The Ply Reporter study finds that ‘FCB is fastest emerging panel boards since last five years with 18- 20% market growth supported by increasing domestic manufacturing capacity as well as imports. With increasing acceptance of these products nationwide, South India based NCL industries (Bison Panels brand) has begun its production in the North too by establishing a factory in Himachal Pradesh. Another is Hyderabad based leading player, Visaka Board, which is adding its new plant in North at Jhajjar, Haryana, scheduled to start production by next year. Other players are Everest Industries, Ramco Industries, Hyderabad Industries Limited and few more small players.
Sensing opportunity in this area, Century Ply has also launched Zykronsourced from imports. Another Thailand based company Mahapant Fibres is also offering FCB panel with brand ‘Shera’ with local partners. Mumbai based marketing house GLO import this product and market in India with ‘GLO panels and Planks’ brand. Apart from these a dozen of other marketing companies/ importers are sourcing FCB from China and other countries.
The Ply Reporter findings indicate that the ‘Total market size for FCB has reached to Rs. 1000 crore in India’ with rise in retailing at Plywood dealers. With increasing awareness among contractors-carpenters, and other input providers the market is expanding very fast.
Fibre Cement Boards (FCB) and Cement Bonded Wood Particle Boards (CWPB) both are similar products in terms of their applications, usages, mechanical structure, looks, décor, touch and feel but the manufacturing process, raw materials, construction and the most important GSTN are different. FCB is under 18% where as CWPB is under 12% GST slab. Although market, influencers and users treat both as similar kind thus this article combines both products in its study and referring FCB as a single word for both of them.
Around 60 percent supply is from domestic production and rest is fromimports. With possible capacity addition by domestic players and increased focus on awareness, FCB market is expected to reach at Rs 1500 cr in next three years. Although a lot more efforts are required for spreading awareness among plywood dealers and hence there come the gap and opportunity for new players in this segment. Currently FCB usages are limited to metro cities and government projects but if worked well, there could be a sizable demand in tier 2-3 cities.
FCB is being manufactured in India since last 40 years, but it is yet to gain big despite of its suitability to this tropical and all weather country. It holds ample opportunity to emerge as a useful panel in field of interior-exterior needs as demonstrated by Plywood, MDF, Particle Board, WPC, Gypsum Boards, Marble, Glass, HPL Cladding, ACP, Wood etc. Many architectural ideas and application establish the fact that ‘FCB has possibilities and versatile application in making Furniture, Kitchen, Doors, Partition, Cladding, Roofing, Ceiling, facade and surface decorative applications’. A Bison dealer says that ‘FCB is becoming popular in the market due to health consciousness and increasing cost of wood and wood products. It is an ecofriendly product which application gives a chemical free hygienic environment’. The companies promote FCB as eco-friendly green products.
FCB is largely being used as substrate where other finishes can be obtained by applying Glossy finish, Paint finish, Veneer varnish, wall paper, laminate etc. On these boards you need to just paste veneer or laminates or any other material using normal adhesives or paint or can do digital printing according to your choice. The FCB Planks are already a popular choice in building façade purpose.
During study on FCB, The Ply Reporter team interviewed around 250 people related to FCB business that includes Manufacturers, Importers, Builders, Contractors, Dealers and Retailers. To throw more light on this product, we prepared to present views of few brands promoters namely Mr. Vamsi Krishna Gaddam (JMD, Visaka Industries Ltd), Mr. S K Subramanian (President Boards, Bison Panel), Mr Rajendra Shah (Century Ply, Zykron) and Mr. Chetan Chheda (GLO Panels).
Mr. Vamsi Krishna Gaddam, Joint Managing Director, Visaka industries
Q:- Please tell us about the present production capacity and turnover of the company?
A:- Visaka Industries is into manufacturing of three products, such as Cement Roofing Sheets, Yarn for clothing and the Fibre Cement Boards. Roofing is our main forte and that would be of about Rs. 700 crore and rest belongs to yarn and cement fibre board which turns at about Rs 120 to Rs. 150 crores respectively. Cement Fibre Board is now growing at fast pace and we have an annual capacity of 1.20 lakh MT Now we are putting up a plant in North India at Jhajhar (Haryana) that will be of 6000 MT per month capacity. Machinery procurement and plant establishment processes are going on. May be sometime in the next year it will be operational in full swing with commercial production. We feel, North region is very promising and we have good sales there.
