A Report on Organization Study of

Manufacturing of Plywood
Submitted in partial fulfilment of the requirement of
the Master’s in Business Administration Programme
Offered by JAIN (Deemed-to-be University), during the year 2018

BY
Name: SAKETH AGRAWAL
Reg.no:18MBAR0208
Semester: 2nd Section “MF1”

Under the guidance of

Prof. SHARAT KUMAR

No.17, Sheshadri Road Gandhi Nagar, Bengaluru-560 009,

India Tel: +91 80 4684 0400
E-mail: bschool@cms.ac.in, Website: www.bschool.cms.ac.

1
 DECLARATION

I, hereby declare that this Organization Study Report on Plywood

Manufacturing company is prepared by me during the academic year 2018-20
under the guidance of Prof. Sharat Kumar.

This report is not based on any previously submitted project for the award of
any degree or diploma offered by any university, it is the results of my own
effort.

Name: SAKETH

AGRAWAL SEM: 2nd Sec:

MF1

Reg. No: 18MBAR0208

Date:

Place: Signature
 ACKNOWLEDGMENT

I would like to express my special thanks of gratitude to my teacher as well as

our principal who gave me the golden opportunity to do this wonderful project,
which also helped me in doing a lot of Research and I came to know about so
many new things I am really thankful to them.

Secondly, I would also like to thank my parents and friends who helped me a lot
in finalizing this project within the limited time frame.

I am highly indebted to CMS Jain University for their guidance and constant
supervision as well as for providing necessary information regarding the project
& also for their support in completing the project.
I would like to express my gratitude towards my parents for their kind co-
operation and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to industry people for
giving me such attention and time.

My thanks and appreciations also go to my colleague in developing the project

and people who have willingly helped me out with their abilities.
 Table of Contents
EXECUTIVE SUMMARY.......................................................................................................................6
CHAPTER 1.............................................................................................................................................7
Introduction...........................................................................................................................................7
SCOPE OF ORGANISATIONAL STUDY.................................................................................................8
Methodology of organizational study................................................................................................8
LIMITATIONS OF ORGANIZATION STUDY...........................................................................................9
INDUSTRY PROFILE............................................................................................................................9
HISTORY.......................................................................................................................................10
Plywood Market: Growth Factors................................................................................................11
Key Players...................................................................................................................................11
Facts............................................................................................................................................11
SIZES............................................................................................................................................13
GRADES........................................................................................................................................13
APPLICATIONS.............................................................................................................................14
Indian standards specification numbers for different kinds of plywood......................................16
PEST ANALYSIS.................................................................................................................................17
PORTER’S 5 FORCES ANALYSIS.........................................................................................................19
CHAPTER 2...........................................................................................................................................22
Company Profile..................................................................................................................................22
Company Profile..............................................................................................................................23
About the Company.........................................................................................................................23
VIZAG IMPEX PVT LTD...................................................................................................................23
Plant Layout.....................................................................................................................................25
Swot analysis...................................................................................................................................25
PRODUCTS...................................................................................................................................27
Standard sizes..............................................................................................................................28
Flush doors are available in thicknesses of 30 & 32mm..............................................................28
CHAPTER 3...........................................................................................................................................31
Organization Design............................................................................................................................31
Staff of Functional Authority Organizational Structure....................................................................32
Objectives........................................................................................................................................33
CHAPTER 4...........................................................................................................................................34
Business Levels....................................................................................................................................34

Function and Process...........................................................................................................................34

 Business Levels Function and Process...............................................................................................35
Production Department................................................................................................................35
...........................................................................................................................................................39
Trimming, Sanding and Finishing......................................................................................................40
Quality Control.................................................................................................................................40
Samples after manufacturing different plywood products.............................................................41
Quality Policy................................................................................................................................42
Human Resource Function............................................................................................................43
Marketing Function......................................................................................................................45
Warehousing & Inventory Management Function........................................................................46
Finance department.....................................................................................................................47
SOURCES OF FUND.......................................................................................................................47
CHAPTER 5...........................................................................................................................................49
FINDING, CONCLUSION AND RECOMMENDATIONS........................................................................50
Key Observation...........................................................................................................................50
Suggestions..................................................................................................................................50
Conclusion....................................................................................................................................50
Bibliography.........................................................................................................................................51
EXECUTIVE SUMMARY

Organizational Study is a great opportunity to get the first-hand information and understand
the functioning of the various departments. It was a great learning experience. The main
purpose of doing the organization study was to study the various Departments of the
organization and understand their basic functions, their purpose, achievements, competitors
and the mission and vision of the company and their progress towards that. All general
information we get in course is all book knowledge, on which we cannot depend entirely. It is
thus very important to observe the actual working and the overall structure of an
organization. The actual professionalism can be studied only through experience. This study
focuses on the overall structure of the organization.

In this study, the overall functioning of the firm and also the financial performance of the
enterprise will be analysed. The data collected is from Primary as well as Secondary sources.
In this process of the organizational study the things I have learnt are to correctly identify
human interactions in organizations and workplaces according to firm's perspectives. Learn
integrative concepts and perspectives from employees in different parts and analytically
observe the work done. Describe distinctive elements of organizational culture, social
influence, interpersonal communication, and organizational change as applied to work
settings. Learn work culture and ethics. The structure of an organization varies depending on
a number of influencing factors. Structure is influenced by the external environment in which
the business operates as well as its culture and the nature of the work and activities it
undertakes.
CHAPTER 1
Introduction
INTRODUCTION OF THE ORGANIZATION STUDY

Organizational Functioning is an important factor for any Organization to achieve the desired
goals and Objectives. An organization is a social unit which is deliberately constructed and
reconstructed to seek specific goals. It is an association formed by a group who see that there
are benefits available from working together towards a common goal. It is a social unit of
people, systematically structured and managed to meet a need or to pursue collective goals on
a continuing basis. This requires Co-ordination at all levels for the smooth functioning. This
report aims to understand the functioning of VIZAG IMPEX Pvt Ltd in relation to different
departments.

As a part of two-year MBA program at the end of 1st semester; the students had to carry one
project in an organization in order to understand the organization structure and their
functions. This was a great opportunity to get the first-hand information and understand the
functioning of the various departments. The Organization Study of mine was at VIZAG
IMPEX Pvt Ltd. It was 3a great learning experience and it is quite necessary for all the
management students to be a part of such a program. The main purpose of doing the
organization study was to study the various departments of the organization and understand
their basic functions, their purpose of existence, achievements, competitors and the mission
and vision of the company and their progress towards that.

