Sri

Lakshmi Plywood’s

DECLARATION

I hereby declare that this summer report on industrial training entitled

a study on Market Share of “SRI LAKSHMI PLYWOODS, submitted to

department of Management studies, Malla Reddy Institute of engineering

and technology in partial fulfillment of the requirement for the award of the

degree of MASTER OF BUSINESS ADMINISTRATION is a original work

done by me during the period of my study at the college under the

supervision and guidance of Department of management studies

(Signature)

ACKNOWLEDGEMENT
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SERIAL CONTENTS PAGE NO

NO
1 INTRODUCTION 1

2 INDUSTRYPROFILE 5

3 COMPANY PROFILE 8

4 FUNCTIONAL DEPARTMENT 16

5 SWOT ANALYSIS 56

6 FINDINGS 59

7 SUGGESION 60

8 CONCLUSION 61

9 BIBLIOGRAPHY 62

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INTRODUCTION

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INTRODUCTION

Management is the process by which people, technology job tasks and other resources are
combined and coordinated so as to effectively achieve organizational goal.

The organizational study conducted at ‘SRI LAKSHMI PLYWOODS.’ Is to study about

organizational structure communication channel, span of control, organizational culture etc. of
the organization .The relevance of the study is to understand the above mentioned facts through a
real organizational scenario.

The chief objective of the organizational study is to familiarize with the working of
various departments for a particular period, so that one can have exposure to the practical side.

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Objective of the study

 To have general awareness of the functioning and management of the organization.

 To understand the organization structure and working of various functional departments.

 To analyze the overall performance of the company.

 To understand the extent to which management theory matches with actual practices
observed.

 To understand and study the organization objectives and goals.

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METHODOLOGY

The methodology used for this organization study is mainly in two ways. They are;

 PRIMARY DATA,

 SECONDARY DATA.

PRIMARY DATA

Primary data are those data which are collected first hand and thus happen to be in
original character. The primary data includes the data by questionnaires, by observing
and by interviews with the company personnel at different levels of management.

 From the managers

 From the office staff

 Rom the workers.

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SECONDARY DATA

Secondary data are those data which have already been collected from the company such
as

 Business journals

 Quality manuals

 Annual report

 Magazines broachers.

LIMITATIONS OF THE STUDY

1. Due to shortage of time and other constraints, interviews with workers were short.

2. Both managers and employees are not ready to fully reveal the data required for
the project and the document of the company are not open for the public scrutiny.

3. Lack of availability of secondary data from published journals and reports.

4. Another limitation faced was the respondents sometimes were too busy to answer
questions in detail.

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INDUSTRYPROFILE

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INDUSTRY PROFILE

Trees are nature’s greatest bounty to man. They provide shelter, fuel, medicines and tools
for war or commerce or transport. It was a timber from trees, which in the early days helped man
to conquer the oceans and to fly in the air.

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.

GROWTH AND DEVELOPMENT OF PLYWOOD INDUSTRY

In India the modern sector of Small, large scale manufacturer have played a significant
role in the socio-economic development of the country. Our county is blessed with immense
stock of natural resources both above and beneath the soil surface. Forest is one of the important
natural assets of India.
Of the various areas of wood processing plywood manufacture is an important sector
wing to its employment potential and value addition. In India plywood as a product was
commercially developed first in Assam and its neighboring area by enterprising industrialist.
Nearly a century ago during those days when the India tea was introduce to Europe, many
complaints such as tanning of the tea, change of odour, lack of resistance of boxes to withstand
transport.

landings were received. To overcome these complaints Indian association set up a committee to
go up into the details of tea packing and it was found that tea chest made from plywood could be
used for packing tea.

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The art of veneering was in existence as early as 1500 BC in Egypt. Veneering is a thin layer of
sheet of wood uniform in thickness. Veneer is used in Greek during early period to beautify the
furniture. The Roman also used veneer during the time of 63 BC. During the reign of LUOIX
XV in 1760 good decorative furniture was made in France using veneer. The plywood which are
seen in the present form was developed after 1860 this veneer machine was first upgraded by
French mechanic in 1812. The factory for manufacturing of veneer was first established in
Germany in the middle of 19th century. Nowadays a rapid development is taking place in this
field.

At present wood products are used for manufacture of modern kind of furniture, Building
material, material for interior decoration, ship building, automobile manufacturing, and
refrigerator and meant for many other purpose.

PLYWOOD INDUSTRY IN INDIA

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 medium, large scale
and small-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.

