Professional Documents
Culture Documents
INTRODUCTION
Introduction
Introduction to Study
An Organization refers to consciously coordinated social unit composed of two or more
people that functions on relatively continuous basis to achieve a goal.
Organization study is the examination of how individuals construct organizational
structures, processes and practices and how these, in turn shape social relations and create
institutions that ultimately influence people.
The wood industry is one of the industries with great potential and it is mainly concerned
with furniture, plywood, hardboard, decorative wood, densified laminates, wood floorings,
Building material, material for interior decoration, ship building, automobile
manufacturing, and refrigerator etc.
The Western India Plywoods is one of the pioneers in Plywood and Hardboard Industries
in India. They have increased their product range from plywoods to all kinds of wood
products. The products of WIP are high in demand since their inception, and it is all due to
the stringent quality controls and reputation in the market. The purpose of the study is to
get an exposure about the industry and its functioning and to know how it feels to be a part
of an organization.
3
Objective of the Study
To learn about the mission, vision, policies and procedures of the organization.
Methodology
The methodology of study involves collection of data through primary and secondary
sources and analysis of activities of individuals by the means of constant observation and
enquiry. This task was carried out by building formal and informal relationship with the
staff members of the organization.
Primary Data. Data was collected through formal and informal discussion and
exchange of views with the company officials and employees. Technical data was collected
from the technicians and supervisors of the respective domains.
Secondary Data. The sources of secondary data are annual reports, quality
manuals, periodicals, Company Newsletters, Organizational documents and Internet.
Limitations of the Study
The information collected was mainly from the employees under their busy schedule and
are subject to personal bias. Further much of the data required for the purpose of study
were drawn from secondary sources, so the project cannot be free from the defects of
secondary data. The data collected are subject to the limitations and are not available for
public scrutiny. It was not possible to interview the top officials of the firm due to their
busy schedules and this was a setback to the study because they are the people who have
an overall idea about the organization, their help could have improved the quality of
information. The time given was sufficient but if more time was given then it would be
helpful to blend in the organization and feel the organization culture.
CHAPTER -TWO
ANALYSIS OF BUSINESS
ENVIRONMENT
6
Industry Profile and Analysis
Trees are the natures greatest gift to mankind. They provide us with shelter, fuel,
medicines, tools, timber and much more. Nature develops trees as a mother brings up
children, making each one a separate individual. It is an amazing sight to see the natural
abstract rhythm of line, colour and texture in wood. Nothing from nature indoors gives
such a long lasting enjoyment as the natural beauty of wood. Flowers fade, but the beauty
of decorative wood is enhanced by age.
Global Scenario. Competition is keen in the plywood industry. Plywood
manufacturers and exporters are suffering from decreasing profit margins. Many
companies strive to reduce their cost of production and increase efficiency. Some relocate
their manufacturing operations to other areas with lower operation cost, such as the
Chinese mainland. On the other hand, foreign manufacturers are taking steps to strengthen
their domestic production through product specialisation.
To stay globally competitive, Hong Kong plywood manufacturers strive to reduce costs,
initiate quality control, improve design concepts and capability, and upgrade management
skills and increase marketing and sales effectiveness. Many manufacturers have obtained
or are applying for ISO 9000/9002 certification.
Hong Kong's plywood makers also started to develop their own brands. Plywood
Manufacturers also become more careful about the choice of raw materials to meet
international standards, such as compliance with legal or other environmental requirements
in their target markets. China is the largest plywood exporter to many countries, including
the US and Japan. The total plywood exports of China exceeded US$6,683 million in 2002,
with the US being its largest market. Guangdong province is the major manufacturing
centre of plywood on the Chinese mainland. Apart from Hong Kong, manufacturers from
Taiwan and even the US have also set up production plants on the mainland. In China,
most of the production is on an OEM basis. China also offers a huge potential market for
plywood maker
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Indian Scenario. The Indian plywood industry owes its origin to the development
of tea industry in the state of Assam, West Bengal, Kerala and the difficulty created by the
two World wars in the way of imports of tea chest plywood. Except for the setbacks
suffered in the post war period, the plywood sector was booming since 1947.
In 1947 India was a net importer of plywood, mainly tea chest plywood of approximately
Rs.2 crore per annum. During 1992 India manufactured 150 million sq. meters of plywood
types that earned approximately Rs.1000 crore. The industry has grown both in small-scale,
medium and large scale sector.
The plywood industry consumes about 15 million m3 timbers of primary and secondary
species. In fact the plywood industry has provided main outlet for the maximum utilization
of secondary species of timber there by making available contribution in the forest
economy. Later, the plywood industry aided for the development of farm forestry sector
plantation, which benefits the ordinary farmers in the country.
Industry Analysis
Industry Key Players
Competitor Analysis
14%
8%
3.50%
70%
1.50%
1%
1%
Greenply
Centuryply
Merino
Archidply
Uniply
WIP
Figure 1:
Top players in India
Adapted from http://www.sourcinghardware.net/shrd/industry_report.html
Others
The industry is highly fragmented, with a major chunk of production coming from small
manufacturers, many of whom do not even possess a license to produce. However, the
market is driven by a few large companies who have plants at multiple locations, invest
heavily in brand building, offer ISI-marked products, and constitute around 30% of the
industry revenue.