Mr. Vamsi Krishna Gaddam is the Joint Managing Director of Visaka Industries Ltd, a science graduate from Purdue University, USA after his high school at United World College, Singapore. For the related industry exposure, he had a small stint in Pennar Industries before joining Visaka in 2010 as a management trainee for 2 years. Presently Mr Vamsi looks after overall operations for Fiber Cement boards division along with the roofing and textiles divisions.
Q:- Is there any location advantage in terms of raw material availability and market reach?
A:- We use fly ash and cement in our products hence it is very close to pick up area. Apart from that we aim to be very close to the market to save on logistics and time. Proximity to metro cities is a big advantage there. Even the plants based at Pune & Miryalaguda are 90 min travel time from the city. For FCB, Tier one and two markets are the main markets because the uses of this material in these markets are more.
Q:- How important is the product presentation for FCB and what are the application areas?
A:- Presentation plays an important role, so everything we try to show in different finishes like paint finish, Laminate finish, Veneer finish, wall paper finish, etc. These finishes are done like sticking on wood by substituting plywood with fibre cement board. On these boards, you just have to use normal adhesives to pest veneer or laminates or any other material, paint or CNC Cutting or digital printing according to your choice is also possible. It is also very suitable for personalization with different material. Its application area covers everything from kitchen, wardrobes, washroom to home decor, interior and exterior, ceiling, walls and Mezzanine floors and many more.
Q:- Which are the popular thicknesses in FCB segment?
A:- Fibre Cement Boards are available in thickness ranging from 4 to 25 mm, in which 4 to 6mm are used as Gridfalse ceilings. This is the major pick up in designer group. People like it for its textures. We have over six designs in this among 3 to 4 designs are for interiors. Then comes the Wall Panelling and Seamless false ceiling, 6 & 8 mm are used respectively. 10-12 mm are used Dry walls/ Partitions whereas 16-18 mm are used for Kitchen cabinets, Wardrobes, Mezzanine flooring etc. In this category, each bracket is for different application and you can paint on these boards and stick wall paper, Laminate, Veneer or any other material with the use of adhesives. These boards come in gray only, which can be used in different applications, CNC cutting & Printing of your choice can be done on these boards.
Q:- Do FCB have variety boards like normal board & value added/designer boards?
A:- According to textured or plain boards you can say it of two types, what we call ‘Vnext’ the brand. Vboard is a basic board and then there is designer board which comes in oceanic design, Lake & hill, Wave, stone, sand stone, wood design, etc and we offer six to seven designs. So VNext has Vboard in designer category as well. Then we have exterior grade board that is Vpremium, which is a plain variant for Exterior. The textured board in this exterior grade is Vplank, this is being accepted worldwide for applications like Exterior Cladding, Facades, Garden Fencing, Gate cladding, etc. So, for interior we suggest Vboard and for exterior we suggest Vpremium & Vplank. All our products are fire resistant, water resistant, termite resistance, UV resistance at all. That are completely tested with TUV Singapore.
Q:- How do you plan to increase to the maximum reach?
A:- We are expanding through dealers & distributors’ network. We spread awareness about latest products by carpenter meets, architects meet, contractors meet etc. All our products are Eco-friendly and now majority people are willing to use eco friendly products. We are certified as Green Pro & Green Co by CII. We are the first and the only company in the industry to be certified as Eco Friendly Product. We are trying to create a global network.
Q:- Why there is a conception among contractors that these products are for kitchen/water prone areas?
A:- That is an easiest conversion or application area but prospects are changing globally. In the beginning of our marketing we started with 30 applications. In those thirty, we understood the exact requirement and started focusing on the same. Now we are focusing on six to seven applications, which are a permanent solution to many problems.
Q:- At 18% GST how do you see the future of Cement Fiber Board?