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The other main raw material required by the plywood industry is synthetic resin, which is
available within the country. The materials required for manufacturing resins are Urea, Phenol
and Formaldehyde. This industry also pays excise duty to the extent as Rs.50 crore; provides
employment to about 30000 people and has total investment as Rs.400 to 500crores.

INDUSTRY TRENDS

Competition is keen in the furniture industry. Furniture 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 furniture 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 furniture makers also started to develop their own brands. Furniture
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 furniture exporter to many countries, including the US and Japan.
The total furniture 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 furniture 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 furniture maker

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COMPANY
PROFILE

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COMPANY PROFILE

BACKGROUND AND INCEPTION OF THE COMPANY

Sri Lakshmi Plywoods is associated with 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 Sri Lakshmi Plywoods Plywood was Mr. P.N.Srinivas company
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.

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 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
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 Centre Mumbai in order
to aggregate the low-grade timber
.

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NATURE OF BUSINES

SLP is the fourth biggest plywood factory in Asia. The factory is situated in Kannur
district in Kerala state. SLP collects timber and firewood through import from Malaysia, Africa,
Burma, Russia etc. and local purchase. Thus it is being processed at the factory and converts into
various finished products such as different varieties of plywood, hardboard, furniture, wood floor
etc. SLP exports 80% of total production to Germany, USA, Canada, Italy, Australia, Japan,
Sweden, Middle East and Gulf Countries regularly. The rest of 20% is being through retail
outlets and Company’s sales depots throughout the country SLP Ltd., the largest integrated wood
processing complex in the country, was incorporated in 1945 immediately after second world
war. The SLP is a widely held public ltd., company listed in cochin and Madras Stock Exchange.

Thanks to the dynamism and vision of its founder – managing director Mr. A K
KADERKUTTY, who is the acknowledged doyen of the Indian wood working industry? SLP
grew over two decades into a well integrated wood processing unit with finally tuned skills in
new product development and manufacture. Though its 60 years of existence, SLP has been
singularly responsible for the most significant product innovations in the Indian plywood panel
industry.

A HARDBOARD plant with an installed capacity of 12.5 tones was set up in 1959-60
with West German technical collaboration. Today SLP’s hardboard division is the market leader
in hardboards with state of the art production lines manufacturing over 120 tones today. SLP’s
hardboard like its plywood products, commands a premium in the market, due to its intrinsic
quality which is recognized by loyal customers.

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VISION, MISSION AND QUALITY POLICY

VISION

 Continue to remain the best plywood panel corporation in India with a growth in allied
areas

MISSION

 To provided utmost satisfaction to the consumer through best quality and customer care.

 To continusly upgrade the product through innovation and convergence of new

technology and to produce the best quality product.

 To safe guard and enhance share holders value

 To respect the dignify 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.

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QUALITY POLICY

Quality policy of SRI LAKSHMI PLYWOODS PLYWOODS is to manufacture products

as per national/international standard and make them available to customers as per requirement.

SRI LAKSHMI PLYWOODS PLYWOODS endeavor to upgrade the quality of its

products and related services on a continual basis through regular improvement
effort.
A well defined quality management system has been implemented. This system is
continuously revised to enhance its effectiveness and updated to meet changing needs.

QUALITY OBJECTIVES

 Suitable equipments and machinery for process control at all stages.

 Provision of adequate resources including raw materials and personnel to ensure constant
product quality.
 Well defined process and product characteristics to enable monitoring analysis and
continual improvement
 Communication of requirement of products including customers’ requirement,
statutory/regulatory requirements as per aspect of QMS including policy and objective
among all employees.

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ORGANISATIONAL CHART

Chief Management

Executive
HD/PFP/PCPB

GM
GM Store/P&A
(administration)
(production)

Electrical
Company Chief Accountant
officer

Technical Development
Manager
Plywood, Flush
Marketing Head Works Manager
door, Block board

Central Excise Plant Manager

Densified
Sales Manager DWD Wood
Products

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PRODUCT PROFILE

The major product for which the company has been the leaders in quality since 1945 is just
because of its finest quality products produced as per international standards. The products of the
company are globally accepted. Over the last 50 years, through its close knit co-ordination of
various processing units, professional management and maximum utilization of facilities
available, the company has made an indelible mark in the wood industry – a mark of glorious
achievements

 SLPWOOD
Densified wood is used in the manufacturing of textile & jute mill accessories

 SLPLAM
Densified wood is used in the manufacture of insulation components for transformers &
switchgears

 SLPCHECK
Densified compressed floor board, with both chequred and plain surfaces, building &
chemical industries

 SLPROC
Densified wood used in the manufacture of high precision jig formatting tools in
aeronautical industry & neutron shields in reactors.