Till 1994,the company enjoyed monopoly.During these days customers were in queue.The
company followed FIFO method in serving customer.Before 1993 Westen India Plywood
was Asias no.2 plywood company.After 1993 during the effect of globalization there was
a company of other imported product and competition was increased.Now Japan company
is at the top of the market.WIP now faces competition from Greenply, Centuryply,
Merino,Archidply,Uniply.
Greenply is a multinational interior infrastructure company and has operations in several
countries.The company also makes blockboards,laminates and decorative neers.The
company made turnover of 1644 crores in the year 2014.Greenply holds 14% of
marketshare.For expanding its reach Greenply augmented its network to 13,000
distributors, dealers, sub-dealers and retailers in more than 300 cities.
CenturyPly manufactures blockboards,veneers,laminates,MDF and Prelaminated Particle
boards.Company made turnover of 1052 crores in the year 2014 and holds 9% of
marketshare.To gain strategic advantage centuryply is focusing on mergers and
acquisitions.
Merino forayed into furniture some years ago by launching its MySpace brand of products.
Merino and Greenply both have also introduced restroom cubicles in their product basket.It
holds 3.5% of marketshare and made a turnover of 415 crores in the year 2014.The other
competitors for WIP are Archidply and Uniply which made turnover of 171 and 121 crores
respectively.
CHAPTER-THREE
ORGANIZATIONAL ANALYSIS
10
Organizational Analaysis
Overview of the Organization
Background and History. Western India Plywood Ltd, is the largest integrated
wood-processing complex in the country as well as in southern Asia. It was established in
1945 and it started manufacture of sawn timberland plywood on a modest scale with a few
indigenous and lend lease machinery. The founder of Western India Plywood was Mr. A.K
Kunhiman Haji, Later he handed over the company to his son in law Mr. A.K. Kaderkutty
Sahib. The Company made progress through the years and expanded to its present status.
The company grew over the next two decades into a well integrated wood processing unit
with finely tuned skill in new product development and manufacturing. WIP is an ISO
9001:2000 certified company.
Plywood manufacturing was stepped up steadily by addition of new machinery, mostly
imported. They also diversified from the production of the Tea-Chests and Commercial
plywood to manufacture of decorative plywood, block board, flush door, shuttering
plywood, and aircraft plywood etc. The company also installed its synthetic resin unit in
1959 with a capacity of 200 tonnes. The hard board manufactured by the company found
ready acceptance in the market so that the company decided on an expansion project in
1977 to increase the output of the hardboard to 24700 tons per year. The expansion project
was completed in 1980. Recently in 1990, the company added pre finished hard board and
plywood to its impressive product range. A state of the art production line imported from
Italy utilizes technology from the market leaders in the field of U.V curable paints
TREFFERT of Germany. Process employed in plant is totally environment friendly and
does not involve any harmful emission.
The company is the first in the country to put up a plant for irradiating wood in
collaboration with Bhabha Atomic Research Centre, Mumbai in order to aggregate the lowgrade timber.
11
Mission
To provide utmost satisfaction to the the consumer through best quality and
customer care.
To respect the dignity of all employees and together to become instrumental in the
development of the country while protecting the environment.
To utilizes the surpluses for the welfare of employees and the society at large.
Objective
12
Products and Markets
Table 1
Product Profile
PRODUCT
SPECIFICATION
APPLICATION
WIPWOOD
Densified wood
WIPLAM
Densified wood
of transformers and
switchgears.
WIPCHECK
Densified compressed
Industries.
surfaces.
WIPROC
Densified Wood
WIPBEAR
Densified Wood
WIPCHEM
Densified Wood
WIPCOM
Densified Wood
WIPRESS
WIPLAC
WIP Ultralink
Pre
finished
Used In electrical
Insulation
components, rule studs, nuts etc
Purity Used in Transformer industry
Hardboard
13
Compreg Slats
Densified
Moulded Seats
WESTIND PLY
Railway
Coaches,
&BWP
Plywood
crushed wood
Product Mix
2%
automobile
Product Mix
2.06%
2.45%
17.92%
18.06%
57.07%
Hardboard
Plywood
Compreg
PreCompressed Board
PFB
Furniture
Figure 2
Pie Chart representation of product mix
Adapted from 69th Annual Report (2103-2014) of WIP
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WIPs list of first in the country
First to make synthetic resin adhesive bonded plywood using hot pressing
techniques.
First to get ISO 9000 certification for hardboard and prefinished boards.
The company has earned special appreciation from leading industries in the
automotive sector, Footwear sector, ISRO, BARC, Indian Railways etc.
