A

Product ProfileOn

PLYWOOD

IN PARTIAL FULFILLMENT OF

POST GRADUATE CORPORATE PROGRAM

Submitted By

MOHIT AGARWAL

PGCP

(2007-2008)

SURYADATTA INSTITUTE OF MANAGEMENT AND

MASS COMMUNICATION

(SIMMC)

1

ACKNOWLEDGEMENT

I wish to thank founder director and chairmen of SURYADATTA GROUP OF

INSTITUTES, Prof. Dr. S. B. Chordiya for giving me such a great platform of

learning and for giving me a beautiful opportunity of making a product profile.

It is pleasure to be able to thank all the people who helped me to make this

product profile.

I would also wish to thanks to my parents and all my friends who

helped me in every turn. There is a noble guidance driving inspiration support and

blessing which has enable me to undertake the complete this task without which it

would not have been possible for the present work to see the light of the day.

I convey a very special thanks to Mr. RANGANATHAN also for being there as a

great motivator, a source of inspiration.

Last but not the least; I would like to thank God for everything.

2

TABLE OF CONTENT

INTRODUCTION3

CHAPTER

NO

CONTENTS PAGE NO

1 INTRODUCTION 4-13

a) About COMPANY 4-5

b) COMPANY Objective 5

c) Brief Outline On Company 6-13

2 Product profile 14-24

a) About Product 14-22

b) Product Price 23

c) Product Life Cycle 24

3 Satisfaction Index 25

4 Financial Highlights 26-30

5 Research & Future Plans 31-38

6 Data Analysis 39-41

7 Conclusions 42-43

8 Learning Experience 44

9 Bibliography 45

About Greenply Industries Limited

Greenply Industries Limited (GIL), a Rs 470 crore, dynamic, professionally

managed Interior Infrastructure Company, is the leader in the plywood and

laminate industry in India. The company was incorporated in August 1984 as a

sawmill unit.

Greenply is a manufacturer of all products related to interior infrastructure from

plywood & boards, flush doors, decorative veneers, decorative laminates to

pre lam MDF and particleboard. The company accounts for 25 per cent of

organized plywood and 15 per cent of organized laminate market.

The company has, over the years, grown as an interior infrastructure solutions

provider that currently manufactures a host of renowned brands such as Greenply

Plywood – ‘Chalta Rahe; Green Club Premium Ply, which comes with a life

time guarantee; Greenlam Laminates, ‘Dikhane Ka Jee Kare’; and Green

Decowood, ‘Visibly Superior Veneers’.

The company has more than 25 branches across the country with a strong network

of over 7,100 dealers, distributors, sub-dealers and retailers. Exports contribute to

around 8% of the company’s total turnover. Greenply exports its laminate products

to more than 18 countries such as the US, Australia, Malaysia, Singapore, the

UAE, Russia, Israel, and New Zealand among others.

Pioneering the concept of branding for various products and brand building as its

core, the company’s track record is impeccable as a profit-making dividend paying

4

company over the last decade with 61% CAGR growth in bottom-line over the last

five years leading to 2006-7.

Greenply has recently merged its subsidiary, Worthy Plywood, into itself. It is also

worth mentioning that Greenply Industries has recently acquired a Mumbai-based

laminates brand, New Mika, to enhance its presence in the Western markets. It is

worth mentioning that The Green group has recently launched its international

arm, GIL Intercontinental PTE Ltd. to market laminates in Asia Pacific Markets.

CHAIRMAN’S MESSAGE

The Chairman of Greenply, Mr.S.P.Mittal says “We are ENVIRONMENT

conscious". It is not a concern. It's a responsibility. And we at the house of

5

"GREEN" take it very seriously. The GREEN GROUP thus utilizes technology

with responsibility seeing to the fact that the EARTH remains as "GREEN" as it

always needs to be. This is our way of paying homage to Motlior Naturo. The

Group employs over 2500 people in different cadre.

The word "GREEN" may sound antithesis to our area of activity but we do what

we believe in. The main concern of the group has been most effective and eco-

nomic utilisation of the scarce natural resources and converting them into durable

quality utilities. We work in volume and this has helped us to maintain moderate

price level.

Our total thought has thus been translated into our company logo in the form of a

"Green Leaf." The colour represents that of a tender leaf, indicating that we are

young and have a lot more to contribute.

