Wood panel sector is highly dependent on supply and availability of timber in consistency. Wood is the key raw material that contributes to the major share of input cost in finished goods and panel products. Due to ongoing timber scarcity, the manufacturing companies, who are eying to grow further nationwide, are planning to expand their production capacity on newer locations that have already become a timber growing lands. The timber scarcity scenario is pushing more and more companies to add new facilities to set up plants in south, central east or even coastal based. A number of wood panel manufacturing companies are going ahead with plans to set up their new units for which a dozen of firms have already aquired land in different parts of the country.
Andhra Pradesh in, Southern India has emerged as a preferred location for many. Greenlam Industries has started its new plywood manufacturing unit in Tamilnadu. Century Ply is also setting up a new MDF unit in Andhra Pradesh and Particle Boards unit in Tamilnadu. Punjab based Wigwam Plywood group is setting up a new plywood unit in Karnataka. Punjab based Magnus Plywood has also reached Kerala by acquiring a plywood unit. Kolkata based Suburi Plywood has also reached Visakhapatnam in Andhra Pradesh to set up a new unit of Plywood and Particle Boards. Uttar Pradesh and Orissa is also a preferred choice for new plants in these product categories. Ply reporter's feed suggest that number of new players coming in from different countries or different materials are eying for setting up Plywood, MDF and Particle Boards manufacturing units.
Previous year, Uttar Pradesh and Uttarakhand had been the top destination for setting up new wood panel manufacturing units. Greenply and Austin Plywood had started manufacturing units in Uttar Pradesh. Many wood panel producers based companies have acquired lands in Uttar Pradesh to set up New Plywood units. Uttarakhand has also emerged as a new destination for MDF manufacturing units with 5 more MDF units.
It is noted that timber prices went up high in North India mainly Punjab, Haryana, and Uttar Pradesh. Seeing the prospect of wood panel demand in India, visionary entrepreneurs are looking for expansion, and they explore the new avenue where they feel better timber availability. The freight cost also has gone up very high, hence industries also calculate the freight to cater to other markets, which would help them to be competitive in respected markets.