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Rubber had been long historical plan since Columbus had discovered America in 1945
red India; ancient tribe of South America called it caoutchoues meaning crying tree.
Reason for this is that when it is cut off with a knife its natural latex comes out. Rubber is
significantly an economic plant of Thailand. Rubber products have been long growth
with its best outcome year after year. Thailand is the largest land rubber plantation in the
world .India occupies the fourth position in the production of natural rubber. Thailand is
first and Indonesia and Malaysia occupies second and third position.
• Rain fall of around 250cm evenly distributed without any marked dry season
and with at least 100 rainy days per annum.
• Bright sunshine amounting to about 2000 hours per annum at the rate of 6
hours per day throughout the year.
The important feature of Indian natural rubber production sector is the relatively
high degree of regional concentration. Natural rubber production is concentrated in the
traditional regions of Kerala, Kanyakumari district of Tamilnadu and Dakshin Kannada
district of Karnataka which together account for 97.5% of the production91% of the area.
The major issues in the traditional rubber growing areas are the increasing share of the
part time farmers and operational level problems associated with the increasing
dependence of highered labor. The natural rubber processing industry in the country has
been evolved to cater to the requirements of a captive domestic market. The natural
rubber processing sector has been dominated by the sheet graders accounting for more
than 72 percent. In the emerging scenario, with the removal of the quantitative
restrictions, since March 31, 2001, the processing sector has increasingly come under
serious compulsions to face challenges posed by potential cheaper imports. Therefore,
priority will have to be given to quality improvement and for reducing the cost of
processing for all different marketable forms of rubber to be globally competitive.
The use of rubber is wide spread, ranging from house hold to industrial products
entering the production stream at the intermediate stage or as final products. Tyres and
tubes are the largest consumers of rubber. Rubber is a product that is known for its elastic
property. Rubber is an established industry in India and it is frequently used material
today. Rubber can be of two types. Natural rubber and synthetic rubber. Rubber is
naturally produced by rubber plants that can be obtained and it is also produced
synthetically. Rubber industry in India was introduced by the British for commercial
cultivation. But the government of India has improved scope of rubber production
considerably.
Rubber products are used worldwide .So this industry has a high scope. The only
risk faced by this industry is sudden fall of prices for rubber which will affect the overall
industry because of the previously fixed price of their products.
There are different grades for natural rubber. They are
Under the manufacturing industries about 35000 products are possible. Some are based
on latex which includes products like Gloves, Balloons, and Rubber band etc. Others are
based on dry rubber sheets and products include Tyres and tubes, Automobile parts
Erasers, and Mould goods.
With the needs of a growing population, furniture has become an industrial product since
the 1850’s. Michael thonet can be considered as the first representative of a new type of
furniture, being sold 40 million times between 1859 and 1914. His technique was truly
revolutionary: machine-formed rods of laminated wood were carved and bent under
steam pressure, using strips of tin plates to hold the stems and bend the wood beyond its
natural elasticity without breaking. His forms varied from the simple to the highly
decorative. This setting a standard that forever changed the furniture industry.
The furniture industry in India is consider as a “non organized” sector with handy craft
production accounts for about 85% of the furniture production in India. The furniture
sector in India only makes a marginal contribution to the formation of gdp represebting
just a small percentage ie ; about 0.5%. artisan firms are concentrated in the wooden
furniture segment (mainly home furniture), while metal and plastic furniture produced on
a medium large scale and inteneyed for professional use provided by the “organized
sector” where some 5000 companies are active: 8% of them produce wooden furniture,
10% metal furniture and 82% are manufactures of accessories and furnishing itekms in
plastic.
This report offers a comprehensive picture of the furniture marketin India, providing
trends in furniture production aand consumption, international trade prices distribution.
Indian furniture production is broken down by material. Furniture consumption is broken
down by product type or variety (house hold furniture, office furniture, contract furniture)
The office furniture segment, perticulary metal furniture is much more advanced (in
terms of size and technological innovation) than the home furniture one and a larger
percentage of its production is exported. The Indian furniture industry as a whole
employs a total of three lakh workers.