OBJECTIVE: Our vision is continued improvement across all qualitative and

quantitative dimensions creating synergies and efficiencies to produce and distrib-

ute high quality products at economical cost. The Company with focused emphasis

on the new technological superiority in manufacturing has carved an enviable

niche for itself in the Industry. The group is now managed by a set of high caliber,

dynamic and young professionals.

CORPORATE HEADOFFICE

KOLKATA (Corporate Office)Greenply Industries Ltd.New B.K.Market, 2nd Floor,

DELHI (Marketing Office)Greenply Industries Ltd.1501-1505, Narain Manzil

6

16A, Shakespeare Sarani,kolkata-700071Ph: +91-33-22822175, 30515000 Fax: 91-33-30515010 E-mail: kolkata@greenply.com            admin@greenply.com

KOLKATA – [Factory]Vill.Kirparampur, P.O.SukdevpurDist.24 Parganas(S) W.B.Ph: +91-33-24709277/24709085/24809264Fax : 033-24708546 E-mail: kirparampur@greenply.com

PUNE Greenply Industries Ltd. C-16,17, Shangrila Garden Near ICICI Bank, Bund Garden Rd Pune-411001 Ph: +91-20-26129307/ 26132937

E-mail: pune@greenply.com

23, Barakhambha RoadNew delhi-1 (India)Ph: 91-11-42791300FAX: 91-11-42791330 E-mail: delhi@greenply.com

PATNAGreenply Industries Ltd.205, 2nd Floor, Kamlalaya Shobha PlazaBehind RBI, Exhibition RoadPatna -800001Ph: +91-612-2322464, 2322465Tele Fax: +91-612-2669567E-mail: patna@greenply.com

MUMBAI Greenply Industries Ltd. 104, A - Wing, Eastern Court Parmeshwar Road, Vile Parle Ph: +91-22-26104651/26118320    +91-22-26187088 Fax: +91-22-26101903 E-mail: mumbai@greenply.com

INTERNATIONAL OFFICE

SINGAPOREGIL Intercontinental Pte Ltd.Mr. James43, Sungei Kudat Street 1Singapore - 729348Ph: 0065-63659138

HONG KONGMr. Chan Fook Shing ,WilsonGreenply Industries Limited.Suites 2203-06, Level 22,Office Tower, Langham Place8 Argyle Street, Mongkok,

7

Email : ukt@greenlam.com.sg

INDONESIAMs. WidiyeniGreenply Industries Limited.JDC business CentreJakarta Design Centre, 6th floorJl Jend Gatot Subroto Kav. 53Jakarta 10260IndonesiaPh: 62 21 5790 1413Fax: 62 21 5790 1415H/P: 62 856 100 4585,   62 21 928 60205Email : widi@greenlam.com.sg w1d131@yahoo.com

Kowloon, Hong KongPh: (852) 3423 4312Fax:(852) 3423 4372

 

 

8

9

Products & Brands

10

Spend on Advertising & Promotion

3.94

10.45

14.94

1.8102468

10121416

2003-04 2004-05 2005-06 2006-07Year

Rs in

Cr

COMPANY’S CLIENTS

11

Godrej BlowPlast Featherlite

Barista Hutch Airtel

Infosys Wipro L&T

SBI ICICI

MAX Healthcare

MARKETING INITIATIVES

Expansion of sales offices in Tier II cities to provide better services to the

distribution chain and develop the markets

Dealer/Distributors/Sub Dealers/Retailers network increase from 3700

during March 06 to 7100 during March 07 resulting into greater penetration

in market

Launch of new Greenlam advertisement in February 2007, aired on all

prime-time slots and translating into enhanced viewer attention & TOM

recall

Image-strengthening exercises in the plywood business by continuing to air

its popular ‘sardar kid’ advertisement on TV channels

12

ABOUT PRODUCT13

Greenply Today

(PLYWOOD)

HISTORY:

The earliest known making of plywood was in 3500 B.C. in ancient Egypt. The

Egyptians, the builders of the pyramids, were the first to create wooden articles

made from sawn veneers glued together crosswise.

They originally did this because there was a shortage of fine wood. Because of this

shortage, thin sheets of high-quality wood were glued over lower-quality wood for

a cosmetic effect. It wasn't done for structural benefits as it is today.

