradiated plywood. 3) First to make synthetic resin adhesive bonded plywood using hot pressing techniques. 4) First to make high pressure laminates. 5) First to make quality hardboard way back in 60s. 6) First to manufacture Dially phthalate. 7) First to manufacture GI- Plywood for anechoic chamber. 8) First to make pre-finished plywoods and hardboards using UV cured surface finishing techniques.
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9) First to get ISO 9000 certification for hardboard and prefinished products.

RECOGNITION AND AWARDS: 1) ISO 9002 certificate for the quality given by the SGS yearly international certification Ltd (UK). 2) Capexil Special Export Award for the years 1975-1976, 1977-1978, 1982-1984, 19841985, 1985-1986, 1986-1987, 1987-1988, 1988- 1989, 1989-1990. 3) Capexil Certificate of Merit for the years 1976-1977, 1985-86, 2002-2003, 20032004, 2004-2005, 2005-2006, 2006-2007, 2007-2008, 2008-2009. (It is given for the best export performance of chemical allied products). 4) National Award Certificate of Merit by Government of India in the year 1977-1998. 5) National Association for Application Of Radio Isotopes And Radiations In Industry Award, 1984.

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ABOUT THE FOUNDER MR. A. K. KADERKUTTY:

Mr. A .K. Kaderkutty was the managing director of Western India Plywoods from its inception in 1945 to January 1993. Afterwards he served as the Director and Technical advisor of the company until his demise in February, 2001. He is considered to be one of the doyens of the wood working industry in the country. He took courage in setting up a wood based panel product empire situated in the remote part of Kerala, he also made a role model of his industry within the country. He was also instrumental in transferring the latest technology in the wood working industry. As a member of International Academy of Wood Science, he was also very closely associated with the Federation of Indian Plywood and Panel Industry (FIPPI). He also was associated with Indian Plywood Industries Research and Training Institute (IPIRTI). He was also a member of South Indian Plywood Manufacturers Association (SIPMA). He was also associated with the Bureau of Indian Standards and served as the Chairman of the subcommittee. The Government of India recognized him and nominated him to National Credit Council and other committees of the Central Government. In Kerala he was appointed to serve on the State Planning Board, State Advisory Committee on Technical Education, Kerala State Industrial Development Corp, and Kerala State Industrial Development Corporation. He also served on the Board of Kerala Forest Research Institute, Peechi and Kerala Government sponsored Institute of Management. He was the first Dean of the faculty of Wood Technology of Calicut University. Mr. A. K. Kaderkutty pioneered in a lot of research programmers in wood working industry. He believed in constant improvisation and development and his company also followed his beliefs and path. He set up a pilot plant in Baliapatam. It was mainly for the application of Radio Isotopes for upgrading the quality of the ordinary timber. He also was strict in applying cent percent utilization of the wood and believed in working the company in an eco friendly way. He was basically instrumental in placing the wood working industry in India on to the international map with his pioneering efforts. For his work and effort and for the achievements he was bestowed with many awards and recognition. He was recognized by NAARI in 1984 for his pioneering efforts. He received the Kerala Management Association Award for outstanding excellence, Management Science Award and Vyvasaya Sree Award in 1993. He has served on the governing body of IIT-Chennai, Regional Engineering College- Calicut and Suraktal.

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OVERALL ORGANIZATION CHART OF WESTERN INDIA PLYWOODS LTD

MANAGING DIRECTOR

GENERAL MANAGER (Admin)

EXECUTIVE DIRECTOR

GENERAL MANAGER (Technical) IMPORT AND EXPORT

HARDBO ARD

STORES

ELECTR ICAL

COMPANY SECRETARY

CHIEF ACCOUNT OFFICER

TECHNICAL MANAGER

DEVELOPMENT MANAGER

MARKETING MANAGER PLANT MANAGER CENTRAL EXCISE

WORK MANAGER

SALES MANAGER

PURCHASE MANAGER

RESEARCH AND DEVELOPMENT HEAD

TOTAL QUALITY MANAGEMENT HEAD

19 LOGISTICS EXECUTIVE

AUTHORITY AND RESPONSIBILITY: 1) a) b) c) d) 2) a) b) c) d) MANAGING DIRECTOR: Overall control of the organization and has the final authority in decision making. Has the ultimate responsibility for product quality. Chairing for the management review meeting. Ultimate responsibility for total quality management system. EXECUTIVE DIRECTOR: He shares the responsibilities of managing director for the following listed below The overall control of the organization and the final authority in decision making. Procurement of the timber. Ultimate responsibility for the quality of the product.

3) GENERAL MANAGER (Admin): a) He coordinates and controls the all activities related to import/export and purchase departments. b) Organize internal quality audit programs c) To take any corrective and preventive action in non following of quality management system. d) To plan and organize the management review meetings to identify and take corrective measures. e) To act as the chairman for the management review meetings in absence of the managing director. f) To conduct quality awareness programs and other training activities. 4) a) b) c) d) e) GENERAL MANAGER (Technical): Exercise control over the hardboard and pre-finishing plant. Preventive and breakdown maintenance. Have the overall responsibilities of electrical section and its functions. Does the internal energy auditing. Controlling of the non-conforming products and taking corrective and preventive action. f) Issuing orders of sub contracted work. 5) MARKETING MANAGER: a) Co-ordination with the sales department to effectively analyze the feedback of the customer.
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b) To make and formulate the marketing strategies of the companys products based on feedback/ research in consultation with top management. c) Preparation of the marketing policies and programs in order to support the marketing strategies of the company regarding various products. d) Developing and strengthening the relationships with customers, dealers and distributors. e) Gather ideas, suggestions and opinions about the product and service provided by the company from the customers.

6) MARKETING CO-ORDINATOR: a) To co-ordinate with the marketing manager and sales manager for day to day activities. b) Discuss policy matters to managing director or executive director. c) To ensure the marketing staff is given proper training and instructions for gathering effective market feedback. d) New market development and expand the institutional sales. 7) CHIEF ACCOUNTS OFFICER: The overall responsibility of the finance department of the company is associated with chief accounts officer. 8) a) b) c) 9) a) b) c) d) TECHNICAL MANAGER: Analysis of the finished product for the purpose of assessment and analyzing. Taking steps in product improvement. He maintains the custody of IS, ISO and other relevant standards and updates them. WORKS MANAGER: Maintain the process control in the plywood division. Carry out the process and technological improvements. Has the responsibility of the stores and materials indenting. Issuing work orders for subcontracted work.

10) PLANT MANAGER: a) Has the process control in plywood, flush doors and block board plants. b) Issuing work orders for subcontracted job or work. c) Preventive and breakdown maintenance.
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11) SALES MANAGER: a) Has the overall control of the depot and dealers of the company. b) Dispatching of the finished goods and products of the company. c) Analyzing of the customer feedback. d) Authority of invoicing and follow-up payments from customers. 12) IMPORT/EXPORT IN-CHARGE: a) Import to capital goods, raw materials, spares, chemicals, timber etc. b) Contacting of the foreign buyers. c) To popularize the products of the company. d) To take prompt and effective steps to obtain maximum orders e) To take necessary action on the enquiries received from the foreign buyers with the details of the products to be supplied. 13) PURCHASE MANAGER: a) Control over the purchases of all indigenous products except for timber. b) Maintaining and updating a list of acceptable sub-contractors. c) Maintenance of sub-contractors records. 14) SUPERVISOR: a) Overall supervision of the production and activities related to production. b) Maximum utilization of the raw materials and man power. c) Ensuring the quality of all products and allotment of work.

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PRODUCT PROFILE

23

PRODUCT PROFILE Western India Plywood mainly focuses on achieving leadership in the market by ensuring the quality of the products sold. They make sure the products sold are of the finest of quality and produced as per international standards. Many of the companys products are globally accepted. They are also available in a wide range in market. The following are some of the main products produced by Western India Plywoods: 1) BWR (BOILING WATER RESISTANT PLYWOOD): It is available in thickness of 1mm to 55mm. it is ideal for high quality furniture manufacture and will comfortably meet the water resistant requirement under IS: 3031989

2) BWP (BOILING WATERPROOF PLYWOOD): It is applicable for the furniture and structure exposed heavily fluctuating humidity cycles, furniture used in washrooms, bathrooms, kitchen etc. It is virtually unaffected by moisture and dampness.

3) MARINE PLYWOOD: It is mainly used for boat building, load and stress bearing industrial uses. This product is well accepted by the European Boat Building Industry.

4) FIRE RETARDANT PLYWOOD: It is used for industrial filters, paneling and ceiling substrate in hotel, hospital, theatres etc. The fire safety is achieved through an eco-friendly non-bleachable treatment formulation.

5) AIRCRAFT PLYWOOD: This plywood is mainly used for manufacture of parts of gliders, small aircrafts etc. It is available in diagonal construction for extra flexibility.

6) SCARE JOINT PANELS:

It is used in single piece conveyor beds, militants pontoon bridges and other specific application.

7) WIPWOOD: Wipwood is the densified wood used in the manufacturing of textile and jute mill accessories.

8) WIPLAM: Densified wood is used for the manufacture of insulation components for transformers and switch gears. 9) WIP CHECK: It is densified compressed floor board, with both chequered and plain surfaces, building and chemical industries order it.

10) WIPBEAR: Desified wood in the manufacture of the bearing and gears.

11) WIPLAC: It is a pre-finished plywood and hardboard, used in the manufacture of panel coiling and furniture.

12) WIPROC: Densified wood used in the manufacture of high precision jig formatting tools in aeronautical industry and neutron shields used in the reactors.

13) HARDBOARDS: Hardboard is an eco-friendly wood based panel manufactured using the timber from plantation species. It is an extremely versatile and also high in cost effectiveness. Western India Plywoods Hardboard is one of the leading hardboard brands in India.
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Various types of hardwood produced are standard hardboard, oil tempered hardboard, perforated hardboard etc.

14) DENSIFIED MOULDED SEATS: Used for railway coaches, auditoriums, restaurants etc.

15) WESTERN FURNITURE: Western India Plywood specializes in exquisite plywood furniture. It includes wide range of furniture ranging from chairs, tables, bed, cupboards etc.

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PRODUCTION DEPARTMENT

27

PRODUCTION DEPARTMENT: Production is the basic activity of all industrial units. All other activities revolve around the production. In production department the main process done is the conversion of raw materials into finished products like plywood, hardboards, compreg etc. Wood, chemical and steam are the main three raw materials used for production. There are so many types woods used for production. There are two main types of wood used in the production process, they are commercial wood and decorative wood. . The following is the list of some of the main woods used in production department. They are listed as follows: 1) 2) 3) 4) 5) Kalpain Vellapain Mango Eucalyptus Pashapali

Many decorative plywood is also used for producing decorative plywood, furniture etc. A list of such decorative wood used is given below: 1) 2) 3) 4) 5) Rosewood Teak Mahogany Silver Oak Padok

Many chemicals are also used for the process. These are used in various stages of production. Some woods require usage of special chemicals as well. A list of important chemicals used is given below: 1. Phenol Formaldehyde 2. Urea Formaldehyde A large boiler is also an essential machine used in production. Wood and other scrap materials are burned in the boiler continuously in order to produce high temperature steam used in production process such as heating the wood, drying, pressing of the plywood etc.

