Plywood Rishi

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Who invented plywood It was the Egyptians, around 3500 B.C., who first thought of sticking several thinner layers of wood together to make one thick layer. They originally did this during a shortage of quality wood, gluing veneers (very thin layers of good wood) over not-so-good wood. What we know as plywood today was invented by Emmanuel Nobel, father of Alfred Nobel, the famous inventor of dynamite and founder of the Nobel Prize. Emmanuel realised that several thinner layers of wood bonded together would be stronger that one single thick layer of wood. His idea is now a staple of the construction industry, used in floors and roofing. Plywood Manufacturing MANUFACTURING PROCESS Plywoods are manufactured by the procedure as follows : Timber logs are soaked in water to make them workable on various machines. Thin Sheets of Veneers are peeled from the logs. During peeling knots, barks and other natural defects are removed. The good quality of veneers are then send for drying. Drying is done in seasoning chambers, moisture content from the wooden veneers are brought down to approximately 5 to 10%. If there is higher moisture content, the absorption of bonding glue is affected. Thus for proper manufacturing of Plywoods it is important to bring the moisture content low to aid absorption of bonding glue. Glueing is done by passing the veneers through Glue Spreader which spreads bonding glue (Phenol phormaldihyde) on both sides over the veneers. CONSTRUCTION OF PLYWOODS The Veneers are stalked, one above the other, alternatively along and across the grains to the required thickness of plywood. Face veneers on both the top and bottom layer is put into construction here. The Film is also laid during the construction on top and

Transcript of Plywood Rishi

Page 1: Plywood Rishi

Who invented plywood

It was the Egyptians, around 3500 B.C., who first thought of sticking several thinner layers of wood together to make one thick layer. They originally did this during a shortage of quality wood, gluing veneers (very thin layers of good wood) over not-so-good wood. What we know as plywood today was invented by Emmanuel Nobel, father of Alfred Nobel, the famous inventor of dynamite and founder of the Nobel Prize. Emmanuel realised that several thinner layers of wood bonded together would be stronger that one single thick layer of wood. His idea is now a staple of the construction industry, used in floors and roofing.

Plywood Manufacturing

MANUFACTURING PROCESS

Plywoods are manufactured by the procedure as follows :

Timber logs are soaked in water to make them workable on various machines. Thin Sheets of Veneers are peeled from the logs. During peeling knots, barks and other natural

defects are removed. The good quality of veneers are then send for drying. Drying is done in seasoning chambers, moisture content from the wooden veneers are brought

down to approximately 5 to 10%. If there is higher moisture content, the absorption of bonding glue is affected. Thus for proper manufacturing of Plywoods it is important to bring the moisture content low to aid absorption of bonding glue.

Glueing is done by passing the veneers through Glue Spreader which spreads bonding glue (Phenol phormaldihyde) on both sides over the veneers.

CONSTRUCTION OF PLYWOODS

The Veneers are stalked, one above the other, alternatively along and across the grains to the required thickness of plywood. Face veneers on both the top and bottom layer is put into construction here. The Film is also laid during the construction on top and bottom of the Face Veneers, for manufacturing of film faced shuttering plywood.

Pressing : The constructed Veneers layers are sent into the hot press for pressing.  Pressing time and temperature depends on the thickness of glue type and density of Plywood.  The Plywood sheet with number of veneers is formed after pressing.

Sizing : The pressed sheet of Plywood is then passed through parallel saw to make plywood on required sizes  and right angles at corners.

Testing : One sheet on each lot of Plywood is sent to the lab for testing as per IS codes.  Balance sheets are marked, checked and stalked in dispatch godown ready for dispatch.

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Century Plyboards (India) Limited

Manufacturer of No. 1 Selling Plyboards

CENTURY Plyboards (I) Limited, the makers of the well-known "Century" brand of plywood, was set up in the year 1986 in Kolkata and today it is the leading brand in India. Creating a special niche for itself in a short period, Century today manufacturers the entire range of commercial, marine, concrete, shuttering and decorative plywood.

Century has the distinction of becoming the first ISO 9002 company in India for veneer and plywood. Most probably till now it is the only ISO 9002 company for veneer and plywood.

It has its manufacturing facilities at DH Road at Bishnupur, between Joka and Amtala. The facility comprises 10 acre plot of land with 5 acre covered area with world class selection of plant and machinery.