Modern plywood - in which the veneer is cut on a rotary lathe from softwood logs

- is of relatively recent origin, invented by Immanuel Nobel (the father of the

more-famous Alfred Nobel). The first such lathes were set up in the United States

in the mid 19th century. Plywood has been one of the most useful and most-used

building products for decades.

Plywood has become a very common building material in the United States, used

to make everything from furniture to houses.

PLYWOOD:

14

Plywood was the first engineered wood invented by man. It is made by stacking to-

gether thin sheets of wood veneer - also called pliers - with the direction of each

ply's grain reversed from its neighboring plies.

These plies are bonded together through intense heat and pressure and strong adhe-

sives. This makes plywood a type of composite material.

Plywood production requires a good log, called a peeler, generally straighter and

larger in diameter than that required for processing by a sawmill. The log is peeled

into sheets of veneer which are then cut to the desired dimensions, dried, patched

and glued together to form the plywood panel. The panel can then be patched, re-

sized, sanded or otherwise refinished, depending on the market it was intended to

be sold in.

Plywood is usually used instead of plain wood in situations where the wood needs

to be flexible but stable. Plywood has a strong resistance to shrinking, twisting and

warping because of the differences in the layers.

TYPES OF PLYWOOD:

15

There are a large number of varieties of plywood. Each is created for a specific

purpose. Different conditions require different types of plywood.

Softwood plywood

Decorative plywood

Indoor Use

Outdoor Use

Softwood plywood is typically used for construction and industrial purposes, is

made with either Douglas Fir, spruce or pine.

Decorative plywood is usually faced with hardwoods. Such woods include red oak,

birch, maple, lauan (Philippine mahogany) and a large number of other hardwoods.

Plywood that is made for indoor use is generally made from less expensive phenol

formaldehyde glue (which has limited water resistance), while outdoor and marine

grade plywood are designed to withstand rot and use a water resistant phenol-

resorcinol glue to prevent delamination and retain strength in high humidity.

The most common varieties of softwood plywood come in three, five or seven

plies with dimensions of 1.2 m × 2.4 m (4 feet × 8 feet). Each ply is 1/8 inch.

Roofing can use the thinnest 3/8-inch plywood. Floorboards are at least 5/8-inch

depending on the distance between floor joists. Plywood is often tongue and

grooved for flooring applications. Two of the edges will have "grooves" notched

into them to fit with the adjacent "tongue" that protrudes from the next board.

PLYWOOD PROCESS &DESCRIPTION

16

The plywood process was broken down into six unit processes. The following

are the descriptions of the unit process:

1. Debarking and bucking: This unit process includes mechanically removing the

bark from the logs and cutting them to the proper length to make wood “blocks”

for peeling. Co products generated include bark and some wood waste. Inputs

include electricity to operate equipment and diesel fuel for the log haulers.

2. Conditioning: The wood blocks are heated with either hot water or direct steam

to improve the quality of peeled veneer. There are no co-products and the inputs

include steamed electricity.

3. Peeling and clipping: Blocks are peeled in the lathe to make long ribbons of

veneer that are clipped to size, and sorted by moisture content in preparation for

drying. Co products include roundup wood, peeler cores, veneer clippings and

trim. The inputs include electricity to operate the lathe and conveyor.

4. Veneer drying: Veneers are dried in continuous dryers from moisture contents

of 25–100% down to 3–5% moisture content (oven-dry basis). This is the most

energy intensive unit process and uses various heat sources. Co-products include

veneer downfall and other wood waste. Air emissions occur as the wood elevates

in temperature and the wood dries. Because of high temperatures of the wood, this

process is a primary source of emissions of volatile organic compounds (VOC).

Emissions can also be due to the direct combustion of natural gas or wood and

Bark hogged fuel at the dryers. Emissions also occur at the hogged wood fuel

boiler that provides steam to the dryers.

17

5. Lay-up and pressing: Veneers are coated with phenol-formaldehyde resin and

stacked into panels for hot-pressing. Heat and pressure are used in the press to cure

the resin, thereby bonding the veneers to make plywood. There are no co-products

for this unit process. Emissions included those from the wood at elevated

temperatures and the curing of the phenol-formaldehyde resin. Emissions also

occur at the boiler that provides steam to heat the plywood hot press.