SCOPE OF ORGANISATIONAL STUDY

The study focuses on the overall structure of the organization. In this study, the overall
functioning of the firm and also the financial performance of the enterprise is being analysed.
The researcher made a moderate attempt to have the SWOT analysis of the study.

Methodology of organizational study

 PRIMARY DATA - Primary data were collected from discussions with the
managerial head of the various departments.
 SECONDARY DATA - Secondary data were obtained from the annual report,
from the website and other concerned books.
LIMITATIONS OF ORGANIZATION STUDY
 While studying the organization certain areas were restricted hence a detailed study
was not possible.
 The time allotted for the study was insufficient.
 One of the most important limitation was that the industry is vast hence not
everything was possible to cover.

INDUSTRY PROFILE
 Plywood is a material manufactured from thin layers or "plies" of wood veneer that
are glued together with adjacent layers having their wood grain rotated up to 90
degrees to one another. It is an engineered wood from the family of manufactured
boards which includes medium-density fibreboard (MDF) and particle board
(chipboard).

 All plywood’s bind resin and wood fibre sheets (cellulose cells are long, strong and
thin) to form a composite material. This alternation of the grain is called cross-
graining and has several important benefits: it reduces the tendency of wood to split
when nailed in at the edges; it reduces expansion and shrinkage, providing improved
dimensional stability; and it makes the strength of the panel consistent across all
directions. There is usually an odd number of plies, so that the sheet is balanced—this
reduces warping. Because plywood is bonded with grains running against one another
and with an odd number of composite parts, it has high stiffness perpendicular to the
grain direction of the surface ply.

 Smaller, thinner, and lower-quality plywood’s may only have their plies (layers)
arranged at right angles to each other. Some better-quality plywood products will by
design have five plies in steps of 45 degrees (0, 45, 90, 135, and 180 degrees), giving
strength in multiple axes.
HISTORY
In 1797 Samuel Bentham applied for patents covering several machines to produce veneers.
In his patent applications, he described the concept of laminating several layers of veneer
with glue to form a thicker piece – the first description of what we now call plywood.
Bentham was a British naval engineer with many shipbuilding inventions to his credit.
Veneers at the time of Bentham were flat sawn, rift sawn or quarter sawn; i.e. cut along or
across the log manually in different angles to the grain and thus limited in width and length.

About fifty years later Immanuel Nobel, father of Alfred Nobel, realized that several thinner
layers of wood bonded together would be stronger than a single thick layer of wood.
Understanding the industrial potential of laminated wood, he invented the rotary lathe.

There is little record of the early implementation of the rotary lathe and the subsequent
commercialization of plywood as we know it today, but in its 1870 edition, the French
dictionary Robert describes the process of rotary lathe veneer manufacturing in its
entry Déroulage. One can thus presume that rotary lathe plywood manufacturer was an
established process in France in the 1860s. Plywood was introduced into the United States in
1865 and industrial production started shortly after. In 1928, the first standard-sized 4 ft by 8
ft (1.2 m by 2.4 m) plywood sheets were introduced in the United States for use as a general
building material.

Artists use plywood as a support for easel paintings to replace traditional canvas or
cardboard. Ready-made artist boards for oil painting in three-layered plywood (3-ply) were
produced and sold in New York as early as 1880.

Positioning Indian Plywood in the Global Market

The Indian plywood market reached a value of US$ 4 Billion in 2016, growing at a CAGR
of nearly 5% during 2009-2016.

In the past decades, the expenditure on furniture has increased as a result of increasing
incomes, urbanisation, investment in real estate, western influence, etc. Moreover, the
introduction of new designs and diverse product range of furniture have further helped in
creating a demand among the consumers. Expanding distribution network and exclusive
outlets of furniture manufacturers in the region has also helped in influencing the market for
plywood. Owing to this, the market is further expected to reach a value of nearly US$ 15
Billion by 2022.
 On the basis of end-use the market is segmented as commercial and residential. The
residential sector is the largest consumer for Indian plywood, accounting for more than half
of the total shares.

Plywood Market: Growth Factors

 Recently, the commercial vehicle manufacturers are having an increased demand for the
chequered plywood for the purpose of automotive flooring. This factor has triggered the
demand for the plywood market.

 In the marine sector, the plywoods are used in the construction of the decks. The other
end- user industry that has a major consumption of the plywood is the structural panel
industry.

 The other factors that are propelling the growth of the plywood market are the increasing
disposable incomes of the people, changing inclination of the consumers, and the
expanding construction sector.

 The challenges that are faced in the plywood market are the increased cost of the plywood
when compared with the other substitutes that offer similar characteristics and the
changing preference of the packaging manufacturers towards materials such as plastics,
metals, and cardboard.

Key Players

The key market players that are involved in the plywood market include Boise Cascade LLC,
Eksons Corp. Bhd., Greenply Industries Ltd., Uniply Industries Ltd., Jaya Tiasa Holdings
Bhd., Ainsworth Lumber Co. Ltd., Atlantic Plywood Corporation, Century Plyboard (India)
Ltd., Georgia-Pacific Corporation, Weyerhaeuser Company, and Roseburg Forest Products
Co.

Facts
The latest implementation of the GST has affected the plywood market. In the state of
Haryana, there are two issues regarding GST that are still pending in the council of the GST.
Among them, one is that the tax rate on the plywood should be cut down to 18%from 28%.

India has always been a predominantly plywood consuming country as against the world-
wide trends. The ratio of Plywood v/s Other panels (MDF, PB) demand in India is 80:20
where as it is almost opposite like 20:80 in developed and mature markets world over. Value
wise the Plywood market is worth Rs 25000 crore v/s MDF/PB markets of Rs 6000 crore as
estimated
vague by Industry analyst and associations. Continuing to the past trends plywood industry
capacities are growing at a very high speed thanks to sustained demand in the plywood
sector.

In coming years, the plywood manufacturing capacity is set to rise by 25-30 percent whereas
market demand is growing at 9-10 percent YOY growth. Punjab, Haryana, UP and Rajasthan
are set to have approximately150 new units within 2018. This rise in number of Plywood
plants will create pressure on sales prices and volume growth of each unit. The market in
2018 is not expected to bounce back because there is hardly any sign of growth or demand
pick up in reality sector. Compared to anticipated demand the rise in supply will provide
cheaper plywood to customers and will lead to margin pressure on plywood factories.