 SLPBEAR
Densified wood used in the manufacturer of bearing and gears

 SLPCHEM

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Densified wood used in manufacture of electrical insulation components like studs, nuts,
cleats & other segments

 SLPRESS
Rigid and high purity densified wood with excellent electrical and mechanical properties,
for use in the transformer industry.

 SLPLAC
Pre-finished plywood & hard board, used in the manufacture of panel coiling and
furniture.

 ULTRACLICK
Engineered wood flooring

 COMPREG SLATS.
Used for railway coaches, paneling and as a building material.

 DENSIFIED MOULDED SEATS

Used for railway coaches, auditoriums & restaurant.

 WESTINDPLY
Decorative finished and commercial finished BWR and BWP grade plywoods,
manufactured from selected species of timber, water proof quality used for boat building,
concrete shuttering, furniture, partitions, paneling etc.

 HARDBORDS
Used extensively by automobile industries, fiber drum manufactures, shoe manufactures,
photo frame backing, clock manufactures, school writing parts and also for partitions.

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 FURNITURE
All type of furniture including molded a knock down furniture

FUNCTIONAL DEPARTMENTS

1) HUMAN RESOURCE DEPARMENT

2) PRODUCTION DEPARTMENT

3) PURCHASE DEPARTMENT

4) MARKETING DEPARTMENT

5) SALES DEPARTMENT

6) CENTRAL EXCISE DEPARTMENT

7) RESERCH AND DEVOLEPMENT DEPARTMENT

8) EXPORT- IMPORT DEPARTMENT

9) FINANCE DEPARTMENT

10) TOTAL QULITY MANAGEMENT ( T.Q.M )

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HUMAN RESOURCES DEPARTMENT

An organization is a human grouping in which work is done for the accomplishment of

specific goal or mission. The goal of a manufacturing concern might be to produce and supply
the goods and services to satisfy the demand of market.

SLP LTD., aims at producing plywood, hardboard, and furniture to meet the demands of
both national and international market. SLP, is having the best governed Human Resource
Department, which is the heart and soul behind the success of the gigantic establishment.
Managing Director is the head of the department followed by the factory executive who deals
with all the matters in the personnel department. He is assisted by the Personnel Officer and
Welfare Officer.

JOB ANALYSIS

This is the process determining, by observation and study and reporting pertinent
information relating to the nature of a specific job. It is the determination of the task which
comprise the job and of the skills, knowledge, the and responsibilities required of the worker for
a successful performance and which differentiates one job from all other.

JOB SUMMARY

 Monitoring the works of timekeepers

 Processing of joining and separation of employees

 Process contacts and reemployment.

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 Processing of disciplinary action

JOB ACTIVITIES
 Supervise and coordinate the daily work of timekeepers.

 Monitor and control the attendance recording to eliminate chance of proxy

 Verify for correctness the statutory documents concerning attendance and other work
recedes of employees.

 Verify documentation of leave of absence; overtime given, weekly off,

compensatory off etc., verification as to conforining to norms laid down.

 Monitor the preparation of wage/salary statements for each month, ensuring

incorporation of allowed deduction in respect of each employee.

 Advance intimation of personnel retiring for services and process the papers connected
with the separation and payments of befits associated with the same.

 Prepare appointment orders for fresh recruitments and the process the joining papers,
including issue of identity cards and arranging for enrollment under PF, ESI etc.

JOB RESPONSIBILITY

 Ensure recording and documentation of attendance of employees at all levels.

 Ensure maintenance of leave records, overtime records, weekly off, compensatory off

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records etc.

 Ensure monthly salary wages statements in time.

 Issue of appointment orders, conformation orders, separation orders etc for all categories
of employees.

 Ensure the disciplinary proceedings are followed up till the issue of punishment orders.

JOB ENVIRONMENT

Reporting to factory executive/head of personnel functions; however keep rapport and

liaison with section in chargers in all functional areas.

 Current informal ways of working ;practice of working on oral instructions and

getting such actions ratified in due course

 Want of documentation by way of proper system and procedures.

 Habitual cases of absenteeism and in discipline.

