Chapter 1

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ABOUT THE INDUSTRY (PLYWOOD INDUSTRY)

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 include medium-
density fibreboard (MDF), oriented strand board (OSB) and particle board (chipboard).

All plywoods 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 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 plywoods 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:

The ancient Egyptians and Greeks cut wood thinly and glued it together in layers with the grain
in perpendicular directions, making a versatile building material. 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.

STRUCTURAL CHARACTERISTICS:

A typical plywood panel has face veneers of a higher grade than the core veneers. The principal
function of the core layers is to increase the separation between the outer layers where the
bending stresses are highest, thus increasing the panel's resistance to bending. As a result,
thicker panels can span greater distances under the same loads. In bending, the maximum stress
occurs in the outermost layers, one in tension ,the other in compression. Bending stress

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decreases from the maximum at the face layers to nearly zero at the central layer. Shear stress,
by contrast, is higher in the centre of the panel, and at the outer fibres. Within Europe basic
plywood can be divided into three main categories: birch plywood (density approx. 680 kg/m3),
mixed plywood (density approx. 620 kg/m3) and conifer plywoods (density 460–520 kg/m3).

TYPES:

Softwood

Floors, walls, and roofs in home constructions, Wind bracing panels, Vehicle internal body
work Packages and boxes Fencing
Hardwood

 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
Tropical

 Common plywood
 Concrete panel
 Floor base
 Structure panel
 Container flooring
 Lamin board
And others like

 Aircraft
 Decorative(overlaid)
 Flexible
 Marine

The Indian plywood market reached a value of INR 243.9 Billion in 2021. Looking
forward, IMARC Group expects the market to reach INR 344.2 Billion by 2027,
exhibiting at a CAGR of 5.97% during 2022-2027.

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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.

Plywood industry has entered into cut- throat competition mode. India has around 2800
operational wood panel processing factories practically that can be counted as plywood
producing factories. Though in last two years alone, the production capacity has grown
almost equal to 4000 units where as demand has remained same barring few months
when it was a free orders flow.

The Indian plywood market reached a value of INR 222.5 Billion in 2020. Plywood is
manufactured by assembling thin layers of wood veneers bonded together using
powerful adhesives. Softwoods, hardwoods, or a combination of the two is used, such
as several varieties of maple, mahogany, oak, pine, cedar, spruce, etc., in the production
of plywood for various applications. Softwood plywood sheets are designed for
installation on the exterior of a structure, whereas, hardwood plywood is used for
manufacturing furniture and other interior applications. In India, plywood is mostly
used for the manufacturing of furniture, accounting for two-thirds of the wood
consumption.

Individuals shift to urban areas for a source of living. As such, people shift from farthest
of the remote rural areas to the urban cities. Backed by the growing economy of the
nation and the rising household disposable income, there is a rising demand amongst
people living in the urban areas for furniture and other modern wooden products. The
rising demand for furniture from the consumers will need the furniture manufacturers
to increase their production scale. Moreover, supportive low and affordable housing
facilities by the government of India to the citizens of the nation is also anticipated to
raise the demand for plywood and furniture. Additionally, the change in tax reforms by
the implementation of goods and service tax (GST), which has lowered the price
difference between the organized and unorganized sectors are some of the factors
anticipated to drive the growth of the India plywood and laminates market. The India
plywood and laminates market, which was valued at USD 4790 million in the year

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2018, is anticipated to grow at a CAGR of 4.83% during the forecast period, i.e. 2019-
2027. The market is thriving on the back of rising focus of the government for low cost
housing and infrastructure development, rising demand for plywood and laminates in
various end user industries, growing construction industry and increasing urbanization
are some of the factors anticipated to contribute significantly towards the growth of the
India plywood and laminates market in the upcoming years. Further, the market of
plywood and laminates in India is anticipated to reach a market value of USD 7323.3
million in the year 2027.

