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Marketing Project 999
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Transcript of Marketing Project 999
Western India Plywood Ltd
1.1 INTRODUCTION
The western India plywood limited, one of the leading companies in the
world the manufactures of plywood hardboard densified wood and furniture. In
spite of these production they have DAP pre finished boards and a number of other
products. WIP is the technology and market leader in the world which is situated
at mill road Baliapattam.
The manpower strength of the company as on 31 March 2008 was 612
including 19 management staffs .the company being an ISO 9001 – 2000
company.
The plant has a processing capacity of 25lakhs sq.mtrs plywood, 34750MT
hardboard, 3500 MT densified wood. The companies leading supplier to railway,
defense, electrical, transport and auto mobiles, civil aviation and other industries
WIP gives more important to the quality than the profit, because of which it
is first in Asia
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Western India Plywood Ltd
1.2 INDUSTRY PROFILE
Trees are natures greatest bounty to man. They provide shelter, fuel, food,
medicines and tools for commerce or transport. It was a timber from trees, which
in the early days conquer the ocean.
Natures develop trees as a mother brings up children making each one a
separate individual. It is an amazing light to see the natural abstract rhythm of line,
colours and texture in wood.
Plywood or Engineering wood
The necessity of making plywood arises out of the inherent defeats in
wood, cracks, attack by white ants, splitting on mailing dimensional instability on
moisture absorption uniform, strength, properties etc.
Wood through the ages
According to archeologists mans cultural progress can be traced in the art
of wood veneering. Relies found in Egyptian and Chinese tombs from 2000 BC
indicate that veneering comprise Art and Science.
The 14 century witnessed the revival of acts and bought back to veneering a
new vigor and beauty. Today modern machinery and mans production techniques
produce veneers that are used to build nearly 80% of furniture.
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Western India Plywood Ltd
Plywood industry
The necessity of making plywood arises out of inherent defects in wood as
described above.
Plywood is glued wood product. Although gluing is a very old act practiced
since ancient times, the modern development of various products was made
possible by the improvement of glues especially by the production of synthetic
adhesive.
Plywood is an engineered wood panel made from thin layer of wood
veneers assembled with grain direction of adjacent veneer as light angle to each
other with layer of synthetic Resin adhesive and pressed under high heat for
pressure, thus impacting great degree of strength. It is dimensionally stable for
strength sheet material from strength to weight ratio. It is technically designed to
be strong and stiff enough to safety more than 3 times thick solid timber for the
same use. these remarkable features of plywood has been appreciated and
authenticated by the timber technologists and recognized institution like FRI that
use of plywood result in saving of social wood by 60 to 70% leading to enormous
conservation of timber for consequently preservation over forest resource and
ecology.
It appears plywood industry as become an innocent victim of some gross
misconsumption.The unfound impression that this industry is exerting pressure
over natural forest resources in factually incorrect. If is in total destroyed to its
excellent role as an economical substitute of solid wood and its remarkable
contribution towards conservation of wood and thus preservation of natural forest
and ecology.
Strangely the government desires the use of aluminium,steel and plastic as
substitutes for social woods in building works may be encouraged where as for
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Western India Plywood Ltd
certain application the use of such alternate material may be suitable it will cost
doubts on wisdom to completely eliminate the use of wood and plywood in
building work in spite of their proven track records infact products like
aluminum ,steel, plastics etc are energy gobbling highly pollutants and made from
non renewable materials resources and environment friendly products.
Similarly other substitute like wood based particular board and medium
densified fiber board are claiming their superiority over plywood in terms of its
functional use and ecology conversation role. The raw material required for the
manufacturer of these porodu8cts.In other wise a vital requirement for our 80%
rural and downtrodden population of our country, who certainly need it for their
fuel wood requirement which amounts to nearly 85% as the total wood availability
and it does not have viable replacement while the industry can meet raw material
requirement through import an d fuel wood cannot be imported.
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Western India Plywood Ltd
TYPES OF PLYWOOD
Commercial Plywood:
Most of the cities are expanding for growing vertically with multi storied
building and plywood has become a very useful product for partition ceiling and
built in furniture.
Decorative Plywood:
It is mainly used in the furniture industry for interior decoration. The
leisurely moments you spend at house are made more pleasurable by beautiful
objects made of wood.
Plywood and Sports:
Laminated tennis rackets, plywood carom board densified wood golf club,
table tennis table, table tennis bats, surf board and many other sports goods are
made out of densified wood.
Shuttering plywood:
It has a been of great value to engineers and builders especially with
development of concrete shattering techniques.Shetting plywood can be used for
any shape and structure Pam, bridges water resources, cooling tower, atomic
reactor etc.
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Western India Plywood Ltd
Compreg faced plywood:
This provides an idle material for strength and is developed for
constructional application for usually provides a surface, which is ideal for easy
pointing. Point retention properties over the surface are longer than that of the
other conventional types of plywood products for points spreading is also much
faster, thus resulting in economy by way of lab our and material savings.
Marine plywood:
This type of plywood is made only from specified durable timber (boned
with phenolicresin) treated against white ants.
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Western India Plywood Ltd
PLYWOOD INDUSTRIES IN INDIA
The INDIAN PLYWOOD industry over its origin to the development of tea
industry in the states Assam, West Bengal and Kerala and the difficulties created
by the second world war in the way of import of tea chest plywood. The
resourcefulness shown by many entrepreneurs in early stage of growth of plywood
industry was rermarkable.Except for the set backs suffered in the post war period
the plywood industry has gone from strength to strength since 1947 what was
started panel as tea chest industry has grown in a full fledged industry.
In 1947 India was a net importer pf plywood mainly tea chest plywood to
the tune of approximately Rs2crore/annum. In 1992 India produced 150 million
sqr meters (6 lakh m) of plywood of all types of approximately Rs100crore. The
present rate is high from this. The industry has grown both in the medium and
larger scale and small scale sectors.
The plywood industry consumers about 15 million m3 of timber of primary
and secondary species and also plantation grown timber. In fact that plywood
industry has provided main outlet for the maximum utilization of secondary
species of timber there by making a valuable contribution in forest economy of
late the plywood industry has given a great boost to the farm forest sector
plantation which benefits the ordinary farmer in the country.
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Western India Plywood Ltd
The other main raw material required by the plywood industry is a synthetic
resin which is available from with in the country. The basic raw material require
for manufacturing these resins are urea, phenol and for maldehyder which are also
made with in the country and resin industry in therefore based entirely of
indigenous material. This industry also pays excise duty to the extent as
Rs50crore. Provider’s employment to about 30000 people and has a total
investment as Rs4000 to 5000crores.
From the negligible production in 1947 and production in 1991 has gone up
to 62 million m2. There has been a study growth in plywood industry since its
inspection. This sector however has become more or less stapant during the last 3
to 4 years.
DISTRIBUTION OF PLYWOOD MAKING UNITS
At the time of independence the country had nearly 30 plywood factories.
These units were established mainly for the production of tea chest which was than
imported from Britain and other European countries. Today the Indian plywood
industries of about 100 plywood factories for a number of small unit in making a
variety of products from tea chests and packing plywood to sophisticated product
like shuttering aircrafts and marine plywood and compreg.
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Western India Plywood Ltd
IMPORTANCE OF PLYWOOD
Generally plywood later the following needs
1. Residential construction:
Parts of pre fabricated houses, roofs, ceiling, filling, studio points.
2. Engineering construction:
Structural members covered shelf roofs, hallo tubes for antenna etc.
3. Furniture:
Plywood is used for making tables dusks, certain types of chairs, cabins,
auditorium etc.
4. Boards and ships
5. for making flush and panel floors
6. Concrete shuttering
7. Musical instruments
8. Containers
9. Sporting goods like carom boards, cricket sets, hockey sticks etc.
10. for manufacturing coffins
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Western India Plywood Ltd
1.3 Scope of the study
The project work is done for Western India Plywood which is a limited
company located at Baliapattam.