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ORGANISATIONAL CHART OF PLYWOOD

MANAGING DIRECTOR

GENERAL MANAGER

WORKS MANAGER/ PLANT MANAGER

SUPERVISOR

RAW MATERIALS

PRODUCTION CONTROL

BOILER CONTROL

SHIFT ALLOTMENT

WORKERS

WORKERS

WORKERS

WORKERS

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PRODUCTION PROCESS OF PLYWOOD: Plywood is the first type of engineered wood to be invented. It is made from thin sheets of wood veneer made from timber called piled. They are stacked together and bonded under heat and pressure with strong adhesives. A common reason for the preference of plywood over a normal wood is that there is high stability and resistance to shrinking, twisting or warping. The production process of plywood consists of many stages. It begins from the log yard where a timber is bought. It is a complex process involving many steps and each step has to be executed carefully as mistakes can damage the quality and durability of the timber ultimately affecting the final product. The production process of plywood is explained as below: 1) LOGYARD: This is the place where the woods are kept in the water for preservation. It is basically a place for storing of the woods. The woods which are brought are measured by its length and width and are given specific number and then it is stored. Woods are stored in the water. Some woods float while some are submerged in the water. A particular number is given to each wood that makes the identification of type, length, breadth etc of woods easier.

2) CROSS CUTTING: Before the wood is taken for processing it has to be cut into many pieces. It is done in cross cutting. The wood is cut into blocks of various sizes. (3-8 feet) as per requirement. A chain saw is used for cutting and it works on hydraulic system.

3) BOILING: The next stage of production is boiling. Boiling is done in order to make the hardwood soft and remove its oil content. Not all woods require boiling. Eg woods like Kalpan require boiling. In order to make the hardwood soft the wood is dipped into a boiling block where water is boiled with the help of steam (80-180 degree Celsius). The wood is boiled for at least 24 hours. The steam is produced from boilers. Western India Plywood has mainly 3 types of boilers. a. Saw dust boiler b. Fire wood boiler c. Fuel Bed combusting
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4) PEELING: After boiling the logs are peeled with the help of peeling machine. It is peeled in a small size to produce veneer. Veneer itself is of two types: a) Face: This veneer is smooth in touch and has a smooth surface for it. b) Core: This veneer is the rough part of the wood. 5) CLIPPING: The next process of plywood production is called clipping. Here the veneer produced in the previous stage is taken to a clipper. A clipper is a machine that helps in differentiating veneer into face and core. There are two types of clipper machines in Western India plywoods. One uses the hydraulic function and the other is much mainly operated manually.

6) DRYING: The veneer is undergone drying in this stage. Dryer is a machine used for drying the veneer. It is mainly done in order to remove the liquid present in the veneer. Sheets of veneer are put into the dryer. At a time the dryer can take up to 8 sheets of veneer. The drying is mainly done by using steam from the boilers. The time and pressure required for drying is determined by the thickness and type of wood. The machine used for this process is known as dryad. . 7) EDGING AND JOINING: Here the veneer is cut in the same level. The cut is made to get the same length and breadth. Then they are joined together in the next process called gluing.

8) GLUING: This is the process is when the gum is spreads on both side of the core. The main glue that is used for this purpose is phenol formaldehyde.

9) ASSEMBLING:

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Assembling is the process where the board is prepared. In assembling the preparation is done by using two faces and one core. The core veneer is placed between the face veneers. Minimum of 3 veneers are required to make the plywood. If three veneers are used it is called 3-ply. There are up to 5 types of ply ranging from 5, 7, 9 and 11. Only odd numbers are used for assembling. The core is always kept in the centre.

10) FREE PRESS: In a free press the assembled boards from the previous stage are put into the machine that presses the boards. This is mainly done to make the glued veneer stick to each other and make it uniform.

11) HOT PRESS: This is an important stage in the production of plywood. Here the board after the free press is put in another machine where the board is steamed. During this process the dried glue gets melted and the face and the core get attached to each other. Multiple boards are pressed at the same time. The time taken for the pressing depends upon the steam, thickness and size of the board. The time generally ranges from 6 min to 20 min. depending upon the thickness which also ranges from 3mm to 25 mm. the following is a chart given about the time taken according to different thickness, size and pressure.

SIZE 8X4 7X4 6X4 6X4 BB

PRESSURE 170 Kc/ cm2 140 Kc/ cm2 110 Kc/ cm2 70 Kc/ cm2

THICKNESS 3 mm 4 mm 6 mm 15 mm

TIME 6 min 7 min 12 min 20 min

12) CONDITIONING: Conditioning is the stage where the board that comes out from the hot press is treated with chemicals. It is mainly done in order to identify the damage or spots on the board and also to avoid termite as well as fungal attacks on the board.

13) TRIMMING:

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In trimming the board is passed into a machine called trimmer to cut is sides for removing the unwanted parts. It helps to cut the board according to the sizes required.

14) SANDING: In this process the board which is properly trimmed, is smoothened and softened by using sandpaper. The sandpaper is rubbed on the board in order to make it smoothen its outer side (face). It is done by belt sander machine or drum sander machine.

15) FINISHING: Finishing is the final stage of the plywood production process. In this the finishing touches for the plywood are given. The boards are scaled and labeled, they are also made ready for dispatch. The following are some of the main products produced with the help of plywood. The list is as follows: 1) Cold Water Resistant ( CWR ) 2) Boiled Water Resistant ( BWR ) 3) Boiled Water Proof ( BWP) 4) Marine and Aircraft plywood 5) Fire Proof plywood.

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PRODUCTION PROCESS OF PLYWOOD

LOG YARD R MANAGING DIRECTOR CROSS CUTTING

BOILING PEELING CLIPPING DRYING EDGING AND JOINING GLUING ASSEMBLING FREE PRESS HOT PRESS CONDITIONING TRIMMING SANDING FINISHING

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PRODUCTION PROCESS OF HARDBOARD: Hardboard is another important product produced by Western India Plywoods. It involves a series of well designed and carefully executed sequential process. It mainly intakes wooden chips as main raw material for production. The production process of hardboard is as follows 1) CHIPPING: This is the first stage of the process. In this the large timber is converted to small chips of very small size.

2) WASHING OF CHIPS: This is done in boiling water. It helps in providing the chips with sufficient softness. It also helps to remove the sand and metallic particles in the chips. Stone, sand, and other unwanted particles settle down in the tank.

3) CHIP SILO: After washing the chips are stored in temporary location called the chip silo. It is actually a large tank that helps in storing these chips in the proper condition. Then a pre heater is used for the purpose of softening the chips.

4) PRE HEATER AND DELIBERATOR: Then a pre heater is used for the purpose of softening the chips. Then a deliberator is used for grinding the chips and converting it into fiber form. Most of the moist content inside the wooden chips are removed by increasing the temperature.

5) CYCLONE: Chips from the deliberating machine are transferred to a conical chamber called cyclone using steam. In this process the stage fiber is mixed with the water inside the conical chamber.

6) DELIBERATOR CHEST:
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In this process there are mainly 2 stages. In the first stage the pulp is pumped into equalizing chest. In the second stage from the equalizing chest it is pumped to the machine chest.

7) LEVEL TANK: The position of the level tank is higher than the head box. It has 3 bottom pipes. First one to pump pulp into level tank, second to avoid overflow and third used as delivery pipe to head box. The pulp is taken out through delivery tank, added with water and pumped into head box of board forming machine. The board formed is properly trimmed later using circular saw and cutting machines.

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HUMAN RESOURCE DEPARTMENT

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DEPARTMENTAL STRUCTURE OF HUMAN RESOURCE DEPARTMENT

MANAGING DIRECTOR

GENERAL MANAGER (ADMIN) ) FACTORY EXECUTIVE (AD (AD

PERSONNEL OFFICER (AD CLERKS

CHIEF TIME KEEPER (AD CLERKS

WELFARE OFFICER

CLERKS

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INTRODUCTION: Human Resource Management or Personnel Management is that part of management related with the people at work, their relationship with each other and they way they work together. Proper management is absolutely essential for the workers increase in efficiency and performance at work. Human Resource Management helps in proper connection of the financial resources of a company and the natural or human resource of the company and fitting them with company objectives and long term goals. This department has an important role in the management of the company as it deals with the people who work in the company. In simple ways dissatisfaction of the workers will lead to decrease in the overall efficiency of the company. HUMAN RESOURCE MANAGEMENT IN WESTERN INDIA PLYWOODS: Western India Plywoods has a well efficient personnel department. The personnel department of the company looks after the welfare and to control the employees. More than 1500 workers or employees are currently employed in Western India Plywoods. Among them almost 900 are permanent employees and over 100 are office staff. The company runs round the clock (24/7). A shift system is followed in the company. The shifting working hours of the company are: 6.30 am to 2.30 pm 2.30 pm to 10.30 pm 10.30 pm to 6.30 am 9.00 am to 5.00 pm

A good governed Human Resource Department helps in the smooth functioning of the organization, improving its efficiency as well as productivity as whole. In Western India Plywood Personnel Department, Managing Director is the head of the department. He is followed by factory executive who deals with most of the matters of the personnel department. Under him come personnel officer, chief time keeper and welfare officer. Welfare officer and personnel officer deals with the welfare activities of the company. Chief time keeper deals with keeping time, taking disciplinary action. He is assisted by clerks who work on the wages, salary, ESI, PF etc. As for the benefit of the workers, the company provides co-operative stores that provide credit facilities, canteen with subscribed food at low rates, ambulance for emergency and festival advance. The workers are also allowed staff mess, staff recreation club.

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WAGE PAYMENT: Western India Plywoods provide proper and precise incentive scheme for compensation for its employees. It includes: 1) Basic Pay + VDA + HRA ( 10% of Basic Pay ) 2) PF for each employees is Basic Pay + 12% of DA 3) ESI collected from employees with a salary of Rs 1500 per month is 1.75%. While for employees it is 4.75%. 4) VDA (Variable Dearness Allowance) is calculated from the VDA list issued by the department of statistics.

TRADE UNIONS OF WIP: Western India Plywoods has many trade unions for its workers. They are listed as follows: 1) 2) 3) 4) CITU- Affiliated to CPM INTUC- Affiliated with Congress AITUC- Affiliated with CPI STU- Affiliated to Muslim League.

CLASSIFICATION OF WORKMEN: The workers in Western India Plywood are classified into the following groups. They are listed below: 1) PERMANENT: A permanent worker is a worker who has been engaged on permanent basis and includes a worker who has completed his probationary period. The period may extend from 6 months to more than 1 year.

2) PROBATIONER:

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A probationary employee is an employee who is provisionally employed and who is currently on probation. After his completion of probationary period he will be retrieved to the position of permanent employee.

3) SUBSTITUTES: They are also called as badly or substitutes. They are employed in the above to two posts mentioned when they are temporarily absent for a specific period. They are employed till the permanent or probationary employee arrives after leave.

4) TEMPORARY: A temporary workman is the one who is engaged to work in temporary basis.

