ABSTRACT

A study on the organization structure on a live visit to

century ply plant.

ORGANIZATIONAL Ashutosh Kumar, Debangan Das, Harsh Bansal,

Niki Kumari and Gulshan Kaur.
Strategic management.

STRUCTURE OF
CENTURY PLY
Submitted to: Prof. Dr. Shekhar Chaudhuri
INTRODUCTION
Management is the process by which people, technology, job tasks and other resources are combined and coordinated
to effectively achieve organizational goal. The organizational study conducted at Century ply industries private ltd. is to
study about organizational structure communication channel, span of control, organizational culture etc. of the
organization. The relevance of the study is to understand the above-mentioned facts through a real organizational
scenario. The chief objective of the organizational study is to familiarize with the working of various departments for a
period, so that one can have exposure to the practical side.

OBJECTIVES OF STUDY
1) To study the ply wood industry
2) To study the structure of the organization (Century ply industries Ltd.)
3) To study the functions of different departments at Century ply industries Limited.
4) To conduct Porter's and SWOT analysis at Century ply Industries Limited.

SCOPE OF STUDY
With the increasing entry of new companies, introduction of new technology and changing economy the world of
business is changing very rapidly.
This organization study with Century ply. exposes to the practical side of business enterprise. This study helps to
understand the history, structure, activity and products of the company and its contribution to Indian Ply Wood Industry.
This study exposes to various departments and their interdependence on each other for the successful running of an
organization.

INDUSTRY PROFILE
Trees are nature’s greatest bounty to man. They provide shelter, fuel, medicines and tools for war or commerce or
transport. It was a timber from trees, which in the early days helped man to conquer the oceans and to fly in the air.
Nature develops trees as a mother brings up children, making each one a separate individual. It is an amazing sight to see
the natural abstract rhythm of line, colour and texture in wood. Nothing from nature indoors gives such a long-lasting
enjoyment as the natural beauty of wood. Flowers fade, but the beauty of decorative wood is enhanced by age.

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GROWTH AND DEVELOPMENT OF
PLYWOOD INDUSTRY
In India the modern sector of small, large scale manufacturer has played a significant role in the socio-economic
development of the country. Our county is blessed with immense stock of natural resources both above and beneath
the soil surface. Forest is one of the important natural assets of India. Of the various areas of wood processing plywood
manufacture is an important sector wing to its employment potential and value addition. In India plywood as a product
was commercially developed first in Assam and its neighbouring area by enterprising industrialist. Nearly a century ago
during those days when the India tea was introduced to Europe, many complaints such as tanning of the tea, change of
odour, lack of resistance of boxes to withstand transport, landings were received. To overcome these complaints Indian
association set up a committee to go up into the details of tea packing and it was found that tea chest made from
plywood could be used for packing tea.

The art of veneering was in existence as early as 1500 BC in Egypt. Veneering is a

thin layer of sheet of wood uniform in thickness. Veneer is used in Greek during early period to beautify the furniture.
The Roman also used veneer during the time of 63 BC. During the reign of LUOIX XV in 1760 good decorative furniture
was made in France using veneer. The plywood which are seen in the present form was developed after 1860 this
veneer machine was first upgraded by French mechanic in 1812. The factory for manufacturing of veneer was first
established in Germany in the middle of 19th century. Nowadays a rapid development is taking place in this field. At
present wood products are used for manufacture of modern kind of furniture, building material, material for interior
decoration, ship building, automobile manufacturing, and refrigerator and meant for many other purpose.