The pressure on sales is set to drive the Indian plywood market in favours of buyers hence
creating an additional challenge to organized industries despite of GST implementation. The
small and mid-segment factories will have to spend more to sustain the growing competition
during 2018 and 2019 because of huge flow of plywood, boards and doors in markets. Those
who are entering in plywood manufacturing with a notion of decent profit-making sector will
confront the reality by 2018 end.

The plywood industry is set to witness big change in FY 2018-19 when Cheque payments
will be preferred over cash. The coming FY will be a defining year for brands who are
expanding capacities and introducing economy brands in plywood category to expand their
market penetration in each consumer segment. Despite of GST that was implemented from
July 1st 2017, the unorganized or informal sector is continuing its old practices of working in
unreported manner. This has been causing huge blow to the branded segment players due to
the price gap between tax compliant company and non-tax paying company.

The Indian market is slowly tilting in favour of such companies who have sales teams, trust
and wider network. The mid segment players who are maintaining a fine balance in
controlling cost, quality of products and decent brand spending are expected to fare better in
channel network in coming time. In long run, the success will come to organized players who
have been waiting for GST, E way bill and a level playing field where taxes for a big firm
and a smaller firm has huge difference.
SIZES
The most commonly used thickness range is from 1⁄8 to 3.0 inches (3.2 to 76.2 mm). The sizes
of the most commonly used plywood sheets are 4 x 8 feet (1220 x 2440 mm) which was first
used by the Portland Manufacturing Company, who developed what we know of as modern
veneer core plywood for the 1905 Portland World Fair. A common metric size for a sheet of
plywood is 1200 x 2400 mm. 5 × 5 feet (1,500 × 1,500 mm) is also a common European size
for Baltic birch ply, and aircraft ply.
15 13
Sizes on specialised plywood for concrete-forming can range from ⁄64 to ⁄16 in (6 to 21
mm), and a multitude of formats exist, though 15 × 750 × 1,500 mm (.59in × 30 × 59 in)
(19/32in × 2 ft-6in × 4 ft-11in) is very commonly used.

Aircraft plywood is available in thicknesses of 1⁄8-inch (3 mm) (3 ply construction) and

upwards; typically, aircraft plywood uses veneers of 0.5 mm (approx. 1/64 in) thickness
although much thinner veneers such as 0.1 mm are also used in construction of some of the
thinner panels

GRADES
Grading rules differ according to the country of origin. The most popular standards are the
British Standard (BS) and the American Standard (ASTM). Joyce (1970), however, list some
general indication of grading rules.

Grade Description

A Face and back veneers practically free from all defects.

A/B Face veneers practically free from all defects. Reverse veneers with only a few
small knots or discolorations.

A/BB Face as A but reverse side permitting jointed veneers, large knots, plugs, etc.

B Both side veneers with only a few small knots or discolorations.

B/BB Face veneers with only a few small knots or discolorations. Reverse side
permitting jointed veneers, large knots, plugs, etc.
 BB Both sides permitting jointed veneers, large knots, plugs, etc.

C/D For structural plywood, this grade means that the face has knots and defects filled
in and the reverse may have some that are not filled. Neither face is an appearance
grade, nor are they sanded smooth. This grade is often used for sheathing the
surfaces of a building prior to being covered with another product like flooring,
siding, concrete, or roofing materials.

WG Guaranteed well glued only. All broken knots plugged.

X Knots, knotholes, cracks, and all other defects permitted.

WBP Weather and Boil Proof used in Marine Ply. Designation replaced by EN 314-3.

JPIC Standards

Grade Description

BB/CC Face as BB, back as CC. BB as very little knots of less than 1/4 inches, slight
discoloration, no decay, split and wormholes mended skilfully, matched colours,
no blister, no wrinkle. Most popular choice for most applications.

APPLICATIONS
Plywood is used in many applications that need high-quality, high-strength sheet material.
Quality in this context means resistance to cracking, breaking, shrinkage, twisting and
warping.

Exterior glued plywood is suitable for outdoor use, but because moisture affects the strength
of wood, optimal performance is achieved where the moisture content remains relatively low.
Sub-zero conditions do not affect the dimensional or strength properties of plywood, making
some special applications possible.

Plywood is also used as an engineering material for stressed-skin applications. It has been
used for marine and aviation applications since WWII. Most notable is the British de
Havilland Mosquito bomber, with a fuselage made of birch plywood sandwiching a balsa
core, and using plywood extensively for the wings. Plywood was also used for the hulls in
the hard- chine Motor Torpedo Boats (MTB) and Motor Gun Boats (MGB) built by the
British Power
Boat Company and Vosper's. Plywood is currently successfully used in skin applications. The
American designers Charles and Ray Eames are known for their plywood-based furniture, as
is Finnish Architect Alvar Aalto and his firm Artek, while Phil Bolger has designed a wide
range of boats built primarily of plywood. Jack Köper of Cape Town designed the
plywood Dabchick sailing dinghy, which as of 2015 is still sailed by large numbers of
teenagers.

Plywood is often used to create curved surfaces because it can easily bend with the grain.
Skateboard ramps often utilize plywood as the top smooth surface over bent curves to create
transition that can simulate the shapes of ocean waves.

Softwood plywood applications

Typical end uses of spruce plywood are:

 Floors, walls and roofs in home constructions

 Wind bracing panels
 Vehicle internal body work
 Packages and boxes
 Fencing

There are coating solutions available that mask the prominent grain structure of spruce
plywood. For these coated plywood’s there are some end uses where reasonable strength
is needed but the lightness of spruce is a benefit e.g.:

 Concrete shuttering panels

 Ready-to-paint surfaces for constructions

Hardwood plywood applications

Phenolic resin film coated (Film Faced) plywood is typically used as a ready-to-install
component e.g.:

 Panels in concrete form work systems

 Floors, walls and roofs in transport vehicles
 Container floors
 Floors subjected to heavy wear in various buildings and factories
 Scaffolding materials
 ("Wire" or other styles of imprinting available for better traction)

Birch plywood is used as a structural material in special applications e.g.:

 Wind turbine blades

 Insulation boxes for liquefied natural gas (LNG) carriers

Smooth surface and accurate thickness combined with the durability of the material makes
birch plywood a favourable material for many special ends uses e.g.:

 High-end loud speakers

 Die-cutting boards
 Supporting structure for parquet
 Playground equipment
 Furniture
 Signs and fences for demanding outdoor advertising
 Musical instruments
 Sports equipment
Tropical plywood applications
Tropical plywood is widely available from the South-East Asia region, mainly
from Malaysia and Indonesia.