Area of Operation
National
Kerala
Karnataka
Tamilnadu
Andhra Pradesh
Maharashtra
Uttar Pradesh
Delhi
International
USA
EUROPE
AFRICA
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CHINA
JAPAN
KOREA
SRI LANKA
MIDDLE EAST
Business Performances. WIP is the fourth biggest plywood factory in Asia. The
factory is situated in Kannur district in Kerala state. WIP collects timber and firewood
through import from Malaysia, Africa, Burma, Russia etc. and local purchase. Thus it is
being processed at the factory and converted into various finished products such as
different varieties of plywood, hardboard, furniture, wood floor etc. WIP exports 80% of
total production to Germany, USA, Canada, Italy, Australia, Japan, Sweden, Papua New
Guinea Middle East and Gulf Countries regularly.
The rest of 20% is being through retail outlets and Companys sales depots throughout
the country WIP Ltd., the largest integrated wood processing complex in the country, was
incorporated in 1945 immediately after second world war.
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The company has three divisions mainly i.e Hardboard, Plywood and Furniture divisions
with an employee strength of 1300 including 87 office staff members. Now the company
is one the leading in plywood and Hardboard industries in India and is supplying to
international market also.
Hardboard. A Hardboard plant with an installed capacity of 12.5 tons was set up
in 1959-60 with West German technical collaboration. Today WIPs hardboard division is
the market leader in hardboards with state of the art production lines manufacturing over
120 tones today. WIPs hardboard like its plywood products, commands a premium in the
market, due to its intrinsic quality which is recognized by loyal customers.
The product range of Hardboards include
o
Standard Hardboard
Perforated Hardboard
Plywood. Plywood is the first type of engineered multipurpose wood form that was
invented. It is made from slices of wood shots called as veneer or piles. The veneer layers
are starched together and pressed under strong adhesives and heat. Plywood is preferred
over ordinary wood because it having good stability and good resistance to change.
Strategic plans and Future Programmes. WIP has a built a reputation and
goodwill in the market which they are striving hard to maintain it .They are constantly
satisfying the customer needs and satisfaction through constant improvement in quality of
products and by doing in house Research and Development to ensure 100% utilization of
wood.Here in WIP the Wood being the major raw material, they give utmost importance
to procurement of timber for the purpose of manufacture of plywood and Hardboard as
well as furniture. The company is looking forward to such Joint Ventures in the future as a
part of expansion and growth in international market.
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Organization Structure
Corporate Structure
BOARD OF DIRECTORS
MANAGING DIRECTOR
EXECUTIVE DIRECTOR
GENERALMANAGER
GENERAL MANAGER
(administrative)
COMPANY SECRETARY
CHIEF ACCOUNT
OFFICER
TECHNICHAL
MANAGER
DEVELOPMENT
MANAGER
MARKETING MANAGER
WORKS MANAGER
GENERAL EXCISE
DWD EXECUTIVE
SALES MANAGER
PLANT MANAGER
Figure 3:
Corporate structure
Adapted from Primary Source
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The Board of Directors are at the top level of the corporate structure where the long term
plans are formulated and policies are framed. They are followed by Managing Directors
and then by the various Departmental Heads. Each department is under the control of the
departmental heads and they are followed by the Managers & Executives.
Production Department
Finance Department
Purchase Department
Sales Department
Marketing Department
Timber Department
Stores Department
EDP Department
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Functional Analysis
Production Department
GENERAL MANAGER
PRODUCTION
MANAGER
WORKS MANAGER
SHIFT IN CHARGE
SUPERVISOR
OPERATOR
WORKER
Figure 4:
Production Departmental structure
Adapted from Primary Source
20
Production involves conversion of rawmaterial into finished products/goods.It can briefly
explained as follows
Input
Conversion process
Output
In WIP the raw material that are used to the output is steam,wood,chemichals. After
introducing these raw materials to a series of process the finished goods are obtained.The
wood that is required for production is acquired from both local as well as international
markets.The company is mainly having 5 major plants to produce 5 different products.
They are Hardboard, Plywood, Compreg, Furniture and Precompressed boards.
Raw Materials. The major raw materials used by the company are Wood, Steam
and Chemicals. Wood constitutes the majority of the raw material consumed.
Wood. Wood is mainly imported by WIP from Malaysia, South Africa, Sweden,
Myanmar and other South Asian countries. The woods used for general purpose are
Kalpine, Mango, Panda Pine, Eucalyptus, White Cedar, Neeli, Swiss Pine, Kussia, Pali,
Beech etc. For furniture use Teak, Rosewood, Mahogany, Pad Oak etc are used.
Steam. Steam energy is used to operate the machines. They are generated in huge
boilers and supplied through pipelines to different manufacturing plants inside the
company. Boilers need fuel to produce steam and based on this the boilers are classified as
follows:
Agricultural Boiler
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Plywood. Plywood is made up of piles of wood wafers stacked together and glued.
These layers
of wood are known as veneers. They can be bent to any shape.
Production process of Plywood.
LOGYARD
CROSS CUTTING
BOILING
PEELING
CLIPPER
GLUING
TRIMMING &
SANDING
FINISHING
Figure 5
Plywood production process
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
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Logyard. It is the area where the Wooden logs are kept. In WIPs log yard consists
of a part of Valapattanam River and the logs are allowed to be soaked in water. It is actually
what we call as a warehouse of a company.