PLYWOOD INDUSTRY IN INDIA

The Indian plywood industry owes its origin to the development of tea industry in the state of Assam, West Bengal,
Kerala and the difficulty created by the two World wars in the way of imports of tea chest plywood. Except for the
setbacks suffered in the post war period, the plywood sector was booming since 1947. In 1947 India was a net importer
of plywood, mainly tea chest plywood of approximately Rs.2 crore per annum. During 1992 India manufactured 150
million sq. meters of plywood types that earned approximately Rs.1000 crore. The industry has grown both in medium,
large scale and small-scale sector. The plywood industry consumes about 15 million m3 timbers of primary and
secondary species. In fact the plywood industry has provided main outlet for the maximum utilization of secondary
species of timber there by making available contribution in the forest economy. Later, the plywood industry aided for the
development of farm forestry sector plantation, which benefits the ordinary farmers in the country. The other main raw
material required by the plywood industry is synthetic resin, which is available within the country. The materials required
for manufacturing resins are Urea, Phenol and Formaldehyde. This industry also pays excise duty to the extent as Rs.50
crore; provides employment to about 30000 people and has total investment as Rs.400 to 500crores. India was rich in its
forest wealth having a huge land area under forests. Practically, all varieties of forest growth are found in India, ranging
from tropical hardwood forests to high altitude coniferous forests and from deciduous to evergreen forests and
Plantation but unfortunately the forest resources in India is depleting due to increase of population and other causes.
Sound principles of forest policy, administration, timber production and conservation were introduced by an act of
legislature in 1845, and ever since Indian forests are being managed on scientific and progressive lines. Large areas have
abundance of some of the finest plywood timbers both for constructional and decorative plywood, Indian teak, Indian
Rosewood and Padauk are world-renowned for their beauty of figure, grain and texture. Gurjan, Vellapine, Hollock and
Hollong are only a few of the many Indian timbers used for making good commercial plywoods. Such continuous
depletion of the natural forest resources of the country due to various consumption of solid wood, it was felt to conserve

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the natural resource forest by reconstituted wood products such as Plywood, Hardboard, Particleboard and Medium
Density Fibreboard (MDF) to meet the rising demand of Wood from the general consumer, Railways, Defence, Furniture,
Laminate manufacturers
and the builders. At the same time also, it is trying to meet the wood demand by Bamboo, a product which is like to
wood. Instead of depending entirely on natural regeneration of forest resources the Government of India, NGO and
some of our members have taken positive steps for Tree plantation on large areas in the various states with fast growing
species so that can conserve the natural forest and meet the demand for wood and wood products of various domestic
and international consumers.

INDUSTRY TRENDS
Competition is keen in the furniture industry. Furniture manufacturers and exporters are suffering from decreasing profit
margins. Many companies strive to reduce their cost of production and increase efficiency. Some relocate their
manufacturing operations to other areas with lower operation cost, such as the Chinese mainland. On the other hand,
foreign manufacturers are taking steps to strengthen their domestic production through product specialization. To stay
globally competitive, Hong Kong furniture manufacturers strive to reduce costs, initiate quality control, improve design
concepts and capability, and upgrade management skills and increase marketing and sales effectiveness. Many
manufacturers have obtained or are applying for ISO 9000/9002 certification. Hong Kong's furniture makers also started
to develop their own brands. Furniture manufacturers also become more careful about the choice of raw materials to
meet international standards, such as compliance with legal or other environmental requirements in their target
markets. China is the largest furniture exporter to many countries, including the US and Japan. The total furniture exports
of China exceeded US$6,683 million in 2002, with the US being its largest market.
Guangdong province is the major manufacturing centre of furniture on the Chinese mainland. Apart from Hong Kong,
manufacturers from Taiwan and even the US have also set up plants on the mainland. In China, most of the production is
on an OEM basis. China also offers a huge potential market for furniture maker.

WOOD BASED PANEL INDUSTRY IN INDIA

Wood Panel products effect considerable saving of scarce wood as compared to Solid Timber. The basic types of Wood
based panels are:- Plywood Particleboard Hardboard Medium Density Fibre board Because of their versatility in
application and efficiency in wood raw material utilization the wood panel products have to a great extent replaced solid
wood in both structural and non-structural uses. The history of plywood industry in India is old. It is more than 75 years
that this industry was 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 lacs. Import rose steadily and by 1924-25 it was worth Rs.90 lacs. 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 and slow and not phenomenal. 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 form of Tea Chests Industry started on a large scale. It will not be exaggerated that Plywood Industry in India is
a gift of Second World War. Now that tea chests must be produced, Forest Departments in different 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 as good as imported products and
therefore advised forest entrepreneurs to set up modern factories in different States. Accordingly well equipped
factories were started in different places viz. Sitapur, Bangalore, Baliapatam, 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 this