Product Range

Century's product range includes almost all the varieties of plywood, such as commercial plywood, boiling water-proof plywood, decorative plywood, shuttering plywood, block board, filmface plywood etc.

After two years of rigorous R&D in the year 1998, Century introduced 100 percent termite and borer proof plywood with 7 years comprehensive warranty and launched the new product in the market with wide publicity and thereafter within a few months it became the top selling brand of plywood in the country. As on date the borer proof decorative plywood introduced by Century has become the minimum bench mark in the plywood industry. Thereafter with the help of IPIRTI, Century undertook another R&D project that is of making 100 per cent boiling water-proof decorative plywood. So far decorative plywood was available without boiling water proof due to various constraints in manufacturing the same. Century successfully concluded its R&D and made a new mark with another innovative product i.e. 100 per cent boiling waterproof decorative plywood - almost at the same price being charged by its competitors for general products.

Since the last few years, Century is maintaining an annual growth of approximately 40 percent and has already reached No.1 status in the Indian Plywood Market and selling more than everybody and atleast 30 per cent more than its immediate rivals

People behind the Company :

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The Company is headed by Mr. Sajjan Bhajanka as Managing Director and Mr. Sanjay Agarwal as Deputy Managing Director. Whereas Mr. Bhajanka is a well-known name in plywood and is involved with its products and strategic planning, Mr Sanjay Agarwal, who is also a part of strategic planning, heads the aggressive marketing and sales of the company's products.

The Company finds the plywood industry is slowly, but surely waking up to the needs of the demanding and knowledgeable customer and it is upgrading its products so as to last longer and it is good to see Century taking the lead in the change.

Market Share:

It is roughly presumed that the total size of Indian Plywood Market is around Rs.5000 crores in value terms and around 60 crores sq. metres of plywood on 4mm basis in quantity terms. The market is divided between two categories i.e. (1) branded products and (2) non-branded products. Until 1970 the share of branded products was 90% in comparison to 10% of non-branded products but now the situation has been almost reversed and the branded products have only 10 per cent market share. Generally branded products are being manufactured by the plywood factories in the medium scale, who are paying all the taxes and excise duty, whereas non-branded products are mostly being manufactured by SSI units, most of whom are availing excise and sales tax exemptions. These SSI units generally are not fully integrated ones. They buy semi-processed raw material and do the pressing and finishing jobs in their factories. Thus excise duty collection is largely from the branded products. The total duty collection from plywood industry is estimated to be Rs.70 crores, out of which Century's contribution is likely to be more than Rs.7 crores i.e. around 10 percent of the total excise collection in the country from the plywood industry. When the excise contribution of Century is compared with other branded plywood manufacturers, Century is the highest excise contributor and the next contributor is 30 to 40 percent below it, followed by further lower contributors. In the western and southern markets, Century is the No. 1 selling brand, whereas in other markets it is among the top three. The company has achieved a considerable growth in turnover by 36 per cent in the year 1997-98, 48 per cent in 1998-99 and 52 percent in 1999-2000. It has achieved a turnover of Rs.116 crores during 2000-01 resulting in a growth of 20 percent.

Ply Marts, Inc.Snapshot People

Company Overview

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Ply Marts, Inc. distributes building materials. The company offers various building materials, including framing lumber, engineered wood, trusses, staircases, stair parts, windows and doors, trims, siding, roofing, and decks; bath hardware, shower doors, closets and storage, shutters, garage doors, mirrors, and shelving. Ply Marts also manufactures lumber, plywood, and laminated beams. It serves the homebuilders, remodelers, and contractors. Ply Marts, Inc. was founded in 1968 and is based in Norcross, Georgia. The company operates through its stores in Atlanta, Blue Ridge, Macon, Columbus, Greenville, South Carolina; and Charlotte, North Carolina. On July 1, 2008, an involuntary petition fo...