However, concern for the impact on overall production cost of the manufacturer on
account of the challenges faced with the unavailability of certain raw materials used in
the manufacturing of plywood and laminates are some of the factors estimated to act as
a barrier to the growth of the India plywood and laminates market. The profiling enfolds
key information of the companies which comprises of business overview, products and
services, key financials and recent news and developments. Conclusively, the report
titled "India Plywood and Laminates Market -Demand Analysis & Opportunity
Outlook2027", analyses the overall India plywood and laminates industry to help new
entrants to understand the details of the market. In addition to that, this report also
guides existing players looking for expansion and major investors looking for
investment in the India plywood and laminates market in the near future.

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CHAPTER 2

6
COMPANY PROFILE: ELITE WOOD PRODUCTS

BACKGROUND

The first manufacturing plant of BRECS group was set up in the year 1998 in Bangalore.

Currently the company has a total of 5 manufacturing plants in Bangalore ,Karnataka and
Hosur, Tamil Nadu.

The product line includes manufacturing of plywood, blockboard, multi curvative plywood
,furniture and decorative plywood in the company’s state of the art manufacturing facilities.

The company, since its inception has provided excellent quality products and services to their
customers for home and office purposes.

The dedicated team of the company is differentiated by imagination, innovation , knowledge

and dedication towards its core values.

In all the factories the company believes that the responsibility is just beyond business.

To give back to the nature is the company’s deep belief, and hence the company believes in
sustainable development. For this, the plantation of trees is done by the company on the regular
basis.

The company also recognises the importance of nurturing relationships that reflect our culture
of unwavering ethics and mutual respect and therefore the company behaves ethically, strongly
and honestly in all the interactions with their clients , employees and their well-wishers.

The products uses raw materials harvested from responsible forestry management practices.

The design of the furniture is a symphony in the preservation of the natural character of the
tree. Each item forms a direct connection between the customers and the forest.

Simple lines and understated elements brings the breath-taking organic beauty of Indian Neem-
wood into harmony with contemporary forms yet with a style.

The factory outlet is headed by Himanshu Patel ,Bangalore. Having 130 staff members.

The employees are being employed as on the contractual basis of the orders.

The Indian plywood market reached a value of INR 243.9 Billion in 2021. Looking forward,
IMARC Group expects the market to reach INR 344.2 Billion by 2027, exhibiting at a CAGR
of 5.97% during 2022-2027.

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NATURE OF BUSINESS:

The company basically offers the production and manufacturing services.

For instance it involves making of

 Plywood
 Blockboard
 Multi curvature plywood
 Furniture
 Decorative plywood

The company also recognises the importance of nurturing relationships that reflect our culture
of unwavering ethics and mutual respect and therefore the company behaves ethically, strongly
and honestly in all the interactions with their clients, employees and their well-wishers. To give
back to the nature is the company’s deep belief, and hence the company believes in sustainable
development. For this, the plantation of trees is done by the company on the regular basis.

Elite industries provides high quality products like plywood and furniture all over the world.

The company also have imports from Indonesia and other wood exporting countries all over
the world.

The company has one of the finest plywood making record and has a bunch of loyal clients
which makes the company build up the reputation in the wood market.

The company strongly believes to give back to the nature is their deep belief and hence the
company believes in sustainable development. And for this the regular plantation of the trees
is done by the company.

The factory outlet mainly deals with making of the plywood namely “ECOCREST” (expect
best, for the best) and has the evenly process of making them with high duralability of the
products. Different products are been manufactured in their different factories in Bangalore
,Karnataka and Hosur ,Tamil Nadu.

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Vision and Mission of the company.

Vision:

 The company aims in providing quality products and services that exceed the
expectations of the esteemed customers
 To provide excellent quality products and services to their customers for home and
office purposes.
 To behave ethically and honestly in all the interactions with their clients, employees
and their well-wishers.
 The company strongly believes that their responsibility is beyond just business.
 Sustainable development by plantation of trees.
 The company involves multiple products which in return provides high quality products
with high duralability .
 Emphasises in building a strong bound with the customers.

