Furniture Market of Nepal

Topics: Economics, Manufacturing, Supply and demand Pages: 7 (1241 words) Published: January 30, 2011

Arun Furniture Udyog since past 15 years has been producing quality furniture products. The organization with its efficient management skills has been a leading furniture producer in and around Biratnagar sub – municipality. The company produces a range of wide variety of wood products. Designer beds, tables, showcases and ply-woods are few if to be named some. Since its establishment many other furniture manufacturers entered the market with many lucrative packages but the organization “Arun Furniture Udyog” still leads and controls a large share of the furniture market in the city.

The organization has been conducting its production on ….acres of land. It has been employing 5 workers permanently and more 3 workers contingently, which are employed at the time of high demand season (wedding season).

The organization has been dealing with the production of furniture products (bed, showcases, tables etc.) as well as fire woods as a by-product.

Process of establishment:

All the industries are established under the license of industries association and Inland Revenue Office as their size registration process differs.

The organization falls under small cottage industry and the organization has gone through all process of legal establishment process which were as follows:

1) Reference letter was obtained from small and Cottage industries Office.

2) No- Objection letter was obtained from Biratnagar sub – municipality.

3) The organization was then provided with a reference letter from ward committee office.

4) Finally the organization was registered on Inland Revenue Office.

The PAN or VAT Number is provided as per the transaction size and it has to be renewed yearly.

Minimum initial investment for furniture manufacturing industry was found out to be around Rs.50000.

Production process:

The organization has been producing furniture as per demanded. Production process begins with the demand obtained by the organization.

Raw materials for the organization are large blocks of woods. Raw materials are obtained from auction centers organized by forestry department. Apart forestry department private wood owners are also major raw wood suppliers for the organization. But government supply has been more cost effective than private owners.

The organization has been employing 5 workers. Two are skilled head work force whereas three are semi-skilled labor. As the organization is seasonal organization more 3 workers are kept as a contingent work force. Labors are paid on daily wages system. Normally Rs 300-1000 is the labor wage rate.

As the demand is obtained the following production process begins:

1) Cutting:

Large blocks of raw woods obtained from auction centers are passed through a saw mill cutter. Here raw piles of woods are cut to small blocks.

2) Wood cutter:

Small blocks of woods are then passed through wood cutter. Here those blocks are then cut to further small blocks. This process is conducted for easy handling of the block for further processes.

3) Sizer:

After wood cutting process those small blocks of wood are than sized appropriately as per requirements.

4) Plainer:

Those blocks of woods are then passed through plainer. Plainer is a modeling process. Blocks are then transformed from blocks to particular product in this process.

After all this process a particular type of product of wood is obtained, which are handled by head designer of the organization to form a particular product. As per the need of the customer a particular product is made and supplied.

Distribution process:

The organization has been pursuing direct...
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