Detailed Description

Kompass code description

I E

Sawn, planed, peeled, cut and treated wood

P Planks, hardwood

P Planks, softwood

P Boards, slats and strips, hardwood

P Boards, slats and strips, softwood

S Veneer sheets, wood

P Boards, wooden, for scaffolding

P Boards, wooden, lacquered

P Weatherboards, wooden

S Wood, resin impregnated

E Composite wood, plywood

S Particle board and chipboard, laminated

S Particle board and chipboard, non-laminated

S Particle board and chipboard, veneered

S Particle board and chipboard, plastic faced

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S Particle board and chipboard, coated or covered

S Particle board and chipboard, pre-felted

S Particle board and chipboard, fire resistant

S Particle board and chipboard, water resistant

S Particle board, cement-bonded

P Plywood, softwood

P Plywood, hardwood

P Plywood, bamboo

P Plywood, veneered

P Plywood, plastic faced

S Plywood, metal faced

P Plywood, hardboard faced

P Plywood, varnished

P Plywood, film-faced

P Plywood, impregnated

P Plywood, embossed

P Plywood, fire resistant

P Plywood, water resistant

P Plywood, printed

P Plywood for dry conditions

S Fibreboard, insulating

P Blockboard

P Panels, particle board and chipboard

P Panels, particle board and chipboard, melamine faced

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P Panels and sheets, plywood

P Panels, wood fibreboard

S Panels, wood fibreboard, metal covered

S Panels, wood fibreboard, plastic covered

P Panels, wood fibreboard, spray painted

P Panels, wood strip

P Panels, composite wood, metal covered

P Panels, composite wood, Bakelite coated

P Panels, composite wood, lacquered, enamelled

P Panels, composite wood, insulating

P Panels, composite wood, perforated

P Panels, composite wood, for furniture and facings

P Panels, composite wood, decorative, antistatic

P Panels, composite wood, for boats and small craft

P Panels, composite wood, for coachwork

P Panels, composite wood, for formwork

E Wooden articles, miscellaneous

P Plywood articles, non-industrial, curved and shaped

E Wooden products for industrial use (trade)

P Composite wood and plywood (trade)

P Hardboard, particle board and chipboard (trade)

P Wooden products for the furniture industry (trade)

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sarkar plywood guj

COMPANY PROFILE

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 Sarkar Plywood Pvt. Ltd. was established in 1995 and is led by our Director Mr. Mustafa Sarkar and his son’s Mr. Adnan Mustafa Sarkar and Mr. Husain Mustafa Sarkar.

Mr. Mustafa Sarkar comes from a family who have been involved in business for the last 200 years. The family not only represents history of trade and business but is also built on the strong pillar or moral, ethical and social values.

The hallmark of the company is the quality standards maintained in whatever it manufactures. The group has diversified keeping in mind the growth in the domestic as well as the international markets. Our strategy is to produce the best quality possible and at the same time work towards support of environmental efforts like Forest Conservation and Pollution Control.

VISION & AIM

The Sarkar Group has grown with innovative thinking and a unique business approach not only to cater its clients with plywood, textile or scaffoldings but to give them every possible product and service that is required.

We at Sarkar believe in being a one stop manufacturing and export unit which can not only provide manufactured products but can also offer world class services.

Sarkar Plywood Pvt. Ltd. has been a YOY growth of 80% since its inception.

CAPABILITIES

We at Sarkar Plywood Pvt. Ltd. believe in giving our clients not only quality products but even offering them best business relations and after sales service.

Top ^^

The functions of our group are all directed towards the common goal. We produce a wide range of products which are unparalleled in strength and durability.

Emphasis is being put in Research and Development at all times. Sarkar Plywood has set the industry benchmark for quality, variety and service. The manufacturing process is natural and the products are the perfect choice of any building contractors, architects or interior designers.

Our plywood’s are the base for wonderful exterior works on newly constructed buildings (industrial and residential), civil works, interiors in corporate offices, hotel lobbies, receptions, auditoriums, restaurants, furniture manufacturing, boat building etc.

ENVIRONMENT

We at Sarkar Plywood value each natural resource that has been created.

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Our trees are one of the nature's most precious gift to us, which is vital for our eco-system. We therefore believe in using material that is 100% eco-friendly and under go no process that would harm nature. Our raw material are procured from 100% natural managed forests which are re planted time after time.

The Chemicals, Raw materials, Glue and every other substance used is made sure to protect nature in its own way.

We can thus say, that not only our plywood but EVERYTHING that the Sarkar Group produces or sell is 100% GREEN.