 The slow pace of work among the staff, as a part of past work practice.

RECRUITMENT AND SELECTION

In SLP the sources of recruitment includes both internal and external. Whenever any
vacancy occurs somebody from within the organization is upgraded, lie outside the organization,
which includes new entrants to the labor force, retired experienced person’s etc. For the selection
process a panel of interviewers interviews candidate. The apt candidate is then selected for the

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job.

TRAINING

One – year training is given to the new entrance. Training is restricted not restricted just
for a specific work but an overall training is given to workers so that they can fill in the post of
absentee. This makes the worker more versatile. Stipend is given to the employees during the
training period.

CLASSIFICATION OF WORKERS

In SLP Ltd., workers are classified as follows;

1. Permanent
2. Probationers
3. Substitutes
4. Temporary
5. Casual
6. Apprentice

Ticket or Attendance Card:

Every workman shall be given a ticket or attendance card, free of cost, showing his
number or name, classification etc. Every workman shall punch his attendance card at the
punching machine and deliver up his card or ticket at the
place provided in the time office before the commencement of each session of the shift in a day.

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Entrance and exit

The workman shall not enter or leave the premises of the factory except by the gate or
gates appointed for the purpose.

Leave and Holidays

1. Leave with wages will be allowed to workmen as provided for in the chapter of
Factories Act.

2. Leave for sickness, maternity and accident will be allowed to the workmen as
provided for in the Employees State Insurance Act.

3. National and festival Holidays with wages will be allowed to the workmen as
provided for in the Kerala Establishment Act.

Wage and Salary administration

In SLP Ltd., the managers analyze and interpret the needs of the employees so that
reward can be individually designed to satisfy their needs. Here the workers are paid wages and
the staff officers managers etc are paid salary. The wage /salary system which SLP which
follows is time rate system. Under this system workers are paid according to the work done
during a certain period of time. He is paid at the settled rate as soon as the time contracted for is
spent. The basic purpose of salary administration is to establish and maintain an equitable wage
and salary structure.

Disciplinary Action

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Any workman who is found guilty of misconducts is liable to be summarily dismissed
without notice or compensation in lieu of notice or alternatively to be suspended for period not
exceeding 4 days or to be fined up to 2% of his wages in a wage period in accordance with the
provisions of the Payment of Wages Act.
Wages and other dues, if any, due to workman whose service is terminated by way of dismissal
or discharge or retrenchment shall be paid to the workman within 2 days of termination of his
service.

Retirement

Any workman who is declared mentally unfit or found to be on continued ill- health or
reached the age of 58 (fifty eight years) shall be retired from the service according to the
Gratuity Act.

Benefits

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Statutory benefits including ESI, PF, Gratuity etc. are provided to all the employees.
Besides that SLP Ltd., provides food at subsidized rate to the workers. Whenever any employees
meet with any accident, all the expense in the course of treatment borne by the company.

Various acts followed by the company

1. The Companies Act 1956

2. The Factories Act, 1948
3. The Industrial Disputes Act, 1947
4. The Minimum wages Act, 1948
5. Payment of Wages Act, 1936
6. The Contracts Labor (Regulation & Abolition) Act, 1970
7. Employees’ State Insurance Act, 1948
Editions of the following statutory/regulatory requirements guide SLP

PERSONNEL AND WELFARE FUNCTIONS

 Job Design
 Evaluation and Selection of Candidates.
 Placement.
 Induction, On-the job training
 Training and development
 Appraisal
 Increment, promotion .

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Welfare activity

The following welfare facilities are there in our Organization:

 E.S.I. Scheme.
 `Workers Canteen at subsidized rates.
 Staff Mess
 Co-operative Credit Society.
 Medical Re-imbursement for those not covered under E.S.I
 Ambulance
 Festival Advances
 Book Advance
 Staff Recreation Club

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PRODUCTION DEPARTMENT

Production involves conversion of raw material into finished products/ goods. It can be
briefly explained as follows.

Input Conversion process Output

In the Sri Lakshmi Plywoods the raw material that are used to the output is steam wood,
and chemicals. After introducing these raw materials to a series of process the finished goods
are obtained. SLP produce three categories of products, namely, plywood, hardboard and
furniture. The wood that is required for the production is acquired from both local as well as
international markets. SLP imports wood from Malaysia, South Africa, and South America etc.
In India wood is obtained from Kashmir, Mysore, Wayanad, Andaman Iritty etc.

