Mr. Rakesh Chandna, Managing Director of CP Veneers, in conversation with Ply Reporter, spoke about his new ultra-modern plywood manufacturing set-up, recently established in Yamunanagar, Haryana, with a cumulative investment of approximately Rs. 100 crores. He stated that the decision to venture into plywood manufacturing was taken after a chance visit to an overseas plywood plant, which inspired him to establish a similar set-up in India with the aim of producing the finest calibrated plywood in the country.
The plant has been established over a sprawling area of approximately 4–5 acres and is capable of producing around 700–800 tonnes of fully composed plywood products. As far as machinery is concerned, dealers who visit the facility will be able to see for themselves the advanced equipment we have incorporated into the plant.
You are known to have a penchant for decorative veneers. Why did you choose plywood over further expanding your Veneer business?
There are still only a few companies offering plywood of a quality worth reckoning with. Fortunately, I happened to visit an overseas plywood plant that changed my perception of the quality of plywood produced by most domestic manufacturers.
Inspired by that manufacturing facility, I decided to replicate its production model in India so that we could manufacture higher-grade plywood and panel products at reduced labour costs while maintaining financially viable operational expenses.
The growing preference for products such as highdensity MDF boards is mainly due to their smooth and uniform surface. However, considering the superiority of plywood, we chose to establish a calibrated plywood manufacturing plant instead of an MDF facility. There is simply no match for calibrated plywood; one can even apply fine-grade veneer directly over it.
As far as marketing is concerned, once dealers become familiar with our product and manufacturing set-up, branding will largely spread through word of mouth.
How practical is the decision to set up an advanced plywood manufacturing unit?
It is certainly a practical decision because we believe there is a great deal to gain in the plywood industry when products are manufactured using advanced and cutting-edge technology. The integration of automation into such a labour-intensive sector has significantly reduced labour costs and enhanced operational efficiency.
You mentioned that you were inspired by a foreign plywood manufacturing facility. Lately, a number of plywood units have been established in India. Don’t you think they are worth drawing inspiration from?
Earlier, I was not certain about setting up a plywood plant and was contemplating outsourcing the manufactured products, as many leading plywood companies do. However, when I visited several plants, I was disappointed by the stark disparity between their claims and the actual quality of their products.
Coincidentally, I also had the opportunity to visit an overseas plant. I was impressed by their style of working and the machinery they employed. They had streamlined various stages of plywood manufacturing and achieved remarkable efficiency through automation.
It is still too early to make precise projections, but with the infrastructure we have established, we certainly aim to achieve a turnover of Rs. 200–300 crores within the next two years.
Thereafter, I decided to establish a similar imported plant set-up in India to produce plywood of international quality standards.
Do you think your dealers will be able to appreciate the value of your internationally manufactured plywood?
Perhaps not immediately, but I am confident that once dealers are invited to visit the plant, they will be convinced to purchase our plywood after witnessing the quality of the products we are manufacturing. Until then, I may have to respect their discretion.
The automated plywood unit requires core composition technology for production, which significantly enhances product quality and consistency.
Do dealers usually receive demand for such globally graded calibrated plywood?
In my interactions with dealers, I found that when they receive demand for fully core-composed plywood, they are often unable to fulfil it due to the scarcity of such manufacturers in India.
As a result, dealers have expressed a willingness to purchase 100% core-composed plywood even at a slightly higher price.
Please tell us briefly about the infrastructure of your plywood plant.
The plant has been established over a sprawling area of approximately 4–5 acres and is capable of producing around 700–800 tonnes of fully composed plywood products.
As far as machinery is concerned, dealers who visit the facility will be able to see for themselves the advanced equipment we have incorporated into the plant.
What kinds of plywood do you intend to produce at this plant?
We are currently producing fire-retardant plywood that conforms to BIS norms with up to 45 minutes of fire resistance.
After examining numerous random samples available in the market, I found that very few met global quality standards. With our plywood, even a 0.2 mm veneer can be applied directly without any surface undulation. In the future, we also plan to introduce Marina Max marine plywood.
Which segment are you targeting at present— OEMs, projects, or retail?
At present, we are focusing on the retail segment and manufacturing products that cater specifically to the requirements of retail customers.
However, in the future, we certainly intend to undertake large-scale production for project-based requirements as well.
How do you foresee the financial growth of this venture over the next two years?
It is still too early to make precise projections, but with the infrastructure we have established, we certainly aim to achieve a turnover of Rs. 200–300 crores within the next two years.
I was not certain about setting up a plywood plant and was contemplating outsourcing the manufactured products, as many leading plywood companies do. However, when I visited several plants, I was disappointed by the stark disparity between their claims and the actual quality of their products.