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industry by trying to restart imports of tea chest. 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 and slowly, the
Government imposed total ban on imports and this thoughtful action of 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, decorative plywood,
marine and aircraft ply woods, produced in Indian factories came into the market which were second to none in the
world in quality and diversity of its products. Industrial Licensing is governed by the Industries (Developmental and
Regulation) Act, 1951 under which the wood-based industry was covered. There was no restriction of putting up
plywood Mill up to 1970. The only criteria were 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 project; the Wood based Industry was more or less in Medium and Large scale.
The Wood based Industry was under Compulsory Industrial Licensing from 1988 whether a small-scale unit or a
Large/Medium 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 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 Eastern Zone. In 1997 the Government of India totally delicensed wood-based industry as a result more than
2000 small-scale unit coming up. The potentialities of the industry can be judged from the many uses to which plywood
can be put. Apart from tea chests plywood marine and aircraft plywood there are specific demand for the following
articles from the consumers: -
1. Shuttering Plywood
2. Packaging Plywood
3. Plywood drums
4. Flush doors
5. Commercial & Decorative Plywood
6. Block Boards
7. Moulded Plywood furniture and chair seats
8. Laminated picking sticks for cotton and jute textile industry
9. Sliced decorative veneers of walnut, teak, rosewood etc.
10. Compregnated wood veneers required for heavy chemical industry and electrified railways.

INFERENCE
Indian plywood industry is as big as Rs 5,000 crore and the laminate industry is almost Rs 3,000 crore. The industry is
growing at a rapid pace of 10-20 per cent per annum. Approximately 600 units are currently functioning all over the
country. There is tremendous growth potential as the players are yet to penetrate majority of the market. In India the
modern sector of small, large scale manufacturer have played a significant role in the socio-economic development of
the country. Because of the versatility in application and efficiency in wood raw material utilization the wood panel
products have to a great extent replaced solid wood in both structural and non-structural uses. The history of plywood
industry in India is old. It is more than 75 years that this industry was started here on a very modest scale. The plywood
which are seen in the present form was developed after 1860 this veneer machine was first upgraded by French
mechanic in 1812.

HISTORY OF THE COMPANY

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Century Plyboards (India) Limited is more than just a brand. It is an industry statesman in existence for more than 33
years. It is a customer-proximate company manufacturing product across seven locations. It is always an arm’s length
away, providing products through more than 13,000 retail points.

Established in 1986 in Kolkata, a joint effort of Mr. Sajjan Bhajanka and Mr. Sanjay Agarwal.
Century Ply brand is leading brand in the Indian organized plywood industry named as Century Ply Boards (I) Ltd.
It has the distinction of becoming the first ISO 9002 company in India. Century Ply Boards (I) Ltd is FSC certified company
in Plywood industry showing the effort to ecological interest.
It is the leading brand and largest seller of Plywood and Veneers in organized sector.
Century Ply was adjudged the Fastest Growing Company with the Highest Turnover by the famous Journal Construction
World.
The Centre for Monitoring Indian Economy (CMIE) has also given Century Ply the top position in its surveys.
Most sought-after brand in wood industry in India.
Pan India presence with more than 30 offices across the country.

Name of the organization

Century Plyboards (India) Ltd. [CPIL]

Year of the establishment =

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Address = 6, Lyons Range, 1st Floor, Kolkata- 700 001
Annual turnover ( CR.) = Rs. 1,920.33 crore
Business Activities =
The Company manufactures plywood, laminates, veneers, block boards and doors .

Major Products =

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Customers = Companies, Business Units, Interior Decorators, Individual.

Market Capitalization ( in %) = 34.48%

Competitors

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Operating Regions / countries
CPIL operates across India and also exports its products to USA, Europe, Singapore,
Hongkong, Vietnam, China, Nepal, Bangladesh and other countries.

Suppliers =
 Century ply extended its global presence to Laos, one of the richest timber repositories in
South East Asia comprising approximately 11 million forest hectares. Laos’ timber harvesting

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 is based on a quota system of provincial forest of p management plans and infrastructure
development programmes.
 The company is contemplating entering Indonesia, a country with ample forested land. The
company’s presence in this country will enhance raw material access on the one hand and
moderate costs on the other, strengthening the overall business.

NATURE OF BUSINESS
Century ply Industries Ltd is a world leader in manufacturing plywood, laminates, Medium density Fibre boards (MDF)
and allied products. GIL collects timber and firewood through import from Malaysia, Africa, Burma, Russia etc. and local
purchase. Thus, it is being processed at the factory and converts into various finished products such as different varieties
of plywood, MDF, Panel blocks etc. GIL grew over two decades into a well-integrated wood processing unit with finally
tuned skills in new product development and manufacture. Though its 25 years of existence, GIL has been singularly
responsible for the most significant product innovations in the Indian plywood industry.