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PRODUCTION PROCESS

Log yard

Flitching Cross cutting Boiling

Boiling Peeling

Slicing BOILOR Clipping

Drying Drying

Slicing Assembling Edging

Pressing Glueing

Conditioning

Trimming

Sanding

Finishing

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Log yard

It is the place where the wood is kept. Following are the woods that are used: Welapine,
Pali, Pashupali, Kalpine, Padapine, Mango, Badam, Silver, Neeli, Redcedar, White cedar,
Swisspine etc.

Cross Cutting

The wood from the log yard is brought in for cross cutting. The long wood is cut into
block of varying sizes ranging from 3 to 8 feet as required. Chain saw is used for cutting the
logs that works on a hydraulic system.

Boiling

In order to make the hardwood soft and to remove its oil content, the block are boiled
with the help of steam at a temperature ranging from 120 0 C to 1800C. The wood is boiled for a
minimum of 24 hours. The steam that is required is produced in boilers.

SLP has 4 types of boilers. They are;

1. Saw dust boiler

2. Firewood Boiler
3. FBC (Fuel Bed Combusting)
4. IAEC (Industrial Agricultural and Engineering Corporation)

Peeling
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After boiling, the logs are peeled with the help of the peeling machine. The output is
called the veneer. Two kinds of veneers are obtained – Face and core. Both of them have the
same quality, but the soft and smooth part is known as face and the hard and the rough is called
as core. The thickness of veneers ranges from 0.4 mm to 2.8mm. Sometimes the slicing
machine is used instead of a peeler. This is mainly used in decorative plywoods.

Clipping

The next process is called clipping. Here the veneer produced from the peeler is passed
through clipper. In clipping the veneer of the required length is cut.
Drying:

Drying is the next process. Drying process is conducted by considering time, steam, and
thickness of wood. The machine used for this process is known as Dryad..

Edging & Joining

In this process of edging and joining, three two sides of veneers are cut and removed for
avoiding damages. After this, the veneers are joined by using gum.

Gluing

In this section glue is applied over the core veneers, the glue spreading machine consists
of 2 rollers rotating in opposite direction between which the glue is kept. The glues used are –
Urea formaldehyde, Areolyte, Melanine formaldehyde.

Assembling
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In assembling the core veneers are places in between the face veneers. The adjacent
veneers are placed in such a way that the gains are across each other. Minimum three plies
should be there in plywood. In this process, several boards are pressed in certain temperature.
The main element that should be taken as important in this process are steam, thickness and time.

Conditioning

Conditioning is the process in which the pressed plys are treated with chemical water to
avoid termites and fungal attacks.

Trimming

In trimming the plywood is passed into the trimming machine for cutting the sides
according to the sizes required.

Sanding

This is the process in which the trimmed surface of the plywood is smoothened and
softened by using sandpaper or belt sender or drum sander.

Finishing

Finishing is the final step in the plywood production process. All the finishing works are
done in this step. The boards are sealed and labeled and made ready for dispatch.

The following are the important products produced with the help of plywood.

 Cold Water Resistant (CWR)

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 Boiled Water Resistant (BWR)
 Boiled Water Proof (BWR)
 Warm Water Resistant (WWR)
 Warm Water Proof (WWP
 Aircraft plywood
 Marine Plywood
 Shuttering Plywood
 Fireproof Plywood
 Flush door plywood
 Inlay board
 High Density Plywood
 Medium Density Plywood
 Low Density Plywood
 Super Block Board

COMPREG STATES

These are resin impregnated and compressed wood based laminates. They are
manufactured from selected veneers obtained from quality timber specious. The veneers are
seasoned to optimum moisture content, treated, passed through evaporation chambers, assembled
in the required grain construction and pressed

Under high pressure and temperature to produce the Compreg stats. Compreg stat is a
uniform homogenous material free from surface defects, checks, splits, discoloration, blisters,
overlaps gaps etc. Compreg stats is a unique material having strength of metals, resistance of
natural timber and the surface finish, stability and hardness of modern plastics. Both surfaces
have the uniform phenolic resin coating with excellent resistance against abrasive action.

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HARDBOARD

Hardboard manufacturing involves a series of well-designed sequential process which

with the intake of wooden pieces from one end and formation of Hardboard at the other end
ready for supply.

Following are the various machinery and process involved:-

Chipping Machine for the formation of wooden chips:

These chips are transferred to the head tank for washing it using conveyor belts.

