Demand and supply mismatch has been compensated by the curbs on imports due to mandatory BIS. Although, in the wake of mounting pressure to dispense the BIS licenses to overseas manufacturers, the Indian government Departments and BIS have started to initiate the inspection of few factories in Nepal and Vietnam and few other countries.
The markets were on a vulnerable spot during October. The payments as well as demand remain subdued and marred by lack of material availability, manpower, site supervisors and even clients. Now, post-Diwali, by the end of festive season in October, the movement in markets was noticed with the ramping up of the Payments and demand cycles. On the whole, plywood industry started advancing with stable demand and reasonably comfortable pricing. Demand and supply mismatch has been compensated by the curbs on imports due to mandatory BIS. Although, in the wake of mounting pressure to dispense the BIS licenses to overseas manufacturers, the Indian government Departments and BIS have started to initiate the inspection of few factories in Nepal and Vietnam and few other countries so we might see some more liberty in imported material as they obtain the BIS certification.
Although, mandatory ISI mark is definitely supporting and benefiting Indian manufacturing industry and looking ahead it will be inevitable for foreign players to make way for make in India investments as they will certainly target Indian market for its enormous size. This 40,000 crore worth plywood industry is certainly having scope for foreign players. Hence, Indian manufacturers are better advised to gear up for quality in supply as well as costing and organised work culture. They have to bring up efficiency by saving on timber and manpower cost. That is the only way forward for plywood industry.
Today, one change which is clearly visible that the demand for genuine PF plywood demand has grown up as market has seen an uptick in phenolic plywood. Similar trend has been seen in MDF where demand for HD+HMR grade products has been consistently rising with almost 12-15% growth every year. Particle Board is also seems to follow the same trend where few companies have brought moisture resistant high density chipboard, which is also being welcomed by the trade and Indian market. The similar sentiment is echoed in even PVC louvers where high density louvers are more preferred in the markets. In laminate, 1.25 and 1.00 mm sales are consistently and steadily growing due to vibrancy in textures and better quality surface acceptance. If we notice these trends in totality, we have seen a consistent rise of 10 to 15% in upper price segment product in every category. Means an average consumer is shifting towards high end designer product with certain density, moisture resistant quality, better thickness, stability and better durability. So Indian consumer is moving up on standards and is not very price sensitive anymore. They are ready to pay the price which reflects in the growing sales of decorative, especially textured veneer, acrylics, special coating of aluminum composite panel, WPC, and even coated metal on exterior or interior, instead of UPVC. However, there is a struggle for selling these premium interior products, where brands are winning and therefore organized players are inching up to get more market share.
Ply Reporter believes that those players who are competent in optimizing premium-ness with cost efficiency, at the same time keeping a brand image and good team to deliver, will continue to get growth in this competitive market. Needless to say that capital is foremost as it is repeatedly emphasized in the past editorials that capital is the key, and when market is diversified and expanding, brand image and team role is very important. All those entrepreneurs, whether in distribution or manufacturing must gear up to capitalize their investments which is scattered in land or gold or other assets? The first and foremost priority is infusing capital in business. Year 2026 will be a great turning point for those who have understood this concept of capital infusion in the business instead of safe assets.
Pragat Dvivedi
Founder Editor
[Published in Ply Reporter's November 2025 Print Issue]