"In woodpanel space, the capacities have almost doubled in 3 years where as demands are growing hardly at 8-14% (MDF has been an execption). Challenges & changes are inevitable. Sail through them to fit in the new landscape of business. All I can say and pray that FY 24-25 to be high demand generating year specially for brands who offer assured quality."
The overall market during first 15 days in February was dull. During last week things moved and payments opened up. Smiles were visible. Shuttering ply, particle boards, and doors are picking up. Plywood, laminates and MDF too reflected a little eased up scenario. Till March first week, moods look upbeat but payment issue is hurting, specially after MSME “45 days credit" implentation. A common agreement across product categories in building materials stands at “Market is still slow and payments are too tight to operate”.
The QCO/Mandatory ISI mark rule is reported to be postponed for a year on all wood panel products, means the anticpated easing up in plywood and MDF demand-supply match is delayed now. Plywood sector has to face the cheap import from other countries for few more months which will result in extreme pressure on domestic plywood producers. Ply producers must plan to demand some restriction wrt price from the Government for safegurading the domestic plywood industry.
The QCO/mandatory ISI mark on furniture products and articles is also underway. A lot of work is being done to bring the Indian standards for furniture sector and if that happens sooner, that will offer a soothing balm for the wood panel and hardware industry in india. The standards on furniture will certainly impact the huge import coming from China, Turkey, Vietnam etc and that will offer great breathing space for indian funriture industry and create impetus for growth in demand for wood panels in domestic furniture producing sector.
In woodpanel space, the capacities have almost doubled in 3 years where as demands are growing hardly at 8-14% (MDF has been an execption) and on the top of it, the real estate has been giving phenomenal returns. This is allowing people to remain engaged/invested in real estate thus diverting business funds. The moment, property prices will begin the downward slope, end users will accelerate the demand cycle followed by liquidity easing up. I firmly believe that Modi 3.0 shall be tough and focused more on compliances and changes in rules to clean the system hence money will flow to users hand and accordingly demand will grow.
Challenges & changes are inevitable. Sail through them to fit in the new landscape of business. All I can say and pray that FY 24-25 to be high demand generating year specially for brands who offer assured quality. I wish a lot of strength to wholesellers and retailers so that they can walk alongside the industry leaders and learn to navigate through these tough times in order to witness an era of growth.
Pragat Dvivedi
Founder Editor