6. Trimming and sawing: Plywood panels coming-out of the press are sawn to ap-

propriate\dimensions, usually 1.22 × 2.44 m (4 × 8 ft).Co-products include ply-

wood trim and sawdust. Emissions include a small amount of particulate.

Model of Plywood Manufacturing Process

18 Input: Logs

USAGE OF PLYWOOD

19

Bucking & Debarking

Peeling & Clipping

Veneer Drying

Hot Pressing

Block Conditioning

Trimming & Sawing

Output : Plywood

Plywood has many uses. It is used in many situations for many different reasons,

the most common uses and the way it is used in these situations are:

1. Floor Sheathing and Underlayment - Plywood provides a superior floor be-

neath resilient flooring and carpeting because it is dimensionally stable. It remains

flat to give a smooth, uniform surface that does not crack, cup or twist. Plywood

panels reduce labor and material costs by eliminating the need for blocking at

panel edges.

Sheathing grade is suitable for subflooring, beneath such applications as hardwood

flooring or concrete topped floors.

2. Wall Sheathing - Plywood panels used as wall sheathing provides excellent re-

sistance to lateral forces such as wind and earthquake loads. Also, damage to finish

materials in the structure due to uneven settling of the frame is minimized due to

the extra rigidity plywood adds to the building.

Plywood sheathing contributes to the over-all thermal performance of the wall be-

cause the large panels have fewer joints through which heat can escape.

3. Roof Sheathing - Plywood is often used for roof sheathing. The panel size com-

bines speed of erection with lightweight portability. The stiffness of the panels

constitutes diaphragm action when prescribed framing and nailing patterns are

used.

Panels should be applied with the face grain at right angles to the supports to pro-

vide maximum strength.

4. OTHERS -The product is ideal for:

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Furniture Partitions Panelling Cavity flooring Panelled doors Hoardings False ceilings and other exterior and semi-exterior applications.

ADVANTAGES:

There are many advantages to using plywood:

1. It comes in a standard size (4 feet x 8 feet)

2. It is very cheap considering the size of the boards

3. It is a very strong wood

4. It is very stable (warping and shrinkage isn't much of a problem)

5. Resistant to boiling water, moisture, dry heat, termite, insects and pests.

6. Remains unaffected in spite of changing weather conditions.

Really, if plywood did not exist, builders would end up making the same size

pieces of wood from a collection of flat boards. The result would be a much higher

cost for a finished product that isn't as safe or stable.

PRECAUTIONS:

21

It is necessary to follow certain precautions to make the film face last longer.

1) Unload carefully.

2) Do not drag & drop from height.

3) Stack on a flat surface.

4) Clean both surfaces after use.

5) Apply mould oil after 3-4 uses.

6) Use sealant on cut edges.

7) Use minimum nails.

PRODUCT’S PRICE

22

DEALERS PRICE LIST OF PLYWOOD

THICKNESS COMMERCIAL W/P GUR. COMM GUR.W/P

04MM 14=5017=00 15=50 18=50

06MM 18=7522=50 23=00 27=00

08MM 22=0026=00 26=00 30=50

12MM 26=0031=50 35=00 41=50

15MM 34=0042=00 43=00 54=50

18MM 37=0047=00 50=00 60=00

19MM 42=5047=00 42=00 54=00

25MM 75=00 90=00

Here,

All rates are in sq. per fit

MM is the measurement unit of thickness.

Commercial is a type of material.

W/P means water proof, type of material.

GUR means GURJAN, a type of material.

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PRODUCT LIFE CYCLE

PLYWOOD

PLC consist four stages: Introduction, Growth, Maturity and Decline. Plywood

is in its growth stage due to its increase in demand. Greenply data shows 57%

increase in Plywood production, increment in production also shows a growth

of Plywood.

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Satisfaction Index

As far as customer satisfaction is concerned it is very clear in the market size of Greenply that the customers are very much satisfied with it.

The compliments given by the potential customers and the retailers of Greenply in

the market on the scale of:

Variety.

Reliable.

And the most important one is that is quality.

Tangibility.

Every company wants to satisfy their customers because if the customer satisfied by the product of a company then and then only a company can get the good results. Consumer is a first person through which a company comes to know about their product.