Cross Cutting. The Wood is transported from the logyard to the Cross Cutting
section for cutting into pieces using a chain saw and making it in sizes of 3 to 8 ft.
Boiling. Timber being a hardwood, in order to make it soft and easy to cut it is
boiled in hot water using pressurized steam at 80-1600centigrade.
Peeling. The boiled logs are put into the peeling machine and peeled. There are two
types of peeling machines in the plant, they are spindle peeler and spindle less peeler.
Spindle less peeler is used to peel further what is left over by the spindled peeler. The
peeled log wafers are called as veneers.
Clipper. The veneers are put into clippers and cut into sizes of 3 to 8 ft. There are
two types of clippers, i.e. wet and dry clippers. Wet clippers are used for cutting hard logs
which were boiled. Dry clippers are used to cut the dry veneers.
Gluing. Gluing is the process of pasting the core veneer with adhesives on both
sides and sticking it to the face veneer in opposite right angled directions. The glue roller
machine is used to spread the adhesives.
Free press and Hot press. In Free Press the wooden board is compressed under
pressure without any temperature. In Hot Press the board is compressed at high temperature
of 140 to 2000 centigrade and 270k pressure.
Trimming & Sanding. Trimming is the process of cutting the edges to shape the
plywood and straighten the edge. Circular saws are used for trimming. Sanding is the
process of smoothening the surface of plywood through a sanding machine.
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Finishing. Finishing is the process of beautifying the plywood and preparing it as a
finished product. The board is cleaned off damages and cracks and crevices are filled with
French powder.
Organization chart for Plywood
Figure6:
Organization Chart of plywood
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
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Production process of Hardboard
LOGYARD
CHIPPER
WASHING
CHIP SILO
PREHEATER
DEFIBERATOR
CYCLONE
DEFIBERATOR
CHEST
EQUALIZER
HEAD BOX
25
FREE PRESS
HOT PRESS
TRIMMING
FINISHING
Figure 7:
Production process of hardboard
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
Logyard. This is the place where the logs are stored and it acts as a warehouse for
the company.
Chipper. Chipping is the process of crushing large blocks of wooden logs into small
pieces of wood chips. The wooden logs are transported to the chipping machine using the
conveyer belt. WIP has two chippers for this purpose.
Washing. The chipped wood is washed to remove mud and sand and other
impurities. The chips are put into a wooden chamber and mixed with water thoroughly.
The sand and mud gets settled down due to gravity. After washing the chips alone fall into
Chip Silo.
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Chip Silo. In Chip Silo the washed wooden chips are stored temporarily. A screw
conveyor is fixed at the bottom of the conical tank for collecting the chips.
Preheater. Preheater is a tank that is used for heating the wooden chips in order to
soften the chips and drain excess water.
Defiberator. It is used to convert chips into fibrous form. This is done by grinding
and heating the chips.
Cyclone. Here the grounded chips are mixed with water in a conical tank to form a
paste like mixture. It is mixed uniformly to form a pulp like substance.
Defiberator Chest. The defiberator chest is used store the pulp temporarily and it is
sent to equalizer.
Equalizer. Here the pulps thickness is adjusted and made uniform in size and
passed to the machine chest.
Head Box. The head box spreads the pulp into uniform flat surface to form a
rectangular shape. This pulp is transported through the conveyor belt.
Board Forming. The board is formed when it is cut using pressurized water in a
specific shape. The edges and corners are also shaped. This process is automated and so its
precision in cutting is very high
.
Free press. Here the shaped substance is compressed using metal plates to remove
the excess of water in the pulp.
Hot press. Here the wooden sheet that comes from the free press is compress and
heated at a temperature of 200o centigrade and 200kg/m3 pressure. This is done for 3
consecutive periods for a single board. The hot press can be loaded with 13 boards at a
27
time.
Trimming & Finishing. Trimming is the process of cutting the board in regular
dimensions or customer defined sizes. This is done with trimming machine fixed with a
pair of saws at both sides. The finished product is sent for quality check and clearance.
MANAGING DIRECTOR
GENERAL MANAGER
MECHANICHAL
ENGINEER
ELECTRICAL
ENGINEER
CHEMIST
OPERATORS
WORKERS
WORKERS
Figure 8:
Organization chart of Hardboard
Adapted from Primary Source
28
The annual installed capacity of the various products being manufactured by the company
is summarized below
Table 2:
Annual Installed capacity of products
Plywood (in million sqm of 3ply x 4mm basis)
2.5
34000
2000
Resins(in M Tonnes)
2400
Furniture(in units)
15810
10
800
9.0
660
82600
29
Human Resource Department
Figure 9:
Human Resource Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
WIP Ltd is having the best governed Human Resource Department which is the heart and
soul behind the success of gigantic estabilishment.General Manager is the head of the
department followed by the factory executive who deals with all the matters in the personal
department.He is assisted by Personnel Officer and Welfare Officer.The time clerks deals
with the attendance leave and the time management of the workers in shifts and general
shifts.Besides there also provide people dealing with ESI,PF,Canteen token,wage and
salary administration and disciplinary action.