Mission:

 To build long term relationship with the customers

 The company aims in providing exceptional customer services by pursuing business
through innovation and advanced technology
 It also aims in setting up new branches all over the country
 To establish a well-equipped research and development team members

Core values:

The company believes in treating the customers with respect and faith. The company grows
through creativity, invention and innovation. The company also integrate honestly, integrity
and business ethics into all aspects of the business functioning.

Goals:

Regional expansion in the field of home and office construction a strong base of key customers.
Increase the assets and investments of the company to support the development of services. To
build good reputation in the field of construction interior design and décor become a key player
in the industry.

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QUALITY POLICY:

An ISO 90012008 Certified Company

WORKFLOW MODEL:

The products include

 Neem wood
 Ecualyptus wood
 Pine wood
 Gurjan wood

Production process of the plywood:

It is a continuous process and involves the following steps:

1. In the first the wood is locally sourced in advanced technology

2. Then the wood is peeled in different and thickness with advanced technology and the
output of the wood is called as the “core veneer”.
3. The core veneer is sent for seasoning for the duration of 5 minutes.
4. Then the core veneer goes through the gluing process
5. The glued veneer is assembled in criss-cross pattern to attain maximum strength for the
structural durability.
6. Then the assembled panels are made in a batch of 12 each
7. The assembled panels are hot pressed in a predetermined pressure, temperature and
time.
8. These panels are cured for a specific time period based on thickness of the panel ranging
6 - 20 minutes.
9. And the product is been exported accordingly.

Production process of Furniture

1. Raw material: the raw material is procured directly from European, American country
and also locally. The raw material is thoroughly inspected for defects and is treated.
2. Joinery: after the required treatment and thern pressing along with the sizing, the woods
pieces are then moved to the joinery units where all the smaller compartments are
precisely finished.

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 3. Assembly and cushioning: all the smaller components are then assembles in a rough
structure which then goes to the polish where staining of the timber is processes with
maximum supervision to ensure consistency.
4. Polish: the wooden parts of the furniture and polished as prescribed by the customers
choice
5. Fitting and packing: after the satisfaction of our quality inspection team the product is
finally completed and packed for shipping.

Key product features:

 Wood: imported European and American timber, kiln dried and treated.
 Cushion: high quality foam from branded companies.
 Fabric: extensively sourced and selected from mills.
 Polish: 100% polyurethane (PU) matte finish.
 Quality check: bubble wrapped for assured quality.
 Package: bubble wrapped and corrugated box.

Certain chemicals are been used in the gluing process which is not revealed by the company as
it is one of the compitative advantage of the company

The whole process happens throughout and there are a lot of employees working in a making
of the product.

Similarly different products involves in different process been manufactured in their different
factory outlets.

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PRODUCT AND SERVICE PROFILE:

PLYWOOD;

Plywood are extensively used in commercial and domestic settings.

To cater that, the company has a wide array of commercial and water proof plywood in possible
all the sizes and grades. The unmatched strength and affordable price makes it easy to
complement modern, urban living. Eco-Crest plywood is manufactures using the unique
natural property bearing timber which makes it termite and borer proof. The plies are bounded
with advanced treatment methods and adhesives.

BLOCK BOARD:

The eco crest block board are made from are made selected high quality timber. The timber
used is treated with the seasoning kiln under controlled temperature and humidity with strict
supervision to get uniform rigidity, stability and moisture to prevent any wood destroying
organisms on the timber. The block boards can be easily laminated without any deformity. The
block boards are widely used in partitions, panelling and other domestic purposes. Available
in regular sizes with 16mm, 19mm and 25mm thickness.

MARINE PLYWOOD

EcoCrestTM Prime, are made to withstand extreme climatic conditions. The marine plywood
is dimensionally stable and ideal for long lasting services even in a very humid and sea side
areas. It has an extensive resistance to boiling water.