Among all type of furniture used , office furniture segment is the one that boasts the most
important companies, both from the point of view of size and of the technological
innovation of the production.
Foreign trade picture with regard to furniture is not very impressive. In 2001-2002 the
total production of furniture in India was USP 3580 million. In 2000 India ranked 48th
among furniture exporters and 49th among importers this situation can be explained by
the high import duty applied and low technological level of Indian companies and on the
other hand the local tastes and traditions that influence the style of products offered
making them difficult to export.
Company profile
Kerala State Rubber Co-Operative Limited popularly known as RUBCO.This was set up
in the year1997. Today Rubco has grown in to Rs280crore conglomerate with well
diversified operations. Rubco is the market intervention agency of Government of Kerala
for processing natural rubbers directly from farmers. This co-operative establishment was
organized at a time when rubber growers of Kerala were facing serious threats of very
low price for the products.
R-Reliable
U-Unique
B-Beautiful
C-Convenient
O-Original
Rubco has entered in to technological alliance with world leaders in the respective
fields, sourcing from them state of art technology. Substantial investment in modern
manufacturing facilities coupled with well organized marketing activities have helped
Rubco’s products to earn a reputation for quality and significant market shares. Rubco is
the largest exporter of natural rubber in the country today.
Rubco group interest includes Footwear, Processed rubber wood furniture and
plants, Tyres for all vehicles, Cycle Tyres and Tubes, Rubberized coir mattresses, Block
rubber (ISNR) pale latex crepe and natural rubber trading. Today Rubco has a market
presence extending all the southern states and exports its products to overseas market
also.
• Efficient services
• Economical price
Rubco with its vast infrastructure facilities and established contact with rubber
farmers from grass root level offers very good opportunities in expanding its rubber
trading activities. Rubco can easily reach the level of transacting 40% of rubber
production in India.
Rubco huat woods pvt ltd, registered under the company act 1956 is the rubber wood
processing and furniture manufacturing factory of RUBCO set up with financial and
technical collaboration with M/S long Huat group Berhard Malaysia a well known name
in the field of rubber wood industry for the last 30 years .it was set up in the year 2000
with plant capacity of 40 000 metric tones per year and started commercial production
only on January 2001. RUBCO HUAT WOODS PVT LTD is an ultra modern rubber
processing plant situated in KINFRA small industries park in Tellichery kannur district,
with state of the art machines imported from various parts of the world
Rubco Huat Woods Pvt Ltd is a world leader in rubber wood furniture industry .the
factory is the largest rubber wood processing unit in the country and the plant employees
around 8000 employees. This division manufactures a range of elegant furniture and
quality edge glued panel using the eco friendly rubber wood.
Rubber wood furniture range comprises of dining table and chairs designer’s wardrobe
futon kitchen cabinets computer and office furniture and is available in a choice of design
and finish. The EGP manufactured by the finger joining technology is easy to saw drill
and bore and have an excellent nail holding capacity.
Rubber wood properly treated and processed is emerging as the ideal substitute to rain
forest wood, as it offers the same strength durability and finish as the latter and helps
preserve the environment. The RUBWOOD furniture combines excellent aesthetics with
long term durability, and comes in a variety of shades and designs, adding elegance to the
interior of homes and workplace .the product are being exported to UK, USA, Japan and
many other countries across the globe.
The company also has technological collaboration with the Long Huat Berhard of
Malaysia, through which the company received its finger joining technology. Alongside
the employees of Rubco got the training from the representatives of M/S Long Huat
Berhard of Malaysia during the initial stages of the production.
Vision, mission, objectives and quality policies
Vision
Mission
To develop brand equity and to ensure professional co-operative image and through a
systematic working procedure.
Company does not always look for the company’s profit, also has some responsibilities
towards the society also. Objectives of Rubco are General Objective, Social Objective
and Commercial Objective.
General Objective
Social Objective
• To ensure a study market with remunerative price to rubber growers for their
natural rubber.