5) APPRENTICES: An apprentice is a leaner who joins the company and learns the work as a part of his training. He may be paid or may not be paid during his training. It shall not be an obligatory on the part of the company to provide an apprentice with work after he finishes the training. TICKET OR ATTENDANCE CARDS: Ticket or attendance cards are given to every worker in the company. It is issued free of cost and shows important details like his name, classification etc. While coming to work every day in the company every work man shall punch his card or ticked at the place provided in the time office. A punching machine is kept that immediately punches the date and time to the card. These tickets are kept on the shelf next to it according to the classification which is later collected by the time clerk. Similarly a worker should punch his card after his shift work is over. If a workman fails to punch the attendance card he will lose the attendance for the period. Unless he makes a report to the manager his failure within the next two hours. ATTENDANCE AND LATE COMING:

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All workers should be at work at the time fixed and should punch the cards appropriately. If a workman attending late or reasonable up to a period of one hour and not exceeding three times a month may be admitted for work and such workman are liable to deduction provided in for the payment of the Wages Act, 1936. If a workman attends late for more than 3 times a month he will be treated as absent. If a workman leaves the factory premises during the work hours without any prior permission from the concerned authority shall be liable to be treated as absent for the whole day. A worker can leave the premises on official company work. LEAVES AND HOLIDAYS: A worker will be allowed to take leaves with wages according to chapter VII of the Factories Act. In case of the monthly paid workman, the wages with leave will be allowed when he takes leave in any particular period of month. He will get wages for the leaves taken this way. National and festival holidays will be allowed to workers with wages according to the Kerala Industrial Establishment Act (National and festival holidays). These leaves are allowed according to this act and they will also receive a festival bonus. Leaves for situations like maternity leave, accidental leave etc will be allowed to the workman according to Employees State Insurance (ESI). They should be applied early and must contain valid proof like medicinal certificate, doctors documents etc. Workman can also take a causal leave without wages for ten days in aggregate in calendar year. All the leave applications should be submitted in a prescribed leave form and should be forwarded through the head of section of the Manager whose decision shall be taken. TERMINATION OF EMPLOYMENT: An employee can be terminated from his employment in case of misbehavior, or bad conduct, or constant late arrival or any other particular reason. A permanent worker can be terminated from the work by giving one month notice prior stating the reasons and other information regarding his termination. The reason for the termination are noted and recorded in writing and shall be communicated to the workmen. No temporary workman. Whether monthly paid or weekly paid and no probationary workman shall be entitled for any pay when he is terminated. The workman will be given a chance to explain or defend against the charges of misconduct alleged against him.
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Where the employment of any workman is terminated the wages earned by him and other dues that the company owes to him shall be paid within a period of 3 days since his termination. RETIREMENT: Any workmen who is declared mentally unfit or found be of continued ill health or reached the age of 58 shall be retired from the service according to the Gratuity Act. The permanent worker can also opt for voluntary retirement and has to give fourteen days notice prior to his retirement. MAJOR ACTS THAT ARE TREATED AS MISCONDUCT: The following are the major acts that are treated as misconduct by the company. If any worker is found to do these acts in frequent basis they will be called to explain and could even lead to the termination of the employee. They are listed as follows: 1) Handling the package containing important and sensitive materials incorrect. 2) Incorrect working on machines leading to damage of machines and equipment. 3) Incorrect packing of packages with materials, doing careless and negligence of work. 4) Laziness of work, making improper behavior and spitting in the factory. 5) Brining smoking materials, smoking inside the factory premises except in the place set apart for that. Bringing drugs or any other banned substance in company. 6) Late attendance or being absent at the working conditions without proper permission and striking the works either single or with multiple workers. 7) Forcing other members for striking, taking or giving bribe. 8) Committing theft or fraud or dishonesty in connection with the companys business property.

WELFARE ACTIVITY:

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The following are the welfare activities provided to the employees of Western India Plywoods Ltd. They are listed as follows: 1) 2) 3) 4) 5) 6) 7) E.S.I Scheme Workers canteen and subsidized rates Staff Mess Co-Operative credit society Medical re-imbursement for those not covered in E.S.I Ambulance facilities Staff Recreation

PERFORMANCE APPRAISAL: It is carried out annually among the staff and management. The main objectives of performance appraisal are: 1) To assess the strong and weak points of the employees and to work on improving the strong points and removing the weak points. 2) To reward those employees who have above performed above expectation. IMPORTANT BOOKS KEPT IN HUMAN RESOURCE DEPARTMENT: 1) MUSTER ROLL: Muster roll is the attendance register. In the muster roll all permanent and staff workers attendance is recorded. It contains special columns for the ticket or attendance card no, the week no, number of leaves taken by the employee, number of times he has been absent and finally the total number of days he has worked in a week and month has been recorded.

2) LEAVE REGISTER: Leave register is the register in which the leave taken by the employee, worker or staff is recorded. It contains the leave details, the start and end date of a leave taken, the number of leaves he has taken so far and the total number of leaves that he has left in his balance. In order to apply for the leave a leave form should be submitted within 2 days to the company.

3) WEEKLY WAGES REGISTER & SALARY REGISTER:

Weekly wages register is a register where the weekly wages of the workers are recorded. It contains the total wages of the workers that he has earned in a week. It also contains the deductions that are made from his wages like canteen expense, co-operative store expense, ESI, advance he took etc and the final wages will be shown. Salary register is the register for the employees who are paid monthly. It also includes the above mentioned deductions, if the worker needs insurance LIC is deducted from it.

4) OVERTIME REGISTER: Over time register included the time a worker spent as overtime. He has to first submit the overtime slip that includes the time he has worked over time, his relative pay for that time, based on that it is registered. COMPANY SOFTWARE FOR RECORDING WORKERS INFORMATION: Western India Plywoods Ltd has a software program that helps it to record the information of each and every worker in it and store for further reference. It is called ASP.Net. It also helps in calculation of wages and salaries for the workers and employees. This software was installed in 2004 as calculation of wages was proving to be difficult and time consuming task for all the employees. It contains employee details that are entered online. His photo, the date he joined his current status, the job he works, and his supervisor. It also contains his departmental information. His ticket no, his employee no, his attendance no etc are recorded. It has options for the payroll processing, the monthly salary and weekly salary payroll. The PF report and the bonus report of the employee. This software also helps in deduction of the monthly or weekly salary of the employees due to leave or late attendance. It records the retirement of the employees and the category which an employee belongs to whether permanent or probationary etc. It also has options for taking quick printout of the salary sheets of the employees, the PF details and so is very much useful and time saving software program.

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PURCHASE DEPARTMENT

46

DEPARTMENTAL STRUCTURE OF PURCHASE DEPARTMENT

MANAGING DIRECTOR

GENERAL MANAGER

PURCHASE EXECUTIVE (AD

PURCHASE ASSISTANTS

PURCHASE ASSISTANTS

PURCHASE ASSISTANTS

47

PURCHASE DEPARTMENT: Purchase department is one of the most important departments in a manufacturing and production company. Purchase department is mainly required for the purchase of main raw materials for production as well as other equipments and things required that assist production. The main objectives of this department are listed below: 1) 2) 3) 4) To make the availability of raw materials. Make the free flow of materials from purchase to production unit. Make assurance of the quality of raw material. Avoid wastage of raw material.

Western India Plywood Ltd is a production oriented company. So the main raw materials for the production are timber and other raw materials like purchase of spare tools, nuts & bolts, lubricants etc. It is required on a continual basis. Even though the firm has a purchase department there are mainly 3 ways in which the purchase takes: 1) LOCAL PURCHASE: Local purchase is the purchase that is made in the local area, areas near to the company. The suppliers of wood to the company are usually local traders and residents of that place. They supply the local wood and overall the wood purchased is of a small quantity compared to other purchases.

2) DIRECT PURCHASE: Direct purchase is when parties are contacted directly and purchase of wood or other raw materials is made. No intermediaries are between when doing the direct purchase. The main suppliers supply the materials directly.

3) PURCHASE THROUGH BANKS: In this the company uses the help of the bank to make its raw material purchases. The raw materials are purchased on the behalf of the company. The contact to the suppliers is given to the banks by the company and banks take care of the dealings that follow next on purchasing.

48

Purchase department carries out its purchases based on the requirement of the production department. If the need for the wood is much more purchase department may increase purchases and may even take bulk purchases to stock up the supply of the wood, however if less wood is required the wood ordered for purchases is cut short in quantity. PURCHASE PROCESS: 1) INDENT ORDER: When the production department requires the required raw materials it sends an intent order to the purchase department. It is mainly done by issuing an indent slip which notes the quantity, description, number of goods and the specific time limit. However if the goods are required very urgently, they are purchased from the local market.

2) QUOTATIONS: Western India Plywoods has a few registered vendors for the goods of less urgency, so the company informs their vendors and invites the quotation stating their prices. The Purchase Executive forwards it to General Manager who then selects the best quotation considering the price, quality etc.

3) SENT ORDER: After the approval of the quotation the general manager asks the purchase executive to carry out the order. The purchase executive sends an order to the vendor with specific condition of the product, the terms of payment, the type of packing, transport etc.

4) GOODS RECEIVED NOTE: Goods sent by the vendors is directly taken to the production department where the managers verifies the goods regarding its quality, condition, and sends a good received note to the finance department and one to the purchase department. The purchase executives check it one more time and then file the note.

TIMBER SECTION:

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Timber section is a section of purchase department that mainly deals with the purchase of timber and firewood. Timber is mainly used for the production of plywood and furniture while firewood is mainly used for the production of hardboard. Timber and firewood is purchased through mainly two ways: 1) LOCAL PURCHASE: Local purchase is the purchase of timber and firewood by the company through local vendors. The agents send timber to the company whenever the stock comes. In local purchase the company deals with very few parties and no quotation is made. Also the rate of timber purchased is fixed.

2) PURCHASE BY IMPORT: In this the timber is imported from other countries mainly through ships. The company has contacts with sellers in Myanmar, Malaysia, and Middle East Countries etc for importing timber. The timbers are paid in Indian money as per specifications.

FIREWOOD: Firewood is purchased daily in loads of tons in the company. Firewood is the main raw material used for the production of hard board. It is also used for burning. On an average daily a sum of over 90 tones of firewood is used for burning. Also it takes more than 2 tones of firewood to make 1 tone of hardboard. However the purchase of firewood is done mainly by local purchases. The payment done may be full payment or installments.

MAIN BOOKS KEPT IN THE PURCHASE DEPARTMENT: MAIN BOOKS: 1) PURCHASE DAY BOOK: Purchase day book is the book where the day to day purchases of the company of timber and other raw materials is recorded. Earlier this was kept as separate book and transactions were recorded in it. Now tally software is used to keep the purchases recordings. Various accounts are created in it and recordings are done appropriately.

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Some of the main accounts are Timber purchases, Stores & spares, Acids & chemicals etc.

2) GOODS REJECTION NOTE: This note is mainly prepared in order to record the goods that are rejected mainly the timber that is purchased. It contains the indent number, the name and address of the seller and invoice details like date, amount etc. An explanation of the nature of the complaint is written explaining the reasons for the rejection. Seller is contacted after that.

3) PURCHASE REGISTER: Purchase registers contains the information recorded about the information about the purchase orders. It contains the indent no of purchase made, supplier name and details of contact, bill date issued by the supplier about the sending the product, the amount etc. Purchase register helps to know the purchases made in a month at one glance.

SUB BOOKS:

1) BILL FILE BOOK: Bill file book is the book that is mainly records the bills of the purchase parties and the purchases made. In this book the bills that are inspected and then finally paid off the purchase of timber and other raw materials are filed. The information of the timber, the quantity, the final price etc is mentioned here.

2) C FORM BOOK: A C Form has to be filed to the central sales tax for the purchases made. The C form earlier was filed and given to the tax office manually but now it has made online. In the C form details about the issuing state, office of issue, the name and details of purchasing dealer and address of seller along with his state should be recorded.

3) APPROVED SUPPLIERS LIST:

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Approved suppliers list contains the list of the vendors or sellers approved by the company. This list helps the company to identify the sellers who have been doing business with the company for a quite some time. This list contains name and address, contact person, the main products that they sell and the payment.

4) VENDORY RATING FILE: This file mainly contains the vendor rating given to the vendors month by month. It includes a table that has the following items like adhering to delivery schedule, price, response, consistency in performance. The scores will be given to each section ranging from 1-5 and then total scores are taken.

5) CHEMICAL CONSUMPTION & OTHER RAW MATERIAL FILE: Chemical consumption file is kept in the purchase department to track the consumption of chemicals month by month. It includes sections for various chemical names, the opening balance, the total chemicals consumed and final balance of chemicals. The raw materials used like furnace oil, lubricants for machines etc are recorded in the raw material file on their consumption.