  ....................................................................................................................................................................................   Products.....................................................   FILM FACED SHUTTERING PLYWOOD

RAW MATERIALS

Film :125gsm DYNEA (Finland), Colour - Brown

Face Veneer :Keriung/Gurjan - Hardwood

Core Veneer :100% High Density, Eco Friendly – Rubber Wood

Glue :WBP Glue – Phenol glue (100 hours boiling water tested)OrMR Glue – Melamine glue (cold water resistant) SIZE & THICKNESS Thickness :28mm(19ply),25mm(17ply),25mm(15ply), 21mm(15ply), 21mm(13ply), 18mm(13ply),18mm(11ply),15mm(11ply), 15mm(09ply),12mm(09ply), 09mm(07ply)

Sizes :In mm – 2500x1250, 2440x1220 or as requiredIn feet – 8x4, 7x4, 6x4, 8x2, 7x2, 6x2 or as required  TECHNICAL SPECIFICATION  

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Film Faced Shuttering Plywood is cost effective and a super finisher. In total it saves over 40 percent in finishing costs, which is a boom for construction industry.

Selected naturally are durable cross band veneers impregnated with specially formulated phenol resin or melamine resin. It is then topped with the world class 125gsm DYNEA (Finland) Impregnated Surface Film

Plywood is made of veneers and cross band resin impregnated veneers. Face veneer on either side topped with phenolic resin impregnated film. Pressed with stainless steel plates and laminated under very high pressure and heat.

Special' properties for end benefits of the customers include:High strengthStabilityResilienceSuperior resistanceMultiple reuses

By using the Film Faced Shuttering Plywood for formwork with mooth mirror like finish on both surfaces, which reflect on the RCC construction which in return lead to a huge 40 percent COST SAVING.

Re-usability up to several times on either side depending on careful handling in respect of fixing, removal, storage and oiling.

............................................................................................................................................................

........................   WBP MARINE PLYWOOD RAW MATERIALS

Face Veneer :Keriung/Gurjan - Hardwood

Core :100% High Density, Eco Friendly – Rubber Wood

Glue :High Grade Phenol resin with 99% purity

 

SIZE & THICKNESS

Thickness:28mm(19ply),25mm(17ply),25mm(15ply),21mm(15ply),21mm(13ply), 18mm(13ply), 18mm(11ply), 15mm(11ply), 15mm(09ply), 12mm(09ply), 09mm(07ply)

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Sizes :In mm – 2440x1220 or as requiredIn feet – 8x4, 7x4, 6x4, 8x3, 7x3, 6x3, 8x2, 7x2, 6x2 or as required

 

TECHNICAL SPECIFICATION

1. High Density wood with superior mechanical properties are used to manufacture of Sarkar WBP Marine Plywood2. It will comfortably meet IS:303-1989 water resistance requirements after immersion in boiling water for 72 hours (tested upto 100 hours) 3. Superior bond strength between veneers, virtually unaffected by moisture and Dampness.4. Excellent and easy to use on machines.5. Can effectively replace solid wood of higher thickness.Sarkar WBP Marine Plywood can withstand severe climatic conditions. It passes through various quality measures starting from selection of high density timbers, strict control of face veneer and bonded with special high grade quality of Phenol resin.Finally it is pressed with a pressure of 20kgs/cm2 at 140-145D heat.Ideal for use in Exterior word, roofing, ship/boat building, kitchens and areas which are exposed to weather, and extreme temperatures.

    MR PLYWOOD

RAW MATERIALS

Face Veneer :Keriung/Gurjan - Hardwood

Core :100% High Density, Eco Friendly – Rubber Wood

Glue :Melamine Resin (MR Glue) – 5% Melamine Content

 

SIZE & THICKNESS

Thickness :28mm(19ply), 25mm(17ply), 25mm(15ply), 21mm(15ply), 21mm(13ply), 18mm(13ply), 18mm(11ply), 15mm(11ply), 15mm(09ply), 12mm (09ply), 09mm(07ply),

Sizes :In mm – 2440x1220 or as requiredIn feet – 8x4, 7x4, 6x4, 8x3, 7x3, 6x3, 8x2, 7x2, 6x2 or as required

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TECHNICAL SPECIFICATION

Sarkar MR Plywood is made with sustainable managed resources and so that our customer’s benefits from stable quality supplied.

We offer both interior and exterior plywood to cater to the needs of the furniture.

MR Grade plywood is very popular in the market owing to its unique bonding strength and durability. We take care to bond it with a Melamine giving it capabilities to exceed its category and perform in some areas like WBP Plywood.

A specific stress relieving process is employed to keep the product dimensionally stable through a modern tenderising machine.