In pursuit of this venture the main variables to be measured for the effective
analysis are identified by discussing with the company guide, superiors and
various department staffs.
This study enables to know how they maintain its leadership and reputation
in the market.
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Western India Plywood Ltd
1.4 Objectives of the study
The main objective of this study is to make an overall view about the WIP
ltd and its various departments
The secondary objectives of the study are to know the marketing
department of WIP Ltd. In specific which includes marketing strategies, market
segmentation, product mix, product positioning, branding and loyalty etc.,
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Western India Plywood Ltd
1.5 Limitations of the study
Even though we have completed our project successfully, but still our study
has got some drawbacks. The reasons are given below
The time period of our study was just 10 days
We just got only a worms eye view of the company due to lack of time
As I was doing the project for the first time, I didn’t have any clear idea
about what to do, how to deal with others etc.
As I was specifying only a specific department, I didn’t get detailed study
about other departments of the company.
Only a few of the personnel were contacted in the study.
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Western India Plywood Ltd
2.1 COMPANY PROFILE
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Western India Plywood Ltd
Background inspection of the company:
Western India plywood ltd is a ISO 9001-2000 certified company. The
western India plywood ltd is located at valapattanam in kannur, one of upcoming
industries in kerala. WIP ltd in large and reputed panel products manufactures for
over 6 Decates Company produces different goods of plywood, fibre board, hard
board, flush doom company etc.
Mr. A K Khadarkutty founder and promoter of the company has been guide
light of firm.
Origin:
WIP ltd was established in 1945 started company manufacturing sawn
timber and plywood on modest scale a few indigenous and lend based machines
due to progressive out look of its founder managing director sri A K Khadarkutty a
doyen of wood based panel industry in India the company made study progress
over years and business expanded to its present stature and is today one of the
biggest wood based industrial integrated complexes in country and also in south
east Asia with an employee strength of 1250.
Growth:
From humble beginnings in 1942 as a sawmill and tea chest manufacturing
fecilities, WIP grow steadily adding latest in machinery and incorporating new
manufacturing techniques. Product ranged from plywood black board, flush door,
shuttering and marine plywood aircraft plywood etc. The company planned and
executor hard board plant between years 1956-58 with an initial installed capacity
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Western India Plywood Ltd
of 12.5tonnes of hardboard per day. Company also installed its own synthetic resin
unit in 1959 with capacity of 2100tonnes per annul which gradually increased to
2500per annum by 1975. Manufacture of densified woods was commenced on
small scale initially as a part of plywood plant an industrial license was obtained in
1974 fomanufacture of densified woods with a capacity of 2510 empty per annum.
Since then company has been produce in components of densifed woods required
mainly by electrical textile and chemical industries, railways etc. Before 2 years
company commissioned a press board plant.
Nature of business carried:
Company has 3 division hard board, plywood and furniture with employee
strength of 612 including 19 management staff. Now company one of him leading
companies in plywood industries and enjoying as well as industrial market.
Vision, Mission, and quality policies:
Objectives:
1. To save national economy
2. To attain self reliance
3. To promote purity and quality product
4. To maintain brand loyalty of its customers
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Western India Plywood Ltd
Policies:
1. Seeks to purchase goods and service from environment responsible suppliers.
2. Communicate its environmental policies and best practices to allot employees
for implantation.
3. Reuse recycles materials whenever possible and minimizes energy consumption
and waste.
4. Set target monitors progress through internal audits.
Vision:
WIP ltd is committed to customer delight through total quality management
and continuous with involvement (cooperation and coordination) of all employees.
Mission:
To build up reputation of WIP ltd by satisfying its customers
Company Motto:
“Cent per cent utilization of wood”
Quality policy:
Quality policy of WIP ltd is to manufacture products as per national or
international standard and make them available as per requirements WIP
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Western India Plywood Ltd
endeavors to upgrade quality of its products and related services on continual basis
through regular improvement efforts.
A well defined quality management system has been implemented this
system is continuously reviewed to enhance its effectiveness and updated to meet
changing needs.
Quality objectives:
1. Suitable equipment and machinery for process control at all stages
2. Provision of adequate resources including raw material and personnel to ensure
consistent product quality.
3. Well defined process and product characteristics to enable monitoring analysis
and continual improvement
4. Communication of requirement of products including customer requirements
statutory or regulatory requirements as aspects of quality management system
including policy and objective among all employees.
Area of operation:
Company is operating national level company is having wide distribution
channels, sum of the states (Kerala, Karnataka, tamilnadu, andrapradesh,
Maharashtra, UP & Delhi). WIP has authorized dealers to sell hire products they
are mainly exporting to US, Europe, Africa, Middle East and other Asian
countries.
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Western India Plywood Ltd
Share holding pattern:
Promoters holding (39.71%)
Banks, financial institutions (12.14%)
Private corporate bodies (1.44%)
Indian public (46.71%)
Pramoters Holding
Bank,FinancialInstitutions
Private CorporateBodies
Indian Public
Competitor’s information:
Main competitors of WIP comprises of KITPLY Assam valley plywood ltd
(PVA)ltd, FEROPLYand increase of hardboard KITPLY Assam jolly boards are
main competitors of WIP.
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Western India Plywood Ltd
Competitor’s strategy comprises follows
1. Aggressive sales promotion and advertisement
2. Cheep credit fecility
3. Cash discount and trade discount
Infrastructural fecility:
WIP ltd has its factory unit in baliapattam, kannur (dist), kerala for
producing all plywood products. Main branch has facilities for developing
plywood for their clients in business houses and other places. They also develop
special type of wood for companies’ houses, colleges, and schools.
Recognitions:
Mr. A K khaddar Kutty:
Mr. A K khaddar Kutty the founder of the company passed away on the 14th
Feb. 2001. He was the managing director company from its inspection up to Jan
1993 and afterwards he continued as director and technical advisor of the company
up to the time of his demise in Feb. 2001. Mr. A K Khadar kutty was considered
doyen of the wood working industry in the country.
Mr. P K Mohammed, M.D:
Mr. Mohammed, MD after his college education had extinctive training in
wood technology with special emphasis in plywood manufacture in West
Germany. He joined the company 1962 and was production manager till 30-06-
1974. He was selected whole time Director to the board in July 1974 and was
deputing MD from 1-7-1979. He become MD of the company in the year 1993
and has been holding the post since then.
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Western India Plywood Ltd
Name of Awards achieved by the company:
National Association for applications of radio Isotopes and radiation in
industry (NAARI Award 1984) Society, Hyderabad
For best performance for chemical and allied export council 11 times.
Promotion council for the year specification chemical and allied product expert
promotion council India.
CAPEXIL Special Export award 1975-76
CAPEXIL Certification of Merit 1976-77
CAPEXIL Special Export Award 1977-78
CAPEXIL Special Export Award 1982-84
CAPEXIL Special Export Award 1984-85
CAPEXIL Special Export Award 1985-86
CAPEXIL Certification of Merit 1985-86
CAPEXIL Special Export Award 1986-87
CAPEXIL Special Export Award 1987-88
CAPEXIL Special Export Award 1988-89
CAPEXIL Special Export Award 1989-90
CAPEXIL Special Export Award 2003-04
CAPEXIL Special Export Award 2004-05
CAPEXIL Special Export Award 2005-06
CAPEXIL Special Export Award 2006-07
CAPEXIL Special Export Award 2007-08
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Western India Plywood Ltd
National award certificate of merit by Govt of India 1977-78 ISO 9002
certificate for the quality given by the SGS yearly International Certification Ltd.