30
Recruitment & Selection. In WIP the process of recruitment includes both internal
and external sources. Based on the vacancy or need for workforce manpower planning is
done. The internal sources include promotion, job rotation etc. External sources include
referral programme, campus selection, freshers and deputation. A panel of members
interviews the candidate and sends him/her for induction.
Training. One year training is given to the new entrance.Training is restricted not just
for a specific work but an overall training is given to workers so that they can fill in any
post of the absentee.This makes the worker more versatile.Stipend is given to the trainee
during the training periods.
Classification of Workers
Permanent Workers
Probationers
Substitutes
Temporary Workers
Casual Workers
Apprentice
Retirement. Any worker who is declared mentally unfit or found to continue ill health
or reach the age of 58 shall be retired from service according to Gratuity Act.
31
Factory Timings. The factory runs for 24 hours and is not shutdown on any day. The
workers are allocated with three different shift timings for works. The timings are as
follows:
I shift
6:30 am to 2:30 pm
II shift
2:30 pm to 10:30 pm
IIIshift
General shift
7:30 am to 4:00 pm
Office time
9:00 am to 5:00 pm
10:30 pm to 6:30 am
Since the work shifts can vary every time, most of the workers are local residents of
Valapattanam or Kannur District.
The staff members are allowed for one leave for every 10 days of work.
Wages. Factory workers are given with weekly wages whereas the office staff and
permanent workers get monthly salary. The administrative department draws monthly
salary which is credited to their bank accounts.
Welfare Measures
Employees Provident Fund. This act is applicable to those employees whose
drawing pay not exceeding `6500/month. This act is applied to every factory in 20 or
more workers are employed.12% of employees wages and an equal of employers
32
contribution is transferred to the EPF.
Employees State Insurance Scheme. The company follows ESI Act 1948. This act
provides medical benefits to the employees in case of sickness or accident during work. At
present the coverage of this scheme is restricted to employees not drawing wages not
exceeding `7500/ month. This may include salary, DA and HRA. The employee contributes
1.75% of the usage and 4.75% of the wage is contributed by the employer.
Canteen Facility. WIP runs a canteen where food is available at concessional rate
to the workers. Tokens have to be taken in advance for this facility.
Safety Provisions
Proper lighting
33
Finance Department
GM FINANCE
ACCOUNT MANAGER
ASSISTANT A/C
MANAGER
ASSISTANT A/C
MANAGER
ASSISTANT A/C
MANAGER
ACCOUNT
STAFF
ACCOUNT
STAFF
ACCOUNT
STAFF
Figure 10:
Finance Departmental Structure
Adapted from Primary Source
Finance department is one of the core departments of an organization. The General Manger
of Finance is head of the department. The Company secretary is also the Finance GM of
WIP. The company follows double entry system of accounting for recording the
transactions.The finance department has direct interaction with all other departments since
all the payments and collections are made through here.This department follows a written
form of communication.All department payments and receipt are finally reported to the
finance department
34
The following accounts are maintained by WIP
Journal
Ledger
Sub Ledger
WIP publishes annual report every year after the annual general meeting which is attended
by the board of directors and major share holders. It includes P&L account, Balance Sheet,
Accounting Policies of the business, Consolidated Cash Flow Statement etc.
Sources of Finance
Shares
Secured Loans
Unsecured Loans
35
For these types of journals sub ledgers are maintained, they are as follows:
Personnel ledger
External sources.The main external source of fund is term loan form bank and financial
institutions like SBI, Canara Bank, Punjab National Bank etc.
Bankers. The main bankers of WIP are
Canara Bank
Bank of India
Dena Bank
Other functions of Finance department are issue of cash & cheque, cheque receipt, audit
finalization, wages and salary and banking related tasks.
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Revenue Distribution
Revenue Distribution
1%
10%
5%
4%
46%
14%
Material Consumption
Employee Benefits
Finance Charges
Depreciation
Other Expenses
Profit
Figure 11:
Pie Chart Representation of Revenue Distribution
Adapted from 69th Annual Report (2103-2014) of WIP
Share Holding Pattern
Shareholding Pattern
1%
12%
41%
Public
Promoters
46%
Financial Institutions
Figure 12:
Pie Chart Representation Share Holding Pattern
Adapted from 69th Annual Report (2103-2014) of WIP
BodiesCorporate
37
Current ratio=current asset/current liabilities
Current asset =cash in hand +cash at bank +marketable securities + sundry debtors +
bills receivables + stock + work in progress+ prepaid expenses + short term
investment
Current liability = sundry creditors+ bills payable +outstanding expenses + short term
advances + provision for tax + provision for proposed dividend +bank overdraft + tax
paid + dividend payable
Year
Current asset
2014
Amount
Inventories
Current liability
Amount
Sundry debtors
141509429
41298313
82756953
liability
Sundry creditors
56863997
613389177Cr
398623776Cr
1) Current ratio
38
2) Quick ratio
39
Purchase Department
MANAGING
DEPARTMENT
GENERAL MANAGER
PURCHASE MANAGER
PURCHASE STAFF
PURCHASE STAFF
Figure 13:
Purchase Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
The Western India Ltd has well developed and efficient purchase department,which is deals
with the purchasing of raw materials.Company usually makes three kinds of purchasing:
Local Purchase
Direct Purchase
Company has broadly classified its purchase department into Timber purchase department
and all other purchase departments.Other department does the buying of all other items
other
than
wood
i.e
timber.It
is
involved
in
purchasing
of
consumer
40
product,spares,oils,acids,chemichals and other ancillary raw material used for
manufacturing its products.