MR Plywood is very suitable when used for furniture, instruments, and semi – outdoor wooden products.

 Bombay Plywood Industry in 2008

Abstract

Haji Muhammad Shafi was the founder and Chief Executive Officer of the BPI(Bombay

Plywood Industry) under his leadership till 1980`s the company enjoyed monopoly and was

growing with considerable high growth rate.

The Plywood industry had changed considerably after the year 2008 due to external

environment factors. Because of war on terror this industry was disastrously effected because

it`s raw material mostly came from Swat and nearby areas. The shortage of electricity in

Pakistan also forced many plywood companies to shut down their business or to diversify.

Reflecting on these dramatic changes, the new CEO wondered whether BPI should expand its

product line beyond the manufacture of plywood. For over 43 years BPI had stuck to its core

business, plywood making, but analysts saw problematic manufacturing of plywood in 2008.

Observers forecast the chipboard as the feasible segment for semi-solid wood. As CEO mulled

over his option, he asked: Was it finally time for a change?

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The Plywood Industry

The plywood industry was the dominant industry of semi-solid wood in Pakistan in 2008. The

plywood, lamination board, Formica press board meet endless variety of consumers as they

were used in construction (shuttering) and doors. The chipboard industry was second on the list

for semi-solid wood because of its short life span of 5 years as plywood`s 10 to 15 years.

There are major two types of semi-solid wood, i.e. plywood and chipboard. Plywood is made by

boiling logs at high temperature and then peeling them. After peeling it is cut into appropriate

size and then dried. Then it is glued and pressed to make a wood sheet and finally the sanding is

done by sanding paper to finalize the product. The plywood is made in many sizes ranging from

(8ft x 4ft to 6ft x 2.25). Its thickness range from 3mm to 50mm.

Bombay Plywood Industry in 2008 Page 2 The chipboard is made by converting firewood into chips, drying and then gluing the chips pressing it and then cutting into appropriate sizes and finally sanding the sheet.

Throughout decades plywood was dominating in semi-solid wood because of its durability,

flexibility and aesthetic. After year 2007 the plywood production fell significantly because of

unavailability of raw material and shortage of electricity in Pakistan. The production of

chipboard increased because it was the substitute of this product and was less expensive to

manufacture. It could meet more needs of the customers such as in furniture, cupboards and

room portioning etc.

Industry Structure

Five firms had been dominating the plywood industry in Pakistan. The country`s largest

manufacturer KDC plywood (Jehlum) with 20% market share. The four firms trailing were

Capital Plywood( Islamabad) with 17% market share, BPI 12%, Sunlight plywood (Karachi)

10%

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market share and Wood World (Rawalpindi) with 6% market share. Approximately more than

100 firms served the balance of the market.

Pricing and Cost

Pricing in the plywood industry was very competitive. Most companies offered volume

discounts to encourage large orders. Despite persistent plywood demand industry profits were

declining because of intense competition in 2008. The drop in sales was due to increase use of

chipboard as it`s price was less.

In 2008, the price of the plywood was Rs 1000 per sheet. Which cost BPI approx. Rs 975 per

sheet. Because of customize orders mass production was not possible in plywood

manufacturing and as a result (more customize orders less production per day).

Plywood was a semi-finish item on which customer has to do more expense such as polish or paint etc which could raise price to more than Rs 1200 per sheet. The labor cost of plywood to

Bombay Plywood Industry in 2008 Page 3

BPI was (skilled labor 40%, unskilled 55% and staff 5%). The wages were 8000– 12000, 6000–

6500, 10000- 20000 accodingly. In plywood manufacturing atleats 100 labor is required. The

labor cost schedule is shown in Exhibit. The production capacity of the BPI was 300 cubic foot

whose electricity expense was more than 2 lac till the year 2008.

Chipboard has a standard size of 18mm x (8 x 4). It was easy for manufacturers to produce

chipboard as mass production was possible which means economies of scale. The price of

chipboard in market in 2008 was Rs 700 which could cost BPI @ Rs per sheet and making the

profit of Rs 50 per sheet. According to the survey report of BPI managers the production

capacity of plywood could be 600 cubic ft per month which has electricity expense of Rs 3 lac

pm. Only 50 labors are enough to produce 600 cubic ft/pm from which 10% is skilled labor,

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unskilled 85% and staff 5% whose salary would be (8000– 12000), (6000– 6500), and (10000–

20000) accordingly.