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SALES DEPARTMENT

53

DEPARTMENTAL STRUCTURE OF SALES DEPARTMENT

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

SALES MANAGER

DIRECT SALES

DEPOT SALES

BILLING SECTION

SALES TAX

SALES ASSISTANT

SALES ASSISTANT

BILLING ASSISTANT

SALES TAX ASSISTANT

54

SALES DEPARTMENT: Sales department is one of the most important departments in any company. Sales of the company affects the company and its profits in an overall basis. The sales department helps a company in the smooth and proper functioning of sales. A sales department is thus a very essential department that a company should have and maintain. In companies that are heavily involved in manufacturing and selling of goods sales department should be functioning smoothly. The finished goods produced in the production department after the inspection are send to the sales department. Overall the main function of the sales department is to ensure the free flow of the products to the customers. The main objectives of sales department are as follows: 1) Sales promotion and profit maximization 2) Variety of products available for sales 3) Maximum product sales. The Western India Plywoods have an effective and efficient sales department. It takes care of all the sales procedures and strives its best to provide the product to its customers at the right time and at the right place without any delay. Western India Plywoods do sales mainly through agencies and depots. Sales representatives are also used for sales. Cash and credit sales are provided and credit period allowed is usually 30 days. The sales depot is run by the company as well as by some external agencies. There are currently more than 50 depots in India and over 15 in Kerala. Each depot is handled and controlled by a depot manager. Western India Plywoods mainly use direct contract by sales representatives. Government and railways are some of the main customers of the company. Enquiries are done by the way of tenders. The main tool used to catch the government orders is by the lowest quotation. There is advantage to this as the company receives almost 90% of the payment in ready cash. One of the main success of Western India Plywoods as the leader in the market is that while timber world is facing crisis, the company markets many innovative products along with its normal sales, like marine plywood, fire resistant plywood, densified wood, furniture etc. The company has many contacts with dealers all over India, and conducts exhibitions.

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PROCEEDURE OF SALES: The sales of Western India Plywoods are conducted mainly by 2 procedures. They are listed as follows: 1) DIRECT SALES: The direct sales is conducted when parties contact the company directly for purchasing the items. The direct sales involves many steps, they are as follows: a. Enquiry from parties: In the first step the company receives enquiry from the parties regarding their interest in making a purchase, the items they are interested in, the rate they are willing to pay and the time for which the delivery of the goods has to take place. The parties can contact the company through telephone, email or fax.

b. Analysis of the enquiry & sending pro forma invoice: The enquiry got is properly analyzed. The quotation along with samples is given. The quotation includes the important details regarding the price, quantity needed etc. The pro forma invoice is send to the party.

c. Receipt of confirmed order & receiving advance payment: The next step is getting the receipt of confirmed order from the parties. Also if the party pays in advance that payment is also received. The production order will be given 3copies of it. First copy is send to production department, second one to dispatch department and third one to sales department.

d. Manufacturing of items and final testing: Once the manufacturing of the items is complete the next process of testing the items begins. The items manufactured are properly tested like moisture content test, strength test. Then the production department informs dispatch section about its dispatch condition.

e. Dispatch section:
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The dispatch section in turn informs the billing section. The billing section prints the bill. Dispatch section provides loading ship and loading and unloading section. They will be provided with other documents like road permit, declaration form etc.

2) DEPOT SALES: Depot sales are another type of sales done in Western India Plywoods Ltd. The main steps involved in depot sales are: a. Enquiry with depot agents: The customers or interested parties contact the depot agents in the company depots regarding their needs and purchase they like to make. They tell the necessary information like quantity needed, money willing to pay etc.

b. Quoting the samples required & receiving order: The depot manager will quote the samples that are required for customers. He will file a depot order and it will be passed to sales manager.

c. Issue order to head office & production order: The order will be issued to the sales manager who then contacts the production department for the manufacture of the goods. A production order is issued stating the quantity needed, the time within which work has to be completed etc.

d. Manufacturing: After this the manufacturing work begins at production department. The manufacturing is done as per the requirements that is stated in the production order. Once the manufacturing is done necessary testing will be made to ensure the quality of the product and also its durability.

e. Billing:

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The next step is billing. In the billing the main bill of the goods to be sold is typed, the amount to be paid along with the necessary information of the purchaser and seller. This bill is given to the transport persons along with necessary documents like check post authority letter, freight letter, forms for crossing states etc. Usually the goods are transported via lorry.

f. Payment: Once the shipment reaches the party, the payment is done by the purchaser. The payment can be done through a bank. In case of parties that are doing business with the firm for a long period of time the company may offer certain amount of discount on purchases.

MAJOR BOOKS KEPT IN THE SALES DEPARTMENT: The following are the major books kept in the sales department. They are listed as follows: 1. INDENT FILE: Indent file is the file that is kept only for depots. This indent is of two types, a customer indent file and depot indent file. Customer indent file mainly consists of indent file that are kept customer vise. It includes the main indent issued, depot indent files are kept depot vise. Indent file has information regarding the indents send by the customers, the quantity they needed, the price etc.

2. SALES DAY BOOK: It includes the daily sales happening in the depot. The various depots of Western India Plywood sends a collective sales statement at the end of the month. Sales day book mainly includes the sales, the quantity of items sold, the description, the amount of sales etc.

3. FREIGHT LETTER FILE: Freight letter file is the file containing the filed copies of freight letter given to the main person who transports the finished goods of the company to the customers. The freight letter is usually given to the lorry drives. In the case of depot sales the freight letter is
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delivered to the depot. It usually contains the depot name. and the statement about the freight along with the amount to be paid.

4. CUSTOMER FILES: Customer files include the files that is kept separately for each customer. It comes under the direct sales. It this the bills of the customer, emails forwarded by the customer to the company regarding the products, dispatch etc. It also files the indents of the parties.

SUB BOOKS: 1. STOCK TRANSFER INVOICE FILE: The stock transfer invoice file contains the invoices send to the party. It contains the invoice date, no and date and time of preparation of invoice. 2. PAYMENT OUTSTANDING DETAILS FILE: The payment outstanding details file contains the information about the outstanding payments relating to various parities. This contains includes information like name of the parties, invoice no, place, the total outstanding amount etc. If the amount is got from the party the page is ticked off indicating the receipt. 3. STATE BORDER CROSSING FORM: State border crossing form is an important document needed for transporting good between the states. This is the form that has to be submitted for crossing the states with the cargo. In certain states like Karnataka, Gujarat, etc the form can be submitted via net while other states like Kerala, Andhra Pradesh separate books are kept containing the forms for the border state crossing. The form usually contains the name and address of the person consigning goods, to party to be consigned, description of the goods, date of transportation etc.

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MARKETING DEPARTMENT

60

DEPARTMENTAL STRUCTURE OF MARKETING DEPARTMENT

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

MARKETING MANAGER

MARKETING COORDINATOR

MARKETING EXECUTIVES

MARKETING REPRESENTATIVES

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MARKETING DEPARTMENT: Marketing is one of the most important and dynamic fields within the management. For any company who wishes to sustain their sales, increase their customers and spread its territory and public aware of its products require marketing. In other words marketing is the first thing after the company decides to sell its products. It is the process of determining the consumer demand for a product or a service. A good and effective marketing of the products not only ensures the expected sales but also increases the good will of the company and in the long run the company earns the reputation that helps it become the reputed and respected companies compared to the newly formed competitors in that field. The main objectives of marketing department are as follows: 1) 2) 3) 4) 5) To increase the company sales. To explain to the general public the companys products in the market. To develop marketing strategies and preparing budgets for it. To explore the new market for the companys product. To increase the consumption, create goodwill, cost reduction, and ensuring growth.

The main concept of the marketing can be further explained with a chart below:

NEEDS, DESIRES PREFERENCE DEMANDS

PRODUCTS

PRICE SATISFACTION

FEED BACK

MARKETING AND MARKETING EFFORTS

EXCHANGE ND SATISFACTION

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MARKET OF WESTERN INDIA PLWOODS: Due to the high standard of product quality and excellent customer satisfaction has enabled the company to perform well in domestic, national as well as international market. The company has succeeded in getting bulk production orders though out the year hence it works round the clock. The main product plywood sold by the company is used in manufacturers of bus bodies, railways, building construction. The companys diversified products like densified wood is being supplies to the electrical industries, marine plywood is supplied to the ship building docks, DAP is used in the electrical and molding industries etc. The company also produces world class furniture like tables, chairs, beds, doors, TV cabinets etc. The company also takes pride in producing all these products with 100% utilization of wood, with no wastage and done in a complete eco friendly way. MARKETING STRATEGIES OF WESTERN INDIA PLYWOODS: The marketing strategy that is used by the Western India Plywoods is Niche marketing. Niche marketing is a marketing strategy by which from the general market the niche group or smaller group with specific interests are found out and then products are made according to their specifications and needs. It is also the section of market whose needs and wants are not well served. But the advantage with this market is that if a company can provide suitable products that satisfy their requirements they are willing to pay the premium price for such products. The following are the various elements in it: 1) BRAND IMAGE: Brand image of a company helps in attracting a lot of customers to it. Just like brand name assumes helps in identifying certain manufacturer behind the products. Company has named several of its products based on the company name WIPLAC, WIPGLOSS etc.

2) HIGH QUALITY: All the products manufactured and sold by Western India Plywoods are of high quality. All the products of the company are qualified as per ISO standard of the quality.

3) STANDARDIZATION:

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Standardization of the products helps in the means of establishing a certain standards of commodity on the basis of designed features like quality, durability, color, size design, safety etc.

4) POSITIONING: Western India Plywoods is produces the products with the highest quality through the latest technology and innovation. This helps the companys products to satisfy the expectations of the customers using it. This in turn helps create a good image of the company in the customers mind as well as positions the company in a good manner. In other way the company gives the customers value for their money products ensuring the customer loyalty in the long run. The main customers of the company are as follows: 1) 2) 3) 4) 5) 6) India Railways Kerala State Road Transport Corporation Bharat Heavy Electrical Ltd Leela Group Voltas Bhabha Atomic Research Centre.

Even though the company is one of the market leaders in this industry Western India Plywoods also has to face many competitions. In the 90s the company enjoyed monopoly in this field. The company had so many orders that time but could not produce as per the huge demand. The company followed first in first out (FIFO) in those days. The company had a huge customer base in that time. But in the beginning of 2000 the company started losing its market. It was mainly due to liberalization and globalization that made the competitors grow strong in those years. The company is still a market leader but many of the competitors have slowly become a future potential threat for the company. At the present day the company has many competitors. They are: 1) 2) 3) 4) Century Plywood Indian Plywood Manufacturing Company KT plywood Polymer plywood
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MARKETING MIX OF WESTERN INDIA PLYWOODS: The marketing mix is the combination of four elements, product, price, place and promotion. These four elements are very much of importance in any companys marketing mix. The 4 Ps of the company are explained below: 1) PRODUCT: Western India Plywoods produces a wide variety of plywood ranging from ordinary plywood to specialized plywood like fire resistant, marine etc. The products produced are specifically designed to meet the requirements of various industries and market. The company produces unique range of products. Western India Plywoods product mix includes the following: a) Plywoods: Plywood is one of the main products of the company. It has a wide range including structural plywoods, decorative plywoods, aircraft plywoods, block boards, flush doors etc. b) Hardboards: Wide range of hardboards manufactured includes standard hardboards, oil timbered hard boards, and perforated hardboards. c) Furniture: The firm is producing some high quality furniture that is popular in the market. It is made with the proper blend of composite panel and solid timber. d) Other Products: The company also producing plastic moulds, compounds resin, mops, natural manure, different grade of electrical press boards components. 2) PRICE: Pricing means setting the value of the product produced in terms of money. In other words it is the only income generating aspect in marketing. Price of the product should include the cost incurred in producing that product, added with some percentage as profit. Pricing is very important as it plays a major role in the sales.