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GURJAN PLYWOOD:

EcoCrest magnum is the ultimate and optimum quality of any plywood manufactured. It has
unmatched weight, load holding capacity and life expectancy challenged by none. The supreme
quality product is solely manufactured for the people who needs no compromise or quality and
luxury.

BENTWOD FURNITURE

The process of bending the glued plies through a mould-press system and marvellous high
frequency heat generator to a desired shape is the reason behind the elegant furniture designs.

This process is used for making casual and formal furniture of all types. They are light,
comfortable and inexpensive as well as strong and graceful, therefore it is widely used in hotels,
restaurants, shops and clubs. The benefits of our furniture are that is easily stackable,
maintenance free, economical, relatively strong, eco-friendly, chemically treated and is
assembled, with a knockdown technology which makes them easy to be packed and carried
with.

BENTWOOD CHAIR:

By being in a home or an office or else-where, you can’t get things done with an uncomfortable
chair. Therefore these products, fortunately makes it easy with durable, luxury office and home
based furniture that will allow the customers to feel comfortable and professional as work.

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Whether the requirement is simple or modest, or elaborate and impressive, these furniture
offers the customers to make it perfect.

Carefully selected furniture enhances the functionally and aesthetic of any interior. These
products is aimed to provide comfort and luxury at affordable prices. The range includes a
comprehensive furniture mix depicting modern and contemporary lifestyle.

BENTWOOD SOFA:

The sofa range is set to give the customers with character with its contemporary touch class
designs. The high back support and padded cushions makes the sofa perfect for the modern day
customer. Multiple fabric options and polish options makes it appealing for an individual taste
and desires. The sofas are designed considering the health of an individual’s back support so
even long hour relaxation on sofas would not be a problem. The sofas are specifically meant
for institutional and domestic purposes.

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BENTWOOD TABLE:

The bentwood tables are an exquisite work of art and engineering. The tables are designed to
keep in mind the knockdown concept of all the designs. All the tables, like chairs and furniture
can be un-assembled into a box with the help of an alen key.

Blending an angular table-top or a round glass with an impressive base made of the required
supports, the design carries a feeling of grandeur and a modern attitude with a complete utility
of the required space. The designs are very simple and elegant which adds the appeal to the
dining and tea area.

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OWNERSHIP PATTER:

PRODUCTION
SUPERVISORS
MANAGER

MANAGING SALES MANAGER SALES TEAM

DIRECTOR

OFFICE STAFF

FUTURE GROWTH AND PROSPECTS:

FUTURE OUTLOOK:

Regional expansion in the field of home and office construction a strong base of key customers.
Increase the assets and investments of the company to support the development of services. To
build good reputation in the field of construction interior design and décor become a key player
in the industry.

The company manufactures exceptional quality products and undertakes the maintenance of
continuous research and development so as to improve the quality of the product on a frequent
basis.

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SWOT ANALYSIS:

STRENGTHS:

 The company is involved in making of multiple products like plywood, block board
and furniture
 The company emphasises on building the strong bond with its customers
 Reasonable pricing of the products
 The company involves multiple products which in return provides high quality products
with high durability.
 To provide excellent quality products and services to their customers for home and
office purposes.
 The company aims in providing quality products and services that exceed the
expectations of the esteemed customers

WEAKNESS:

 Due to high demand in urban areas, there is less concentration given to the rural areas.
 Less penetration
 Limited branches for the services distribution to its customers
 Due to the seasoning their might be delay in the delivery of goods and effects the
production process as well.

OPPORTUNITIES

 To build long term relationship with the customers

 The company aims in providing exceptional customer services by pursuing business
through innovation and advanced technology
 It also aims in setting up new branches all over the country
 To establish a well-equipped research and development team members

THREATS

 Time to time change in rules, regulations and policies by the government of India
 Due to business uncertainty.
 Increase in competitors prices.

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PORTERS FIVE FORCE MODEL:

Porter Five Forces Analysis is a strategic management tool to analyse industry and understand
underlying levers of profitability in a given industry.

Managers can use Porter Five Forces to understand how the five competitive forces influence
profitability and develop a strategy for enhancing their business.