 Common plywood
 Concrete panel
 Floor base
 Structure panel
 Container flooring
 Lamin board
 Laminated veneer lumber (LVL)
Indian standards specification numbers for different kinds of plywood
 IS: 303 – MR Plywood, BWR Plywood, Flexi Ply
 IS: 710 – Marine Plywood
 IS: 10701 – Structural plywood
 IS: 5509-1980 – Fire Retardant Plywood
 IS: 4990 – Shuttering Plywood
PEST ANALYSIS
Harvard professor Francis Aguilar is thought to be the creator of PEST Analysis. He included
a scanning tool called ETPS in his 1967 book, "Scanning the Business Environment." The
name was later tweaked to create the current acronym.

PEST Analysis is useful for four main reasons:

 It helps you to spot business or personal opportunities, and it gives you advanced
warning of significant threats.
 It reveals the direction of change within your business environment. This helps you
shape what you're doing, so that you work with change, rather than against it.
 It helps you avoid starting projects that are likely to fail, for reasons beyond your
control.
 It can help you break free of unconscious assumptions when you enter a new country,
region, or market; because it helps you develop an objective view of this new
environment.
The four factors considered in the analysis are given below.

Political Factor

Political factors are essentially how and to what degree a government's policy will impact a
business's operations and decisions. political factors include tax policy, labour law,
environmental law, trade restrictions, regulations, tariffs, and political and economic stability.
governments have great influence on national infrastructure and the general education of the
population as potential employees and customers.

Political Factors Affecting the Indian Plywood Industry

 This refers to the ways in which the government can intervene in an economy in terms of
environmental and labour laws, tariffs, trade restrictions and tax policies.
 It also shows how a government can influence education and health and how it will affect
the infrastructure of a country.
Economic Factor

Economic factors are local, national, and international economic conditions that can influence
a business's operations and decisions.

Economic factors include economic growth, interest rates, taxes, and consumer confidence,
exchange and inflation rates.

Economic Factors Affecting the Indian Plywood Industry:

 This refers to how exchange rates, inflation rates, interest rates and economic growth will
impact on a business and how it can grow, develop and make various decisions.
 For example, if a business exports goods these operation scans be greatly affected by
exchange rates and these are factors that need to be included in a business’s strategic
management plan if they are to succeed.

Social Factor

Social factors include life style trends such as health consciousness, population growth rate,
age distribution, career attitudes, and ethics. trends in social factors also affect the demand for
a business's products and how that business operates.

Social Factors Affecting the Indian Plywood Industry:

 These factors refer to how a society behaviour’s culturally, how the population rate will
grow, how health-conscious people in a country are, how its range is distributed in a
country and the various attitudes that people have towards their careers.
 When social trends change it can greatly affect the need for a business’s products or
services. Similarly, if a society has an older population the cost of labour will increase
and a business will need to change their management strategies in order to cope with
these changes.

Technological Factor:

 Technological factors include R&D activity, licensing and acquiring patents, available
research funding, communications, automation, technology incentives and the rate of
technological innovation.
 Technological factors may determine barriers to entry, minimum efficient production
level, and influence outsourcing decisions. shifts in technology and advances may affect
costs, quality, and overall innovation.

Technological Factors Affecting the Indian Plywood Industry:

 This refers to how technology can change and looks at automation, R&D activity and
technological incentives that are available. Technology can also have a great impact on
efficient production levels and influence decisions on outsourcing.
 In addition to this there are some changes in technology that can affect the costs that a
business needs to meet and can improve the quality of a product or service that a business
offers.

PORTER’S 5 FORCES ANALYSIS

Porter’s sees competitive advantage as the ability or potential to earn greater profit’s than
other firm’s in the same sector. Profit’s earned by firm’s in an industry are determined by
three factors: The value of the product to customers; the intensity of competition; and the
bargaining power at different levels in the production chain. This section reviews Porter’s
Five Forces of Competition as they impact on the plywood’s Industry. Simply put, Porter is
relating the factors relevant to a firm’s ability to keep its prices high and its costs low. High
barriers to entry effectively reduce the level of competition in an industry by deterring new
firm from setting up. This allows incumbents to sustain greater margins. If firm’s in the
industry are large relative either to their buyers or their suppliers, then they are more likely to
have some power over prices and costs. If the product produced by a given firm is not easily
substituted by another firm’s alternative product, then it can sustain a higher selling price.
Finally, the competition in any sector may affect the ability of any firm in that sector both to
set a high price for its product and to bargain for lower input prices. A traditional industry
with small average firm size, rising costs and intensifying international competition, is clearly
facing problems in most of these areas. The analysis, therefore, underlines the need for
change in the industry, focused on remedying these difficulties.
Threat of New Entrants:

 The capital requirement in the initial stage is high for the organization, because the plant
and machinery are expensive. So, it doesn’t have any great threat from the new entrants.
 The trained manpower is not available as the requirement science most of the paper mills
are situated in rural areas.
 The rate of return is very low when compared to other capital invested so it acts as a
barrier for the new players to enter
 The raw material shortage prevailing in the market makes it difficult for the new players
to enter.

Bargaining Power of Suppliers

 Bargaining power of suppliers of raw materials that is wood is high due to the shortage of
available raw material
 The number of suppliers in the market are very few so the bargaining power of the
suppliers is high
 The imported technology is available easily to the firms and the bargaining power of the
suppliers is less due to small market
Bargaining Power of Buyer

 The buyers are fragmented all over the countries, so no buyer has influence on product
or price.
 The products are customised products. So, threat is low
 The customers are aware about the production cost of the products as it is a
customised product.
 Hence, the bargaining power of the buyer is comparatively high.

Threat of Substitutes
 The plywood has substitutes like Rub wood and Plastics. But these products lack
viability those who are quality sensitive prefer plywood of superior quality. So, the
substitutes will not be a threat for the industry.
 The switching cost for the customers is not much low. So, there is threat from substitutes.
 Hence, the threat of substitutes is high.

Competitive Rivalry

 The structure of the industry is oligopoly, which means there are numerous and equally
balanced competitors in producing goods. Especially some famous big companies which
have their brand equity.
 The difficulties to exit from the business due to high capital cost increases the chances of
the rivalry among the producers of similar grades.
 The target customers of the industry have higher buying experience so the goods need to
be distinguished enough which influence their view towards the brands.
 CHAPTER 2
Company Profile
Company Profile

Vizag Impex Pvt Ltd. is a 11-year-old organization, specializing in manufacture and supply
of plywood for a wide variety of Brands and Corporate clients. Vizag Impex Private Limited
is a Private incorporated on 11 May 2007. It is classified as Non-govt company and is
registered at Registrar of Companies, Kolkata.

