Wood Panel and Decor sector, which has been regarded as an unorganised space is now gradually evolving to become an organised industry with bigger vision and work culture. The sector is exploring ways to grow further by leveraging automated machines and latest technology with a brand image.
The growth in housing, real estate and furniture, has propelled the growth for modern and organised working following which the sector is on expansion mode. The entrepreneurs are looking for more funds to sail the growth, hence the SME IPO is being seen as an important step to catalyse the growth of this sector.
Over the last 5 years, the wood panel decorative and interior space is witnessing the transition of industry people, who have successfully entered SME IPO market to raise the capital ranging from Rs 25 crore to Rs 200 crore, and the IPOs were successfully subscribed. The overwhelming response of investors in the wood and decor panel sector has been supporting the inflow of funds and the growth that has worked as a catalyst to the sector.
The growth of many players other than Centuryply and Greenply, brands like GreenPanel, Stylam, Rushil Decor etc have shown a benchmark growth. The good returns for investors in this sector with emerging growth prospects from many new players is being explored and on the charts. Companies like Eurobond, Airolam, have entered through SME platform and have grown following which many companies and investors are keen to enter in related products segment. There have been many companies that are starting to prepare for listing and raising funds to move further.
Ply Reporter can clearly see that around a dozen companies are changing the culture or close to complete the compliance for announcing SME IPO in a couple of years. The Wood Panel industry has been registering a growth in double digits since the last 5 years. MDF, Plywood, Particle Boards, Decorative laminates, ACP, Hardware, Louvers, Acrylic laminates etc, there has been a huge capacity addition in manufacturing.
Therefore, the industry has noted a huge investment, and off late it has seen that investors from other building materials products and different Industry people have been investing fund into this sector, these are from Paint, Tiles, Cements, Ceramic, Textiles, Real estate, Footwear, Garments, leather etc.