The annual installed capacity of the various products being manufactured
by the company is summarized below
Plywood (in million sq.m of 3 ply*4mbasis)-2.5
Hardboard(in million tones)-34000
Densified wood (in million tones)-2000
Resins (in million tones)-2400
Furniture(in units)-15810
Daillyphthalate (in million)-10
Glam reinforced plastics (in million tones)-800
Pre finished boards(in lakh sq m)-
U.V.top coat and base coat (in kgs)-82600
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Western India Plywood Ltd
2.2 Various departments
HUMAN RESOURCE DEPARTMENT
WIP is a forward looking organization, committed to identify, train,
develop and sustain its human resources. In such a manner as to integrate
individual career aspiration of its executives with the fulfillment of objectives.
Toward this, WIP accepts basically that of fair, equalable and performance
oriented policy with respect to its human resources.
Purpose of Human Resource Department:
Recruitment and selection
Job analysis- job description & job specification.
Placement and induction
Training and Development
Performance Appraisal &
Other HRD function
Candidates are evaluated and selected on the basis scruting of application,
personnel interview & other means. Employee referrals are main source of
recruitment.
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Western India Plywood Ltd
Recruitment and selection:
In WIP Ltd the sources of recruitment includes both internal and external.
When ever any vacancy occurs somebody from with in the organization is
upgraded, promoted or sometimes denoted.
External source include those that lie outside the organization which
includes new entrants to the labour force, retired experienced persons etc.
Training:
One year training is given to the new entrance. Training is restricted not
just for a specific work but an over all training is given to workers so that they can
fill in any of the absence. This makes the worker more versatile. Stipend is given
to the trainee during the training period.
Classification of workers:
Permanent
Probationers
Substitute
Temporary
Casual
Apprentice
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Western India Plywood Ltd
Tickets or attendance card:
Every worker is given a ticket or attendance card free of cost showing his
number, name, classification etc. Every worker has to punch his attendance card at
the punching machine and deliver up his card or ticket at the place provided in the
time officer before the commencement of each session of the shift in a day.
Performance Appraisal:
It is proposed to carry out the annual performance of staff and managerial
to bring with. The objectives of the performance appraisal are:
To assist performance of employees
To employ know on their job, the areas they need improvement and to
perform satisfactory on the job
Reward those employees who put in performance above expectation.
To asses strong and week points of each to take decision on training and
development and make changes on responsibilities both horizontally and
vertically.
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Western India Plywood Ltd
PURCHASE DEPARTMENT
Purchase department deals with all purchases of organization.WIP have two
departments:
1. purchase department-stores and spares
2. purchase department-timber
Purchase department-stores and spares:
WIP Ltd has decentralized stores that are separate stores for different
sections. It has two stores hard board stores and plywood stores. The functions of
purchase department are to purchase chemicals, spares, instrument, oils and
lubricants, fuels, equipment, machinery etc.
Purchase procedure:
1. purchase requisition or intending of materials:
With the help of purchase requisition purchase officer come to know that
type if materials needed in the organization. Purchase requisition is a written
request sends to inform purchasing department of need for materials and surplus.
Both stores managers and works manager and is authorized by general manager.
The particulars of stores intended are entered in stores register and purchase
register in purchase department with reference to its serial number.
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Western India Plywood Ltd
There are three types of stores intent:
In case of raw materials that are to be imported. General Manager will give
direct order.
In case of local purchase and
While receiving quotations.
Two copies of stores intent are maintained the original copy is sent to
general manger that after authorizing it forward to purchase department the
duplicate is kept in productive stores.
2. purchasing enquiry:
It is sending in the prescribed enquiry from coating the quality, item, rate or
unit etc.after checking whether required specifications are met or not they invite
quotations.
3. receiving quotations:
A source of supply of materials is selected after receipt of stores
inventories. Enquiry is send and quotations are invited from suppliers. usually
purchase department maintain for every group of materials a list of suppliers and
their address. The received quotation is send to respective sections. After checking
weather there required specifications are met or not except or reject quotations.
After receiving quotation in order to decide to whom the order should be
placed the relevant files with stores intent, enquiry and quotations are send to
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Western India Plywood Ltd
works manger. The work manager, who signs invoice and sends it to purchase
department does the final decision regarding placement of order.
4. purchase order:
Once the quotations are accepted, the purchase department sends purchase
order. Purchase order is a written request to a supplier for specified goods at an
agreed price. It stipulates terms of delivery and terms of payment.
Three copies of purchase order are maintained. The original order is send to
the supplier the copies are send to the accounts or finance department and
respective stores.
5. receiving materials:
When goods ordered are delivered stores department will receive the
material. Before receiving material a detailed inspection is carried out. The invoice
is send to the purchase department which will be signed by the works manager.
The details of purchase are entered in purchase day book kept in purchase
department.
6. mode of placing order:
Usually bulk order is placed but received periodically. They will put this
clause at time of ordering thus they can assure discount.
Some of items purchased from these companies:
1. phenol – Hindustan organic chemicals
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Western India Plywood Ltd
2. sulphuric acid – Binani industries
3. costic soid,hydro chloric acid – Travancore cochin
4. HP solvent <white spirit>, lubricants - Hindustan petroleum.
Purchase department – timber:
The goods which is for product purpose for as it is the main raw material of
plywood manufacturing will be selected according to the requirement of company
that what type of timber is needed and how much by instruction of managing
director.
WIP usually make three resources for purchase of timber. They are
private source
government source
import source
Private source:
Timber are collected from private parties if quantity and price of goods are
affordable to company then they negotiate with party and fix price according to
market value.
Government source:
Forest department put woods for quotation. Company can collect goods from
there. In recent years there is a scarcity in government source because of
replantation.so company is mainly depending on import timbers.
Import source:
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Western India Plywood Ltd
In recent times company is mainly depending on import timber. About 80% of
woods are imported from foreign companies. The timbers are mainly imported
from countries like Myanmar, Indonesia, Sri Lanka, Sweden and Germany.
STORE DEPARTMENT
Store department also plays a vital role in the organization. It is the store
department which is considered mostly for giving quality certificate .facilities is
good in store department .according to that they were giving quality certificate in
W I P a separate store is maintained for both plywood and hardboard
Store department maintain following register
Materials receipt register :
This contains details regarding material receipt.
Issues slip book :
In details of each issue maintained
Store warrant book :
Whenever issues are made, details are forward to purchase department
through store warrant book
The indents are signed by works manager and store keeper. One copy good
bill is kept in store one copy will be sent to purchase Department. Good rejection
note after receiving goods into stores which is send to sample or quality testing to
particular department and inspected by them. If the product is found less quality
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Western India Plywood Ltd
good rejection is prepared by store keeper and send to purchase section signed by
works manager and general manager. The stored material is issued to particular
section. Then store keeper issues a slip of issuing goods .store keeper prepares
daily consumption statements and monthly consumption statement. WIP’s store
has well arranged to get I S O 9002 certificate 1996.the store is inspected by I S O
quality team.
PRODUCTION DEPARTMENT
Production is the transformation of resources such as land, labors, capital
and intermediate goods from other entities to different goods and services which
can be sold to ultimate customers.
According to Carl Heyel “production is the process of transforming raw
materials or purchased components into finished products
Raw materials:
The raw materials that are used to produce output are as follows
Wood
Steam
Chemicals
Wood:
Two types of goods are used for the purpose of production. They are
commercial and decorative
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Western India Plywood Ltd
For Commercial purpose goods are kalpine, vellapine, mango, neeli, Pali,
Mullanpali, pula, redpine, Cher
For decorative purpose the goods are rosewood, teak, mahogany, pad auk,
beach silver oak, kussia, dhavala and champak
Steam:
Steam is generated with the help of boilers. There are 3 types of boilers
Saw dust boilers
Firewood boiler
Fuel bed competent(FBC)boiler
In saw dust boiler saw dust is used to produce steam. In20 firewood boiler
waste veneers and woods are used. Fuel, is used in FBC boiler
Chemicals:
Chemicals include glues and molding powder .glues used are urea
formaldehyde, phenol formaldehyde and aerialist
Finished goods:
In WIP ltd there is main products plywood, densified woods, hardboard and
furniture.WIP ltd has four separated production units
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Western India Plywood Ltd
Plant layout:
Layout is the physical arrangement of the plant. It is determined by the type
off product, production process, and volume of production.