Cleaning of chips:-

This is done using boiling water. It also provides sufficient softness for the chips.
Passing through sieve does the separation of water from the chips.

Cyclone

Chips from the deliberating machine are transferred to a conical chamber called cyclone
using steam.

Defibrator

The Defibrator used in the plant is the aspluent Defibrator. The moisture content in the
chips is removed by increasing the temperature and the cleaned chips are converted into fine
powder. After grinding it with two grinding wheels of which one is kept stationary while the
other is rotating.

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Pulp formation:

The power form of wood is converted into pulp by adding sufficient quantity of water
and chemicals. The chemicals used are dilute sulphuric acid, paraffin wax and certain resin. The
pulp is then pumped into board forming section.

Board Forming Section

There are three sets of machines that are used in the plant.

I Press
II Press
III Press

The first and second presses are under the electrical pneumatic control and the third is
computerized. The percentage of pulp in the mixture is above 20 % and the rest 80% of water
which is absorbed by suction box. It is then passed through
the pulp roller press where boards having thickness 2.5 mm to 6mm are obtained which are
called wet laps. The wet laps are then places over the sieve net and transferred to the press. After
pressing for the required time, the board is taken out and is transferred to the edging and
trimming section. The cleaning of net is performed by a washer which uses a water jet of
pressure 300 Kg/cm3. The intake of wet lap feeding in to the press and then transferring it to the
edging section is automatically performed by the belt conveyor. Main difference between
Plywood and Hardboard is that resin is not coated in hardboard as in the case of Plywood

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FURNITURE

Furniture is another product which is produced in SLP. The furniture is used by using
decorative woods like Teak, Mahagony, and Rosewood etc. The veneers are molded in various
shapes to make different types of furniture. All the furniture are long-lasting and are with best
quality. Along with this, the wastes of decorative veneers are used to make various handicrafts
products. Inlay board is an example .

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PURCHASE DEPARTMENT

The Sri Lakshmi Plywoods Plywood Ltd., has well-developed and efficient purchase
department, which deals with the purchasing of raw materials. Company usually makes three
kinds of purchasing:
 Local Purchase.
 Direct Purchase.
 Purchase through Bank.
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 product, spares, oils, acids,
chemicals and other ancillary raw material used for manufacturing its products.
Timber purchasing department deals 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 mentioning 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 the 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.

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PURCHASE PROCEDURE

• Invites for quotation from various parties.

• From the quotation the actual buyers 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. Some time advance payment is also
undertaken.
• Emergency purchases can be authorized by MD/ED by passing the above step.

MARKETTING DEPARTMENT

Marketing is the art of selling products. It is also defined as societal process by which
individual and groups obtain what they need and want through creating, offering and freely
exchanging products and services of value with others.

Due to the high standard of quality maintained by the quality control department of this
company, the product of the company have found ready acceptance in markets both in India and
abroad. The company has succeeded in arranging manufacturing programs on the basis if firm
orders, which in regularly for all types of products. The plywood manufactured by the company
is being regularly used for manufactures of T.V cabinets, bus bodies, building constructions,
railways, furniture industry etc. The hardboard is used for partition walls, false ceiling, furniture
industry etc. The densified wood is being supplied to the electrical industries in various forms

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and also to the textile and chemical industries in the form of filter plates and as checkered boards
for flooring in buses and railway coaches. The DAP and FRP compounds are being used by the
electronic and molding industries. The furniture manufactured by the company is being absorbed
the market in drawing rooms, bedrooms, schools, office etc. The products of the company are
being exported West Germany, France, U.S.A Sweden, West Asia and South Asian countries
regularly.

MARKET SEGMENTATTION

SRI LAKSHMI PLYWOODS PLYWOOD is well-established organization

manufacturing high quality goods. Company believes in quality. In order to ensure the quality
each batch of the products will undergo quality tests. Company has an efficient marketing
strategy. The prices of SLP’s products are comparatively high, but of high quality. The company
is targeted at the high income as well as at the low-level income groups SLP is marketing more
than 300 products.

Products are segmented as;

1. Domestic
2. Institutional
3. Automotive
4. Export

Brand and quality are the main marketing strategy followed by SLP.

The SLP has a unique product range that cannot be duplicated.

The SLP has gained 70% market share on Hardboard itself. SLP is the price leaders in
hardboard marketing.