Commercial Objective
• Purchase and sale of rubber in any form such as latex, sheets, crambs and
laces.
Quality Policy of Rubco
• The company’s quality policy is to enhance satisfaction to its customers through the
manufacturing and supply of rubber and rubber wood products at competitive prices by the
use of modern manufacturing facilities.
Product profile
Rubber wood, properly treated and processed, is an ideal substitute to rain forest wood, as
it offers the same strength durability and finish as the later. The technical properties of
rubber wood which makes it ideal for making furniture are
Figure Cross section shows vague concentric markings, which resemble growth
rings. the markings combined with large vessels give the timber an
attractive appearance
Rubco rubber wood pre-finished panels open unlimited possibilities in design and
processing on pair with the highest standards unequal elegances .RUBCO timber
panels are produced by the sophisticated process of finger joining and edge gluing
,using the resigns of polymers which are either white or translucent; and excellent
finish or durability, is guaranteed .They also confirm to international quality
standard. The solid Lumber panels of RUBCO are easy to saw, machine, drill, bore or
strain. Sanded to 240 grit they offers smooth finish and excellent nail holding
capacity, making it the ideal usual-friendly choice of furniture manufactures and
carpenters .This proven concept which is popular among builders and architects in
western countries, offer the perfect solution the problems routinely encountered in
handling various cross sections of timber scantlings. The panel boards are made to the
standard of British Wood Preserving Assocaition.RUBCO timber panels are eco
friendly; they ensure lower wastage of materials and cut down of labor, time and
overall cost.
The panel board specifications made by Rubco Huat woods pvt ltd are:
RUBCO’S timber panel come in varied size from 12mm thickness onwards with a
maximum cross section size of 5200mm x 1300mm.RUBCO timber panel can be
applied for the following uses:
• Designer wardrobes
• Kitchen cabinets
The colonial furniture collection from RUBCO is the ideal way to add splendor and
comforts to the home. RUBCO’S range of the finished furniture range comes in
varied shades coated with several layers of lacquers.The furniture ranges offered by
RUBCO HUAT are:
• Computer tables
• TV stand
• Sofa sets
• Rocker chairs
• Cot
• Tables
• Designer’s wardrobe
• Futons
• Kitchens cabinets
• Teapoy
• Kids table
• Display rack
Area of operation
The marketing activities of Rubco are carried on both state and out of state level.
Rubco has captured the outside Kerala market rapidly making a huge demand for the
EGP boards and furniture.
However the company carried out its operation in Tamil nadu , Andhra Pradesh and
Karnataka by the means of supplying furniture and EGP boards
More over the company is exporting the furniture and boards to the international
markets like Singapore, Canada and Malaysia.
Ownership pattern
The authorized share capital of RUBCO as per the byelaws is 300 crore made up of
‘A’ class shares are open to primary agricultural cooperative credit societies or banks,
primary cooperative rural banks and rubber marketing societies functioning in the
area of operation of RUBCO.
‘B’ class shares are open to Kerala State Cooperative bank, other state level
cooperative federation or institution, district cooperative banks etc.
‘C’ class shares are open only to the Central and State Govt and rubber board.
‘D’ class share are open to individuals, who are within the area of operations and
having business association with RUBCO, either by keeping deposits or by supplying
materials either for processing or for sale.
Capital Structure Of Rubco Huat Woods Pvt Ltd
The Rubco Huat Woods pvt ltd is 100% owned by Kerala State Rubber Cooperation.
The annual turnover of the company is nearly 30 crores.
1. Government of Kerala
Competitor’s information
In the rubber wood processing industry company is considered as the monopoly in the
market. Company is facing some competition in the market due to the import of
furniture from the outside country especially from china that uses almost same
technology.
Plant location and Infrastructural facilities
Plant Location
Plant location means the place where the plant is located for achieving maximum
operating economy and effectiveness. An ideal location may not by itself guarantee
success, but it certainly contributes to the smooth and efficient working of the
organization.