In WIP the plywood section follows combination layout and hardboard
section follows process layout
Material handling:
Material handling is the movement, placing, positioning of material, so as
to minimize handling. There are various materials handling equipment used in
industry. WIP uses the following material equipment.
Two wheeled trucks
Four wheeled trucks
Fork lift trucks
Over bridge crane
Electric hoist
Belt conveyor
Chain conveyor
Plant maintenance:
Maintenance is concern with that action to maintain an existing system or
facilities in order to restore bit to an operating contusion WIP uses mainly
‘preventive maintenance and scheduled maintenance’.
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Western India Plywood Ltd
CENTRAL EXCISE DEPARTMENT
Central excise is a tax levied by the central government on manufacture or
production of any product .excise duty ids due at a time of production and is paid
at time of cleareance.central excise is the coordination of excise and customs
department
Before central excise duty can be imposed on any article it must satisfy
basic condition
The article should be goods
It should have come into existence as a result of manufacture
The central excise department fixes customer duty and other import and
export duties .The rate of duty of tariff value in relation to any excisable goods
shall be the rate of tariffs in force on that date .when such goods are removed from
factory. For manufacture of any product company should attend registration for
which an application is given declaring what products to be manufactured based
on this application .the registration is issued which is equivalent to the
license .after receiving this company starts manufacturing
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Western India Plywood Ltd
The SSI units with the turn over of one crore need not pay excise duty or
sales tax. Payments are made according to the classification of goods .WIP
products come under chapter of 44 that is wood and article of wood .according to
chapter 44.08 excise duty changed on plywood is 161.government impressed 121
as sales tax duty. All import export is done through central excise department. No
duty is charged for export as a result of relaxation provide for export promotion.
The payment of duty is on fortnightly basis by 20 th day for first fortnight and by
fifth day of succeeding month for second fortnight except for month of March. In
order to avoid double taxation CENVAT (central excise value added tax) system is
sued when ever goods arte returned along with the duty paid document the duty
can be CENVAT. WIP introduced CENVAT in 1992.valuation of central excise
duty is on transactional value that is value transferred to customer.
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Western India Plywood Ltd
TOTAL QUALITY MANAGEMENT
WIP has a separate department for TQM and is well known for its quality
through out the world. It has the recognition of ISO goods for one of the best and
standardized production system in the world.
ISO CERTIFICATION:
The ISO 9002 certification awarded to the company for the quality
management system of hard board and WIPLAC pre finished boards has been
recertified in may 1999 for another 3 years and company has also received some
certification for its plywood and densified wood ,flesh doors and black boards.
next recertification for ISO 9001- 2000 was done by miss Burea Veritas Quality
International (BVQI)and certificate for manufacturing and sales of hard
board ,WIPLAC ,pre finished board,plywood,block board, flush doors ,densified
wood products and pre compressed press board was issued for a period of 3 years
and is valid up to 2008.
WIP has both internal and external auditing system
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Internal auditing:
It is done every six months by departmental heads. It is also known as first
party audit.suitble trained auditors conduct both adequacy and compliance audit on
the companies quality system. Audit reports are prepared for feedback and taking
corrective or preventive action. Auditor may be an employer of the company or an
appointed agency.
Internal quality audit as a self corrective review is designed to:
Assure continuing adequacy of all documents
Make the corrections or addition as warranted.
Conduct the compliance audit to ensure implementation of documental
practices.
Locate weak and spots, flows in following documental practices.
Preparing non-conformance report to enable the management to take
necessary steps.
External auditing:
It is also known as second party auditing a company carries out external
audit on its vender organization or sub contract. It can be either and adequacy
audit or a compliance auditing.
Adequacy audit is essentially a desk exercise to determine the extend to
which documented system confirms to requirements.
Compliance audit is a field exercise where the extend to which the
documental system is implemented is verified.
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External auditing is conducted namely by the SCG certifying body. They
revise all the procedures and documents which include
Quality manual.
Quality procedure
Work instruction.
The requirements satisfied by WIP in order to get the ISO certification are
the following
Quality manual
Control of quality
Resource management
Product realization
Measurement analysis and improvement
The known conference of both processes and product are analyzed by the
means of cause for effect diagram and corresponding corrective or preventive
action are taken.
Quality policy:
To manufacture products as per national and international standards and
make available as per customer requirements.
WIP endeavor to upgrade the quality of its products related service on a
continual basis through regular improvement efforts
A well defined quality management system has been implemented. This
system is continually reviewed to enhance its effectiveness and updated to
meet the changing needs.
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Quality objectives:
Suitable equipment and machinery for process control at all stages.
Provision of adequate resource including raw materials and personal to
ensure consistent product quality.
Well defined process and product characteristics to enable monitoring
analysis and continual improvement.
Communication of requirement of product including customer requirement
statutory or regulatory requirement accepts of quality management system
including policy and objective among all employees.
RESEARCH AND DEVOLOPMENT
The company has a well equipped research and development laboratory
which is one of the best research centers in wood working industry in the country
approved by the department of scientific and industrial research, ministry of
science and technology, government in India, were continuous research is going
on for improvement of quality and development of new products, through
technological and methodological upgradation.the benefit of successful research
and development activities have had distinct advantage of increasing the technical
competent and problem solving capability of organization in general and the
research and development group in particular.
In pan bit irradiator was set up in the research and development with the co
operation and assistance of Baba Atomic Research Center, Mumbai, the only one
of its kind in the industry in India employing nuclear energy for peaceful purposes.
one of the noteworthy features of this development is the employment of both
thermo plastic and thermo setting system for the up gradation of secondary
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species, An achievement of the first time in the world. The process further utilizes
one of the residues that did not find earlier and appropriate end use.
The company has also diversified its activities into there manufacture of
resorcinol based glues,dially phythalate and sheet moulding compounds ,the dially
phythalate based moulding compounds, raw materials used in the electronic
component industry was a results of WIPs indigenous research and development
efforts. This research and development work enabled India to become the third
country in the world(other two countries being USA and Japan)to produce this
special item, the DAPmoulding compounds is an import substitution and improved
formulation and the in-house technology enabled the material to competent
favourable with imported material.
Research and development highlights for 2007-08:
a) Specific areas in which R&D carried
out by the company.
Synthetic resin adhesives, wood
preservation, surface coatings and waste
utilization.
b) benefits derived as a result of the
above R&D.
Value addition, cost reduction and
recognition of excellence relating to
wood panel products.
c) Future plan of action. Water and solvent based surface
coatings, food preservation and waste
utilization
d) Expenditure on R&D
Capital Nil
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Recurring
Total
Total R&D expenditure (% on
total turn over)
Rs.2.58 lakhs
Rs.2.58 lakhs
0.03%
EXPORT AND IMPORT DEPARTMENT
Export and import department are those transactions or business held
between the country expected to import or export starts when the company enters
into a contract with the objectives of this is to popularize the product to the inter
national market. The concern should have a IE code to deal with the international
market
Export:
Export means selling of product outside the country. It helps to popularize
the product in import their product market is world wide. Export section of the
WIP ltd is a main income provider of it because the companies product re mainly
sold outside the country. The company has a large number of customers outside
India .WIP deals with export of almost it’s nearly 30% of its total sales are from
export. Export plays an important role in promotional activities of the country.
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Function:
1. quatation/proforma invoice is send to customers along with the detail of the
products to b supplied with sample wherever required for their approval
2. export orders are obtained against payment trough letters of credit or other
terms of payment
3. Once the prices approved the customers, the customer’s opens LIC covering
value quality destination of supply specification etc / averages for payment
according to the terms.
4. On confirmation of the order and consequently on the placement orders and
opening of LIC or arranging for payment according to the term with the
foreign buyer, product note is send to the production departments to start
production strictly as per the requirements of the foreign buyers and as per
the delivery schedule given by them.
