4 Compressed
4 Compressed
INTRODUCTION
The project work practices are an internal part of the VTU MBA curriculum. It
is an initiative to close a gap between knowledge and its applications through a
series of interventions that students of VTU MBA program allow information
and exposure to the industry.
India is one of the developing countries in the world. The small and large scale manufacturers
of the modern days played a significant role in the Socio-economic development of the
country. Our country is blessed with immense stock of natural resources both above and
beneath the soil surface. Among that trees are great bounty to man. They provide shelter,
fuel, medicines and tools for war, commerce, or transport. 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, color and texture of wood. Nothing from nature indoors gives
a long lasting enjoyment. That is why decorative wood had as much importance in the past,
having in present and will be in future also. And another fact was that it was timber from
trees, which in the early days helped man to conquer the oceans and to fly in the air.
Plywood
The history of plywood industry in India is old. It is more than 75 years old that this
industry started here on a very modest scale. It was in the year 1906-07 that plywood was
imported in India for the first-time valued at Rs.32 lakhs. Imports rose steadily and by 1924-
25 it was worth Rs.90 lakhs. Tea industry in Assam, West Bengal and Kerala was steadily
developing and it was thought that plywood industry in the form of Tea chests production
mainly for export should be developed. Accordingly two plywood factories were started in
Assam in 1923-24 but their development was steady, slow and not potential. These were the
pioneers and the resourcefulness and courage shown by them in the early stages of growth of
Plywood industry was remarkable and the industry owes gratitude to these courageous
entrepreneurs.
With the outbreak of Second World War, necessity of manufacturing tea chests
locally was very much felt and plywood industry in India is a gift of Second World War.
Now that tea chests must be produced, Forest Departments in various states started thinking
in terms of finding suitable timber for manufacturing tea chests. Experiments were made at
Forest Research Institute, Dehra Dun and it was found that plywood made from Indian
timbers were good as imported products and therefore advised forest entrepreneurs to set up
modern factories in different States. Accordingly well-equipped plants were started at
different places like Sitapur, Bangalore, Baliapatam (Valapattanam), Dandeli and
Coochbehar. Some of these
factories suffered setbacks in the post war years, as after cessation of war the vested interests
tried to sabotage these industries by trying to restart imports of tea chests. Tariff Board
enquiry was held and the Government imposed a lien on the importers to purchase Indian
products equivalent to the quantity allowed to be imported. Slowly, the Government
encouraged the Indian entrepreneurs to modernize their plants and invest substantial capital in
this industry.
After 1947-48, the industry resorted to diversification of its products and block
boards, flush doors, commercial plywood, marine and aircraft plywood, produced in Indian
factories came into the markets which were second to none in the world quality and diversity
of its products. Industrial licensing is governed by the Industries (Developmental and
Regulation) Act, 1951 under the wood based industry was covered.
There was no restriction of putting up plywood Mill up to 1970. The only criteria was
that the applicant was required to obtain an Industrial License which was being considered by
Ministry of Industry after consulting various Ministries including Ministry of Environment &
Forests. Forest Ministry was being consulted for ascertaining sustainable raw material of
Timber for a particular project; the wood based industry was more or less in medium and
large scale. The wood based industry was under Compulsory Industrial Licensing 1988
whether a small scale unit or a medium/ large unit, new undertaking or substantial expansion
would require Industrial License.
During 1970 there was clear cut definition of Small Scale Sector and units having an
investment of less than 7.5 lakhs in plant and Equipment were covered under the definition of
Small Scale Sector which would be registered with the respective State Director of Industries.
At that particular stage some of the units with such investment got themselves transferred to
small scale sectors. Meanwhile there were modern technology and machinery equipped
plywood units coming up in different places in India like North East Zone.
In 1997 the Government of India totally deli censed wood based industry as a result
more than 2000 small scale units coming up.
CHAPTER-2
ORGANIZATION PROFILE
Core Veneers
Products
Plywood
Block Boards
Flush doors
Number of employees 60
Email splywoods@gmail.com
BACKGROUND OF INDUSTRY
Initially the firm was in partnership mode called as DH veneers, lead by Mr. Krishna Imma
Raj and Yogesh, where this was started in the year 2001.
After the dissolution of the partnership firm Mr. Krishna started his own proprietary firm
called Sharada plywoods. At the beginning they started manufacturing the raw materials
called core veneers which is used in plywoods and wood products, as Mr. Krishna has a
minimum experience of 25years in the current firm he started his own plywood
manufacturing company with the brands i-Red ply, Red Orion.