Suppliers In plywood industry there were two types of supplier’s local suppliers and supplies that were imported from different countries. Plywood can be manufactured from different type of wood which give different color, durability and finishing.

Among local suppliers the largest supplies were from Swat and northern areas which were

adversely affected by terrorism by which price of supplies was increased and material

availability became less in year 2008. Changa Manga(Lahore) and Mona Depot (Sargodha) were

the main suppliers of shesham and poplar wood. Mangla depot was the seller of Deodar wood

and the Multan division was the main supplier of Mango wood.

The logs were also imported from Malaysia, Thailand, Burma, India, Singapore which include Teak wood and Pine wood.

Bombay Plywood Industry in 2008 Page 4 As opposed to Plywood, Chipboard could be made of any type of wood as it is made up of fire wood; the farmers from all over the country were the suppliers of fire wood.

Along with wood, glue was was also the main supply in plywood and chipboard manufacturing.

The largest producer of Glue in country was WAH NOBEL CHEMCIAL (Wah) whose quality

was good and rate was Rs 30/kg, it`s production capacity can meet the demand of all the

plywood factories in the country. The second largest producers were DINO CHEMICALS

(Karachi) which price Rs 29.5/kg, SUPER CHEMICAL (Karachi) Rs 29 and Izhar CHEMICAL

(Lahore) Rs 28/kg.

Customers Among the industry`s largest users were the Pakistan Army, Pakistan Railways and housing societies. Distribution

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Due to bulky nature of plywood, manufacturers located their plants in main cities to minimize

transportation cost. The producers preferred chipboard to plywood because it was feasible to

manufacture. BPI had forward integrated as well. It had the advantage that it was self-reliant in

distribution of their product. It`s showrooms were highest in number throughout the country

than any other competitor. It had its own 15 sales and distribution centers in Rawalpindi,

Islamabad, Peshawar, Gujrat, Gujranwala, Lahore, Multan, Sialkot, Faisalabad, Karachi and

Hyderabad.

While all other companies had difficulty in distributing their product as a result their

distribution cost was also added in their products cost. Due to high distribution cost China was

unable to enter the Chipboard market (as chipboard is heavier then plywood) of Pakistan. But it

was continuous threat for plywood companies.

Bombay Plywood Industry in 2008 Page 5 Industry Trends The major trends characterizing the plywood industry during year 2008 onwards included 1) terrorism 2) china`s entrance and electricity shortage etc. Terrorism

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War on terror has dreadfully affected the industrial sector of Pakistan. Plywood industry was also

among them. As the major source of raw material were Swat and Northern areas. Many plywood

manufacturers diversified across the spectrum of rigid plywood to produce furniture or related

industry because of unavailability of raw material.

China`s Entrance

China enter into Pakistan`s plywood industry in year 2006 when government lowered duties.

This action of government almost shrank the plywood industry in Pakistan. China`s plywood was

selling in market at a price of Rs 950 in market which was good in quality as compare to

Pakistani plywood. The reason for its lower price was lower costs. China has cheap labor and

more forests then Pakistan.

China did not enter into chipboard industry of Pakistan because of heavy weight of chipboard.

It`s high carriage expense results high priced China`s chipboard in Pakistan. The price of the

Pakistani Chipboard in the market in 2008 was approx. Rs 1000per sheet. Chinese firms were

unable to compete with this price o it was hard for them to enter this market. Additionally the

government of Pakistan also applied heavy taxes on Chinese chipboard as oppose to its

plywood in Pakistan

Electricity The shortfall of electricity in 2008 was approx. 2000 MW and that shortfall was expected to increase in the future. The rate of electricity also increased 25% to 30% in 4 years. Plywood

Bombay Plywood Industry in 2008 Page 6

manufacturing requires more machinery means more electricity as opposed to chipboard

manufacturing. On average the plywood factory with the production capacity of 300 cubic foot

it`s electricity expense was 2lac per month in 2005, which was also expected to increase

dramatically in the future.

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Dollar Appreciation

In the start of the year 2007 the exchange rate of dollar was approx. Rs 60. Due to economic

slump Pakistani rupee depreciated and the exchange rate with dollar was around Rs 83 at the

beginning of year 2008. Political instability and war on terror were the major reasons for rupee

depreciation. Because of depreciated rupee the price of imported logs increased radically, so as

a result it became impossible for Pakistani manufacturers to continue their plywood production

with imported wood.