5. As soon as the cargo is ready, necessary clearance is obtained and cargo is
moved to the nearest part of shipment to destination part. Besides, house
staffing is also arranged according to the requirement of importer, in the
WIP factory by bringing containers from the part to the works.
6. The cargo is handed over the part to WIP's clearing agent and they undertake
all custom formalities to get the clearance for the shipment with in the least
possible time, including getting back the cargo from the customs
immediately after shipment for submission to the contract excise
department.
7. Once the shipment is effected and bill of loading is obtained from the steamer
agent the shipment documents are prepare for foreign buyer and negotiated
through WIP's bankers immediately.
8. After negotiation of LIC or arraignment for payment according to terms the
payment for the cargo is dispatched to the customers is obtained,
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customers’ takes release of the cargo on its arrival at the destination part
and also take receipt of original document from their banker.
9. Proper care and supervision are taken in at processes of production, packing
and sufficient care is taken to ensure the products export are of top most
quality and strictly according to the requirement of the buyer so as to keep
up WIP's product image high in the international market.
10.The section takes sufficient care to fix the price for export and ensures cost
reduction in all stages where ever possible such as packing transport;
freight etc to obtain better financial return in each and every transaction.
IMPORT
Import or export in charge is responsible to carry on out the functions of the
department
1. Before placing the orders it has to be ensured that provisions of the rules
are permitted.
2. Enquiries or request for proforma invoice are sent to potential suppliers
along with specification or technical details.
3. User dept selects the suitable supplier.
4. Firm orders (authorized by m.d. or e.d.) are placed with the suppliers
against their offers for capital goods, raw materials etc,as per the
requirements of end user(production dept) by placement of purchase order
or opening letter of credit through bank and arranging payment of the bills
on arrival.
5. After placement6 of orders it is ensured that order of conformation and
dispatch of the material are strictly followed as per scheduled by the
suppliers.
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6. On arrival of the car5go by sea or air, payment if the bill is arranged
through the bankers. Documents relating to the cargo are filled with the
customs through clearing agents and the cargo is released after completion
of all formalities within the least possible time.
7. By filling the bills for clearance one has to scrutinize and ensure correct
rate of customs duty , CV duty etc are released for each item according to
customs or tariff and take prompt remedial action in case any wrong
classification of the duty has been made to avoid financial loss to the
company.
8. Clearance of the cargo for customs or port and transport of the goods are
arranged for.
9. Simultaneously bills are filled with the customs and advance
information of the importation of the cargo is given to the central excise
department immediately after clearance bill of entry and other details
should be furnished to central excise department to take MODBAT
credit against CV duty paid against clearance of the consignment.
Countries to which exported and imported:
Plywood - Netherlands, United Arab Emirates
Veneer - Portugal, united state of America
Furniture - nether land
Compreg - Saudi Arabia, Kuwait, sultanate of Oman, united Arab emirates
Hard board - Bahrain, Ethiopia, Israel, Malaysia, Nigeria, people republic of
china’s Lanka, United Arab Emirates
WIPLAC - Israel, Kuwait, Nigeria, U.A.E
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WIP also imports goods like timber and other decorative woods from
Malaysia, Burma, and Africa etc.the important process is same as that of exports
FINANCE DEPARTMENT
Finance department is the nerve centre, which maintains systematic records
and control income and expenditure of the company. It deals with the procurement
of funds at the right time and their effective utilization in the business.
Objectives of WIP’s Finance Department
Procurement of sufficient capital.
Effective utilization of funds.
Disposal of profit l. or surplus.
Co-ordination of activities of finance department of the company.
Financial control.
To plan optimum capital structure.
To ensure safety of funds.
Management of cash.
Determining the composition of capital.
Books maintained
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Bank payment
Bank receipt
Cash payment
Cash receipt
Cash analysis book.
Ledgers
Main ledgers
Creditor’s ledger
Debtor’s ledger
Advance ledger (personal ledger)
Source of funds
The main sources of funds are:
Internal sources:
The main internal sources of funds of WIP are income generated from sales.
Reserves are other sources of fund other than income from sales. Current loss
is adjusted by the reserves.
2. External sources
The main external sources of fund is term loan from bank and financial institutions
like SBT, Canara bank, Punjab national bank, IFCI etc
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Share capital:
WIP is a widely held public limited company. Recently company issue
authorized shares 13 crores from which 8.48 crores are subscribed capital.
Company also adopts right issues (during crisis premium is given to shares), bonus
shares (when company is under capitalized).
Company issues preference shares to ICICI, HDFC, like financial
institutions. These preference shares are redeemed.
Equity share capital is major source of finance followed by the company.
The equity capital is 8.48crores.Now the company is unable to pay dividend to the
shareholders because of the lack of operating profit for accounting year ended on
31-03-08.
ACCOUNTING POLICIES
1. Basis of accounting:
The financial statements are under the historical condition on accrual basis
of accounting in conformity with the accounting principles generally accepted in
India and comply with the accounting standards referred to section 211(3c) of the
Companies Act 1956
2. Use of estimates:
The presentation of financial statements in conformity with the generally
accepted accounting principles required estimates and estimates to be made that
affect the reported amount of asset and liabilities on the date of financial
statements and the reported amount of revenues and expenses during the reporting
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period. Difference between the actual results and estimates are recognized in the
period in which the results are known materialized.
3. fixed asset and depreciation:
Fixed assets are stated at cost less depreciation and impairment loss it any.
Depreciation is provided for at the rates prescribed in schedule XIV to the
companies act, 1956 as under.
In respect of assets acquired prior to 1-4-1975, on WDW basis.
On asset acquired after 1-4-1975, on SLM basis
4. Intangible assets:
Intangible assets stated at cost of acquisition less accumulated amortization.
The cost of computer software amortized over a period of 1 to 5 years as per
management assessment
5. Impairment of assets:
Impairment is ascertained at each balance sheet date in respect of cash
generated units of the company. Impairment loss is recognized whenever the
carrying amount exceeds its recoverable amount, i.e. aggregate of the net selling
price and its value in use as taken on estimated by management.
6. Foreign currency transaction:
Transaction in foreign currency during the year are accounted at the
exchange rate prevailing on the date of transaction monitory assets or liabilities in
foreign currency as at the balance sheet date are translated at the exchange rates
prevailing on the said date and the net loss or gain is recognized in the profit and
loss account for the year.
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7. Investment:
Long-term investments are stated at cost less provision for fall in value
other than temporary in nature if material.
8. Inventory:
Inventories are valued at lower cost as per weighted average method or net
realizable value cost for this purpose.
9. Revenue recognition:
Sales are recognized on transfer of title of the goods to the respective
parties and are inclusive of excise duty, but exclusive of sales tax and VAT. Other
incomes are recognized on accrual basis except when there are significant Un
sertainities.export incentives are recognized on accrual basis
10. Retirement benefits:
Contribution to provident fund is made monthly at the rate prescribed by
the employees provident fund act and debited to P&L A/C on accrual basis.
The company has arrangements with the LIC of India under the employees
group Gravity Cum Assurance scheme to administer its gravity scheme. The
annual premium paid / payable is charged to the P&L A/C and provision is made
for accrued liability on the basis of ascertained valuation by the LIC of India.
Leave encashment benefits payable to employees including accrued
liability there on is charged to the P&L A/C.
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11. Research and development:
Revenue expenditure on research and development is charged to the profit
and loss account. Capital expenditure there on is capitalized.
12. Income tax:
Provision for income tax is made based on the assessable income as
computed in accordance with the provisions of the Income Tax Act, 1961.timig
differences between accounting income and taxable income capable of being
reversed in subsequent years are recognized as deferred tax, in accordance with
Accounting Standard – 22 on taxes on income issued by the Institute of Chartered
Accountants of India.
