India's High-Pressure Laminates production capacity is expanding at very fast speed. Estimates of the Ply Reporter indicate on an average 14 percent growth year to year basis of last 4 years. With 30-35 hot presses addition in every passing year, the competition is edging out many of the old practices and taking its toll on pricy ingredients. Year 2017 is also scripting the same growth story despite of market challenge after demonetization and GST. A similar growth in production capacity of low pressure laminate has taken place and continued with many new upcoming plants being set up for manufacturing MDF and Particle Boards. The growth in Indian laminates sector is a good news for raw material suppliers on the whole but the demand for European developments is somewhere losing out to Made in china décor paper producers.
The Ply Reporter survey indicates that the down fall in demand of European and Japanese décor paper year on year and their share shifting to China décor paper gradually. Décor paper suppliers confirm that the shift is seen because of price, improving quality by Chinese manufacturers and design innovation. Suppliers say that the look and feel of finished products are almost similar of Chinese and European décor paper besides the Chinese are very much aggressive in offering and business terms. A leading HPL manufacturer (not to be named) says that European décor paper is costly because of their high quality and innovation but these brands are not popular among our customers, they don’t have any brand image in India market because they do not make aware about their products quality and advantages among our influencers. Our customers never ask us about the brand and products of décor papers, hence the shifting is very natural and it will increase further.
The Ply Reporter estimates around 20 percent fall in European and Japanese décor paper consumption by Indian Laminates sector in last one year. Schattdecor, Chiyoda, Lamigraf, Interprint, Toppan, Surtco, Decotec, Impress, etc are the prominent supplier of European and Japanese décor paper to Indian Laminate industry since decades but there is pressure on sales confirm suppliers on the basis of unanimity. According to a leading décor paper supplier, the demand has been hit largely because of shift of PB players to India prints. The rise in demand for non-premium product is being seen as a major cause. Décor paper suppliers reveal that the demand curve takes a hit after a certain period and then it catches up again. The major reason behind the down fall is not because of other supplies rather it has seen the impact due to macro-economic policy changes hence creating a slowdown in the market.