25

FINANCIAL HIGHLIGHTS

Particulars 2006-07 2005-06 Growth (%)

26

Net sales 392.20 257.35 52.40

PAT 22.52 14.09 59.83

EBIDTA margin (%) 11.97 11.86

Equity capital 8.23 6.72

EPS (Rs, fully diluted) 13.25 10.32 28.40

ANNUAL & QUATERLY REPORT

Particulars Q4FY07 Q4FY06 Growth (%)

Net sales 110.61 62.74 76.30

PAT 6.72 3.77 78.25

EBIDTA margin (%) 12.10 10.03

EPS (Rs, fully diluted) 3.95 2.64 49.76

27

ParticularsQuarter

ended on31.12.2007

(Unau-dited)

Quarterended on 

31.12.2006(Unau-dited)

Nine Months

ended on 31.12.2007(Unaudited)

Nine Months

ended on 31.12.2006(Unaudited)

Year ended on 31.03.200

7(Audited)

 

28

Net Sales

163.39

257.34

392.19

141.93

050

100150200250300350400450

2003-04 2004-05 2005-06 2006-07Year

Rs in

Cr

Segment Revenue

a )Plywood & Allied Products 8976.70 5838.78 24512.37 15711.47 22465.48

b )Laminates & Allied Prod-ucts 7288.19 6091.80 21687.88 18143.57 24546.87

Total 16264.89 11930.58 46200.25 33855.04 47012.35

 

Segment Result

a) Plywood & Allied Products 1701.18 1061.52 4793.93 2255.31 3071.05

b) Laminates & Allied Prod-ucts 1311.78 582.15 3784.99 1897.59 2985.48

 

Total 3012.96 1643.67 8578.92 4152.90 6056.53

Capital employed

a) Plywood & Allied Products 19380.41 16824.49 19380.41 16824.49 16674.72

b) Laminates & Allied Prod-ucts 9116.45 6329.59 9116.45 6329.59 7709.86

Total 28496.86 23154.08 28496.86 23154.08 24384.58

Segment wise Revenue, Results and Capital Employed

PAT (PROFIT AFTER TAX)

29

392.19

050

100150200250300350400450

2003-04 2004-05 2005-06 2006-07

30

392.19

050

100150200250300350400450

2003-04 2004-05 2005-06 2006-07

RESEARCH & FUTURE PLAN

RESEARCH METHODOLOGY

Research Methodology is a method followed to conduct the designed plan,

structure and strategy of investigation conceived so as to find out the results.

31

In order to achieve objectives of the project data was collected from various

sources.

DATA COLLECTIONThe data and information collected for the purpose of study is categorized in two

types: -

a. Primary Data

b. Secondary Data

1. PRIMARY DATA

It is the data, which is collected for first time by researcher for the project. The

primary data is collected with the help of conducting interviews of investors and

through questionnaire. The data was also conducted by carrying out a fieldwork in

order to obtain response to Online as well as Broker trading.

2. SECONDARY DATA

The data, which already exists and has also been analyzed for some other purpose

is termed as secondary data. This data is collected from publications, technical and

trade journals, magazines and newspapers. It has been obtained from company files

and records. The data was also collected from senior executives and from web

sites.

PRIMARY DATA: Primary data is collected through Questionnaire.

Questionnaire

32

Name……………………………………………………………..

E-MaiID………………………………………

Telephone…………………………………

Occupation………………………………………………………

6) What is your perception about Plywood?

a) Costly

b) Cheap

c) Any other (Please specify)

7) What are the different types of Plywood you are aware of?

a) Softwood Plywood

b) Decorative plywood

c) Waterproof

9) How do you rank the following Plywood Companies in order of your prefer-

ence?

Plywood Companies

a) Greenply Ind. Ltd.

b) Supreme plywood

33

c) Shivam Plywood

d) Galaxy plywood

e) Magic plywood

f) Reliance Mutual Fund

10) What are the reasons behind your ranking?

a) Brand Name

b) Advertisement

c) Good service

d) Good Quality

e) Any other reason

11) Have you heard Greenply Industry Ltd.?

a) Yes

b) No

12) Have you ever used plywood of Greenply?

a) Yes

b) No

13) If yes what is your experience with Greenply?

……………………..

