The new Financial year is about to begin. I believe, demand for every product will be better now because a lot of consolidation has happened in every industry segment. Many factories have stalled the operations or have fallen in debt trap. FY 24-25 has been a challenging year for the entire industry right from the beginning.
Undoubtedly this time period has compelled the industry and trade towards alertness on cost, pricing, credit period along with increasing its focus on team building. The best thing came to my observation is our wood panel and decorative industry is becoming very sensitive to compliance and able to sense the tightness and emerging threats clearly. There is remarkable awareness on materials, buyers and need of their credibility verification, policy related to return of stocks, pre signed cheques with MOU, formation of sales team and brand building efforts apart from sincere effort on achieving apt quality. The down side is all these above factors are not easily possible for a small volume enterprise. Hence I can feel that small sized manufacturing enterprises will have to devise new ways to survive if they are not able to do above work and compliances.
The best thing happening in our wood panel decorative industry is focus and attention to the right workforce. A lot of effort on retaining and training them has started. Decorative laminate and decorative products sector is strong and booming hence there is growing need of large display retail stores. This is one area where a lot of effort is being done by decorative product industry along with manpower up skilling front.
Another area that present the positive side happening on plantation front which has now startedwith sincerity. Though plantation by industry led drive is far slower compared to consumption growth.
FY 25-26 is expected to be consumption and demand centric year than last FY due to many positive developments. Possibility of deduction in bank interest rates, absence of any big election in the country, lot of flats and commercial spaces ready for interiors uplift the prospects of many solo designers in interior space. There is sign of consolidation happening in manufacturing sector in every product category be it MDF, PB, Ply, Laminates, furniture etc, which indicates a better prospect ahead for focused brands in a couple of years.
The importance of quality after QCO implementation and need of QCO implementation in furniture space is going to be a big turnaround factor for wood panel decorative industry that holds enormous possibility for growth. The emergence of event platform like MATECIA is a boon for any stakeholder, whosoever is able to showcase and present make in India products with an aim to take their brands to a large new customer and enhance their market awareness through enriching knowledge talks.
By and large, despitea few disappointing news from some quarters; I can say there are many positive sides that are visible and here to benefit the wood panel sector in FY 25-26. I hope more number of companies, enterprise, distribution firms and brands will join Rs 100 crore plus and Rs 500 crore plus revenue club soon.
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Pragat Dvivedi, Founder Editor