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PRODUCT PROFILE
Company produces traditional general purpose commercial and
decorative plywood. In addition to that company proudly present as range of
specially plywood panels material for specific application.
Product of western India Plywood:
1. WIPLAC:
Pre finished hard board and plywood combine the very latest technologies
from west Germany and Italy-trend setters in furniture making and interior
decoration WIPLAC specially processed with ultra violet rays, provides a series of
advantages
Outstanding decorative surface- a kind to natural wood
Eliminate the needs to bond to another substitute. Hence saves on money
time and effort
Needy to use mail, cut, or screw
Excellent moisture barrier
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1. westind fire retardant plywood:
This plywood is ideal for residential and non residential buildings,
transportation, vehicles etc. this plywood needs British standards specification has
been certified by British standard institute
3. westind aircraft plywood:
Expert in aviation field have acclaimed the extra ordinary product of
company for its un paralleled quality. This product has earned negotiation of
directorate of civil aviation, govt of India on its production itself. Now a day’s
production of air crafts plywood has been produced in large mode
3. westind marine plywood:
Made of special category their durable plywood has been prescribed by BIS
specification. This plywood ensures smooth sailing of vessel in marine
environment
4. westind resin coated plywood:
Boiled water resistant (BWR) plywood is wated with special grade phenolic
resin. Resistant to water and material abrasion. Phenolic resin wated plywood
import superior finish to concrete surface and avoid tedious and expensive
plastering operation.
5. westind flooring boards:
These boats have being developed using veneer hard board laminates. The
boards have been given social water. Treatment and unique is that they can be cut
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to any size to suit the requirement of floor area. It can be directly led on new
concrete floor by applying a thin coat of suitable adhesive.
6. westind super block plywood:
Bonded with phenolic resin to reduce by special process with extra core.
This product is free from wiping and surface under station. It is more stable than
conventional block boards and its nailing and screw holding properties
7. westind compreg:
Densified and super toughened wood panel product from veneers integrated
with synthetic resin adhesive and pressed at devoted pressure and temperature
8. westind furniture:
WIP specialties in molded plywood furniture which will exceed your
expectations regarding strength and durability. Westind furniture is manufactured
utilizing building material available in market. It’s a matter of pride to WIP that
the loose furniture in hotel Leela was entirely separated by company. It is made
with judicious blend of solid timber and composite panel to optimize strength and
cost. Company also adopts ultra modern technologies to give the product of lasting
value and elegance.
The prestigious products in industrial sector are as follows:
WIPLAM- for transformer insulation
WIPWOOD- for textile and jute mill looms
WIPROCK- for press forming tools in cheat metal and aeronautical industries
WIPFILTER PLATES AND FRAME WORKS – For filtration in chemical
industries
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WIPLAC –panels for rail coach furnishing
WIPCHECK – compressed floor boards for automobiles, industrial and rail
coach furnishing
WIPCOM- for high and low voltage insulation in an oil bath
WIPBEAR – for roll bearing application
COMPREG MOULDE CHAIR SEATS – for rail coaches, auditorium ,
theatres and restaurants
The introduction of WIPLAC and host of other innovative products
underlining “Western India Plywood” commitment to the industry and provide
reason for the luminous reputation; the countries largest integrated wood products
company enjoys in domestic and international market
WIP’s list of first in the country:
First to make irradiated wood
First to make air craft plywood
First to make synthetic resin adhesive bonded plywood using hot pressing
techniques
First to make high pressure industrial laminates
First to make quality hard board way back in 1959-60
First to manufacture dially phthalate moulding powder
First to manufacture GL- plywood sandwich panel for anechoic chamber
First to make pre finished plywood and hardboard using UV used surface
finishing technique
First to get ISO 9000 certification for hard board and pre finished boards
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PRODUCT LINE
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ORGANISATIONAL CHART
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MARKETING DEPARTMENT
Introduction:
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Marketing is the art of creating customers and satisfying them resulting in
the beneficiary of the marketing and customer. marketing department is one of the
most and dynamic field with a management arena the main duties of the marketing
department in an organization is to analyze the marketing find opportunities design
and formulate marketing strategies development specific method and actions ,
propose a budget and establish a set of control.
Marketing is the process of planning, promotion and distribution of ideas
goods and services to create exchange that satisfy individual and organizational
goals. Four major steps of marketing processes are planning, implementation,
directing and control
Today the high demand for the products resulted in the bulk production. it
is easy to produce product, but not to sell this resulted in the evaluation of the
separate marketing department in the companies modern marketing is customer
oriented . It starts and ends with customers it is working with the concept
“customer is the king of the market”.
Market:
Simply market means demand for the product. As WIP is producing high
quality product, company has a strong marketing in India and abroad. Quality
conscious costumers such as architectures, furniture manufactures, government
builders etc.. are ready to buy high quality products of WIP .
Marketing strategy:
WIP is producing high quality products with national and international
standards. So the company cannot compromise to the price factor. They follow
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high quality, high cost, high price marketing. The company is aiming at quality
conscious costumers and is not ready to compete with local manufactures.
WIP’s marketing strategy is ‘Niche marketing’ under this marketing
strategy company offers technologies superior products and were quality is the
determining criterion. The company is note entertaining any short term promotion
schemes. Long term brand building is undertaken thorough promotional tools.
Marketing segmentation:
Marketing segmentation is the process of dividing the whole marketing into
different segments want send aspirations. WIP divides the markets into three
different segments
Institutional market(domestic market)
Industrial market
Export market
Domestic market :
WIP’s domestic market involves direct contact of architects and
contractors. This is other wise known as institutional market of WIP .the Company
is trying to make cordial relationship between these institutions and the company.
Industrial market:
WIP is producing a wide range of products for many industrial .about 50%
sales constitute industrial sales .WESTIND plywood are used in both boat building
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.furniture manufacturing and for small aircraft manufacturing etc densified wood
laminates are extensively used in textile and jute mill industry etc pre-finished
boards are used in automatic coach building, handicraft and toy manufacturing
etc .companies plastics molding compounds are used in electronic and electrical
industries.
Export market:
Export contributed major part of revenue of WIP the company had done
well in the field of export .about 30% of total sales of the company are by export.
The company is now exporting their products to more than 25 countries the
companies are in good in the over seas market particularly in middle east and
Europe
Product mix:
the WIP ltd has a unique product range which cannot be duplicated WIP
produce different grades of plywood , fiber board (hard board )d , flush doors ,
densified wood (compreg)and components ,and knock down furniture ,prefinished
fiber board and engineered wood flooring etc. company’s products are having high
standards in their quality and performance.
Plywood:
Plywood is wood product in which sheet of wood are glued together, grains
of adjacent sheets being at right angels to each other in the principle plane .WIP is
producing a wide variety of structural and decorative plywood .plywood product
of WIP include – BWR, BWP, marine plywood, resin surfaced shuttering, fire
retardant plywood, air craft plywood, BWP black board, super board, solid core
flush door.
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Hard board:
Hard board is an eco-friendly wood based panel manufactured using
plantation species of timber is an extremely versatile and cost effective building
material. WESTON hard board is India’s no.1 hardboard brand manufactured by
WIP using West German processing line the range of hard board manufactured by
WIP includes, standard hardboard, oil tampered hardboard and perforated hard
board.
Densified wood laminates:
Densified wood laminates are made from thin veneer impregnated with
synthetic resin adhesives and pressed at high temperature and pressure. It is widely
used for specific heavy duty application in various industries .dencified wood
laminates produced by WIP includes =WIPWOOD, WIPCOM, WIP filter plates,
WIPROC, WIPBEAR, WIPCHEACK, molded seats, compreg slates.
WIPLAC pre-finished boards:
WIPLAC pre-finished boards co pine very latest technology and are
specially processed with ultraviolet rays.
Furniture:
WIP is producing high quality furniture utilizing the finest building
material available in the market .it is made with timber and composite panels to
optimize strength and costs.