………………………………………………………………………………………

34

………………………………………………………………………………………

…………………………………

Date: …………………………………

SECONDARY DATA:

Consumers have shown a consistent preference for wood as opposed to metal or

plastic furniture. Consequently, it is unlikely that drastic changes occurred in lum-

35

ber usage since 1972 despite the high prices for both softwoods and hardwoods.

The 1977 softwood and hardwood lumber use factors are accordingly projected

0.48 and 1.85 billion board feet per index unit, respectively. (The Forest Service is

currently conducting a new survey on wood usage in manufacturing. It will be pos-

sible to check the accuracy of these projections later in 1978.)

PlywoodTotal plywood usage has trended erratically upward during the 4 survey years (fig.

X). Hardwood plywood in particular showed a consistent upward direction from

0.46 billion square feet per index unit to 0.83 billion-(adjusted to include kitchen

cabinets) in 2005. Softwood plywood rose from 0.28 billion in 2003 to 0.45.(ad-

justed) in 2005. Both usage factors are expected to show more modest gains be-

cause of increased competition from composition boards. The softwood and hard-

wood plywood use factors are projected at 0.45 and .75 billion square feet per in-

dex unit in 2007.

Fig. X 1.5

36

1.0 BILLION PLYWOODSq. FEET PERINDEX UNIT

HARWOOD 0.5

SOFTWOOD 0 2001 2003 2005 2007

FUTURE PLANS

37

Greenply Industries has picked up controlling stake in two Gujarat-based plywood

manufacturing companies, Galaxy Decor and Platinum Veneers.

The board cleared that the company’s proposal is to set up a new laminate

producing unit in Himachal Pradesh as well as a medium densified fiber (MDF)

board production line within the premises of its existing Uttarakhand plant.

Company’s present force is how directed towards maintaining the pace and we

have plans to expand, diversify and integrate to further our objective and reach

new heights.

38

DATA ANALYSIS

PLYWOOD

39

57 per cent increase in plywood production to 12.86 million square metres;

average capacity utilization 77 per cent

Commissioning of a Greenfield unit in Uttarkhand in May 2006 within eight

months as opposed to the industry benchmark of 12-16 months

Plywood contributed 48% to the total revenue and 53% to the total PBIT

85% increase in plywood revenue to Rs. 201.98 crore

40

Market Size

41

Estimated Market Size 12000 crores

Plywood includ-ing Decorative

VeneersRs 7000 cr

LaminatesRs. 3000 cr

Particle BoardRs. 2000 cr

CONCLUSIONS & SUGESSTIONS

42

CONCLUSIONSGreenply Industry Ltd. (GIL) is an integrated interior infrastructure company

leading with leadership in the plywood & Laminates in India. GIL manufactures

product like Plywood, Particle board, Laminate & Decorative veneer commanding

more share of 25% in the organized Plywood market & 15% in the organized

laminate market. The products are sold under the brand Greenply, Greenlame,

Green Decowood in the Plywood segment .GIL has more than 26 branches across

the country with a strong network of over 7100 dealers, distributors, sub-dealers &

Retailers.

1) Plywood and laminate industry provides direct and indirect employment to

over a million people.

2) Revenue from the Plywood is more than all other products.

3) The producing capacity of Plywood is also more than all other products.(18

million sq. per meter)

4) Consumer also giving a good preference to plywood.

5) Market share of Plywood is also high of GIL.

SUGGESTIONS

1) Company should go for direct mailing exercise to the specifiers and trade.

2) Company should create awareness among the people.

3) Company should make a strong relationship with the specifiers mainly

Interior Architects and Designers

Contractors & carpenters

Retailers

4) Company should expand their network through Authorized dealers/ Sub-dealers/ Retailers.

43

LEARNING EXPERIENCE

My experience of making a Product Profile is wonderful because it gives me a lot

of valuable & knowledgeable information. After preparing a product profile I come

to know that what researches should be conduct before launching any product in

the market. For promoting the sales of any product it is necessary to fulfill the

expectations of the consumers related to a particular product and this profile helps

me to know how to target the customer or how to reach the customer and how to

satisfy them.

It is necessary for every company to expand the market of their product for

surviving in a market and for expanding the market “Positioning of the market” is

very necessary. This profile also helps me in the same.

In this way I can easily say that “product Profile” is really a wonderful experience

for me.

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BIBLIOGRAPHY www.Google.com

www.GIL.com

www.Greenply.com

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