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Western India Plywoods philosophy is to provide the highest quality product to the customers at the right price. In addition to this the company constantly upgrades the machinery to keep in line with the state of the art technology which further adds to the price of the product. However it is to be noted that the satisfaction that the customers get from using the products added with the products durability and lasting time makes customers remain loyal to the company in spite of this.

3) PLACE: Western India Plywoods mainly uses 3 types of distribution channel in order to sell its products to the customers. They are as follows: a) Depot System: Western India Plywoods ltd uses depot system for most of its sales. The companys own depots or agents depots are used to showcase the products. Each depot is controlled by the depot manager. The process is as follows: Manufacturers Agents Industrial Buyers

b) Direct Sales: The company sells directly to the customers. The customers come to the company and select the products they want to buy. Manufacturers Industrial Buyers

c) Dealership System: The approved dealers or agents purchase the goods and they sell these products at the retail market. 4) PROMOTION: Promotion is called as the set of activities that create and stimulate the demand. Western India Plywoods ltd uses mainly three types of promotional activities done. They are listed as follows: a) Print Media: The main promotional tool used by the company is mainly by publishing their products in the house magazines named wood talk to promote their products. b) Personal Visits: The company has many sales representatives that promote the products by direct visit.
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c) Exhibitions: The company organizes as well as participates in many exhibitions to familiarize with the products with others and captures the market. MARKET SEGMENTATION: Market segmentation is the process of segmentation of the entire market into different segments. Each segment consists of a different set of people with similar set of wants and aspirations. Western India Plywoods ltd has divided the market into three categories: 1) DOMESTIC MARKET: The market includes the local domestic market of the company. It mainly consists of the contractors and architecture market.

2) INDUSTIRAL MARKET: Western India Plywoods ltd is producing products for many industries. More than half of the products sold are technical sales. The companys products are used in boat building, aircrafts, railways, furniture making, etc.

3) INTERNATIONAL MARKET: The Western India Plywoods ltd has market at the international level. The company exports to many countries like Germany, Sri Lanka, Malaysia, and South Africa, Middle East countries like UAE, Bahrain, and Dubai etc.

MAJOR BOOKS KEPT IN THE MARKETING DEPARTMENT: The following are the major books kept in the marketing department. They are listed as follows: MAIN BOOKS: 1) PARTY FILES: Party files include the emails send by the party to the marketing head. It also contains the products overall send to the party. The parties also send specific pictures stating the

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measurements of the products to the produced. Sometimes the complete product picture with the measurements as well the place photo where the product is used is also kept.

2) MARKETING EXECUTIVE FILES: This file includes the weekly report of the marketing executives are in this file. This file contains the date of the activity, the name of the person, address, the duration. It also includes space for the activity taken place, whether it was a meeting or a visit etc. Remarks are also written by each executive. This file also contains the official leave letters given by the executives to the head.

3) COURIER BOOKS: This book contains the information about the courier send to the customers containing the various samples of the products. It includes the price list, letters, brochures etc send to the party. The sample information is also given along with party details like name, address etc. SUB BOOKS: 1) SALE REGISTER: The sale register includes the sale register of particular products like Wipgloss, Wiplac etc. it includes the item sold, party to which sales has been made, the quantity sold etc. This sale register only includes certain products and not the entire products sold by the company. 2) COST AND PRODUCTION DETAILS: It mainly includes the cost and production details of products like Wiplac, Wipgloss etc. The main details includes amount of electricity used, litres of diesel spend, quantity of consumable spare parts used etc.

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IMPORT EXPORT DEPARTMENT

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DEPARTMENTAL STRUCTURE OF IMPORT & EXPORT DEPARTMENT

MANAGING DIRECTOR

GENERAL MANAGER

IMPORT EXECUTIVE

EXPORT EXECUTIVE

IMPORT ASSISTANT

EXPORT ASSISTANT

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IMPORT EXPORT DEPARTMENT: When a company operates its market does limit to the local market alone. In the beginning stages of the company the main purchasers and deals come from the local market. However as the company grows, the market also grows. From the local market the market expands to district level, then to state level and ultimately to the national level. But the process of growth does not stop and the next potential market a company a look to utilize is the market outside the country. That means doing business or exporting and importing from the international markets. The main objectives of Import Export department are as follows: 1) To contact the foreign customers and buyers who are interested in purchasing. 2) To popularize the products of the company in the international market. 3) To make effective and prompt steps to obtain maximum orders. Western India Plywoods has a well maintained export and import department. The main aim of this department is to expand the market of the firm in the international level and also to get more customers and dealers outside the country that are willing to do business with the firm in present as well as the future. A concern should have IE code for dealing with the international market. This can be obtained by registering into the Joint Director of Foreign Trade. Western India Plywoods enjoy the monopoly in the manufacture and the export of the hardboard. The company exports most of its products to more than 25 countries including Malaysia, Sri Lanka, Oman, South Africa, and Saudi Arabia. The export of the company amounts to more than 10 crores per annum. Almost 40 % of the sales of the company are done by export. EXPORT SECTION: Export refers to the selling done by a firm outside the country. Export helps the company to expand its market outside the country and also to popularize the products worldwide. Western India Plywoods exports almost all its products manufactured. In the international market there is a favorable trend for plywood and hardboard products and Western India Plywoods export products that are excellent quality and durability. Export is done abiding all the export policies of the Government of India.

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PROCESS OF EXPORT: Exporting an item involves many process to be followed accordingly. These processes are listed as follows: 1) PRE SHIPMENT ENQUIRY: First the company is contacted by the interested customer and enquiry is made about the products available, the products he need, the price of the products, the delivery method etc. The contact is mainly done by e-mail or telephone.

2) SENDING THE QUOTATION/PRO FORMA INVOICE: In the next step pro forma invoice or the quotation is send to the potential customer who contacts the company first for business. The invoice is supplied along with the details of the products with samples. This pro forma includes details of the product, the size, price, thickness etc.

3) APPROVAL OF PRICE: Once the price and other details have been approved the customer seals and sends the pro forma back along with an order for the goods. The customer opens a letter of credit, covering value, the destination to be delivered, specifications and also arranges payment accordingly.

4) PRODUCTTION PROCESS: The next step is the General Manger upon receiving the order and on confirming it sends a production note to the production department. It explains the product they need to produce, the strict requirements to be followed while producing as these are the requirements of the respective foreign buyers and the delivery time in which the production should be complete.

5) DISPATCH OF CARGO: As soon as the production process gets completed, the necessary clearance is obtained in order to move the cargo to the nearest port of shipment. And from there it is shipped to its destination port. Usually transportation by ship is preferred mode. Western India
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Plywoods main shipping agent is Aspinwall. The shipping agent helps in shipping the cargo. The shipping may be done either in a container or by a crate or even by using break bulk vessel. The latter used to save freight as goods are shipped without packing.

6) HANDING THE CARGO TO SHIPPING AGENTS: The cargo is handed over at the port to shipping agents and they undertake the necessary formalities to get clearance for the shipment in the least possible time. The invoice and the packing list are send to the agencies and they in turn submit to the customs. After checking them the customs release the goods.

7) SHIPMENT DOCUMENTS: Once the shipment is effected and the Bill of Lading is obtained the agents, the shipment documents are prepared for the foreign buyer and they are negotiated through the Western India Plywoods bankers immediately.

8) SENDING THE CARGO: After the negotiation of letter of credit or the arrangement of the payment, the cargo is dispatched and it is send to the customer. Once the customer takes the cargo upon its arrival at the destination port he takes the receipts of original document receipts from the bankers.

9) CARE AND SUPERVISION OF THE PRODUCTS: Proper care and supervision should be taken in all the process of production, packing, and sufficient care is to be taken while exporting the products ensuring they are at the top most quality. Also it has to be ensured that they are prepared strictly according to the specifications and requirements of the customer. This is one of the main things that helps Western India Plywoods keep up its image high even in the international market.

10) ENSURING COST REDUCTION AND BETTER PRICES: The company tries its best in order to fix the price for the export and ensures that cost reduction takes place in all stages of the product. Starting from production, to transport,
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freight etc. It helps the company to reduce the chances of increasing the price unnecessarily and the foreign buyers can get the products that are of great value for money. It also helps in getting a more of loyal customers.

IMPORT SECTION: Import is purchasing the materials from the foreign dealers for the company. The company may require materials from abroad and so the company has to place orders in that case leading to import. The purchase orders are placed strictly according to the rules and regulations of the Export and Import Control Policy. Invoices are sent to the potential suppliers and sellers early and the selection will be made of the suitable sellers or suppliers. The purchasing orders are placed and they are authorized by the managing director. These orders may be for raw materials or for capital goods. On arrival of the cargo mainly by ship/air the bill is arranged through the bankers. After the payment of the customs duty and other formalities the cargo is released and transported back to the company. IMPORT PROCESS: The following are the main steps followed in the process of import. They are listed as follows: 1) FOLLOWING THE IMPORT & EXPORT CONTROL POLICY: Before the order is placed, it has to be ensured that all the provisions and rules of the import and export control policy is properly followed. There should be no violation of rules.

2) PRO FORMA INVOICE SENT: In the next step, the request for pro forma invoice is sent to the potential sellers and suppliers. The pro forma invoice contains necessary details like exporter address, products, details, specification etc. The purchase department selects the suitable sellers and suppliers.

3) AUTHORIZATION OF ORDER:
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The firm orders are authorized by the managing director or executive director. They are placed with the suppliers and requirements and specifications will be conveyed along with their offers. It is mainly for capital goods and raw materials. The purchase order is placed along with opening letter of credit through a bank and arrangement for the payment of the bill on arrival is done. After the payments of the orders are ensured it is ensured that the order of confirmation and dispatch of materials are strictly followed according to the schedule of the suppliers.

4) ARRIVAL OF CARGO: After the cargo is arrived either by ship or air the payment of the bill of the cargo is arranged through the bankers. The documents relating to the cargo are filed with the customs through the clearing agents and the customs release the cargo after checking and confirming whether all the formalities required are properly done. Care has to be taken by the agents in order to clear all the formalities in the least possible time as delay in delivery may cause loss to the company.

5) BILLS OF CLEARANCE: When the bills f clearance is filled proper care has to be taken while filling the bill of clearance. The correct rate of customs duty has to be entered. Customs tariff for each item has to be entered properly. Otherwise it may lead to financial and time loss for the company.

6) CLEARING OF GOODS: Once the clearance procedures are completed the customs allow for the clearance of the goods from the port. The goods are then transported back to the company mainly by road. Mainly lorries are used for transportation.

7) FILING OF BILLS: Immediately after the clearance the bills are filed with the customs. The information about the cargo is given to the central excise department. The bill of entry and other details should be submitted to the central excise department. This is done in order to take modvat.
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MAJOR BOOKS KEPT IN THE EXPORT & IMPORT DEPARTMENT: MAIN BOOKS: 1) INVOICE FILE: This file contains the invoices that are sending to the parties. It mainly involves exporter address, consignee, vessel no, port of loading, final destination, terms and conditions. It also includes mode of payment and mode of cost.

2) SHIPPING BILL FILE: The shipping bill file contains the bill send by the customs after checking the cargo. It mainly contains the details about the invoice, the shipping bill no, the consignee, the weight of the cargo, the insurance for the cargo sent by the company.