Other products:
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The company is also producing INLAYN boards; plastic molding
compounds resins and different grades of electrical pre-compressed press boards
and components.
Product mix:
Item PercentageHard board 60.66Plywood 12.95Densified wood 19.27Furniture 1.60Pre compressed press board 3.89Others 1.63
percentage
Hard board
Plywood
Densified wood
Furniture
Pre compressedpress board
others
Product positioning:
WIP is producing high quality products using latest technology and
innovation. Companys product performance is very high. So the products have a
good image in the minds of quality conscious customers.
Product branding and loyality:
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WIP is a reputed company in producing wood based products .the company
is trying to use this ‘goodwill’ in marketing their products .they are not trying to
sell their products using their brand and brand loyality. WIP has given name
‘WESTINED’ for their plywood, furniture and for decorative floorings. The
company hard board is branded has ‘WESTON’ the densified wood and pre-
finished boards are individually branded. Most of the customers are showing
company loyality as company is having very good in their minds .as Company is
not giving much important to brand name, they are not registered.
Product standardization:
WIP ltd is an ISO9001:200 certified company this status conforms than its
customers can relay on continuous high quality of its service. It also provides that
WIP is a company with strong customers and is in all its activities are always
aimed at total customers satisfaction .WIP is having two kinds of standard –
product standard and system standard .WIP’s system standard is ISO 9001:2000
and its products are having ISI standards. The companies BWR plywood is having
IS: 303:1989 specification and WESTON hardboards is having IS: 1658
certification.
These standards are maintained and controlled by a separate quality control
department of the company.
Marketing mix:
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Plywood section:
Product:
WIP produces a range of plywood panel to suit specific requirements in
both industrial market as well as domestic sector of market. To support its
philosophy of providing value added products, only phenol boiling water resistant
plywood and other superior grades are manufactured by WIP.
Some of the plywood manufactured by WIP is:
BWR tested plywood conforming to IS: 303.
BWP block board conforming to IS: 1659.
Marine plywood conforming to IS: 710.
Resin surfaced shuttering plywood conforming to IS: 4990.
Fire retardant plywood conforming to IS: 5509.
Decorative plywood conforming to IS: 1328.
Aircraft plywood conforming to IS: 709.
Pricing:
Consequent to superior raw material and additional processing incorporated
in the manufacture of WIP’s plywood panels: they are more expensive than the
product offered by the competitors. WIP’s philosophy of continuously upgrading
its machinery to keep in line with the state-of-the art technology also add to find
product cost. However the additional perceived value arising out of such
investment is more than the marginal cost addition and hence customers are
willing retain to loyal to WIP’s product.
Promotion:
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WIP operate in “NICHE” markets by selling technologically superior
product, where quality is the determining criteria. Short term sales promotion
schemes are under taking through personnel selling and direct mail marketing
besides promotional visit by selling agents. WIP also participate in exhibition in
order to create brand awareness to build brand image.
Placement:
WIP’s products are sold through exclusively retail outlet, which are either
owned by the company, or C and F agents representing the company. In some
areas, established dealers are appointed to increase availability and reach of the
products. Company directly deals with customers regarding high density industrial
laminates.
Substitute Products:
WIP’s products have high duties, but still it has no cost effective substitutes
for the reason that the end user does not allow any compromise regarding its
quality.
Hardboard section:
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Product:
WIP hardboard WESTON posses superb and mechanic properties and is
indispensable to manufacturer automobile , door panels, shoe heels ,clocks and
fiber drum lids among many other application .WIP’s hardboard is exported to any
other countries in the world where it holds its on position against the best brand in
the world.
The commonly demanded kinds of hardboard are:
1. Standard hard board conforming to IS: 1658 it is used for the manufacture
of furniture, clock, photoframe, automobile, doors etc...
2. Oil tempered hardboard conforming to IS: 1058.It is used in the
manufacture of furniture, shoe heels etc…
3. Preformatted hardboard: it is used for interior decoration, auditorium
interiors etc….
4. Pre-finished WIPLAC hardboard: it is used in automobile, building,
manufacturing of handicrafts, toys etc…..
Pricing:
WIP is able to offer its hard board at a very cogitative price due to an
efficient production process using the latest machinery. As a result of this product
id being sold at a huge premium in the retail market.
Promotion:
The hard produced by WIP is short in supply, but the market it serves is
rapidly growing .as a result of this, there is absolutely no need for any short term
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promotion scheme .WIP maintain a good relation with in the various segment
practices with the basic principle of relation ship marketing.
Placement:
Hard board is produced of mass consumption so WIP is addition to its own
outlets utilizes the established dealer networks in various town and cities to
increase availability and product reach.
Substitute product:
Being the most economical building material used today hardboard no cost
effective substitute material. When its economy is compared with quality control
that WIP is able to offer tremendous value for money.
ORGANISATIONAL CHART OF MARKETING DEPARTMENT
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Western India Plywood Ltd
SALES DEPARTMENT
Besides having a separate marketing department the company is having a
sales section which act as a part of marketing department .the sales section carries
out of all the sales of the company. Expect export sales which are carried out by
export division of the export import department.
WIP market their products through agencies depots. They use sales
representatives also .there main promotion method ID direct contact by sales
representatives to canvas govt and railway. Enquiry is made through tenders’ .the
main tool to catch the govt orders is by the lowest quotation. The main advantage
received from govt is 95% ready cash payment .generally the WIP gives 15 to 20
days credit for the parties. Even though timber would be facing crisis, the WIP is
able to with stand by marketing variety of products like plywood items.
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Western India Plywood Ltd
Sales procedure:
Receiving order.
Placing the order.
Preparing of dispatch invoice.
Preparing of dispatch document.
Preparing of stock transfer invoice.
Supply of goods.
Customers:
WIP ltd quality cocious client includes
BARC
VSSC
Indian railway
KSRTC
BHEL
Leela beach
Voltas
Promotion:
The very important point to be noted is that till now there has been no
advertising for WIP ltd. The main promotion activity of WIP is conducting
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Western India Plywood Ltd
participating in exhibition to attract potential customers .they have more of direct
selling approach. It has around 40 sales depot nations wide.
Types of sales:
There are two types of sales methods followed by WIP they are
1. Direct sales
e-mails
post
personal enquires
2. Indirect sales
depots
agents
consignees
Sales depots:
present in certain headed by the manger goods and send directly to the
depot from the factory .the manger gets his monthly salary so naturally he is not
interested in promoting the goods the companies marketing division prospective
customers to visit their depots through letters send directly by the marketing
division .all other expenses are born by the company directly.
Agents:
The company has 44 agents spread through out India .goods are sending to
the agents on cleaning and forward basic, directly by the company truck. All the
transportation expenses are borne by the company 50% of the expenses after the
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Western India Plywood Ltd
good reach the agent, such as unloading are borne by the agents the agent in the
mean time has to maintain the deports and other local expenses at his own risk
Agent get 2-30% commission on sales as it is the company policy .the
agents supply the goods for wholesalers and retailers at the same price the agent
does not provide commission for carpenters or intermediaries.
Competitors:
At first there was no strong competition WIP was the monopolistic
company .but now it faces strong competition from IPM (Indian Plywood
Manufacturing Company) and a slight competition from polymer, kit ply and
century etc…
Marketing distribution channel:
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Western India Plywood Ltd
SALES CHART:
Sales growth during last 5 years
years Sales(lakhs)2003-04 4993.052004-05 5625.57
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Western India Plywood Ltd
2005-06 6326.942006-07 7192.552007-08 8160.52
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2003-04
2004-05
2005-06
2006-07
2007-08
Series1
Export
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Western India Plywood Ltd
Export means selling of product outside the country. It helps to popularize
the product in import their product market is world wide. Export section of the
WIP ltd is a main income provider of it because the companies product re mainly
sold outside the country. The company has a large number of customers outside
India .WIP deals with export of almost it’s nearly 30% of its total sales are from
export. Export plays an important role in promotional activities of the country.