Directors of Vizag Impex Private Limited are Amit Goyal and Ashish Kumar Goyal.

The company is well equipped with inbuilt manufacturing set up, to churn out high quality
plywood products with perfect workmanship, high precision and quality. And to strengthened
with high quality raw materials and commitment to meet stringent delivery schedules.

Plywood manufacturing was stepped up steadily by addition of new machinery, mostly

imported. They also diversified from the production of the Commercial plywood to
manufacture of block board, flush door, marine plywood’s, flexible ply film faced plywood
flexible ply.

About the Company

VIZAG IMPEX PVT LTD.
Vizag Impex Pvt Ltd had set new standards in the industry with its commitment to total
quality, customer satisfaction and above all, an impeccable range of products, plyboards are
today one of the top-of-the-line high quality products which can get at affordable rates.

With the involvement of several decades in the timber trade, the company is equipped with
the state-of-the-art machinery and automatic control instruments. The directors are neck deep
in the trade and high quality conscious. The company is driven by an obsession to bring
homogeneity in their diverse products range by using good and selected raw materials.

Mission

To celebrate plywood’s by giving highest quality products which are well designed.

Vision:

To be one of the top best-selling and well-known plywood’s brand globally.

Goals and Objectives of the Company

 To deliver quality products which stands about the company

 To adhire the time with the client
 To recruit and sustain the highly skill labour
 To hone the skills of already existing skilled labour and to nature them to give out
 Best productivity
 To increase continuous revenues year on year

Location of the Company

The location of the business is the key to successful operations and overall growth. When
choosing a location, the company needs to consider the company needs, customers,
employees and equipment needed to complete the services.

 Supply of the Labour- Labour is one of the important inputs in industrial

enterprises. This is facility is available in the organization adequately.

 Transport Facility-It helps in bringing the raw materials and this facility is also
available plywood’s products and is well connected with rail, roads and transportation
system.

 Communicating Facility-The facilities like internet, postal, tele com and fax
facility which greatly towards the success of the organizations.

 Supply of Operating Power-There is continually and adequately available.

Suitable of Climate and Land-The land is suitable for plywood’s and similar the
climate condition.
Plant Layout
Plant layout implies the physical arrangement of machine equipment and other industrials
facilities on the floor of factory in such a manner that they may be handling efficiently and
effectively.

Design and characteristics of plant layout of Vizag Impex Pvt Ltd.

a) Proper and efficient utilizations of available floor space.

b) Provision of better supervision and control of operations.
c) To provide adequate safety to the worker from accident.
d) To suggest improvement in production and work methods.
e) Lesser number of operation and material handling, more labour productivity, more
safety and security.
f) The maintenance and replacement cost are reduced, loss due to waste and spoiling in
minimizing, better cost control.
g) Better and convenient facility, results in less inspection activities in production
control and supervision.

Swot analysis
SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and Weakness
are the internal factors of the company, whereas Opportunities and Threats are external
factors. SWOT Analysis is the tool for auditing an organization and its environment.

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.
 The company has a well-established R&D unit.
 The company use highly technological manufacturing process through its imported hi-
tech machines. This helped the company to produce quality products.
 The company has a good brand image that has built over some years.
 The installation and licensed capacity are very high so that it can improve upon its
production if necessary.
 Company utilizes maximum of all resources by reducing wastages. The waste products of
the company are recycled or refused.
 The company has good distribution network to compete in the market.

WEAKNESSES:
 The promotion of competitors is better to that of Vizag Impex. The company concentrates
only on domestic market.
 The price of the products is high as compared to its competitors.

OPPORTUNITIES:
 Largest production capacity in State.
 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.
 The Company diversified from the production of chest and commercial plywood to
manufacture Decorative Plywood, Block Boards, Shuttering Plywood and Aircraft
plywood.

THREATS:
 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.
 Promotion of competitors is better to that of Vizag Impex.
 The high-power tariff and increasing cost of furnace oil and other petroleum products and
chemicals.
 There are many medium scales 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. The company is facing competition from local as well as international
market. Since the deforestation is the talk of the day, the company faces severe
environmental problem.
PRODUCTS:
Plywood, Core Veneer, Face [Technical Specification (IS:303)]

Plywood is available in MR & BWR types. Both, the inner core

and outer surface are made from superior quality wood and is
bonded by Urea Formaldehyde resin in MR grade and Phenol
Formaldehyde resin in BWR grade. The plywood has strong
screw holding capacity and is extra resistant to moisture, water,
borer and external climatic conditions. It is ideal for use in borer and moisture prone areas.
BWR grade plywood is 100% boiling water proof, being PF resin bonded under high
temperature and pressure. Everest ply is ideal where strength, dimensional stability and
durability are essential. A specific stress-relieving process is employed to keep the product
dimensionally stable through a modern tenderizing machine

Standard sizes (in feet)

8×4, 7×4, 6×4, 8×3, 7×3, 6×3.
Standard thickness: All standard thicknesses available

 Marine Grade Plywood [Technical Specifications IS 710]

Marine Grade plywood is made of well selected pieces of core and face veneers. These are
bonded with Phenol Formaldehyde BWP grade resin under high temperature and pressure.
Further, the finished plywood is subjected to proper chemical treatment with water-soluble
fixed type preservatives under vacuum pressure to ensure protection against wood destroying
organism and to make the product – insects, borer, termites and fungi free.

Application

Marine plywood is basically used for wood-working in ships and marine vessels. It is also
used in bus and truck body, bathroom panelling,
cooling towers, false ceilings etc.
Thickness & Sizes

Standard thicknesses and sizes available. Custom needs are also entertained as per the
requirement of the consumer.

 Flush Doors

Flush Door are manufactured from carefully selected raw materials for
better type, density, from high quality wood & well-maintained resin.
High-tech manufacturing facilities coupled with stringent quality control
measures at each stage of manufacturing process ensure dimensionally
stable, sturdy, smooth and elegant flush Doors. which is Boiling Water
Proof. Bonded with liquid Phenol Formaldehyde Synthetic Resin (batch
tested in our own high-tech laboratories), is hot pressed under proper
temperature and pressure to be delamination -free. Thus, flush doors never bend or warp at
normal conditions!