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Almost all Car Manufacturers like TATA, Ford, Toyota, Hyundai and Maruthi are the customers
of SLP. Automotive segmentation is followed by SLP towards this

car manufactures. The main sales promotion followed by SLP is direct contact by Architects,
Builders etc. The SLP also issue national magazines as promotion tools. Marketing segmentation
adopted by SLP is niche is DAP manufacturing SLP has got marketing leadership in the World
after Japan and America.

STRUCTURE OF THE DEPARTMENT

Managing Director

Marketing manager

Marketing co-ordinator

Business manager

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Marketing officer

Executives
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SALES DEPARTMENT

SLP market their products through agencies and depots. They use sales representative
also. Their main promotion method is direct contact by Sales representatives to canvass govt.
and railway. Enquiries are made through tenders. The main tool used to catch the government
orders is by the lowest quotation.

The main advantage received from the govt. is 95% ready cash payment. Generally the
SLP gives 15 to 20 days are credit for parties. Even though timber world is facing crisis, the
SLP is able to with stand by marketing variety of products like plywood items (Fire Resistant,
Marine Wood, Densified Wood, DAP, Hardboard, Furniture)

The main sales promotion method used by SLP is direct contact. The SLP has many
dealers throughout India. SLP also conduct exhibitions and issue international magazines. The
SLP outstand for their quality. This quality of product is maintained by laboratory testing.
Every batch of product will go to testing for identifying glue failure and other defects.

Even though the timber world is facing scarcity, the SLP withstand with decorative board

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wood. The SLP has achieved ISI certification for their products. The regular customers of SLP
are India Railway, Toyota, Hyundai, Fibre Drum Manufacturers, Shoe heals, Jolly board is the
only competitor of the SLP in Hardboard. So Hardboard manufacturing is mainly profitable as
far as SLP is concerned.

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EXPORT / IMPORT DEPARTMENT

Purpose

To popularize the products to the international level. Export carries out as per the export
policy of govt. of India and responsibilities lies on the hands of the Import / Export Executive.

Procedure

Quotations are sending along with the product details. In some cases samples are sent.
Once the price is approved of, the customer opens the letter of credit that contains details
regarding value, quantity, destination of supply, specification, etc once the order is confirmed
and placed; the product is not sent to the production department and production requirements.
Once the cargo is ready, it is taken to the nearest port for shipment.

In Sri Lakshmi Plywoods Plywood’s there is an arrangement called house stuffing where
in the factory brings the container from the port to the companies work. The clearing agents
carry out all the customer formalities in order to get the clearance. This includes getting back
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AR4 from the customs after the shipment for submission to the central excise. Once the shipment
is effected and the bill of loading is obtained the document for the buyers are negotiated through
the SLP’s bank. Once the cargo reaches the destination the customers retrieve the original
documents from their banks. The payment is then made accordingly.

Records maintained

Filing system; separate file is opened against each enquiry. All correspondence and
relative shipping documents are filed separately for ready as well as future reference.

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TOTAL QUALITY MANAGEMENT ( T.Q.M )

SLP Ltd. has separate department for total quality management and is well known for its
quality throughout the world it has recognition of ISO 9001-2000 for one of best and
standardized production system in the world. ISO provides a lot of standard for the quality
assurance.

SLP has both internal and external auditing system. Internal auditing is done every six
month by the concerned department head. External auditing is conducted mainly by the external
certifying body. They received all the procedure and document which includes.
Quality manual

Work instruction

The requirement satisfied by the SLP in order to get ISO certification is the following.

o Quality manual
o Control quality
o Resource management
o Product realization
o Measurement analysis and improvement

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o In order to assure the quality sec. technique like control chart are used
and the mainly used chart employed by the SLP Ltd. are X chart and

R Chart. The plan capacity utilization. Plant stoppage analysis break down
analysis are done using bar chart

The main reasons for plant stoppage are

Mechanical break down

 Electrical break down
 Blockage of Pulp
 Blockage of chip
 Shortage of fuel
 Shortage of timber
 The non conformance of both process and product are Analyzed by the mean of the cause
and effect diagram and the corresponding corrective /preventive action are taken

Quality Policy

To manufacture product as per national or international standards. We made them

available as per the customer requirement.
SLP endeavor to upgrade the quality of its product related service on a continuous basis
through regular improvement efforts.
A will defined quality management system has been implemented. This system is
continuously reviewed to enhance its effectiveness and update to meet the changing need.

