In present times, I do not see fear of slowdown among panel producers but a visible terror of cash loss is loud and clear. Be it plywood or decorative laminates, the cost equilibrium is in complete disarray for manufacturers. The profitability for manufacturers has evaporated in air with daily rise of timber and overheads. In decorative laminate segment too, the over supply is running over profits as prices of finished goods are running at bottom. The MDF, PB too is witnessing a weak patch and so are the related categories. What is more painful is to see a mid-size company that can bravely face the turbulent time, with knowledge and clarity, chose to run to chaos, just because they did not pay attention to details and knowledge when they should have been.
It is last month of FY 22-23, and the phase of Jan-March will not be counted as a good one as sales have been dull. The emergence of regional and small capacity plants in every domain is stalling the growth numbers for most of the players. The unorganised brands, who are busy most of the time are pulling themselves down with price war and miss the fact that at times when a company owner has to establish and re-establish the commitment, he made during starting of the plant, shall never fear and escape from the promise and dream he had in beginning. The main reason of ‘giving-up’ is due to habit of short cut, jugaad in operations and a settled comfort zone for living with personal gains.
The fear of loss and lack of confidence to market their product is the big factor that forces mid level producers to choose to confusions. Instead it has to be opposite, it has to be more push, more efforts, going out of way to establish confidence, quality and marketing efforts. The fearless manufacturer must know that it is all about the approach of seeing the ‘manufacturing businesses.’ When it comes to good times, producers invest in properties and luxury but when times are tough they become distressed too soon. Instead, the approach must be to sustain and bear (even losses) in bad times. If good times have not prevailed, bad times too won’t last long but the confidence in work style must not deviate. Stick to the thumb rule of quality, team and branding.
The basic difference between organised and unorganised player is about their clarity in business and goal. During fears of slowdown, the unorganised brands are busy evaluating escape route from expenses on the other side organised sector is marching ahead with expansions and hiring. I know that many companies won’t register profit this year, or will not be able to see much sales growth but the clear headed ones will not deter despite of such hurdles.
That is where when I look back, I see many such players who are left far behind due to their fears and protectionist habits. I certainly see a few, who took decisions being fearless, not because they had plenty of resources but because they were clear with their goals. My experience says ‘Fear brings confusion and clarity brings confidence to succeed.’ Read & Follow ‘The Ply Reporter’ reports and FB lives Thaking you
Pragat Dvivedi Founder Editor Mail to “dpragat@gmail.com”, ( M) 9310612991.