RUBCO HUAT PVT LTD is situated at KINFRA small industries park Chonadam
near Thalassery, Kannur district of Kerala .The plant is located about 4 km from
Thalaserry town, spread over 18 acres of land and is also on the path of further
expansion
The main reason for the selection of location was the fact that it had favorable
infrastructural facilities like power water and transport .The location is also beneficial
in getting adequate supply of raw materials. There are two kinds of raw materials that
are required for the production process they are direct and indirect materials. The
direct material of rubber wood furniture production is the log rubber woods .These are
mainly purchased from Kerala and Karnataka .The direct and indirect raw materials
are easily available from the near market.
Continuous supply of power is another important reason for the plant location. The
power is provided at cheaper rate compared to other areas because of the special
subsidy package by Kerala KINFRA Structural Development Cooperation to the
industries located in the special areas.
Adequate supply of local labors is another advantage of the location of the plant and
wages are given as per the Minimum Wage Act.
The region is well connected with rail and transport system. Road transport system is
mainly used for carrying the raw materials to the yard and the finished products to the
markets .it also make use of rail and shipping transport; postal and tele-
communication are also utilized
The operation of machines is pollution free and the plant was accredited with
pollution free award. The company has an electrical substation of 1250kv and has a
stand by generator capable of producing 750kv electrical power to serve during power
failure.
The 220000 sq feet factory building is a single storied building with natural
ventilation, natural lighting and enough working space for workers. The single storied
buildings help the easy movement of materials with in the factory. The tool room and
storage are located in the centers of the factory so that easy access from different
production sections is possible.
New multistoried office building will be completed in a short span of time. The
company uses computerized punching system for keeping attendance. It has good
canteen for the employees. Company provides drinking water in the factory at the
easiest access to the workers.
Achievements / awards
• Achieved best exporter for the furniture and boards from government of
Kerala
Work flow model
Dispatching
Assembling
Packaging
The overall production process at Rubco Huat Woods Pvt Ltd can be dividing into six
important sections where each sections carries out an individual process of the overall
production, the six important sections of production are:
• S4S section
• EGP section
• Furniture section
• Finishing section
The production process begins from the log yard. The rubber wood supplied by the
suppliers are unload at the factory log yard in the presence of the security guard, who
maintains a register to the detail like the name ,weight of the load, and date of receipt.
The quality department checks the log for any visible defects
The main operations at the saw mill & boiler sections can be divided into three stages
• Sawing
• Kiln drying
The dried timber from the kiln drying is sent to the S4S section for plaining the sides.
It is done through machine process. For the manufacture of furniture and panel boards
the wood piece should have certain length and width. So the wood pieces should join
properly. It is done by the process called ‘finger joining’ which is based on the
Malaysian technology it is done in EGP section.
Furniture section
Finishing section
The furniture items from the furniture section are sent to the finishing section. Here
the sanding and spray painting are done for the products.
From the finishing section the furniture is sent to the assembling section where the
activities are controlled by section supervisor. At Rubco only chairs are assembled
after finishing while the rest of the parts of sofa, cots, table etc are only finished and
then send to domestic dealers and other agencies. After assembling, the quality of the
products are checked and damaged and defective parts are sent for repair. After
quality checking by the quality department the products are sent for packing. The
finished panel boards come directly to the packing area of the EGP section. The
finished goods are over with p-form and bubble sheet and placed in cardboard so as to
protect it from mishandling during transit.
MC KINSEY’S 7S FRAME WORK
Back Ground of the Model
The 7’s model is better known as Mc Kensy’s 7s. This is because the two
persons who developed this model. It is developed by tom peters and Robert
waterman. They published their 7’s model in their article “structure is not
organization “(1980) and in their books “the art of Japanese management” (1981) and
in search of excellence (1982).
Struct
ure
Syst
Strat
em
egy
Shar
ed
Valu
es
Skill Style
Staff
• Strategy
• Structure
• System
• Style
• Staff
• Skill
• Shared values
These are the 7 s elements are distinguished in so called hard S’s and soft S’s. The
hard elements are feasible and easy to identify. They can be found in strategy
statements corporate plans organizational charts and other documentations.