PROMOTERS AND BOARD OF DIRECTORS

The Company is promoted by first-generation entrepreneurs like Sri Sajjan Bhajanka, Sri Sanjay Agarwal, Sri Hari Prasad
Agarwal and supported by Sri Vishnu Khemani and Sri Prem Kumar Bhajanka.

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The Company’s Board comprises 8 Executive Directors and 8 Independent Directors drawn from diverse sectors who
bring a wealth of experience to the Company. The Directors are also part of various focused committees; they meet
regularly to debate issues and take action pertaining to governance.

VISION, MISSION AND VALUES OF THE

COMPANY

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PRODUCT PROFILE

Organisation structure of Century ply

limited:
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 Chairman and MD
Sajjan
Bhajanka

MD
Keshav Bhajanka
MD MD
Sanjay Aggarwal
Vishnu Prem
Khemani Bhajanka
ED ED
ED Nikita Bansal
Ajay Baldawa
Keshav Bhajanka
President
Himanshu Shah

CFO
Arun Julasaria

ID ID ID ID ID ID ID
Manindra Samarendr Mamta
Mangi Lal Santanu Ray Asit Pal
Nath
a Mitra Binani J.P.Dua

Functional departments

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Organisation structure of human resource department:

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 1. Nature of organization structure.

A functional organization structure is a hierarchical organization structure wherein people

are grouped as per their area of specialization. Each department will have its own
department head who will be responsible for the performance of his section. This helps the
organization control the quality and uniformity of performance. The organization structure
of Century ply is of functional.

2. Does the governing structure have a clearly defined way to review and set organizational
direction?

Yes, they do have a good organizational structure however when I have a vision that to be
the number 1 company of India which is achieved and also every household of India should
use century ply that is almost achieved, however this vision should be implemented by lower
level of management and if lower level of management doesn’t do it then it’s their fault but
the direction that they have they are going is structured.

3. Are the organization’s mission and goals supported by its structure?

Yes, the organizations mission and goals are supported by its structure like they have
accountability as their value, everyone is accountable to their managers, everyone has their
respective job role, if someone is not performing his job role, he’ll be penalized. Hence, they
are accountable.

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 4. Does the structure of the business unit facilitate the flow of information upwards,
downwards, and across organizational lines?

Yes, the structure of the business unit facilitates the flow of information upwards,
downwards, and across organizational lines. The organizational structure facilitates the
movement of information but there are certain reasons such as stiff competition that results
in hindrance towards effective communication.

5. Does the organizational charter provide an adequate framework for creating structural
means to carry out the mission of the organization? Is it adequate for dealing with the
external forces challenging the organization?

Yes, the organizational charter provides an adequate framework for creating structural
means to carry out the mission of the organization. As it is mentioned in the charter that my
objective is to be number 1 plywood company in the country, I could achieve it by
diversification of my products like we already have decorative, non-decorative, laminates,
pre-laminates, veneer. We could have separate divisions of quality management,
production, sales to achieve my objective. However, it is not adequate because I have to
increase my expectations and perform accordingly.
No, it is not adequate for dealing with the external forces challenging the organization as in
a competitive business environment nothing is adequate everything is less, if I am achieving
my target its good but we should exceed the expectation.

6. Are coordinating units formed to facilitate performance?

No, coordinating units are not formed to facilitate performance as it already follows
functional form of organizational structure which doesn’t requires coordinating units.

7. Are there clear lines of authority and accountability (individual, group and
organizational)? Is accountability clearly defined?

Yes, there are clear line of authority and accountability, and accountability is clearly
defined. In Century Ply tasks are predefined and assigned to a person who is responsible
for that. Foe e.g. to check quality there is a Total Quality Manager, Manager Production
will see the workers.

8. Are reporting relationship appropriate?

Yes, reporting relationship is appropriate. They maintain hierarchy, for e.g. for
production department workers will report to foreman, foreman will report to Deputy
Manager Production and Deputy Manager Production will report to Manager Production
and so on.

9. Do people have the authority to set agendas that support improved performance?

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 No, people don’t have the authority to set agenda, only executive level manager can set
agenda. Instead of that people can suggest their ideas to the higher level authority of
that department and the higher level authority will decide whether to include in agenda
or not.

10. Are the work groups and units adequate for implementing the organizational strategy
and improving performance?
No, the work groups and units are not adequate for implementing the organizational
strategy and improving performance. They are unable to meet the demand and that for
they have opened an internal plant in Joka for their Kolkata plant and they have opened
a totally new plant in Hoshiarpur, Punjab to meet the demand.