As on now the raw material unit is situated in belur road, Hassan, and the processing unit is
situated in industrial area, Hassan, where they have more than 60 workers from both firms.
They are also having their sister concern firm called Krishna Veneers in Nanjangud, Mysore
lead by his son’s ownership.
1. Core Veneers
2. Plywood
3. Block Boards
4. Flush doors
NATURE OF BUSINESS
M/s Sharada plywoods are not only the manufacturers of core veneers and plywood products
but they are into interior designing and retail plywood outlets also. VISSION
Continue to remain the best Plywood-Panel Corporation in India with growth in allied areas.
MISSION
To provided utmost satisfaction to the consumer through best quality and customer care.
To respect the dignity of all employees and together to become instrumental in the
development of the country while protecting the environment.
To utilize the surpluses for the welfare of employees and the society at large
PRODUCTS PROFILE
Log yard
Cross cutting
Boiler Drying
Edging
Slicing
Drying Boiler
Splicing
Pre-pressing
Hotspreading
Glues pressing
Conditioning
Assembling
Trimming
Sanding
Finishing
Grading
Plywood
Log yard
Storing of wood in water make wood durable and prevents from fungus attack and softening
the wood before peeling. In industry the layout of the log yard is such that it is able to
facilitate the free movement of the transport from one part to another. Trolley lines are
provided for easy transport of timber.
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.
Boling
This is to convert the hard timber into soft and remove the oily material. In order to make the
hardwood soft and to remove its oil content, the blocks are boiled with the help of steam at a
temperature ranging from 1200C to 1800C. The wood is boiled for a minimum of 24 hours.
The steam that is required is produced in boilers. After boiling logs are cleaned and bark is
removed manually and the metallic particles are also removed which may damage the knife.
Peeling
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 plywood.
CLIPPING
The next process is called clipping. Clipping is the process of converting the veneers into
required size and also remove the detective part of the veneer. Here the veneer produced from
the peeler is passed through clipper. Clipped veneers are moved to transfer which they are
selected on to faces, cores, cross band and then dried.
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. Usually the
moisture content is reduced to 6% to 10%.
EDGING & JOINING
The majority of veneers obtained after clipping would be relatively narrow in width, so
edging and joining necessary for plywood manufacture. It includes edge cutting, joining,
taping and spicing. The dried veneer may not straight edge. Edge cutting machine is for
straightening the edge of veneer after cutting.
GLUE SPREADING
Uniform distribution of glue on the surface if veneers are called glue spreading. Both side of
veneer can be glued at a time. Each machine consists of two spreading roller made up of steel
covered with rubber. The distance of the roller can be adjusted. Minimum thickness of the
veneer that could be glued on this machine is 0.3mm. Glue spreader veneers are again dried
in the dryer. The glues used are – Urea formaldehyde, Areolyte, Melamine formaldehyde.
ASSEMBLING
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 is steam, thickness and time.
PRE-PRESSING
Pre-pressing is the compression of panel assembly to attain to attain its final thickness
without obtaining the final polymerization or cured state of glue line. Pre pressing is done on
the simple Kamp press. The duration of pre-pressing may vary from 20-30 minutes
depending on the adhesive.
HOT PRESSING
After pressing commercial plywood are dipped into the chemical tank for 2.5minutes to
provides resistance and gives strength to the board. Conditioning is the process in which the
pressed plywood is 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 such as
repairing of face veneer and patch works are done carefully, fine splits, checks, and small
gaps on the surface plywood are filled with French choke powder and airtight powder. The
boards are sealed and labeled and made ready for dispatch.
AWARDS
Because the McKinney 7s framework included on strategy, structure, style, staff, skill,
system, share values.7S model is a tool for managerial analysis and action that provides a
structure with which to consider a company as a whole. The 7S are a framework for
analyzing organizations and their effectiveness. The 7S framework is value-based
management (VBM) that describes how one can holistically organize a company.
Combination rational and hard elements with emotion and soft elements.
Strategy
Strategies are long-term objectives of the organization. The company included different
strategy in all the levels such as top level, middle level, and functional level. Strategy is a
system of activity is the art and resources of a valuable goal.
Enhancing new customers in existing and new geographies. We aim to do this by
effectively satisfaction of customers in enhancing the marketing skill and relationship.
Introduction new product and win new customer business to drive profitable
growth. Meet and exceed global customer expectation in term of quality,
delivery, innovation and customer service.
The strategy to achieve the goal is by strong marketing of new product and
ongoing investment continuously.
It is also one of the most visible and easy to change elements of the framework
in this organization. This company organization-employees the arrangements about
reporting relation.