“Five Forces that Shape Strategy”, Michael Porter observed five forces that have significant
impact on a firm’s profitability in its industry. These five forces analysis today in business
world is also known as -Porter Five Forces Analysis.
The Porter Five Forces are :
1.Threat of new entrants
2.Bargaining Power of Suppliers
3.Bargaining Power of Buyers
4.Threat from Substitute Products
5.Rivalry among the existing players.

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 Threats of new entrants:

 By innovating new products and services. New products not only brings new customers to the
fold but also give old customer a reason to buy elite wood products.
 By building economies of scale so that it can lower the fixed cost per unit.
 Building capacities and spending money on research and development. New entrants are less
likely to enter a dynamic industry where the established players such as elite wood products
keep defining the standards regularly. It significantly reduces the window of extraordinary
profits for the new firms thus discourage new players in the industry.

One of the major challenges being faced by the plywood industry is the monopolisation of
certain critical inputs for plywood manufacturing. Face veneer, which provides support and
finishing to the plywood, is one such product. Prepared from gurgan and kuring woods
imported from Burma and Malaysia, it is a monopoly item.

Industry experts say that metal and glass pose the biggest challenge to the wood industry and
the manufacturers are not tuned to this.
Consumers are now keen on using a range of different materials. Thus, wood manufacturers-
merchants need to innovate quickly. The industry needs to understand and respond to changing
requirements to exist and remain competitive.
During a strength, weakness, opportunities and threat (SWOT) analysis, it emerged that low-
end technology was being used by the manufacturers.
The machines in operation were very old, probably from the time of inception of these units.
There was no local face veneer manufacturing unit and the products which were important to
the value chain were either imported or procured from far-off places. This has resulted in
increased costs.

Bargaining Power of Suppliers

All most all the companies in the plywood industry buy their raw material from numerous
suppliers. Suppliers in dominant position can decrease the margins elite wood industries can
earn in the market. Powerful suppliers in Industrial Goods sector use their negotiating power
to extract higher prices from the firms in General Building Materials field. The overall impact
of higher supplier bargaining power is that it lowers the overall profitability of General
Building Materials.

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 By building efficient supply chain with multiple suppliers.
 By experimenting with product designs using different materials so that if the prices go up of
one raw material then company can shift to another.

Bargaining Power of Buyers

Buyers are often a demanding lot. They want to buy the best offerings available by paying the
minimum price as possible. This put pressure on elite wood products profitability in the long
run. The smaller and more powerful the customer base is of elite wood products the higher the
bargaining power of the customers and higher their ability to seek increasing discounts and
offers.

How elite wood industries can tackle the Bargaining Power of Buyers

 By building a large base of customers. This will be helpful in two ways. It will reduce the
bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its
sales and production process.
 By rapidly innovating new products. Customers often seek discounts and offerings on
established products so if elite wood products keep on coming up with new products then it
can limit the bargaining power of buyers.
 New products will also reduce the defection of existing customers of elite wood products to its
competitors.
Threats of Substitute Products or Services

How elite wood industries can tackle the Treat of Substitute Products / Services

 By being service oriented rather than just product oriented.

 By understanding the core need of the customer rather than what the customer is buying.
 By increasing the switching cost for the customers.

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LEARNING EXPERIENCE:

It was a great experience to do an organization study at Elite wood industries .In the period of
four weeks, I have understood and also meant the follow, During my internship, I got an insight
to the technological industry which helped me in relating the theoretical concepts of classroom
with the practical work field.
I was able to improve my managerial skills and being timely with respect to handling people's
problems.

The energy and effort put in by me for four weeks will help me stand in a good position in the
long run.
I got a chance to learn from the people who are experts in different fields.
I got to know about the various policies for workers benefits and their schemes and the way
they going about their strategy in order to gain workers compliance.
During this training I got opportunities to interact with professionals which helped m enhance
my communication skills and decision-making skills and made me managerially more
equipped.

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