Standard sizes

Flush doors are available in thicknesses of 30 & 32mm.

 Flexible Ply Film Faced Plywood [Technical Specification – IS:4990]

Shuttering plywood

Shuttering plywood is made with selected hardwood veneers where BWP grade of phenol
formaldehyde resin – conforming to IS 848:1974 is used for bonding. It is elegant and
durable, superior film faced, densified shuttering Ply. It is
powerful to withstand any amount of load of concrete and the
vibration caused while pouring the concrete.
Application

It can be used widely in the construction of bridges, ships, high rise buildings, water tanks,
cooling towers etc.

Types

Different types of shuttering ply are available depending on density viz. 30kg, 34kg etc. Our
30 Kg shuttering ply easily gives 24 to 30 repetitions. Greater the density, more would be the
re-use value.

 Flexible Ply

Design is an element of imagination and imagination

cannot be restricted to straight lines and 90 degrees.
Creative people feel limited by restricting their thoughts.
Thus, for the flexible and imaginative minds, Everest
presents the magical flexi ply, which can mould and bend
into any shape without clipping, cracking, peeling or
staining.

Advantages-

Flexi ply is an 8′ x 4′ flexible plywood sheet easily bent by hand.

Shapes/ Curves can be formed without labour intensive efforts associate with bending of
plywood.

No special equipment is required to bend, fabricate or laminate.

Complex multi-radical shapes can be created that would otherwise be virtually impossible.

Application

Used in all kinds of imaginative interior designs where curving and rounding is required
  Blockboard

Manufactured with selected and seasoned planks of

Marinti and Pinewood. The planks are treated with
preservatives of special quality to resist borer, termite and
fungi attack and later kiln dried at a technically laid
temperature schedule. Our drying technology and
temperature control parameters are tough to maintain elsewhere and rare in the industry but it
superbly helps in getting balanced and straight planks. With a high MOE and MOR factor,
our boards are suitable for Indian houses. It has high mechanical strength, are dimensionally
stable and warp free.

Standard thickness (in feet)

8×4, 7×4, 6×4, 8×3, 7×3, 6×3

Application

All types of furniture, wardrobes, partitions, pre-fabricated houses, kitchen cabinets etc.
Standard sizes (in feet) 8×4, 7×4, 6×4, 8×3, 7×3, 6×3.
 CHAPTER 3
Organization Design
 1. Organization Structure of the Company

Managing Director
(Amit Goel And
Ashish Goel)

Production Manager Marketing Human Resource Manager

Finance Manager
(Dharambatt Sharma) Manager (Vikash Jangir) (Rakesh Jain)
(Rakesh Jain)
DryerFinishing
SupervisorSupervisor
Hot Press Supervisors (Saroj)(Manoj)

Devashis
Loading and Unloading
(Deepak)
Nava

Krishna
Rao

Staff of Functional Authority Organizational Structure

The jobs or positions in an organization can be categorized as LINE POSITION and STAFF
POSITION.

Line and staff organizational structure: most large organizations belong to this type of
organizational structure. These organizations have direct, vertical relationships between
 different levels and also specialists responsible for advising and assisting line managers.
Such organizations have both line and staff departments.
Committee organizational structure: This type of structure, the organization can have
different basis on which departments are formed. They are:
 Function
 Product
 Geographic territory
 Project
 Combination approach.

Divisional organizational structure: The line, line and staff and functional authority
organizational structures facilitate establishment and distribution of authority for vertical
coordination and control rather than horizontal relationships.

Project organizational structure: A project organization is a temporary organization

designed to achieve specific results by using teams of specialists from different functional
areas in the organization.

Objectives
1. To study the process of the plywood production

2. The key challenge faced by the organization

3. To provide suggestion and remedies to solve the problem.

 CHAPTER 4

Business Levels
Function and Process
Business Levels Function and Process
Production Department
It is the functional area responsible for turning inputs into finished outputs through a series of
production process. The production manager is responsible for making sure that raw
materials are provided and made into finished goods effectively.

Selecting logs and conditioning

The entire plywood-making process begins with log selection. At this stage, logs both
hardwood and softwood are carefully identified and segregated in terms of hardwood species
and quality. The primary objective here is to find logs that would produce veneer with
acceptable physical and aesthetic characteristics. Some of the more commonly used
hardwoods and softwoods in making plywood are ash, maple, mahogany, Douglas fir, and
several pine, cedar and spruce varieties.

Once suitable logs are selected, they are then made to go through a conditioning process to
assure that good quality veneer is
produced during the peeling process.
This process usually involves spraying
the logs with water.

Cutting and Debarking

The next step in the plywood making
process is to measure the conditioned
logs for crosscutting. Once the logs have been cut to length, the bark will then be removed
using a debarking machine. The debarking process also aims to improve cross-section
roundness.
 PEELING OF VENEER SIZING OF VENEER

DEFECTIVE PIECES SEND

MOISTURE/CHECK TOBOILER OR RETURN TO
SUPPLIER

MOISTURE CONTROL BY
DRYING
HEAT AND TIMING

CHOPPING AND SIZING OF

CORE

ADHESIVE BWP GRADE GLUE SPREADING

TESTED IN HOUSE GLUE MIXING

COOLED ALUMINIUM SHEET ASSEMBLY & THICKNSS CHECK OF CORE CHECKED DRIED FACE

HOT PRESS 190 TO 210 Kg/CM2 140 to 150 OC

COOLING OF HOT ALUMINIUM SHEET BY AIR BLOWER
CORRECTIVE ACTION FOR
THICKNESSN & SIZE DURING
STACKING FOR 12 THICKNESS CHECK
HRS

D.D SAW FOR SIZING

LENGTH & WIDTH

BELT SANDER FOR

SURFACE FINISHING

STOCK OF FINISH GOODS &

FINAL TREATMENT OF PLYWOOD BY ACC MARKING
CONCENTRATION CHECK PERODICALLY

SOLD AS NON- STANDARD

MANUAL FINISH VISUAL
CHECK

STOCK FOR REJECTION FINAL TESTING

3
Peeling of Veneer

Using a rotary lathe machine, the logs will be peeled into thin veneers. The veneers produced
can come in the form of continuous sheets, or immediately clipped into a predetermined
width and length.

Since the quality of the veneer is one of the single most important factors in determining
plywood grade, veneers with visible defects are clipped off. As a result, clipping leaves some
veneers end up with a smaller surface area. This, however, isn’t a problem, because these
smaller veneers can be joined together to form standard 4×8 or 3×7 sheets.