Structure of Industry
Every company has their own organization structure in the company and it is one of
the important for effective utilization of resources. It is defined of organization
employee’s interaction to meet define objective and framework of the organization. It
is the organization chart of the company.
Managing Director
GM (Administration)
Style of Industry
This company have own special style or culture and management style. It includes the
Factory executive
dominant values, beliefs and norms which develop over become relatively enduring
features of the organization life. Thus this style of functioning increase the efficiency
saves time and gives quickly secure in emergency situation. The company is
Employees
manufactured by top level managers. The managers are able to motive employee to
done work better. This style to interact with employee. Suppliers and customer’s style
stand for the pattern of action taken by the top level over the period of time.
System
This factor includes a number of systems within an organization that define the day to day
activities, routines and processes. It can include performance, financial system, it systems etc.
The daily activities and procedures that staff members engage into get the job done. It is the
process and information flow that link the organization together. They include formal and
informal procedures that govern day-to-day activity covering everything from management.
Information system as the point of contract with the customer.
Staff
Staff means Human resource or workspace because they are the important chief in the
company. This company staff concerned with the type of and how many employees are in the
organization.
Skill
In this organization the managing director, managers, supervisor, employees and other
workers are having their own skill for their work and also having trained skills of company
gave to them.
Technical skill
The skill shows how efficiently and effectively the members of industry plant are
specialization in equipment tool etc. To perform and specific task the superior and
subordinates adopt this technical skill.
Human skill
The human resource adopt in industry this shows how the effectively the members
perform their work individual and in group.
Shared values
Share value is concept based and this organization has decided to achieve its objective. These
values are the center value of an organization that goes beyond the conventional formal
statement of corporate observes. Shared values are the fundamental ideas around which
business built. This may be to make money or to achieve excellence in a particular field.
Fairness and result focus
Self-confident
Customer satisfaction
PORTER’S FIVE MODEL
1. BARRIERS OF ENTRY
REQUIRED HIGH LEVEL OF CAPITAL
ENVIRONMENTAL POLICIES
GOVERNMENT RULES AND REGULATIONS
DISTRIBUTION CHANNEL
LICENSING POLICIES
MANY EXHISTING PLAYERS IN MARKET
4. THREAT OF SUBSTITUTES
SUBSTITUTE HAVE LESSER PERFORMANCE
HIGH COST OF CHANGE
SEGMENTATION IS HIGH
MANY ALTERNATIVES
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.
Strength Weakness
Opportunities Threats
The Company diversified from the There are many medium scale and
production of chest and commercial small scale plywood industries. They
plywood to manufacture Decorative fix low price for their products.
Plywood, Block Boards, Shuttering In some product ranges, imported
Plywood and Aircraft plywood. items are available at lower cost than
The products of the Company are is currently produced in India.
being exported to Kerala, Competition.
Maharashtra, Tamil Nadu and in
Karnataka state.
Strong market growth.
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.
UNIT-5
ANALYSIS OF FINANCIALSTATEMENT
Trading, profit and loss account for the year ending March 31, 2019-20
Particulars Amount Particulars Amount
To opening stock 25,18,272 By sales 27,40,272
To purchases 26,99,386 By labour charges received 9,11,928
To labour charges paid 2,51,234 By closing stock 31,78,189
To freight 25,551
To gross profit c/d 13,35,496
68,30,389 68,30,389
To bank charges paid 4,204 By gross profit b/d 13,35,946
To depreciation 2,41,721 By interest received 2,078
To advertisement exp 2,158 By trade incentive received 20
To bank interest paid 3,50,628
To insurance premium 31,081
To car loan interest 1,13,336
To car maintaiac 52,308
To electricity charges paid 2,959
To go down rent 90,000
To professional tax paid 2,500
To salary to workers 72,000
To shop rent paid 60,000
To subscription 3,211
To telephones charges paid 11,758
To trade discount paid 606
To travelling expanses 6,479
To net profit 2,83,094
13,38,043 13,38,043
1,90,09,756 1,90,09,756
Trading, profit and loss account for the year ending March 31, 2019-20
Particulars Particulars
To opening stock 31,78,189 By sales 46,38,912
