marketing project 999

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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 ITM College Of Arts & Science Page 1

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Page 1: 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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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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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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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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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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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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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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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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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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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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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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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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2.1 COMPANY PROFILE

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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SALES CHART:

Sales growth during last 5 years

years Sales(lakhs)2003-04 4993.052004-05 5625.57

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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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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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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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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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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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Densified wood 23873430 32339345 47858371Prefinished hardboard

1932627 1866743 4934329

Precompressed press board

74904 2781780 8824635

FINDINGS AND SUGGESTIONS

Findings:

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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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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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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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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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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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