3) BILL OF LADING FILE: This is the bill that is issued by the shipping company as proof for the shipment. This document has to be signed by the General Manager. It is send to the party only then the clearance of the cargo will be done at the destination port. The bill of lading includes the vessel no, voyage no, product numbers with description, the arrival of the cargo, the place of issue of the bill, the date of issue etc.

4) INSURANCE AND TEST CERTIFICATE FILE: This is the file containing the insurance and the test certificates attached to the product while sending the cargo. The insurance certificate contains the insurance the company has taken for the cargo. It contains information about the vessel no, date of departure, description etc. The test certificate is the certificate explaining the tests done to the product for ensuring its quality and durability. The certificate includes important details like physical density test, electrical property test, strength test etc. SUB BOOKS:

1) PORT DECLARATION FILE:

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The port declaration file includes the port declaration documents send to the company by the customs. It includes information like vessel no, container 6 digit no, destination of cargo etc. It is an important document in clearing the goods from the port.

2) PACKING LIST FILE: The packing list file contains the packing list documents of the import and export of goods. It explains the necessary information about the goods that are imported or exported. The technical and quantity details. However this list does not include the price of the goods.

3) CHECK POST FORM FILE: Since the exporting goods does not require the company to pay any tax. This particular form is to be filled while the goods are transported to the port for exporting. This file is signed by the General Manager and it is shown in the check post.

4) EXPORT SALES FILE: The export sales file contains the monthly export figures. It is a summary of the total exports that happened in a month. It also includes other information like the total amount of export, the date of export, the items exported etc. MODES OF PAYMENT: In the pro forma invoice various modes of payment will be shown. The main three modes of payments are listed as follows: 1) CASH AGAINST DOCUMENTS: In this mode of payment the bank acts as the agent. The bank receives the documents like bill of lading, shipping bill etc. The bank makes the immediate payment and then collects the amount from the party.

2) LETTER OF CREDIT:

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The bank of the party issues the letter of credit. The bank gives the full guarantee that the money party will be paying the amount and in case the party is not able to pay the payment will be made by bank.

3) TELEGRAPHIC TRANSFER: The company gives its account number prior to the party. They transfer all their money from their account to the companys account.

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CENTRAL EXCISE DEPARTMENT

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DEPARTMENTAL STRUCTURE OF CENTRAL EXCISE DEPARTMENT

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

CENTRAL EXCISE EXECUTIVE

ASSISTANT OFFICER

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CENTRAL EXCISE DEPARTMENT: Central excise is a tax that is levied by the central government on the manufactures or production of any product. In fact it is one of the largest source of income to the government. The excise duty is due at the time of production and it is usually paid at the time of clearance. Most of the central excise duty is fixed for the goods. Any changes will be notified by the government. The main function of central excise department is to accomplish the process of taxation and other control of government and non government activities. The main objectives of this department are as follows: 1) The payment of the tax due to the government on date without any delay 2) The maintenance of income records of the company. The tariff is classified into various sections that includes many chapters. Each chapter deals with a particular product and its related products that come under it. Eg chapter 44 deals with wood and articles of wood. Each chapter also contains the items that are not included in the main item. The central excise duty can be only imposed on any article if it satisfies the following conditions: 1) The article should be goods 2) The article should come into existence as a result of manufacture The rate of duty of tariff value relation to any excisable goods shall be the rate of traffic in force on that particular date when such goods are removed from the factory. REGISTERATION FOR CENTRAL EXCISE: The following categories of person require registration for the central excise. They are listed as follows: 1) 2) 3) 4) Every manufacture of dutiable excise goods. First and second stage dealers Persons holding warehouse for storing non- duty paid goods Person who obtained excisable goods for availing end-use based exemption

PROCEEDURE FOR REGISTRATION:

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1) APPLICATION FOR REGISTRATION: Before starting the production of the excisable goods the manufacturer should apply for the registration to the excise department.

2) REGISTRATION CERTIFICATE: It is issued usually within 7days. Normally registration certificate can be obtained at the date of application itself but in some cases it will take a few days for the issue.

3) NATURE OF REGISTRATION: The registration is of permanent nature and no fee will be charged from the manufacturer for registration.

4) CHANGES IN REGISTERATION: If the business is transferred or will soon be transferred then a fresh registration should be applied stating the transfer of the business. 5) DE-REGISTRATION: If the business is not carried and is closing then the registration taken should be duly surrendered. The small scale industries units with the turnover of 1 crore need not pay the excise duties or sales tax. The payments are made according to the classification of the goods. Western India Plywoods products comes mainly under chapter 44 of the Wood and Articles of Wood. The payment of the duty is done on fortnightly basis by the 20 th day for the first fortnight and by 5th day of the succeeding month for the second fortnight. In order to avoid double taxation CENVAT (Central Excise Value Added Tax) credit is used. Whenever the goods are returned along with the duty paid document, the duty can be CENVAT credited. The duty payment document is called invoice. Three copies of the invoice is made. They are as follows: 1) The first copy will be given to the party to confirm the sale. 2) The second copy is retained along with the course of transportation.

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3) Triplicate copy is retained by Western India Plywoods company in order to avoid double taxation. MAJOR BOOKS KEPT IN THE CENTRAL EXCISE DEPARTMENT: MAIN BOOKS: 1) CENVAT REGISTER ON INPUTS: CENVAT register on input is the register than is kept by the company in order to get the CENVAT on input. This book mainly contains the date, supplier, status of the supplier (manufacturer, dealer or importer), goods name etc.

2) CENVAT REGISTER ON CAPITAL GOODS AND SERVICES: It is the register kept for the capital goods and services. The services include the services provided for the inputs. The register contains the name of the party, bill no, sales tax etc.

3) DAILY STOCK REGISTER: Daily stock register is kept to keep the track of all the goods cleared, the opening balance of the goods, the CENVAT, educational cess and higher secondary educational cess etc. SUB BOOKS: 1) ERI FILE: The ERI file is used to file the return of the excise. It includes the copies of files of goods cleared shown month by month.

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FINANCE DEPARTMENT

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DEPARTMENTAL STRUCTURE OF FINANCE DEPARTMENT

MANAGING DIRECTOR

GENERAL MANAGER

FINANCE MANAGER

ASSISTANT FINANCE MANAGER

ASSISTANT FINANCE MANAGER

ASSISTANT FINANCE MANAGER

DEPO ACCOUNTS MANAGER

ACCOUNTS MANAGER

CASHIER

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FINANCE DEPARTMENT: The finance is regarded as the life blood of the business. Finance is an utmost important element to every business organization. Finance is the basic foundation to all kinds of economic activities. Finance is required at each stage, starting from the incorporation of the company, following in its growth and development and for further expansion. Each and every stage of a companys life requires finance. All the activities in a company are done with the help of finance. These range from proper administration, growth and development, day to day works etc. Finance department is the heart of the company. In every company the finance department will be controlled by the finance manager who is the head of the department. The responsibility of maintaining the accounts and exercising the financial control is vested with the finance manager. All the financial decisions of the company are taken in the finance department. The finance manager is an important person in this department as he supervisors and controls the overall functions of the department and ensuring proper financial management in the company. The following are the main objectives of the finance department: 1) Raising the fund for the functioning of the company. 2) Allocation of the funds for the necessary purposes and requirements. Western India Plywoods Ltd is a widely held public company. It is listed in Cochin and madras stock exchanges. At present the almost 46% of the shares are held by the Indian public, over 40% is held by the promoters holding, 12.3% is held by the banks and other financial institutions and almost 1.16% is held by the private corporate bodies. Total share capital of the company s amounted to over 15 crores. SOURCES OF FUND: 1) INTERNAL SOURCE: The main income generated for the company is through the sales. It is the main source of income of the company. The second source of income is through the reserves. These are
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accumulated profits. This is the source of income other than from the sales. However if the company has any current losses they are adjusted through this reserve. Capital reserves are also included in the head.

2) EXTERNAL SOURCE: The next source of income is through the external sources. There are various methods of the external sources. They are listed as follows: a. Term Loan: One of the main external sources of the fund is the term loans. It is the loans that are obtained from the bank and other financial institutions.

b. Share Capital: The next source of income is income from share capital. As mentioned earlier Western India Plywoods is widely held public company. The company issues equity and preference shares to the public. The main bankers of Western India Plywoods are SBI, Dena Bank, Canara bank, and Indian Overseas Bank etc. Sometimes the company adopts rights issue and bonus shares. CAPITAL STRUCTURE: The capital structure of the Western India Plywoods consisting of mainly equity shares and preference shares. They are having a value of Rs. 100 each. The preference shares issued are only redeemable preference shares. They also issue bonus shares when the profits of the company are high. Part of the companys profits earned is transferred to reserves. These are the following reserves this profit is transferred. They are: 1) Export profit reserve 2) Share premium reserve 3) General reserve LOANS: Western India Plywoods Ltd has the following loans for financing the term requirements of funds. They are as follows: 1) Secured loans
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2) Term Loans 3) Foreign Loans 4) Long term and short term loans ACCOUNTING POLICIES: 1) FINANCIAL STATEMENTS PREPERATION: Financial statements are prepared under the convention of the cost and on accrual basis. The fixed assets are stated at cost less the depreciation associated with it. The depreciation provided for the assets is as per the rates prescribed in the schedule XIV of the companys act 1956. In respect of the assets required prior to 1.4.1975 Written down Value method of depreciation is used. On the assets acquired after 1.4.1975 Straight Line Method of depreciation is used.

2) INTAGNIBLE ASSETS: Intangible assets are stated at the cost at which they are acquired. Then the accumulated amortization is deducted.

3) IMPAIRMENT OF ASSETS: An asset is treated as impaired when the carrying cost of such assets exceed its recoverable value. The carrying cost of the assets are reviewed at balance sheet date to determine if there is any indication of any impairment and whether it is based on external or internal factors. A loss from the impairment is recognizable when the carrying amount of the asset starts exceeding is amount that can be recovered.

4) INVESTMENTS: The investments are stated at the cost price. Fall in the value of investment other than the investments that are temporary in nature is provided.

5) INVENTORIES: a. Raw materials are valued at the cost price or at the net realizable value. b. Stores, spares and other loose tools are valued at cost price or net realizable. c. Work in progress, semi finished goods etc are valued at the cost lower than the original price or net realizable value.
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d. Finished goods are valued the same way as work in progress. 6) RESEARCH AND DEVELOPMENT: The research and development revenue expenditure is charged to the profit and loss a/c. The main expenditure is of the salary of the research staff, the chemicals purchased which are duly entered in the purchases a/c. Any other extra expenses are transferred to the research and development expenses a/c.

7) RETIREMENT BENEFITS: a. The contribution made to the Provident Fund (PF) is made monthly as prescribed by the EPF Act and it is charged to the profit and loss a/c. b. Western India Plywoods has an arrangement with the LIC of India, annual premium is paid and it is charged to the profit and loss a/c. the accruing liability for gratuity to employees is ascertained actual basis and provided for. c. Leave establishment benefit payable to the employees including the leaves taken by them are charged on the profit and loss a/c. 8) PROVISIONS CONTINGENT LIABLITIES AND ASSETS: A provision is recognized by the company when the company has a present obligation as a result of a past event and it is probable that an outflow of resource will be acquired to settle such obligation, in respect of which a reliable estimate can be made. Contingent assets are neither recognizable nor they are disclosed in the financial statements.

9) INCOME TAX: Provisions for the income tax are made based on the accessible income as computed in the accordance with the provision of income tax act 1961.