11. How centralized (versus decentralized) is decision making? Does the existing approach
have negative consequences such as impeded productivity, low morale, etc?
In Century Ply the decision making is mostly centralized. The organizational design of
Century Ply is Mechanistic.
Yes, the existing approach can lead to impeded productivity. Suppose a foreman suggest
an idea to Manager Production and Manager Production reject his idea and reply him
very ruddily. The foreman will get demotivated and upset and this can lead to impeded
productivity.

12. Is it clear who bears responsibility for performance? Does the structure of
responsibility and authority make organizational sense and facilitate the work?
Yes, In Century ply tasks are predefined and every individual is responsible for their own
job performance. Every individual tries to achieve their goal and this facilitates the
organization to achieve organizational goal.

13. Are the functional units adequately centralised or decentralised?

Yes, as the company is totally functional in structure they follow a set of hierarchy among
themselves. The accountability flows from upper level to the lower level of management.
The head management retain the major responsibilities and power and standardised
procedures for decision making. So we can say that the functional units are adequately
centralised in nature.

14. Are work processes clear or adequately structured?

Yes the work processes are clear and adequately structured because from peeling the logs to
the final product each and every employee knows their work and their job roles. They know
how to do their work efficiently, however there is a lack of manual in the company.

15. Are quality principles embedded in the roles and responsibilities? Are responsibilities and
accountabilities clearly communicated and understood?

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 Yes, the quality principles embedded in the roles and responsibilities, as the goals are
already being conveyed to the employees in the meeting and the employees knows their
work in advance. By keeping certain standards in minds the worker or an employee do their
work. So, we can say that responsibilities and accountabilities are clearly communicated and
understood.

16. Does the structure support or inhibit an efficient production of goods or provision of
services?

Yes, the structure support an efficient production of goods or provision of services because
in an year 2 or 3 times the increment meeting is conducted between the reporting managers
and employees and objectives are predefined to the employees, so they know in advance
what they need to do, this further helps in efficient productions of goods.

17. Does the governing body have a group responsible to scan the external and internal
environment to understand the forces affecting the organisation and its performance?

As the top level managers are in contact with the external markets, customers and their
competitors so they already know about the demand of the customers and which type of
products are mostly liked by the customers in the markets. In an internal environment HR is
responsible for the human resources, quality managers for quality standards and production
managers for achieving the production. Both internal and external groups help in increasing
the performance of the company. So yes, the governing body have a group responsible to
scan the external and internal environment to understand the forces affecting the
organisation and its performance.

18. Does the governing structure have the mechanisms to review and assess organisational
performance and, if appropriate, create conditions to support change?

Following are the mechanism of review followed in century ply by the top level
management:-
Top level management performance review
Performance management
Performance review
Performance feedback and
Course correction
All these mechanisms are being used by the governing structure to review and assess
organizational performance. And, they do create conditions to support change if any
required by the company.

SWOT Analysis:
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.

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STRENGTH:

1) The company has been maintaining a high quality for its products and as its products are well accepted in the market
by quality conscious customers, it does not anticipate any marketing problem. They are considered to be the “The
Leaders in Quality Since 1985”. The products of Century ply are certified by ISO.

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

3) The company use highly technological manufacturing process through its imported hi- tech machines. This helped the
company to produce quality products.

4) The company has a very high brand image that has built over last 50 years.

5) Since company is existing for last 25 years, it is highly experienced company with high specialization.

6) The installation and licensed capacity is very high so that it can improve upon its production if necessary.

7) Company utilizes maximum of all resources by reducing wastages. The waste products of the company are recycled or
refused.

8) The company has good distribution network to compete in the market.

WEAKNESSES:

1) The promotion of competitors is better. The company concentrates only on domestic market.

2) The price of Century ply products is high as compared to its competitors.

OPPORTUNITIES:

1) Largest production capacity in India.

2) 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.

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

4) The products of the Company are being exported to more than 32 countries including Germany, France, U.S.A,
Sweden, West Asia and South Asian countries.

THREATS:

1) 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.

2) Promotion of competitors is better to that of CPIL .

3) The high-power tariff and increasing cost of furnace oil and other petroleum products and chemicals.

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

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

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6) 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.

7) Since the deforestation is the talk of the day, the company faces severe environmental problem.

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