Sizing of Veneer

Once they've been peeled the resultant

sheets are fed to the next step on a
conveyor, as in the image below.

37
The veneers are moved along the production line in long
streams. They need to be cut to size and go through an initial
grading process. Grading is especially important in regards to
Birch Plywood so the majority of mills use scanning
technology to check for defects in the veneers, cutting to the
required sizes and then separating potential face veneers from
core veneers.

Drying of Veneer

As you can expect, the veneers produced by the peeling process

are typically wet or full of moisture, and need to be dried.
Veneer drying is necessary for improved bonding, and is done
by feeding the veneers into continuous or roller dryers at a
controlled speed. These dryers produce heat from steam boilers
that are fuelled by barks, discarded veneers, sawdust and other
mill residues. Ideally, the moisture content of veneers should
only be somewhere between six to 14 per cent by the time they
make it through the other end of the dryer.

Chopping and Sizing of Core

Once dry, veneers need to be repaired where defects exist. In the case of Birch Plywood for
example, open knots (where branches used to be) can be 'plugged' in. Splits in veneers on
plywood can also be filled in and mis-sized
veneers can be finger-jointed together

Some mills have a machine that scans the

veneers and automatically plugs open holes
or knots.
Glue Spreading
The next step in making plywood is the gluing of the
plies together in order to determine the desirable
thickness of the plywood sheet. Modern methods of
manufacturing use synthetic plastics such as urea resins
or phenol-formaldehyde for bonding the plies together.
These glues are mixed mechanically and then spread on
alternate layers of lumber by passing between pairs of
grooved metal or hard rubber rollers

Cold Press, then Hot Press

The composed panels are then pre-pressed in a cold press at an ambient temperature and a
controlled hydraulic pressure. This process usually takes 20 minutes, which is enough time
for the adhesive to solidify and effectively bond the veneer plys in each panel. Aside from
helping with bonding, this process also helps flatten the plywood.

To assure excellent bonding, the pre-pressed panels will then be put into a hot press. This
process takes approximately three to seven minutes, although the time—as well as the
temperature—may vary depending on the wood species, the veneer thickness and the design
of the plywood.
Trimming, Sanding and Finishing
Ultimately the sheets need to experience a procedure that prepares them to be delivered out
for market. This procedure includes trimming, sanding and completing the sheets. This
procedure additionally brings the sheets down to the correct size that is alluring to the
purchaser. This is the thing that makes the last smooth edges that are found in the advanced
lumberyard. The completed boards of pressed wood are then isolated into two gatherings
demonstrating whether they are for inside or outside use. Pressed wood may convey a quality
review, which is shown with the letters A through C, with A being the most astounding
quality.

Quality Control

The final product has to be assessed for quality but it wouldn't be very efficient just to wait
until the end of the process to find a large problem with production. For this reason, mills
control their production by carrying out a number of tests on different sections of the
production process e.g. testing
moisture levels, formaldehyde release,
durability, etc. Many mills have what
is called a Factory Production Control
certificate which means they have
been audited by a third party and had
their production process approved.
Samples after manufacturing different plywood products
Quality Policy

The products are confirmed by the BIS, Hologram with BIS CM/L number incorporated in it
and Trade Mark (marks carried on every sheet of our plywood that rolls out from our
factory). They are well-trained professional personnel work constantly and diligently to
manufacture top quality, superior plywood with the aid of modern machineries and upgraded
equipment’s along with best available raw materials. This enables them to supply premium
quality products embedded to supply premium quality products embedded in it the supreme
inherent strength and resistance, that is the genuine value for the money spent.

They are members of “Indian Plywood Industries Research and Training Institute” which
provides them with the latest technological developments across the globe. They update them
about all the latest happenings, technological innovations, scientific achievements,
fashionable trends and all other news and views connected to the industry. They also
undertake training of their executives from the above institute.

They have modern laboratory, equipped with best possible instruments for conducting all
sorts of tests. Their R&D department is pursuing with a restless effort at improving and
developing new skills for the betterment of the end product.

The specialty of their Plywood lies in its exclusive categorization of acquiring the best quality
timber for plywood known as Dipterocarpus spp (commonly known as Gurjan / Keruing).
These tropical hardwoods are found in abundance on the fringes of the forests of Burma /
Malaysia / Indonesia have an inbuilt resistance capacity against borer and termites. In
conjunction with these natural, inherent advantages; we undertake a through procedural
treatment of the entire timber by using Copper Chromium Boron treatment. This process
doubly ensures total elimination of any insects / termites.
Human Resource Function
Human resource the board is characterized as a key and intelligent way to deal with the
administration of an association's most esteemed resources – the general population working
there, who independently and by and large add to the accomplishment of its destinations.

HR can predict or determine staffing needs based on:

 Gaps between what skills you have available and the skills needs to accomplish
organizational goals.
 Number of employees working overtime on a regular basis.
 Also take into consideration the number of employees promoted or to different
divisions or departments.

Hiring Process

 Interview Team
 Market Analysis
 Questionnaire
 Testing
 Key Performance and Behavior Indicators
 Face-To-Face Interviews
 Background Checks There is no standard format for the recruitment of employees.

Vizag Impex Pvt Ltd. being a well-established organization which has built for itself enough
goodwill, never gave any advertisements or neither ever required any sort of marketing to
gain employees, labor.

It has maintained a database of the applications ever received and has conducted either direct
interviews or recruited on the basis of qualification and experience.

Most of the employees have been working with the organization for more than 5 years.

HRD mission targets non‐traditional potential work force in the rural areas. This project is
intended to train and prepare individuals in the rural areas to be fit to work in medium to
large industrial units that are likely to be set up. Up gradation of skills of persons already
employed in the sector besides training for trainers/supervisors is also be undertaken.
Salary, insurance and incentives
 The company did not disclose pay scale of the employees.
 The salary credits 1st of every month and are directly credited to employee’s salary
account.
 Personal accident is given only to employees.
 Incentives are only given to marketing department.
 Birthday wishes, anniversary wishes to employees.
 Promotions are given to employees for their hard work and efficiency

RETIREMENT AGE
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.

ATTENDANCE:
Every employee shall be given a ticket or attendance card free of cost, showing his
number or name or classification etc. They shall punch their attendance card at the
punching machine and deliver up their card or ticket at the place provided in the time
office before the commencement of each session of the shift in a day.
In case of workmen exempted from availing rest interval, shall punch his card before the
commencement of the shift and soon after his shift work is over. Provided with the
purpose of if a workman fails to punch his attendance card, he shall lose his attendance
for the period unless he makes the report to the manager of his failure within two hours.