Timber purchasing department dals only with the purchase of Timber.Timbers are
purchased through bank or direct purchasing.An intend will be received from the stores
department about the item to be purchased.The production manager should sign it.An
enquiry will be made and following that the quotation will receive.Suitable quotations will
be selected and it will be sent to the production department mentoning the criteria of
selection.After receiving the quotation the purchase department will make order with
specified conditions.If the goods are sending through bank intimation will receive from the
bank that the goods are ready for delivery.The money is paid as per terms and conditions
and the goods are delivered .In the case of direct purchasing money is directly paid to the
supplier and the goods are received
Purchase Procedure. Invites for quotation from various parties.From the quotation the
actual buyer will be identified based on price and quality.Order for the goods.Goods will
be sent to the nearest parcel offices from there the customer company will collect the
consignment.Documentation through bank or direct supplier.Sometime advance payment
is also undertaken.Emergency purchases can be authorized by MD/ED by passing the
above step.
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Export & Import Department
MANAGING DIRECTOR
GENERAL MANAGER
EXPORT/IMPORT
EXECUTIVE
EXPORT/IMPORT
ASSISTANTS
CLERKS/TRAINEES
Figure 14:
Export & Import Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
The Export & Import department of WIP deals with export of finished goods to overseas
and import of raw materials (timber) from other countries.Export dealing is coming
directly under the managing director and import dealings are controlled by the general
manager .Export and import executives carry out functioning of thr department and they
are assisted by assistants.
EXPORT
42
Nearly 30% of the sales is from exports, WIP exports Hardboard to Australia, U.A.E,
New Zealand, Malaysia, Tanzania, Papua New Guinea, U.S.A, Europe and other Gulf
Countries.
Export Procedure
Proforma Invoice
Invoice preparation
Packing List
Bill of lading
Quality certificates
ImportWIP imports Timber, veneers and machines from countries like Malaysia,
Myanmar, France, Ecuador, Sweden, Italy, Kenya, U.S.A etc.
Import Procedure
Enquiries
Selection of suppliers
Clearance Procedure
43
Sales Department
GENERAL MANAGER
SALES MANAGER
SALES STAFF
DESPATCH
Figure 15:
Sales Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
Western India Plywoods markets their products through agencies and depots.They use
sales representatives also,Their main promotion method is direct contact by sales
representatives to canvas govt. and railway.Enquiries are made through tenders.The main
tool used to catch government order is by the lowest quotation.
The Western India Plywood Ltd provides both cash as well as credit sales.The credit period
allowed is usually 30 days.The sales depots are run both by company as well as by some
external agencies.There were more than 40 depots in India of which 14 are in Kerala.Each
depot is handed and controlled by depot manager
ype Of Sales
Industrial sale
Export sale
44
The main industrial customer of this company are Indian railway,HMT,KSRTC,shipyard
etc.ProductsaremainlyexportedtocountrieslikeUSA,Netherlands,France,Srilanka,Japan
and Canada.
Methods of Sales
Depot System. WIP uses depot system in distribution showing its wide range of
market potentially.Each depot is headed and controlled by a depot manager and one or two
assistance assist him.
Manufacture
Agent
Industrial buyers
Direct Sales. The company sells directly to consumer.The major way of direct
marketing is e-mail,post and leadership.
Manufacture
Industrial buyers
Dealership System. Approved stockiest or dealers purchase the goods and sell in
the retail market.
Process. Sales starts when the orders are received from the customers, they are sent
to the factory stating the requirement of the goods. The order is processed and
manufactured according to the specifications. The customer receives intimation when the
product is ready for delivery. Company allows credit sales to its loyal customers who have
been doing business with WIP from time to time.
45
Sales(Rs in Crores)
104
102
100
98
96
94
92
90
2013-14
2012-13
2011-12
2010-11
Sales(Rs in Crores)
Figure 16:
Sales of last four years
Adapted from 69th Annual Report (2103-2014) of WIP
In the year 2013-14 WIP made a turnover of 103 Crores.Excise Duty is 12.5%.Central
sales tax for registered is 2%.While for unregistered is 14.5%
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Marketing Department
MARKETING
MANAGER
MARKETING
COORDINATOR
MARKETING
OFFICER
BUSINESS
DEVELOPMENT
OFFICER
MARKETING
EXECUTIVE
REPRESENTATIVE
Figure 17:
Marketing Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
As we know that marketing is one of the important functions of any business organization.
