The Hindu Business Line : Western India Plywood in revival mode

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Kannur Feb. 7 It is one of Asia's oldest plywood factories and had been paying uninterrupted dividends for over 50 years till 2000. In the face of the forces of liberalisation and globalisation, the fortunes of the Kannur-based Western India Plywood Ltd went into decline, which were further exacerbated by an acute raw material shortage.

After reversals for four years, the company is now rocking back to profits backed by a steady order book position and enhanced returns from diversification.

The Rs 65-crore company, which currently employs 1,200 people, recently turned to the manufacture of high-density plywood, Compreg, which is used for electrical applications for transformer distribution.

It has also taken up manufacture of pre-processed compressed boards for high-voltage distribution from transformers.

The customers include top names such as BHEL, BEML, Crompton Greaves, Bharat Bijlee, and ICF.

"With the peaking demand for electricity in the country, the potential for electricity production and transmission is soaring, propping up demand for transformers," Mr P.K. Mohamed, Managing Director, told a group of visiting journalists from Kochi.

In order to contain pollution arising out of this recent diversification, the company is importing sulphate-processed pulp from Russia, which is the primary raw material for the pre-processed compressed boards.

This raw material is based on long-fibre pulp from the alpine pine tree and is chemically treated in Russia itself by the sulphate process, thus ensuring pollution-less production facilities in the North Malabar unit.

There are just two other pre-processed compressed board manufacturers in India - Raman Boards, which was recently taken over by ABB and another unit in Karnataka, said Mr P.K. Mayan Mohamed, Executive Director.

Western India Plywood has one tonne capacity for pre-processed compressed boards, which can be scaled up as demand grows.

Despite the high unit value realisation, the recent diversification programmes constitute only a small percentage of the company's total turnover.

However, they are seen as growth engines for the company's future strategies.

The company is also a major supplier of plywood to the Railways. Its plywood is used as floorboard in Railway coaches. The Railways alone consumes 10 per cent of the company's total plywood production.

The company is also in the process of upgrading to French UIC global standards, which would make its products eligible for the coach building requirements of Germany, the world's biggest coachbuilder, said Mr Mayan Mohamed.

Western India Plywood recently forayed into the North American passenger car industry by bagging an order from Daimler Chrysler Corporation for tempered hardboards of different sizes.

The US company has given its stamp of approval for the samples, which were made according to its specification - MS.LD1.4 - and supplied through an approved vendor.

The products will be used as foundation in both dielectric and heated platen vulcanising trim processes.

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