A:- I feel it is very positive note for us as a product, because we want eco friendly concept to be promoted, that’s the reason, we got this benefit in GST rate. Many rates have been changed to promote health and general environment as well. We are very happy that we got acknowledged at first, because it is eco-friendly product, which do not harm your surroundings. Now we have to work on that and make a lot of awareness campaigns on the basis of this. If rates come down the consumers will definitely be benefitted & encouraged to try this green product. Since we are already 15 percent economical than plywood hence it will emerge as a good option for plywood.
Q:- How do you plan to cater the demand at plywood counters?
A:-The way we see this is very different, as the dealer – distributor relationship is for long time and for any product to be a commodity, the relationship is very important, till then there is a less chance for growth. Now Cement Fibre Board is becoming new in terms of designs. You can compare with any other FCB company, the number of products/designs we offer, are more than others. We are studying the customers need actively and trying to give new products to dealers and distributors by keeping something innovative and offering latest one.
Q:- Do you see any challenges from import?
A:- There are imported products in India but they will be difficult to match our price. We have to work towards assuring that we have the competitive and good quality products. Government is also promoting ‘Make In India’ initiative, this is a good sign for the growth of quality product in the market, which are being manufactured in India.
Q:- How much is the total market value of these products in India?
A:- In total, it is about Rs 500 to 600 crore including import in India. But we see an explosive pick up and I estimate that it should go around 15 to 20 percent growth per year. We have to be strategically focused to the retail market and keep focus on innovation and offerings according to the customers’ choice.
Mr S K Subramanian, President- Boards, Bison Panel
Q:- What is the total production capacity of Bison ‘Cement bonded Wood Particle Board’ and turnover from this business?
A:- Cement Bonded Particle Boards under the brand name Bison Panel has two manufacturing plants, Mattapally in Telangana State and Paonta Sahib in Himachal Pradesh. With a combined capacity of 90,000 MT annually, its present turnover is Rs. 100 crore.
Q:- What are the specialties of your products, and your strength area?
Bison Panel, Bison Lam and Bison Designer Boards are the only Cement Wood Particle Board in the country tha uses wood in the form of flakes. Bison Panels are resistant to Fire, Water, termite and weather. These panels are suitable for use for interior as well as exterior applications.
Q:- Is there any location advantage (for manufacturing unit) in terms of raw material availability and market spread?
A:- Yes, there is a relative advantage with the location of the production units considering availability of raw material and transportation of finished products. NCL has overcome this problem by having a plant in North which serves the North and Western markets and in South which services South and East markets. Cement and plantation wood, are two basic components which are available in abundance.
Q:- How much is the market size of this product, including imports?
A:- The imports of Cement Bonded Particle Board in the country are negligible. There are however imports of Cement Fiber from South Asian Countries. The product being direct substitute for Plywood, MDF, gypsum board and many other construction materials for interior and exterior applications, has the very large potential.
Q:- Which factors are driving the demand of ‘CWPB’ in India?
The USP of the cement bonded particle board is being resistant to fire, weather, water, termite, the increased awareness to protect against these hazards as compared
to conventional materials is driving the demand.
Q:- What are the main application areas of this product and do you see the growing awareness among other usages?
As far as the current market situation, our products usage is noticeable in Kitchen interiors, wall claddings, partitions, floorings, doors and windows, fixed furniture, flooring, duct covering, facades, prefab housing. The growing awareness on protecting the installation from fire, weather, termite and need for sound insulation is driving the demand.
Q:- What are the benefits of using ‘Cement wood particle Boards’?
A:- Primary benefits being cost advantage over the conventional materials like plywood and MDF and reduction in construction time, the other benefits it offers is protection from fire, weather, termite and sound insulation.
Q:- Which thicknesses/sizes are very much popular in this segment?
A:- The Cement Wood particle boards are manufactured in thickness ranging in 6, 8, 10, 12, 14, 16, 18, 20, 25, 30 and 40 mm. Most popular thicknesses are 8 to 25 mm.
Q:- It is a general conception among contractors &carpenters that these products are only for kitchen and water prone areas. What do you say?
A:- Our products have multiple usages, anywhere between floor to ceiling and everything in between. Contrary to this belief, the maximum use is in partitions, mezzanine flooring, fire rated partitions, facades and duct covering.
Q:- What is the difference between ‘cement wood particle boards’ and ‘cement fibre board’?
