HPL EXPORT - OPPORTUNITY AHEAD

HPL Export is not as promising as perceived; in fact, it depends on how you see. Sustaining in export is a tough fight where if a company grows, then its resources and expenses also grow. It is the fact that most of the HPL companies try to sell their products to end users in international market rather than investing in market awareness. The world market is very huge, but if a company really wants to grow, it has to do lots of investment in resource development, marketing, and stock. Greenlam is a right example in this case, which is having 10 company owned depots/offices globally, and very aggressive to serve end customers. Greenlam has been maintaining its lead position in HPL export market among all Indian companies since last 5 years and they are far ahead of others in terms of value.

INDIA @ INTERZUM 2017

Since globalization, the entire world has become the common market place, where anyone can sell/buy the products from everywhere in the world. Being the world’s second largest populated nation and increasing disposable income, India has now become an important destination globally. In this edition of Interzum 2017, there are 28 Indian participants and approx. 800 people are supposed to visit, who are decision makers, manufacturers, showroom owners, influencers and potential buyers of high-quality value-added products. High-Pressure Laminates and Decorative veneers industry players are prominently taking part in this show, and they are buyers of international companies as well as they supply their products to global market. More than300 people of HPL and Veneers manufacturing segment are reported to visit the show, who will learn the latest global design trends and would be a potential buyer for décor paper, base paper, tissue paper, press plates and decorative veneers flitch etc.

Laminated Plywood News

Ply News

Wood Panel Industry

GST could be an opportunity to take you from < 100 cr to 500 cr Pragat Dvivedi

After demonetisation, market for wood panel product picked up across the sectors and geographical locations. Almost all building related products especially wood sector have fared well that can be termed as 20-30 percent higher than expected levels. Last quarter ending on March 31st i.e Jan-Mar 2017 spell has not only gave comfort to big brands but also to small and medium enterprises. The companies/brands from organised sector like Century Ply, Action Tesa, Greenlam, Merino, Duro, etc have hopefully grown their sales in double digits followed by a few who have missed it by a narrow margin and remained in single digit. Yet it is a very strong performance indeed (though it will be confirmed only after annual balance sheets).

Keeping a similar pattern the players from ‘Wish to be Organised’ category and small level wood panel producers too have more or less maintained a decent growth. It shows that despite of all hue & cry, there has been a moderate growth in building material space in 2016-17. Product wise Plywood, Laminate, Doors, Shuttering materials, Flooring, ACP, HPL etc have grown in single digits where as Particle Board, MDF, PVC Boards having an estimated growth in double digits.

‘It is expected that 2017-18 will have a smooth run for all these products’ on the basis of developments/initiatives being taken up by Central Government supported by states where Infrastructure Industrial & Rural growth and Housing thrust will help to bring good demand for wood panel companies during the next FY. Although, I personally feel that effect of demonetisation on ‘material consumption vs real estate growth’ equation has somewhere escaped to re-emerge and there could be a patch of 2-3 months of dull demand in coming time after the rainy season.

FY 2017-18 is set to witness GST, which will change the way wood material manufacturing companies work. Organised players are very clear on reducing price gap with unorganised ones hence launching economical brands to snatch the share of Semi-organised or smaller players, on the contrary Small/Semi-organised brands are yet to understand the opportunity they had after demonetisation and even at present. They must strengthen their fundamentals by readying with Capital, Capacity and Culture to work in organised fashion without any worry. If they are weak on few points they have huge potential too to win over new or maintain the existing markets.

Small companies or below 100 cr companies who are 95 percent of the wood panel industry space must recognise that it’s time to work with right quality, right price and right people. One must reduce unorganised working, reduce wastage and fuel consumptions, reduce idle factory time and increase the number of dynamic ally’s who have ambition to earn decent margins. Dealers Margin and regional branding will be the key to growth in new FY and forthcoming financial years in wood panel sector. Few of these 95 percent companies have been good at it and now many of them need to be better than others. It is advisable that grab the opportunity from today and create a strong foundation for your company in New India. Focus on increasing efficiency, working for dealers earnings and sales team along with marketing efforts and GST could be an opportunity to take you from 100 cr to 500 cr.

Enjoy reading..Happy new Financial year…

Wood and Panel Industry
Indian Timber 
Ply and Door News

Organized Plywood Distributors Gain as Orders Routing Through Them

The Indian market has witnessed a sharp rise in demand for wood panel products at organized distributors end. The demand from retailers to distributors is a shift of orders from direct manufacturers to marketing houses, say, retailers. On the contrary, many manufacturers see a drop in orders from retail points. Every developed market and metro city in the country has witnessed a ‘rise in the tendency of a number of orders being passed to an organized distribution house’ which is partly a shift from an unorganized manufacturing unit. The reasons behind this shift are appearing as pressure for quick payments and commitments of a fixed date by plywood manufacturers.

After GST, the market was very dull in demands and now when there is some movement happening, the conditional dispatches by factory owners in North India is making the small load buyers switching to organized distribution houses. In a similar development, the distributors and stockiest who have been dealing in branded items are witnessing demand for branded items because the demand on the bill is rising.

The distributors are exploring new brands and looking at new manufacturers who are economical and reliable with organized work culture because they are receiving massive inquiries for materials from this segment. The market for alternate plywood and Marine grade looks clearly benefitted in the south and western India where demands in renovation and industrial sector have witnessed growth.

The inputs received by The Ply Reporter team is showing some good prospects for emerging mid-size organized players who offer acceptable quality material at genuine price. And such distributors who have this combination are preferred because they are probably able to offer capital support. The hope for the reduction in GST slab has further pushed retailers to take material from organized distributors so that their load for payments and inventory will remain less.

Thin MDF Production Set to Rise in India

According to latest reports, the existing MDF manufacturers such as Shirdi Industry, Rushil Décor, P- decor have planned to enter into thin MDF manufacturing and placed orders for new lines for thin MDF production aiming to begin manufacturing in immediate future. Century Ply MDF units in Punjab also has started its commercial production and they are also planning to introduce a range of thin MDF as well. Two more lines are expected to come for thin MDF manufacturing in North India, and their production will come within a year. Presently, Action Tesa is only MDF producer, which has dedicated lines for thin MDF production.

The demand for thin MDF of below 6 mm has been rising steadily over the years in India. On the contrary, the growth in manufacturing of this thickness category was stagnant. The widening demand and domestic supply gap lead to the new opportunity in thin MDF segment for few existing players who are looking at growth in market share. So far big quantity of thin MDF is being imported in India from Thailand and Vietnam. Some Thailand based companies are mainly exporting thin MDF to India because they have dedicated manufacturing facility so they offer very attacking prices as well. VRG Dongwha has recently started their Thin MDF production line in Vietnam and the company has set a target to cater India’s demand also.

India consumes the huge quantity of thin MDF (below 6 mm) because of increasing so many applications and usages. Its demand has been reported to grow multifold during last 4 years due to increasing consumption for making Photo frames, Shoe heels, Gift box, door skins, display boards, slates etc. Thin MDF is a suitable all-rounder substrate for multiple applications in surface décor, unique creative design in furniture, routing and other surfacing requirements. The commencement of new lines in thin MDF manufacturing segment will boost the prospects for Make in India at the same time it will require more wood resource for such industries.

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