WIP has a marketing department which most dynamic among other departments. The goal
of marketing is to satisfy the customer needs with profitability. Marketing department is
well established and marketing is done for its high quality products.
The company targets both high income and low income group. Apart from that they also
target retail and wholesale buyers of their products. The name and goodwill of the company
is far enough to market the products of WIP. The companys reputation plays an important
role in marketing strategy of WIP.
47
Marketing Strategy. WIP is producing high quality goods with international
and/or national standards.So the company cannot compromise to the price factor.They
follow High Quality,High Cost,High Price marketing.The company is aiming at quality
conscious customers and is not ready to compete with local manufactures.
WIPs marketing strategy is Niche Marketing.Under this marketing strategy company
offers technologically superior products and where quality is the determining criterion.The
company is not entertaining any short term promotion schemes.Long term brand building
is undertaken through promotional tools.
Market Segmentation. The company believes in quality and standard. So WIPs
products undergo stringent quality tests. The prices of WIPs products are comparatively
high since there is no compromise on quality. WIP is marketing more than 300 products.
The market is segmented follows:
Domestic Market
Industrial Market
Export Market
Export Market
Australia
Sri Lanka
U.S.A
U.A.E
Malaysia
Burma
African Countries
Europe
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Industrial Market
Car Manufacturers
Clock Manufacturers
Railways
Local Market. These include local customers who purchase plywood or Hardboard for
ceiling separation, door separation and furniture.
Positioning. The WIP Ltd has positioned its brand in the upper and in the market target
those segment which requires or desire the quality offers backed by willingness to pay for
it.The WIP Ltd commitment to niches the latest technologies in the field of wood
processing and continuously upgraded its process and machinery.
Product Branding And Loyalty. WIP Ltd 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 brands and brand loyalty.WIP
has given WESTINED for their plywoods,furniture and for decorative floorings.The
companys hardboard is branded as WESTON.The Densified wood and prefinished
boards are individually branded.Most of the customers are showing company loyalty as
company is having very good image in their minds.
Marketing Mix
Product. WIPs Hardboard has super mechanical and physical properties. WIPs
Hardboards are exported worldwide. WIPs plywood is also having good sales over the
market since they produce since they produce boiling water proof, boiling water resistant,
fire retardant plywood, aircraft grade plywood etc.
Pricing. As said earlier WIPs products are more expensive than their competitors due
to their state of art technology and unmatched quality. They are sold through exclusive
retail outlets all over the country. The customers are retained due to their brand loyalty
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since the product is of good quality.
Place. WIP has 27 exclusive retail outlets all over India for the sale of their products,
which are either owned by the company or commission agents. The hardboard is sold
through leading dealers in the country since they are products of mass consumption
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Timber Department
GENERAL MANAGER
PUBLIC RELATION
CLERKS
Figure 18:
Timber Departmental Structure
Adapted from PrimarySource
Timber department procures the wood required for production which is the main raw
material of the company. The raw material procured is used for plywood, hardboard and
compreg production.
Sources of Timber are:
Private Sources. Timber is sourced from private parties if the quality of the timber
is good and the price is reasonable. The company negotiate with the parties and fix the
price according to the market value
Government Source. The Forest department puts forward the wood for quotation
every year. The company can collect the wood after acquiring the order. There is scarcity
in the Government sources recently.
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Import Sources. Recently WIP has started a Joint Venture in Malaysia for import
of timber and other quality raw materials. About 80% of the wood is sourced from imports.
Timber is mainly imported from countries like Myanmar, Sri Lanka, Germany, Africa,
Europe
and
Kenya
etc.Different
types
of
wood
wood,beech,Redcede,kalpine,keruing,kussin,Paliwood.
imported
are
vellapine
52
Central Excise Department
MANAGING DIRECTOR
COMPANY SECRETARY
EXCISE EXECUTIVE
STAFF
Figure 19:
Central Excise Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
WIP is having as separate tax department for payment of taxes. Central Excise Tax is levied
by the Central Government, it is for manufacturing of products in industries. Excise duty
is collected on finished goods which are moved from the factory at the time of
sales.Conditions to be satisfied to levy excise tax are the product must be goods and it
should have come into existence as a result of manufacture .
Payment of excise duty is made based on the type of goods. There is no excise duty on
export goods as a relaxation for export promotion.
53
Documents Maintained
ER-1(Excise Return)
CR-6(Chelan Receipts)
54
Research & Development Department
GENERAL MANAGER
HEAD R&D
EXECUTIVES
CHEMIST
TECHNICIAN
QUALITY CONTROL
CHEMIST
TECHNICIAN
Figure 20:
R&D Departmental Structure
Adapted from Primary Source
WIP has an in house R&D department which is found rarely in wood and allied industry.
This is an added advantage to the company. The R&D department works on plywood and
allied products in WIP. This department is recognized by Department of Science &
Technology of Government of India.
This approval is to be renewed every two years and has to present a future plan for the next
two years to be implemented and a detailed report the performance of the previous two
years.