10) DEMATERIALISATION OF SHARES: The company has entered into an agreement with a National Securities Depositors Ltd (NDSL). This is done for the companys converting the companys share trade into electronic trade.
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DEPO ACCOUNTS: The sale in the company takes place mainly by two ways, direct sales and by depot sales. In the depot sales there are depot owned and operated by the company and the depots of other agents. These agents receive the depot receive a commission for the sales done by him. Each depot will prepare a cash daily report. It contains the total receipts and payments that happened in a depot per day. The depot accounts are prepared on the basis of these reports. SALARY AND EXPENSE ACCOUNTS: The salary is issued from the finance department. The salary head checks the vouchers, purchase bills, bills of travelling bills, etc and they are given to the secretary for the final approval. The salary and wages registers are checked and then forwarded to the accounts section. Once the salary is confirmed the amount is issued by the cashier. In present time almost all the workers in the company have bank accounts for salary alone. The salary is paid via bank. MAIN JOURNALS KEPT: 1) BANK PAYMENT BOOK (BPB) The bank payment book contains the list of all the bank payments made by the company via finance department. All the payments of the company above the amount are paid through the bank.

2) BANK RECEIPT BOOK (BRB): The bank receipt book contains the receipts received from bank by the company.

3) CASH PAYMENT BOOK (CPB): Cash payment book contains the payments given by the company in the form of the cash. The main expenses include telephone charges, postage, telegram etc. For these journals there are many sub ledger is prepared. These sub ledgers are creditors ledger, debtors ledger, and personal ledger.

4) CASH RECEIPT BOOK (CRB):

The cash receipt book includes the cash receipts received by the company. Includes the cash receipts of an amount of above Rs 20000 as well.

MAJOR BOOKS KEPT IN THE FINANCE DEPARTMENT: The following are the main books kept in the finance department. They are as follows: MAIN BOOKS: 1) CASH DAILY REPORT: Cash daily report is prepared by each depot of the company. This report contains the main receipts and payments that take place in a depot day wise. It includes the date, ref no, separate columns for receipts and payments. This report is send to the company either daily or 2-3 days report may be send together.

2) IMPORT BILL FILE: It contains the invoice send by the party. This file contains the details of this import invoice. The name of the party, the details of the cargo, the port, the country from where the cargo is coming, vessel no etc are mentioned. This file also contains the other important bills like bill of lading, description of the import material etc.

3) EXPORT BILL FILE: The export bill file contains the rough summary of the total sales in the month. The invoice, the bill of lading, the shipping bill etc are properly entered.

4) OUTSTANDING FILE FOR EACH DEPOT: This file contains the main outstanding amount for each depot. The depot keeps a list of account of the entire outstanding amount that they incur during a month. They are compiled together and filed. SUB BOOKS: 1) BALANCE CONFERMATION LETTER FILE:

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This file contains the letters that is send to the debtor parties to confirm their balances for the said accounting period. It is kept for further reference. This letter includes the total amount that the debtor party needs to pay and the time limit in which the payment has to be made.

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RESEARCH AND DEVELOPMENT DEPARTMENT

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STRUCTURE OF RESEARCH AND DEVELOPMENT DEPARTMENT

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

RESEARCH AND DEVELOPMENT HEAD

CHEMISTS

RESEARCH TRAINEES

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RESEARCH AND DEVELOPMENT DEPARTMENT: Every manufacturing company requires a well established research and development department. This is the department where the research and other experiments are carried out in order to make new and innovative products. In the present scenario the market is changing rapidly. New models of the same product, products with different innovations, new products are coming fast. The market has expanded and there is huge scope for better products with increased features and people are willing to buy such products. So it becomes an absolute necessary for a company to have a research and development department to work on improving the existing product and well as developing new products in order to sustain in the market. The main objectives of research and development department are as follows: 1) 2) 3) 4) To research and develop new products and new features for existing products. To increase and upgrade the quality of the existing products To improve the existing process and waste utilization techniques To work on new ways for reducing pollution control.

The R & D division of the Western India Plywood has earned recognition from the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India etc. It is one of the most reputed departments in the company. It has the necessary equipment required for analytical, testing facilities, process development, latest technology analysis etc for developing and testing the products of the company. The department is well equipment with latest technology machines like weather-o-meter in which the extreme weather conditions can be stimulated in an accelerated manner hence getting quick results. Sophisticated analytical equipments such as spectrophotometer, gas chromatograph, gel permeation chromatograph etc. They help in carrying out the tests in raw materials and finished goods. The R & D division also assists in diversification program that helps in developing new products and materials. The manufacture of DAP molding powder has been achieved in the first time in South East Asia in WIP. Recently Western India Plywoods R & D division succeeded in creating the fire retardant variety of DAP molding powder. It has to be noted that Holland, Japan, USA are the only other countries manufacturing DAP. It is mainly used in electronic component industry. Another landmark achievement of the R & D division of the company is the conversion of non durable species of timber like Arottina into stable and durable wood. This is
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mainly done by irradiation with the gamma rays. This project was achieved by the active collaboration with the Baba Atomic Research Centre. A gamma rays radiation considered the source of adequate strength was established first time in India. With this technology the company was able to create great technical improvements in the basic properties of species with poof durability and quality was achieved to render them fit for specialized industrial applications. Western India Plywoods R & D division has also succeeded in developing a unique and cost effective yet highly efficient process for the treatment of the rubber wood. This helps in enhancing the utility and durability of specialized plywood panels. It has developed weather proof and fire retardant grades of hardboard. These products are developed through years of intensive and independent research, they are durable, effective and efficient and 100% eco friendly. VARIOUS TYPES OF POLYMER RESEARCH CONDUCTED: The following are the various types of polymer research conducted are listed as follows: 1) WATER BORNE POLYURETHANE: It contains the coatings that are increasingly becoming popular for finishing wood furniture as well as flooring, this is mainly due to the unmatched performance and environmental friendliness that the technology offers. 2) ULTRA VIOLET DURABLE COATING: This is one of the main key technologies that are used in the Western India Plywoods products like WIPLAC, WIPGLOSS etc. Development of new formulas that help in improving the toughness, scratch resistance, etc constitute this. CENT PERCENT UTILIZATION OF WOOD: One of the main mottos of Western India Plywoods is utilizing the wood 100% leaving no wastage of wood. The wood that is generated from the manufacturing process is carefully taken for disposal. Some of that wood is taken to vermi-composting. Rest of the wood is taken to the boiler. Western India Plywoods have a well equipped vermin-compost. The timber waste arising out of the production is taken to the vermin compost. The waste is cut into small size chips and then put in the compost of earthworms. The care has been made to cover the compost so that no light comes. Within a period of 3-6 months the upper layer can be used as manure. It is packet and sold in bulk quantities to local buyers.
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CHEMICAL LAB: The research and development department have a well equipped chemical lab. It contains adequate equipments and chemicals and has a testing room where the tests are done. Main tests done in the chemical lab are product testing, water analysis, phenol analysis etc. It has a well stock of chemicals and other equipments. The main chemists do the experiments there.

MAJOR BOOKS DEPARTMENT:

KEPT

IN

THE

RESEARCH

AND

DEVELOPMENT

The following are the major books kept in the R & D department. They are listed as follows: MAIN BOOKS: 1) PHENOL ANALYSIS & ACCEPTANCE REPORT: This report consists of the analysis of the phenol test and the report that has been prepared. The phenol type, quantity, the type of analysis done etc are clearly mentioned. The results from the test are also clearly shown.

2) ANALYSIS REPORT OF SAMPLE: It contains the report written by the chemist on the tests done on the sample product given. The results of the test are also written in this report with adequate remarks and suggestions.

3) INDEND SLIP: The indent slip contains the indent of the materials, chemicals etc requested by the chemist for purchasing. It is given to the purchased department. Each indent slip contains the list of items required, the description, the quantity needed, the price and sometimes the dealer name is also written.

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TOTAL QUALITY MANAGEMENT DEPARTMENT

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DEPARTMENTAL STRUCTURE OF TOTAL QUALITY MANAGEMENT DEPARTMENT

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

TQM HEAD

ASSISTANT QUALITY CONTROLEER

TRAINEES

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TOTAL QUALITY MANAGEMENT DEPARTMENT: Total quality management is an effective system for integration of the quality development of the product. It is mainly done in order to continuously check the products and services in order for quality checking. Total quality management is essential for a manufacturing concern as it helps the firm to do testing of the quality of the products. The products sold should be of the highest quality and so testing is an absolute must. Western India Plywoods is an ISO 9001-2000 certified company. The company has a separate TQM department to ensure the quality of the process and system. The quality policy of the company is as follows: 1) To manufacture products as per national and international standards and make them available to the requirements of the customer 2) To upgrade the quality of its products and process on a continuous basis for getting the improvements. 3) A well defined TQM helps to enhance and improve the overall effectiveness and efficiency of the firm as a whole. PROCESS OF PRODUCT TESTING: The process for checking of the product and testing its quality involves many steps. They are listed as follows: 1) SELECTION OF SAMPLES: The first step is selection of the appropriate test samples from the production department. The finished products are tested in here like plywood, compreg, Hardboard etc. The selection is made based on the total numbers, items to be send to particular party, etc. 2) TESTING OF THE SAMPLES: The second step is to test the samples in the various machines in the department. The various tests include tensile strength test, adhesion test, toxic test etc. 3) REPORTING OF RESULTS: The next step is reporting of the tests results. The tests results are appropriately noted down and reported to the head of the department. It is written in test report document which contain the details of the test.

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4) PRODUCTION MEETING: The production meeting is held once every two weeks. It includes the managing director and the main heads of production, research and development, total quality management. This meeting is mainly done in order to find the problems arising in those departments, the solutions, any necessary recommendation from the members and also suggestions. VARIOUS MACHINES ARE USED FOR TESTING: The following are the various machines used for testing the samples. They are as follows: 1) 2) 3) 4) 5) TENSILE STRENGTH MACHINE ELASTICITY STRENGTH MACHINE IMPACT TEST MACHINE SMOKE DENSITY TEST MACHINE BONDING STRENGTH TEST MACHINE

MAJOR BOOKS DEPARTMENT: MAIN BOOKS:

KEPT

IN

THE

TOTAL

QUALITY

MANAGEMENT

1) HARDBOARD BOOK: The hardboard book consists of the tests done on the hardboard and the results shown. The hardboard itself can be divided into many types like standard, oil tempered etc.

2) PLYWOOD BOOK: The plywood book consists of the tests done on the plywood. This book also has the results of the tests done. Unlike hardboard plywood has a wide range of types like marine, air craft, general etc. 3) TOXIC TEST BOOK: This test is mainly done to test the amount of the toxic content in the product when the product burns. The amount of harmful and toxic gases content is noted.

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LOGISTICS DEPARTMENT

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DEPARTMENTAL STRUCTURE OF LOGISTICS DEPARTMENT

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

LOGISTICS EXECUTIVE

WORKERS

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LOGISTICS DEPARTMENT: Logistics department is one of the most integrant parts for any business organization. Logistics is considered to be the complete process that involves the planning, managing and controlling the flow of goods and services, information and the use of human resource from one point to other point or in other words from the point of start to point of destination. Without an effective logistics hardly a marketing or manufacturing activity can be achieved. The logistics department is entrusted with the responsibilities that are arising out of the entire logistics process. The main tasks in logistics include the storage of goods, distribution of goods, movement of the goods and also tracking the goods and ensuring the proper delivery of the goods take place. This department handles the entire process of handling, planning, managing, controlling and coordinating the movement of the goods till they reach the place of destination. The various responsibilities of the department are as follows: 1) To ensure the requirements of the company and customers are met on the specified time in effective and efficient manner. 2) To ensure the safe and on time departure of the goods from the place of manufacture to the destination place.