LEAVE AND HOLIDAYS:

A worker is eligible for one day leave for 20 days. 12 casual leaves and are also available
for workers in a year and also 6 sick leaves. The office staffs are eligible for two and half
days leave in a month. Staffs are not eligible for any sick leave.

 Leave with wages will be allowed to the workman as provided for in the chapter VII
of the Factories Act. Provided that in the case of monthly paid workman, leave with
wages will be allowed as and when accorded every month if the workman so desire it
to be allowed.
  National and festival holidays with wages will be allowed to workmen as provided for
in the Industrial Establishment (National & Festival) Holidays Act.
 Leave for sickness, maternity and accidents will be allowed to the workman as
provided for in the Employees State Insurance Act on the strength of the medical
certificate produced by the workman regularly
 Casual leave – Workman may be granted casual leave of absence without wages for
ten days in aggregate in a calendar year.
 All applications of leave shall be in writing in the form prescribed and should be
forwarded through the Head of the Section to the Manager whose decision shall be
found.

Marketing Function
A channel of distribution or trade channel is defined as the path or route along which goods
move from producers or manufacturers to ultimate consumers or industrial users. In other
words, it is a distribution network through which producer puts his products in the market
and passes it to the actual users.

A channel of distribution consists of three types of flows: -

 Downward flow of goods from producers to distributors or dealers
 Upward flow of cash payments for goods from distributors to producers
 Flow of marketing information in both downward and upward direction i.e. Flow of
information on new products, new uses of existing products, etc. from producers to
consumers. And flow of information in the form of feedback on the wants,
suggestions, complaints, etc. from consumers/users to producers.

The company follows producer – distributor/dealer distribution

Producer-Distributor/Dealer-Customer: This is the common channel where most of

the manufacturing company is involved where producers sell their products to the distributor
or the dealer then they sell their product to the customers. It is an economical channel of
distribution. Under it, the producer or entrepreneur performs all the marketing activities
himself and has full control over distribution.
Warehousing & Inventory Management Function

Cost Records

• Duration for revision of cost of product irrespective of client.

• Revision in cost of any product can be demanded to client if there is hike in cost of major
raw material, transportation cost etc. Sometimes without hike in cost of raw material price
revision can be demanded depending on nature of client/product.

• This record must be maintained to keep track in how many months price hike is demanded
to client (Whether it is demanded due to hike in raw material prices or otherwise).

• Frequent price revision may lead to loss of client/ product.

. Idle Time: - It is difference between time paid for and actual time worked for is known as
idle time. There are two types of idle time treatment followed by the company

• Normal Idle time – it is the time required for setting up the machinery or production; it is
charged to Cost of Production.

• Abnormal Idle time – It is time which is wasted due to machine break down or power
failures; it is charged to Profit and Loss Account.

Cost Control Techniques

Cost control can be done after execution of manufacturing & supply of product.

• By reducing wastages

• By increasing productivity

• By reducing cost of major raw material without affecting the quality of product

• By reducing packing, transportation cost

• By increasing quantum of product

• By reducing credit period to client & increasing credit period to vendor supplying major
raw material without affecting the cost

• By carrying minimum inventory for minimum period without affecting the supply to client
Standard Costing

Estimate i.e. quotation is given on following basis

• Raw material involved in manufacturing particular product.

• Processes involved in manufacturing that product.

• Rates of raw material, labor, packing cost, transportation cost, profit percentage etc. are
taken as per decided by management

Finance department:
Financial functions are investment decisions - allocating capital to long term assets. They are
financial decisions about when, where and how a business should make money. They are
various decisions, concerning what to do with the money, how that should be allocated.
Financial functions are liquidity decisions, how to invest funds into current assets.

Internal Control

Thus, internal control measures are also adopted by the company for the smooth and efficient
functioning of the organization as a whole.

Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect
ultimate collection. Revenue from operations includes sales of goods, services etc. Interest
income is recognized on time proportion basis taking into account the amount outstanding
and rate applicable.

SOURCES OF FUND
The main sources of funds are;

Internal sources: -

The main internal sources of fund of Vizag Impex are income generated from sales. Reserves
are the sources of fund other than income from sales. Current losses are adjusted by these
reserves.

External Sources: -

The main external source of fund is term loan form bank and financial institutions like Axis
Bank, SBI
The Vizag Impex Pvt Ltd follows the Double Accounting System. Various accounts are
prepared by them to keep their transactions. The following are the main types of accounts
kept by Vizag Impex Pvt Ltd.

 Journal
 Ledger
 Sub ledger

To record receipt and payment they maintain 4 records.

These include the following Accounts.

Total debtor account

Total creditor accounts

Purchase day book

Sales day book

They also prepare a commission register. For charging depreciation against fixed assets
straight line method was used. Vizag Impex publishes Annual Report every year, which
includes the Profit and Loss Account, Balance Sheet, Accounting Policies of the business etc.
CHAPTER 5
FINDING, CONCLUSION AND RECOMMENDATIONS
Key Observation.
 The company uses best quality raw material for production which ensures best quality
 The quality control department plays a crucial role in determining quality of the products
manufactured
 The company turnover is low.
 The company follows internal audit control
 The company follows both formal and informal organization structure.
 Power plant set up by the company but yet to start its operations due to pending
permissions from government.

Suggestions
 Vizag Impex Pvt Ltd. can penetrate deeper into the market and plant its roots deeply by
gaining a competitive advantage by importing or exchanging technology and
innovations.
 In the company between the producer to the dealer should be increased as there is
very low distribution between them.
 The company must develop new markets by increasing its export functions.

Conclusion
 Vizag Impex Pvt Ltd., the largest, as a bright future in this field. The high-end
production technology of Vizag Impex is well acknowledged among the
wood processing industries.
 The Vizag Impex achieved 100% utilization of raw materials due to its integrated
production system. Therefore, it would be apt to call Vizag Impex, a company with a
conscience ‟. Vizag Impex stands for superior product performance and provides
value for money to its customers. It is backed by Vizag Impex 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.
 Presently the company is operating in loss- the major cause being globalization. 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.
Bibliography
The information is taken from various primary and secondary sources. Secondary sources
include:

 Company Brochures
 Induction documents
 Company Files

Different sites are

http://vizagimpex.com/

https://en.wikipedia.org/wiki/Plywood