A:- The basic difference is in manufacturing process. Cement wood particle board is manufactured with wood flakes fully coated with cement in a single layer irrespective of thickness in a dry process. Cement Fibre board is manufactured in layers of 1 mm thickness and bonded together in multiple layers to achieve desired thickness in a wet process.
Q:- At 12% GST how do you see the future of this product as Cement Fibre Board is at 18 %?
A:- Keeping the USP and advantages in view, each of these boards will have its own markets. However, increased taxes on wood based panels will result in increased demand for Cement Wood Particle Board.
We are hopeful and Increasing the distributor and dealer presence in potential area as that are currently untapped, increased awareness on applications of the product, making the product available at point of sale will cater to the demand of Bison products from Plywood counters.
Mr. Rajendra Shah, Century Ply (Zykron)
Q:- What are the specialties of ‘FCB’ offering by your company?
Zykron is the latest offering from Century Ply in the, Fibre Cement industry in India. It is Weather resistant,Termite and insect proof, Fire resistant, Low shrinkage and warping, Shatter resistant compared to plain cement, Provides sound insulation, Immune to water damage, Flexible compared to plain cement, High degree of workability, Lasts for very long time and can be painted with water soluble paint.
Q:- How much is the market size of this product, including import?
A:- This category is in very nascent stage to Indian market and there is no formal market study report available. All the companies working in this market are scattered and supply region is limited. However, our estimate of market size is Rs700 Cr.
Q:- Which factors are driving the demand of ‘FCB’ in India?
Housing for All: To address the shortage of housing in India, Government has launched a massive campaign, Housing for All by the year 2022. Under this initiative Government would develop 2 crore urban houses and 4 crore rural houses.
Warehousing Growth: The rise in e-Retail coupled with other industrial activities is fuelling the growth of India’s warehousing requirement. The demand is expected tom grow in elevated growth.
Rural Demand: Sustained improvement of vast rural population on account of enhanced farm income, local rural employment and development of nearby urban centres would sustain the demand for fibre cement boards & Roofing sheets in rural housing.
Need for Speed: The need for faster and scalable construction would continue to expand the share of Fibre Cement Boards and Dry Wall Systems across infrastructure projects, hospitality, education and healthcare establishments, affordable and mass housing schemes, slum rehabilitation programs, rural sanitation and toilet building programs.
Labour Efficient Modular Construction: The acute shortage of skilled labour and increasing impact of financial costs on projects have given rise to a demand for modular and ready-to-install products which can save time without compromising on safety or strength.
Affordable Construction: The cost of skilled labour and basic materials like cement, bricks and sand has been on the rise. The cost difference is very narrow between on-site construction and ready-to-install modern construction techniques using Fibre Cement Boards. Products and solutions with shorter on-site labour cycles are becoming more popular.
Q:- What are the main application areas of this product and do you see the growing awareness among other usages?
External facade-Planks and their exterior applications, Partitions- Single Layer, Double Layer, and Acoustic, False Ceiling - Modular , Monolithic, Wall Paneling - Internal for hiding seepage, Designer looks, Acoustical for Theaters, Recording Rooms, and Generator Rooms , Exterior and Interior Cladding, Duct and Shaft coverings in Residential buildings, CNC Cutting for decorative and aesthetic looks enhancement, Mezzanine floorings, Backliner of Cupboards and Kitchen Carcass, Stair Cases, Pre fab Structures and Porta Cabins, LGSF Structures, Fixed Furniture / Carcass, Door Applications - Flush Door, Bathroom & Toilet Doors, Base Board for Tiles and Granites applications in Hotels , near lifts , etc thus eliminating cement plaster and Clean Room Applications in Hospitals , OT’s, and allied industries like Pharmaceuticals industries.
Q:- What are the benefits of using ‘FCB’?
A:- FCB is a composite building and construction material, which contains ‘no hazardous chemicals at all’. The main reason why people prefer using FCB these days are due to the following reasons such as Less Time Required, Less Human Labour, Wastage, Uniformity and Neat construction.
Q:- Which thicknesses/sizes are very much popular in this segment?