3) To draft suitable plans, policies and procedures that helps in successful and time saving yet efficient methods of logistics. 4) Ensuring the business goals of the organization are in perfect synchronization with the logistics system. 5) To maintain the proper coordination and co-operation between the traders, service providers, vendors, and transport carriers. 6) To make sure that no fraud, thievery or malpractice is carried out or happens during the time of transportation and other activities in logistics. 7) To ensure that timely supply and payment of goods and thus having reduced inventories in the store.
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Western India Plywoods have a well maintained logistics department that takes care of the logistics needs of the firm. The company has implemented an effective and efficient logistics department at the time of its inception seeing the need for timely transportation of the raw materials as well as finished goods. In the earlier period till 1970s the company mainly relied on railway wagons as a main source of transportation Since the company is near the railway station there was a separate wagon unloading point. The main item brought was firewood for the boilers. However in 1980s the company switched to furnace oil for the boilers. So the transportation via railway wagons was stopped and tanker lorries containing the furnace oil was used.

MAIN ACTIVITES DONE IN LOGISTICS: 1) INCOMING OF RAW MATERIALS AND GOODS: The first main activity done in this department is incoming of raw materials. This mainly includes firewood, veneer for plywoods, and saw dust for bruiting. The raw materials arrive mainly by the ways of lorries and are mainly from other states. Major chemicals and other items for the research and development department as well as total quality management department are also brought by lorries. 2) OUTGOING OF FINISHED PRODUCTS: The outgoing of finished products like the furniture, hardboard, plywood etc. These products are mainly transported to the local depots. From the local depots according to the order received transportation is done to the place specified by the party. Sometimes when a customer directly places the order with the company the transportation is made directly to the place desired by him. 3) MAINTENACE OF COMPANY VEHICLES: The other activity done is the maintained of the vehicles. The company vehicles are repaired, vehicles that require many repairs are sent to the workshop. The company owns many cars as well as lorries.

MAIN VEHICLES USED: 1) LORRIES:

Lorries are mainly used for the transportation of raw materials to the company and finished products to the customers and depots. The company keeps a limited number of lorries and hires the rest from outside. 2) TRACTOR: Tractors are mainly used inside the company. Their main use is stock transferring, dumping of the waste etc. There are Indian as well foreign tractors in the firm. 3) FORK LIFTER: Fork lifter is mainly used for loading and transportation of the materials. It is used to transport the firewood to the boiler as well as any timber leftovers during the production. It is also used to move sheets of plywood or hardboard from one place to another. MAJOR BOOKS KEPT IN THE DEPARTMENT: The following are a list of major books kept in the logistics department. They are as follows: MAIN BOOKS: 1) TRANSPORT DAY BOOK: The main use of this book is to observe the day to day movement of the vehicles. It contains particulars, the destination, total distance travelled, diesel consumed. It also contains information about the driver, his name, the various expenses incurred while travelling. This book also records the various expenses like machine maintenance, stores and spare, oils and lubricants etc.

2) GOOD VEHICLE RECORD FILE: This file is kept in the company vehicles like lorries. It includes the name of the driver, the tripe no, senders address, transporting commodity details, destination address, details about the freight charged etc.

3) SPARE PARTS REGISTER: This is a separate register kept for the expenses incurred in the spare parts. It contains information about the workshop, the total amount spend, the spare parts etc. MINOR BOOKS:
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1) VEHICLE RECORD FILE: The vehicle record file is the file kept to maintain the details of the vehicle purchases made by the company. It includes the main details of the loan amount schedule, service bill, and main bill of vehicles. A copy of the registration certificate is also added in this file. 2) DIESEL REGISTER: The diesel register is kept for the recording the quantity of diesel purchased. It contains details about the total amount, the quantity purchased etc.

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SWOT ANALYSIS

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SWOT ANALYSIS: The SWOT analysis is mainly done by the management to find out what are the strengths and weakness of the company. The areas where the company needs to improve and the weak points or weakness the company needs to remove. In simple words it is Strength, Weakness, Opportunity and Threats test. Swot analysis is used by the management as a tool for auditing and organizing. The main aim of this analysis is to take advantage of the strength and opportunities and eliminate or minimize the weakness and threats. They are: 1) STRENGHT: The following are the main strengths of the company. They are: a. Technological advancement: The company use highly technical equipment and latest machinery for the manufacturing process. Hi end machinery is imported for this purpose. b. Years of experience: The company has many years of experience in this field. It is one of the oldest companys in Asia related to plywood and timber. The company has over 50 years of experience with high specialization.

c. Quality: One of the main policies of the company is to deliver products of the highest quality to the customers at the specified time. The company takes care that all its products like plywood, hardboard etc be of the highest quality.

d. Brand image: The company has very good brand image that it has maintained for the past 50 years. The brand Western India Plywoods is very famous all over India.

e. Good distribution network: The company has very good distribution networks when compared to its competitors. The company has depots all over India and direct customer orders are delivered on time.

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f. Sufficient working capital: The company has sufficient working capital in order to meet the daily expenses. It also has enough funds to pay off the creditors. The company is good in terms of finance and has enough funds for paying share holders and expansion programs. 2) WEAKNESS: The main weakens of the company are as follows: a. Lack of proper advertising: The company does not focus much on advertising. The main advertisement given is doing exhibitions and personal selling. The company does not do any visual advertisement nor use the web for advertising. This in turn does become a problem in reaching out to new customers.

b. Growth rate: At the time of the inception, the company has had a phenomenal growth rate however at the present the companys growth rate is comparatively low. The company is reaching towards the maturity stage.

c. Less promotion: The company does little promotion for its products compared to its competitors. This in turn could affect the sales of the company. d. Industrial market: The company mainly concentrates on the industrial market. The company mainly produces goods especially for this market alone. So it does not concentrate on other markets thus providing its competitors with opportunity. 3) OPPORTUNITY: The main opportunities available for the company were as follows:

a. Research and development unit:

The company has well established R&D unit. Since it is one of the best of its kind in wood based industry there are huge possibilities of developing new products as well as modifying the existing products into very high quality.

b. Pioneer in wood industry: Since the company is a pioneer of the wood industry it has a large experience in this field. The company can take this experience to its advantage.

c. Increased demand of wood products: Since there is large scale construction of the buildings, shopping malls, flats etc the demand for the wood products will be high. So there is a huge potential for increased demand of wood in the future. 4) THREATS: The main threats facing the company are listed below. They are: a. Scarcity of resources: The scarcity of the raw materials mainly timber is considered to be one of the biggest threats for the company. There is likely to be a shortage of timber in long run.

b. Environmental threats: There are high environmental threats as the company purchases timber from all over the country as well as abroad. The reduction in timber will lead to many environmental problems like soil erosion, lack of rain etc. The increase in demand for wood products will in turn very negative for the environment. c. Competitors: The company that once had a monopoly over the wood industry is now facing stiff competition from various other companies. The competitors mainly aim to advertise their products as much as possible and reduce the rates in order to tackle with the firm. If left unchecked there is huge possibility of the company losing a large portion of their existing market share to the competitors.

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FINDINGS, SUGGESTIONS AND CONCLUSIONS

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FINDINGS: The following are the main findings about Western India Plywoods: 1) TOP QUALITY PRODUCTS: Western India Plywoods focuses on producing products that are of the top class quality and delivered right on time. 2) QUICK TRANSPORTATION FACILITIES: The company is located near all the modes of transportation. Waterways, railways, roadways etc. So transportation of the goods is very fast and smooth and the company has a number of choices of transporting. 3) WELL ESTABLISHED INFRASTRUCTURE: The company has well established infrastructure facilities. The company has high end machines used for production, a well maintained research and development department, wide variety of products etc. 4) PUNCH CARD SYSTEM, CANTEEN AND STORE FACILITIES: The company has installed a punch card system, and has also provided good canteen and store facilities for its workers and employees. 5) DIVERSIFICATION OF PRODUCTS: The company has diversified into furniture manufacturing, door making, wood flooring etc rather than sticking to just plywood and hardboard. 6) WELFARE & SAFETY MEASURES: The welfare measures taken by the company for its employees are satisfactory however the safety measures of the workers are not up the mark and needs improvement. 7) LESS IMPORTANCE TO ADVERTISEMENT: Less amount is spend for advertising and hence the advertisement budget is low. 8) ISO CERTIFIED COMPANY: As recognition to the commitment of quality, the company has been awarded the ISO 9001:2000 certificate.
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SUGGESTIONS: The following are the main suggestion that can be implemented in the company: 1) IMPROVEMENT OF MARKETING AND PROMOTION: The company needs to improve in its marketing and promotional techniques. The online marketing should be used to gain new market and customers. 2) IMPROVEMENT IN SAFETY OF THE WORKERS: The company should take necessary steps in order to improve the safety of the workers especially for the workers engaged in production department as they deal with heavy machines. 3) GOOD MEDICAL FACILITIES: The company should work to provide good and timely medical facilities to the workers. Since the workers may suffer from dizziness, fatigue, respiratory problems in work. 4) INCREASED STORAGE AREA: The company should focus on increasing the storage area. In the future when there is high demand more storage space is required for storing raw materials, finished products etc. 5) FORMATION OF WORK COMMITTEES: The company can take steps in formation of the work committees which helps in maintaining good industrial relation. 6) SUGGESTION SYSTEM: The management can adopt suggestions system for getting various suggestions which can be useful and implemented to smoothen the overall working of the company. 7) IMPROVING THE MORALE OF WORKERS: The company can take steps in order to motivate and increase the morale of the workers. The company can introduce personality development and training programs for the workers in order to improve their productivity and efficiency in an overall manner.

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CONCLUSION: Western India Plywoods is one of the largest plywood and timber Company in the Asia and is also one of the leading and oldest companys in the wood industry in India. It is also one of the largest trading organizations of Kannur providing its products nationwide as well as exporting to other countries like Dubai, Bahrain, Malaysia, Singapore, Sri Lanka etc. Western India Plywoods is a name recognized both in national as well as international market. Since its inception in 1945 the company has achieved various milestones. Over the last 65 years the company has achieved top class management, maximum utilization of resources as well as innovative and world class products. The company has maintained 100% utilization of wood and provides superior value for money products to its customers. Due to this the company has found large market in India as well as abroad. This internship training in Western India Plywoods has given us a clear idea about how the organization functions in this efficient yet effective manner. The organization is based on many rules, policies, programmers and procedures followed carefully and accurately. There is effective utilization of resources, excellent coordination between the departments and every employees contributes his best to the company. Western India Plywoods is successful in maintaining a cordial relationship between each and every worker and employee in the company. Here each and every department is aiming to achieve the primary goal of the organization. Every person who works in this company contributes his share to his maximum. The company takes care of its workers and employees by providing them with welfare measures and health facilities rather than just making profit. However despite the companys overall efficiency there are some problems or short comings which if given proper attention can be solved and this in turn can take company to new heights. The company can overcome the timber crisis by planting more trees in government approved lands and thus can reduce this problem to some extent. The company can also increase the safety and medical facilities provided for the workers. The company now also faces competition which should be given adequate importance. Overall we can say that Western India Plywoods is a company that stands by its policies and considers the customer as the true king in the market. It does not compromise in any way regarding the quality of the product and thus has bright future ahead in this industry.

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BIBLIOGRAPHY

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BIBLIOGRAPHY: Books: 1) Philip Kotler, Kevin Keller- Marketing Management 2) Stephen P Robinsons- Organizational Behaviour Internet: 1) 2) 3) 4) www.wipltd.com http://www.securities.com/Public/companyprofile/IN/WesternIndiaPlywood_Lt.html http://www.fordaq.com/fordaq/news/logs_softwood_plywood_24097.html http://www.woodpanelindia.com/wood-panel-india-plyreporter.html

Interview: Personal interview with office staff and departmental heads.

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