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The department undertakes projects on resin development, plywood development and
prefinished boards. Some of the developments of R&D department are
The R&D department is allowed with tax benefits for the raw materials consumed and it
can source the raw materials in subsidised rates from Government of India. The recent
development was on Diethyl Phthalate, Resin based Glues and Sheet Moulding
components which are prominently used in electronic compound industry. The DAP
moulding compound was first manufactured in India by WIP by their state of the art
technology. This is an import substitution now used.
Differrent types of testing done on R&D department are
Density test
Glucious test
Modulus of fracture
Modulus of elasticity
Tensile strength
Compressive strength
Toxicity test
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Stores Department
GENERAL MANAGER
STORE OFFICER
STORE KEEPER
STORE HELPER
Figure 21:
Stores Departmental Structure
Adapted from Primary Source
The Stores department is responsible for stocking of the tools, spares, necessary raw
material and other components.
It is headed by the General Manager, followed by the Store Officer and Store Keeper.
The Store Keeper is assisted by the Store helper.
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The Stores department maintains the following documents
Store Indent
The goods ordered are delivered at the store house by the supplier. The store keeper keeps
a record of these items and stocks them at the store house.
The inspection department verifies whether the purchase goods are in accordance with the
purchase order.
The inspection department collects information such as quantity inspected, quantity
purchased, quantity rejected and the reason for rejection. The indents are signed by the
Works Manager and Store Keeper. The WIP store is well stacked and ordered to get ISO
9002 certified in 1996. It is bound to inspection for every 6 months.
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EDP Department
GENERAL MANAGER
EDP
CLERKS
Figure 22:
EDP Departmental Structure
Adapted from Organization manual (2013-2014) prepared by Chief General Manager
The EDP department deals with the computer systems and network of the company. This
is a small section in WIP and not a fully utilized or developed department. The company
office is LAN connected to each system but it is restricted to internet access, only few
systems are internet accessible. The EDP department prepares and edits
WIPs monthly newsletter named WOODTALK.
The company doesnt have its own technician for hardware maintenance. The maintenance
is outsourced to an external party. The EDP department takes care of the travel
arrangements for the organization heads and officials for official meeting and outstation
trips.
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Organizational Analysis
Key Resources
The key resources of the company include a vast pool of human resource and a state of art
technology and imported quality wood. They launch high quality products in the market
through constant innovation and persistent hard work. The company employs 1300
employees, which shows that a huge workforce is working for the improvement and
development of the company. WIP is highly dependent on good quality timber for
production of quality products, which they either import or source locally.
Swot Analysis. . SWOT analysis is an important aid for the management when it
comes to making critical decision. SWOT is an acronym for Strengths, Weakness,
Opportunities and Threats. The strengths and opportunities represent the positive aspects
whereas the weakness and threats represents the negative aspects that the company should
try to overcome. Strength and Weaknesses are internal to the organization. It is related to
the strategies implemented by the Organization, its position in relation to competitors etc.
Generally these parts are controllable whereas Opportunities and Threats are external to
the organization, which are caused by the external environment.
The aim of conducting a SWOT analysis is to isolate the key issues which would
be important in the future for the organization. Every successful firms success comes up
when they implement the outcomes of the SWOT analysis in the best possible manner
Strength. WIP is the one of the largest plywood manufacturing company in South
East Asia.They have stringent quality control techniques. The company is one of the very
few hardboard producing industries in India. The company has a well established in house
R&D, one of the best in industry. Installation and Licensed capacity is very high, so that it
can increase its production if needed. The company has an operational experience of 65
years with dedicated workforce. WIP has larger dealer network in India for plywood and
hardboard sales.
Weakness. The company experiences an acute shortage of good raw material which has
forced the company to import good quality timber. As the raw materials are imported the
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company experiences high cost of production leading to low profit. Promotional activities
are insufficient to boost up the sales as the promotional activities of competitors are better
than that of WIPThe prices of the goods are high compared to its competitors. Lack of good
distribution network as compared to competitors
Oppurtunities. The company has a vast area where the there is a scope for growth &
development. Wood products are high in demand hence there is always stable demand in
the market. The goodwill and reputation can help in further diversification. R&D
department can supplement the development of new products. Modernization and
automation can be carried out for better production and competitive growth
Threats.As timber is a scarce resource there is a shortage of good quality timber and it
can affect the company in the long run. High cost of production and increasing cost of
furnace oil can lead to lower growth of the company. Environmental threats have adversely
affected the company since wood is a natural resource. Imported plywood is available at
cheaper cost compared to WIPs plywood.
CHAPTER- FOUR
62
Conclusion. Western India Plywoods Ltd., the second largest wood processing industry in
South East Asia, therefore it has a bright future in this field. During the running period
since 1945, the company has achieved various milestones. The high-end production
technology of WIP is well acknowledged among the wood processing industries in India.
WIP Ltd. stands for superior product performance and provides value for money to its
customers. It is backed by WIPs commitment to harness the latest technology in wood
processing industry and continuously upgrade its processes and machinery. Due to the high
quality maintained, the company has found a ready market both India and abroad. The
company has better future prospects in the country in Wood and allied products
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