The growth momentum of commission of new MDF lines had continued in India, and 2023 will be noted as the highest capacity growth in these categories. The big plywood brands Greenply will commence its production this year. Century Ply has also added new capacity in its Punjab units, whereas Action Tesa new line also will start production this year. Industries reported that India will begin production of 8 manufacturing lines located in different states, which will add approx 3500 cubic metre production capacity per day, which will increase 35 % growth in total production capacity.
Uttarakhand has become the biggest manufacturing hub for MDF production in India. There are half a dozen new lines that are going to be set up in the state. The MDF front runner brand, Action Tesa is going to set up their 4th production lines in the state of above 600 cubic metre capacity per day.
Wood Panel companies such as Crossbond, Archid Ply, E3 Group along with two new companies are also going to set up MDF manufacturing in the state. All new MDF plants in UT are expected to start production by 2023- 24, which will add approx 2500 cubic metre per day MDF capacity in India. Uttarakhand is a major producer of MDF boards in India, where three MDF manufacturing establishments such as Balaji Action Buildwell, GreenPanel Industries and Shirdi Industries, and they are successfully running its operation in the state.
Although, The MDF market is visibly moving slow, compared to the last year. One of the reasons is said to be the supplies from expanded capacities that has added to the push. The new establishments of small plants are also adding the supply and a chatter emerging from imports which is certainly creating a price competency buzz. The Pre-laminated MDF sales are noted to be helping the smaller sized producers as they are offering cheaper pre-laminated boards compared to big players.
MDF is no more just a substrate material, it is now being used in panelling, fitouts and surfacing needs. The material is being used in wider ways now specially after HD+WR arrival. The builders look for cheaper material to finish their wardrobes and kitchen work in metro cities. The trend is catching up with pre-laminated boards direct application in cabinetries as well as kitchens which is now being offered in better ways and designs lately.
The Pre-laminated MDF demand, which was hardly 8 to 10% of thick boards shared a few years ago, is now reaching 18-20%. Since the MDF density/board quality has been trustworthy so far, the demands are growing. The smaller brands are catching up the eyes of users in retail markets along with added arrivals from imports. It is being observed that various importers in the south and west have become active and there is an increased arrival from imports to the Indian market.