Function:
quatation/proforma invoice is send to customers along with the detail of the
products to b supplied with sample wherever required for their approval
export orders are obtained against payment trough letters of credit or other
terms of payment
Once the prices approved the customers, the customers opens LIC covering
value quality destination of supply specification etc / averages for payment
according to the terms.
On confirmation of the order and consequently on the placement orders and
opening of LIC or arranging for payment according to the term with the
foreign buyer, product note is send to the production departments to start
production strictly as per the requirements of the foreign buyers and as per
the delivery schedule given by them.
As soon as the cargo is ready, necessary clearance is obtained and cargo is
moved to the nearest part of shipment to destination part. Besides, house
staffing is also arranged according to the requirement of importer, in the
WIP factory by bringing containers from the part to the works.
The cargo is handed over the part to WIP's clearing agent and they undertake
all custom formalities to get the clearance for the shipment with in the least
possible time, including getting back the cargo from the customs
immediately after shipment for submission to the contract excise
department.
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Western India Plywood Ltd
Once the shipment is effected and bell of loading is obtained from the steamer
agent the shipment documents are prepare for foreign buyer and negotiated
through WIP's bankers immediately.
After negotiation of LIC or arrangement for payment according to terms the
payment for the cargo is dispatched to the customers is obtained,
customers’ takes release of the cargo on its arrival at the destination part
and also take receipt of original document from their banker.
Proper care and supervision are taken in at processes of production, packing
and sufficient care is taken to ensure the products export are of top most
quality and strictly according to the requirement of the buyer so as to keep
up WIP's product image high in the international market.
The section takes sufficient care to fix the price for export and ensures cost
reduction in all stages where ever possible such as packing transport;
freight etc to obtain better financial return in each and every transaction.
Records maintained:
1. party wise files
2. export register
Responsibilities of export or in charge:
The WIP's export department follows the important responsibilities they are
To contact foreign buyers.
To popularizes the products of the company
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Western India Plywood Ltd
To make effective steps to obtain maximum orders and to make prompt
necessary be supplied for their approval.
DETAILS OF DIRECT EXPORT 2007-08:
PRODUCT COUNTRY FOB VALUE (IN RS)HARD BOARD
BAHRAIN GHANAGERMANYGUINEAITALYK.S.ANEW ZEALANDNIGERIAQATARSUDANTANZANIAU.A.E
17694477983533431824129767473232177686278321988115225677758075441674723313886156
SUB TOTAL 65734086PREFINISHED HARDBOARD K.S.A
NIGERIATANZANIAU.A.E
177454512054604630421491282
SUB TOTAL 4934329PLYWOOD
BAHRAINNETHERLANDS
244844123220
SUB TOTAL 363064VENEER
PORTUGEL 1272719
SUB TOTAL 1272719PRE-COMPRESSED PRESS BOARD BELGIUM
INDONESIAKOREAMALAYSIA
9570213870012580932326685
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Western India Plywood Ltd
OMANU.A.E
4092316664838
SUB TOTAL 8824635DENSIFED WOOD
EGYPTINDONESIAK.S.AOMANKUWAITMALAYSIASINGAPORETHAILANDU.A.E
382171313108491144119181745207493137665834175868623432065288
SUB TOTAL 47858371GRAND TOTAL 128992204
3 YEARS EXPORT DETAILS
2005-06 2006-07 2007-08Plywood 7193717 889638 368064Hardboard 79167697 57497903 65734086Veneer 1776845 2691988 1272719
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Western India Plywood Ltd
Densified wood 23873430 32339345 47858371Prefinished hardboard
1932627 1866743 4934329
Precompressed press board
74904 2781780 8824635
FINDINGS AND SUGGESTIONS
Findings:
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Western India Plywood Ltd
WIP is producing a wide range of products for many industries.its ranges is
about 50%of total sales.
Lack of wood distribution as compared to the competitors.
The price of WIP's product is high as compared to its competitors.
From the comparative annualized sales statement showing a upward trend.
It is found that the WIP ltd has been no advertisement program then also
the companies’ reputation is high.
WIP ltd attained international market recognition through trade and
exclusive exhibition.
About 30%of total sales of company are exported.
The company is now exporting their production more 25% countries.
Mainly on Middle East and Europe.
From the comparative export detail of the plywood is showing in
decreasing trend.
It is found that hardboard exporting is highly increasing.
It is found that the densified wood, pre-compressed press board exporting
showing a highly increasing trend.
From the comparative exporting details it is found that the exporting of
veneer is fluctuating.
During the period 2006 to2007 the exporting of pre-finished hardboard
showing a decreasing level but during the current year it is highly
increased.
Suggestions:
The company should develop a well defined distribution channel in
domestic and foreign territories had to increase marketing.
At present the reputation of company is good, so the management should
take effective steps to exist and to increase.
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Western India Plywood Ltd
The company should also think about advertisement or promotional tools.
Export will increase the reputation of the company and for earning foreign
currencies so company should take effective steps to find out more
countries for exporting.
As it name western India plywood the company should move concentrate
on its plywood so they should take proper and efficient steps to increase
exporting of plywood.
It is found that the exporting of the company is not growing sufficiently and
it fluctuates so the management should develop marketing strategy which
helps the company to maintain sustainable growth in sales and particularly
export.
WIPLAC could also be offered in more sizes so that the dealer can chose
according to his convenience.
Conclusion:
The WIP ltd is a prestigious firm producing wood based products since
1946. The company has its business successfully till the introduction of
globalization with the advent of globalization. The company based a downward
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Western India Plywood Ltd
slope which is successfully overcome using strict quality control measures. ISO
certification and concentrating on its research and development. WIP ltd has
overcome number of risks to reach where it stand today. Research and
development department helps for company identified the future trend of Indian as
well as abroad customers. The marketing section of WIP ltd plays a vital role. Its
marketing strategy is exclusively different from other industries.
SWOT ANALYSIS
SWOT ANALYSIS:
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Western India Plywood Ltd
It is strategic planning tool used to evaluate the strengths, weakness,
opportunities and treats involved in a project or in business venture. SWOT
analysis is a tool for auditing an organization and its environment. It is a first stage
as planning helps in marketers o focus on key issues have been identified. They
feed into marketing objectives. It can be used in conduction with other tools as
audit an analysis.
Strengths:
Attributes of the organization that helpful to achieve he objectives.
Weakness:
Attributes of the organization that is harmful to achieve the objectives.
Opportunities:
External condition that is helpful to achieve the objectives.
Threats:
External condition that is harmful to achieve the objectives.
Strengths:
WIP is producing diversified quality product
WIP as a well established research and development units, one of the best
kinds in wood based industry
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Western India Plywood Ltd
WIP products are certified by ISO
WIP as a strong and well qualified management team
WIP is duly acquiped to develop new products to meet requirement of market
WIP has got very good reputation internationally
Pioneer in plywood industry in all of India
Weakness:
WIP as a lack of good distribution network as compared to competitors
The concentrate only in industrial market
The price of WIP products is high as compared to its competitors
In suffiency of raw material
Does not believe in advertisement
Opportunities:
WIP has diversified from the production of chest and commercial plywood
to manufacture decorative plywood, black boards, shuttering plywood and
aircraft plywood
WIP as a leading supplier to railways, defense, automobile, electrical,
transport, civil aviation and other industries
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Since WIP is a pioneer industry it has a large experience in knowing own a
wood industries work.
The products of the company are been exported to Germany, France, USA,
Sweden, West Asia and South Asia countries
Growing Public image and reputation
Acts as a market leader for wood products
Increasing demand for wood products
Threats
There are many medium scale and small scale plywood industries. they fix low
price for their products
Govt rules and regulation regarding the business
In some product rangers, imported items are available at lower cost than its
currently produced in India
Scarcity of resource
The high power tariff and increasing cost of furnish oil and other petroleum
product and chemicals.
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