To purchases 43,67,757 By labour charges received 3,31,660
To freight 30,405 By rebates and discounts 1,27,911
To gross profit c/d 12,11,867 By closing stock 36,89,218
87,88,218 87,88,218
To bank charges paid 31,478 By gross profit b/d 12,11,897
To depreciation 5,108 By miscellaneous income 396
To bank interest paid 2,65,012 received
To car interest paid 55,571
To car maintenance 70,594
To electricity charges paid 3,429
To go down rent 37,500
To labour charges paid 1,47,157
To legal consultation fees 10,000
To professional tax paid 2,500
To repairs and maintenance 7,500
To salary to workers 72,000
To shop rent paid 60,000
To subscription 4,978
To telephones charges paid 16,688
To travelling expanses 14,924
To net profit 4,07,824
12,12,263 12,12,263
2.37,00,707 2,37,00,707
Trading, profit and loss account for the year ending March 31, 2020-21
Particulars Particulars
To opening stock 36,89,735 By sales 95,39,559
To purchases 47,25,711 By closing stock 13,18,940
To labour charges paid 4,83,650
To gross profit c/d 19,59,403
1,08,58,499 1,08,58,499++
To finance expense 4,39,049 By gross profit b/d 19,59,403
To office and administration 3,62,652
charges
To salary paid 1,50,000
To rates and taxes 2,090
To repairs and mainteiance 88,266
To depreciation
To net profit 1,71,197
7,46,148
19,59,403 19,59,403
2,67,40,328 2,67,40,328
RATIO ANALYSIS
1. CURRENT RATIO
ANALYSIS
The above table shows that the current asset of the year 2019,2020 and 2021 is 672010, 2915201 and
197376 and the current liabilities in the year 2019,2020 and 2021 is 510043, 585016 and 4324380. The
current ratio is 1.3:1, 4.98:1 and 0.04:1.
INTERPRETATION
The above data shows that there is increase in the current asset in 2020 but in the 2021 current
liabilities.
Series 1
ANALYSIS
The above table shows that the total sales of the year 2019, 2020 and 2021 is 2740272, 4638912 and
9539559 and the closing debtors in the year 2019, 2020 and 2021 is 279776, 1272380 and 2228366.
The current ratio is 9.79:1, 3.64:1 and 4.28:1.
INTERPRETATION
The above data shows that there is decrease in the total sales 2019 but in 2020 it was increasing.
Chart showing debtors turnover ratio
2019
12
10
ANALYSIS
The above table shows that the gross profit of the year 2019, 2020 and 2021 is 1335946, 1211867 and
1959403 and the net sales in the year 2019, 2020 and 2021 is 2740272, 4638912 and 9539559. The
current ratio is 48.75:1, 26.12:1 and 20.54:1.
INTERPRETATION
The above data shows that there is decreasing of gross profit ratio.
Chart showing gross profit ratio
Series 1
60
50
40
30
20
10
0
Series 1
4. DEBT RATIO
ANALYSIS
The above table shows that the total liabilities of the year 2019, 2020 and 2021 is 510043, 585016 and
197376 and the total assets in the year 2019, 2020 and 2021 is 10701995, 16741557 and 16891255.
The current ratio is 0.047:1, 0.035:1 and 0.12:1.
INTERPRETATION
0.1
0.08
0.06
0.04
0.02
Series 1
ANALYSIS
The above table shows that the net profit of the year 2019, 2020 and 2021 is 283094, 407824 and
746148 and the net sales in the year 2019, 2020 and 2021 is 2740272, 4638912 and 9539559. The
current ratio is 0.10:1, 0.08:1 and 0.07:1.
INTERPRETATION
The above data shows that there is increase in the profit in 2018.
Chart showing net profit ratio
0.12
0.1
0.08
0.06
0.04
0.02
0
UNIT-6
LEARNING EXPERIENCE
The in plant training was a very useful experience. It helped me to become familiar with the day today
working of the organization. During my in plant training period I tried to learn how the theoretical
aspects are applied in the corporate world. The industry exposure enhances the student work life
through added enthusiasm and commitment provides a lifelong learning experience. Work with
professional mentors and to begin to build networks.
In my 4 week of organization study Sharada plywood, Hassan, I learnt many things which was been
carried out in the organization. This study helped me to gain the knowledge about the work carried out
in the organization.
It was a very good opportunity to evaluate ourselves how capable we are to adopt new changes and
also to learn the things in actual or real working conditions. It was a great opportunity to get an
industrial exposure at the organization like Sharada plywood.
I came to know the importance of various functions of management such as planning,
organizing, directing and controlling which helps in guiding the organization in each and every
aspect.
Customer relationship.
Time management.
Team building.
Cordial relationship between the employers and employees.
Finally, this study gave me the clear idea about the working condition in the organization which will
help me in the future days. The study helped me in improving my practical knowledge and was
beneficial in gaining the confidence and the awareness in the real-world situations.