The four soft S’s however, are hardly feasible. They are difficult to describe since
capabilities values and elements of corporate culture are continuously developing and
changing. They are highly determined by the people at work in the organizations.
Although the soft factors are below the surface, they can have a great impact of the
hard structure , strategies and system of the organization.
Practical relevance of hard S
Strategy
• To recruit and select right person for the right job at the right time in
the right place.
Chairman
Managing Director
General Manager
Skilled/unskilled workers
Finance consists of rising, providing and managing of money, capital or funds of any
kind to be use in connection with the business. The finance department is an
organization which is responsible for managing financial activities off the firm. The
finance department deals with a wide range of activities like planning rising
controlling and administrating the funds of the business.
In Rubco Huat Woods pvt ltd, the accounts officer is the head of the finance
department and takes all the financial decessions.He is assisted by the clerical staff
• Maintenance of accounts
In Rubco Huat Woods Pvt ltd, the Administrative cum personnel officer (APO) is in
the charge of this department, who is assisted by Time Officer
Responsibilities of HR manager
Purchasing department
Rubco Huat Woods Pvt Ltd has an efficient purchase department which is entrusted
with the purchasing of quality raw materials in the required quanity, at the right time
for the entire departments functioning in the organization. The head of the purchase
department is the purchase manager
The company mainly requires two types of materials – direct and indirect materials.
The direct material is the round log rubber wood and indirect materials include
hardware items used for production. The amount of materials purchased by Rubco
Huat Woods Pvt ltd is around Rs 30 lakh per month, which comprises of items like;
• Hardware items like screws, nuts, bolts, nails, lock and keyset
The company makes use of VED analysis (Vital Essential and Desirable) for grouping
the materials based on their criticality for the purpose of purchasing
Production department
At Rubco Huat Woods Pvt Ltd, the chief production manager is the head of the
production department, who controls the overall production activities with the help of
assistant production manager and shift engineer.
In Rubco the entire range of products is marketed by RUBCO Sales International Ltd
(RSIL). They formulate marketing strategy for both domestic and international
market. The marketing department is headed by marketing manager. He is assisted by
junior sales officer in Kerala and by sales manager outside Kerala.
RUBCO has sales and shipping officer, who controls the sales activities of the
company on behalf of RSIL.Shipping is the activity taken by the central excise and
they check all the products in the company itself to avoid damages incurring in
loading. It is done at Cochin shipyard.
System
It is the formal and informal procedure that supports the strategy and structure.
HR system in Rubco
Skill, style, staff and shared values can be seen as the “software” of success of an
organization
Skill
Work experience.
Style
It says about how the decisions are made and the flow of authority in the organization.
The Rubco was using the participative leadership style order to take the decision is
taken by the management by discussing with concerned supervisors or workers. The
organization is taking the day to day decision such as the quality of output usage of
materials, purchasing etc are determined by the production manager to concerned
supervisors or workers. So the decision making is decentralized.
Staff
The term staff refers to the way organization introduce young recruits into the main
stream of their activities. Around 775 workers are working in the company. They are
• Learners – 54
• Casuals – 73
• Saw workers – 35
Shared values
These are the guiding principles, fundamental ideas around which a company is built.
It must be simple usually stated at the abstract level, have great measuring inside the
organization even through outside may not understand them. These are the main
values on which the company is built. These values are shared by the members in the
organization.
• Low productivity
31-03-09 31-03-09
1,12,84,226.0 2,49,57,114.54
8
Purchase-taxable 76,500.15
Purchase-timber-25A 8,06,273.95
1,61,17,583.5
3
3,82,08,795.22 3,82,08,795.22
Bank interest on term loan -1,27,486.78 Sales tax collected 9.2% 5,08,686.43
Depreciation 12,90,427.62
Rent 70,800.00
St paid-03-04 29,498.93
3,82,08,759.22
1,62,16,627.10
Miscellaneous expenses
( assets)
Sl no Ratios 2010