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Quality objective

Suitable equipment and machinery for process control at all stage.Provision of adequate
resource including raw material & personnel to ensure consistent product quality will define
process and product characteristics to enable monitoring analysis and continual improvement.
Communication of requirement of product including customer requirement statutory, regulatory
requirement aspect of quality management system includes policy and objectives among all
employees.

The following is the structure of the T.Q.M.

MANAGING DIRECTOR

Management
Representative

Quality Engineer

Trainee

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SWOT ANALYSIS

SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and
Weakness are the internal factors of the company where as Opportunities and Threats are
external factors. SWOT Analysis is the tool for auditing an organization and its environment. It
is the first stage as planning and helps marketers to focus on key issues have been identified, they
feed into marketing objectives. It can be used in conjunction with other tools as audit and
analysis.

STRENGTH

• The company has been maintaining a high quality for its products and as its products are
well accepted in the market by quality conscious customers, it does not anticipate any
marketing problem. They are considered to be the “The Leaders in Quality Since
1945”.

• The company has a well established R&D unit, one of the best kinds in the wood based
industry.

• The company is duly equipped to develop new products to meet the requirements of the
market.

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• The products of SLP are certified by ISO.

WEAKNESS

• There is an acute shortage of good raw materials which has forced the company to import
a substantial portion of its main raw material viz. timber, which has also seen a considerable
increase in price.
• Lack of good distribution network as compared to the competitors.

• Promotion of competitors is better to that of SLP. The Company concentrates only on

Industrial Market.

• The price of SLP’s products is high as compared to its competitors.

OPPORTUNITIES

• The company is a leading supplier to Railways, Defense, Automobile, Electrical,

Transport, Civil Aviation and other industries.

• Several products have been developed for the specific requirements of the Automobile,
Transport and communication sectors such as Densified wood etc. and these products
which have technological advantages over competitive products.

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• The Company diversified from the production of chest and commercial plywood to
manufacture Decorative Plywood, Block Boards, Shuttering Plywood and Aircraft
plywood.

• The products of the Company are being exported to Germany, France, U.S.A, Sweden,
West Asia and South Asian countries.

THREATS

• The high power tariff and increasing cost of furnace oil and other petroleum products and
chemicals.

• There are many medium scale and small scale plywood industries. They fix low price for
their products.

• In some product ranges, imported items are available at lower cost than is currently
produced in India.

• In general, the working of the company has been adversely affected by the effects of
Globalization.

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FINDINGS

 Because of the increasing demand, now the company has changed their distribution
system in order to reach more parts of the state.
 Due to the high standard of quality maintained by the company, its production costs are
relatively high so that company facing a serious problem and wants to reduce the price.
 The company’s various operations on raw material performed in sequence and the
machines are placed along the product flow line. Because of this, the company’s products
get completed in lesser time and also have a smooth and continuous work flow.
 The company gets 25% of the profit from the exporting.
 Company concentrate all over the market.
 Still the company is not computerized fully.
 The company maintaining 0 % wastage.
 Promotional expense is very less.
 SLP focus on quality

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SUGGESTIONS

 It is desirable to launch an advertising campaign to attract more customers

 It is advisable to maintain and efficient market intelligence system and
advice mgt of the changing needs of the market.
 The company may introduce more measures such as fencing of machineries,
which will protect the workers from accidents.
 The company may prepare budgets for each activity which will provide it a
better control and coordination mechanism. This will aid in reduction of
production costs.
 The company can save time and cost through the computerization.
 The company have to follow more safety measures because there is a risk of
fire in the factory layout.

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CONCLUSION

The SLP Ltd., achieved 100% utilization of raw materials due to its integrated production
system. Therefore, it would be apt to call SLP, ‘ a company with a conscience ’. SLP, stands for
superior product performance and provides value for money to its customers. It is backed by
SLP’s 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 does not aim at
competing with the local manufactures but wants a main player in the plywood export.

Now the company is producing more quantity is hardboards than plywood, because of the
development of technology. Presently the company is operating in loss- the major cause being
globalization. Another reason is the pricing policy of the company. The price level of the
products is higher as compare that of other companies manufacturing similar products. The
company should try to create brand awareness in the local market by advertising in medias and
conducting exclusive exhibitions etc.

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BIBLIOGRAPHY

1. K. Aswathappa, production & operation mgt, 2007

2. K Aswathappa, human resources and personnel management, 2007
3. Khan and Jain, financial management
4. Quality Management hand book- K K Anand

(MUHSIN.T.P…….EMAIL-muhsin199@gmail.com,09042101862)

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