8 MM, 10 MM and 12 MM as they are commonly used in Panelling, Partitioning, Flooring, Duct covering, Cladding and Prefab structures.
Q:- It is a general conception among the contractors & carpenters that these products are only for kitchen and water prone areas. What do you say?
A:- Fibre Cement board has ability to withstand harsh weather conditions without rotting or warping, low maintenance requirements, and fire proof characteristics With new and better technologies, the construction industry has come up fibre cement board has been gaining popularity in the housing and commercial sector as it poses several advantages like B&T resistant, weather resistant, etc. Therefore because of its sturdy build ability it can be used for all interior and exterior applications.
Q:- What is the difference between ‘cement wood particle boards’ and ‘cement fibre board’?
A:- The major component in both types is Portland cement. However, the first one has Wood chips/Particles and the later use cellulose fiber instead of wood particles. Hence Cement fiber boards are more stable than cement wood particle boards which tends to chip frequently.
Q:- How do you plan to cater the demand of these products at plywood counters actually?
A:- We have appointed distributors all across the county from where we can cater demand of any size and thicknesses and can be supplied at a very short notice.
Q:- What are your marketing strategies/efforts to raise awareness to maximise the product reach?
A:- From last 2-3 years, market awareness is continuously increasing and in order to maximize the product reach we keep on doing various activities such as Digital, Print, Brand building and awareness (exhibitions), Market development activities like meeting fabricators, builders, architects etc and In Shop Branding.
Mr. Chetan Chheda, Director, Glo Panels and PLanks
Q:- What are the specialties of ‘FCB’ offering by your company?
A:- We supply premium wood replacement fibre cement products that are manufactured from the highest quality raw material and are created using advanced swiss-technology, our products area beautiful, durable, termite proof and incombustible all the while maintaining the look of real, authentic wood.
Q:- How much is the market size of this product, including import?
A:- Indian market size is appox Rs 300 cr per year. We are sharing 10-12% now.
Q:- Which factors are driving the demand of ‘FCB’ in India?
We desire to keep the world alive by conserving tress and preserving the quality of the air we share. Such strong intent inspires our core mission: to develop, produce and present innovative wood substitute that can serve people needs perfectly. These are the main factor driving the demand of cement fiber products in India.
Q:- What are the main applications areas of this product and do you see the growing awareness among other usages?
A:- Our products can be applied to either outdoor or indoor decoration area of both residential and commercial buildings. We supply Siding, Lath, Floor Deck, Ceiling board, Fence…and other decorative item. We believe that by using fiber cement products, we are healing the world to stay beautiful for future generation.
Q:- What are the benefits of using ‘FCB’?
A:- Fire and termite resistant , Non-Asbestos, cost effective, Good Durability, eco-friendly, versatility in style, good weather resistant, minimum maintenance, color options are available(pre and post).
Q:- Which thicknesses/sizes are very much popular in this segment?
A:- 6mm, 8mm, 10mm, 12 mm, 18mm - 4X8 board and various dimensions is cladding & flooring series.
Q:- It is a general conception among the contractors & carpenters that these products are only for kitchen and water prone areas. What do you say?
A:- You are right! Initially the perception of contactors and carpenters was that this product was only for kitchen and water prone areas, but now-a-days after using at many different area they come to know that products can be used for outdoor and indoor cladding, floor, ceiling, fence and satire case etc.
Q:- What is the difference between ‘cement wood particle boards’ and ‘cement fibre board’?
A:- Cement bonded particle board made from treated wood flake as reinforcement and cement the composition is 62% cement, 28% wood and 10% other chemicals. And Cement fiber board are made from 75% cement, 15% cellulose fiber, 10% water and other chemicals.
Q:- At 18% GST how do you see the future of FCB? Do you see any replacement of other wood panels?
A:- Govt. taxes policy for cement-fiber products is very positive. It will support the cement fiber market in India. We want to minimize the use of real wood and save tree. We have many products in our portfolio to replace use of other wood panels.
Q:- How do you plan to cater the demand of these products at plywood counters?
A:- These products are the future of building material industries, many fiber cement products are ready to use, light weighted, termite resistant, weather resistant, easy to work. Plywood counters also searching this kind of products while making awareness, we can cater them.