Company`s History

BPI was established in year 1965 by the founder Muhammad Shafi. It was established of an idea

to replace solid wood with less expensive plywood. This firm was among the first movers in this

industry by which it enjoyed monopoly till 1985 after which other firms like KDC jumped into

the market.

Under the paternalistic leadership of Muhammad Shafi BPI prospered in 1980`s by selling to

more than half of Pakistan and ranked first place from all over Asia by winning 3rd International

Asian Award. In 1980`s when it was growing rapidly it forward integrated in distribution in

contrast to competitors. It has 15 sales and display showrooms across the country.

In very quick time plywood gained customer confidence because it was far better than the solid

wood. It`s main advantage were that it was cheap, light weight, waterproof, flexible and was

available in many sizes.

Bombay Plywood Industry in 2008 Page 7 Major Competitors For over 30 years, five top companies in plywood manufacturing dominated semi-solid wood industry.

Page 19: Plywood Rishi

1) KDC PLYWOOD

KDC plywood had long been a financially stable plywood company. It was established in year

1974 by Mr Ahsan. It is located in Jehlum. It was the market leader in the industry as its sales

were higher than any other. KDC diversified in chipboard business in year 2007.

2) CAPITAL PLYWOOD

Capital plywood was the subsidiary of Capital group of industries. In addition to plywood

they also make household furniture and were experts in wood floor manufacturing. It

had the second largest market share in the industry. It had 12 showrooms throughout

the country by which it displays and sale its products. It`s manufacturing plant was

located in Islamabad sector I/9.

3) SUNLIGHT PLYWOOD

Its manufacturing plant was located in Karachi and Lahore. It had 4th largest

manufacturing capacity of plywood in industry. It was established in year 1992. In

addition to plywood it also manufactures Flush doors on orders.

4) WOOD WORLD PLYWOOD

It is located in Rawalpindi next to BPI`s manufacturing plant. It was also established in

1965. It was manufacturing both plywood and chipboard. Wood World started its

chipboard plant in 1990, and was the well-known manufacturer of chipboard in

Pakistan.

Bombay Plywood Industry in 2008

Page 20: Plywood Rishi

Page 8 Challenge in 2008

Managers thought long and hard about the options available to them in 2008. They considered

the opportunities in chipboard and the most demanding plywood. With the decline production

of plywood, chipboard was the only semi-solid segment that held much promise. However the

possibility of diversifying beyond the manufacture of plywood altogether had some appeal,

although there was some difficulty in making decision as chipboard also had some

shortcomings. While BPI`s competitors had aggressively expanded in variety of directions,

Managers wondered if now was the time for a change at BPI.

Bombay Plywood Industry in 2008

Major Firms in Plywood Industry Name Years of Production Production Capacity Market Share KDC 34 500 cubic ft. 20% Capital Plywood 20 450 cubic ft. 17% Sunlight 16 280 cubic ft. 10% Wood World 43 250 cubic ft. 6%

Major Suppliers Of Glue Name

Page 21: Plywood Rishi

Location Price Wah Nobel Chemical Wah 30/kg Izhar Chemical Lahore 28/kg Super Chemical Karachi 29/kg Dino Chemical Karachi 29.5/kg countries From Where Logs are Imported Name of Wood Country Teak Wood Malaysia Pine Wood

Thailand

Burma

Singapore

Major Local Suppliers of Logs Name Location Type of Wood Changa Manga Lahore Shesham Poplar Mona Depu Sargodha Shesham Poplar Mangla Depu Mangla Deodar - Swat Deodar - Multan

Page 22: Plywood Rishi

Mangoo Wood Labor Cost In Semi-solid Wood Type of Industry Number of labors Required Labor Category Percentage Requirement Salaries (Rs) Plywood 100 Skilled 40% 8000– 12000 Unskilled 55% 6000– 6500 Staff 5% 10,000– 20,000 Chipboard 50 Skilled 10% 8000– 12000 Unskilled 85% 6000– 6500 Staff 5% 10,000– 20,00

Size Availability of Semi Solid Wood Semi-Solid Wood Size Thickness Plywood 8ft x 4ft To 6ft x 2.25ft 3mm To 50mm

Page 23: Plywood Rishi

Chipboard 8ft x 4ft 18mm