A lot is happening on capacity additions in Plywood, Doors, Laminates, PVC boards, Particle Boards, MDF, Edge band, Adhesives, Decorative surfaces and Floorings segment hence there will be growth in market size with more material supply. The estimated growth in each
category will be around 16 to 18 percent YOY for next 3-4 years due to the capacities exploding everywhere. The consumption has to grow because of too much of capacity leads to market growth along with price rationalization.
Despite of all gloomy doomy scenario, the furniture manufacturers are gaining confidence. A cumulative growth in furniture industries has not been visible during last one and half years but capacity additions, new plants and modernization is regularly being done by the furniture makers.
The Indian Wood Panel Décor and furniture industry is adopting the change though moving ahead after acknowledging the fact that business has to be in books and so the earnings despite of all the ‘slow market’ chatter. The benefit to the exercise is resulting in form of realization among entrepreneurs and businessmen that ‘Things have to be worked out in organized manner’. Despite of struggles on the ground and weak lifting in retail markets, the expansion in manufacturing plants are happening at astonishing speed in every product category related to wood panel furniture industry.
At ‘Ply Reporter and Furniture Design & Technology research wing’, the team is grappling to combine and verify the industry capacity numbers because, there is a news of capacity expansion or a new plant every alternate day. A lot is happening on capacity additions in Plywood, Doors, Laminates, PVC boards, Particle Boards, MDF, Edge band, Adhesives, Decorative surfaces and Floorings segment hence there will be growth in market size with more material supply. The estimated growth in each category will be around 16 to 18 percent YOY for next 3-4 years due to the capacities exploding everywhere. The consumption has to grow because of too much of capacity leads to market growth along with price rationalization.
India in FY 2017-18 is poised to offer bigger opportunities and organized working after E-way bill, though a speedy pick-up in demand is expected to grow slow and steady. After GST that was applicable in July 2017, un-organized industries of plywood, Hardware and Furniture made sincere efforts to reduce the slab and thankfully the slab was changed from 28 to 18 %.
Now every interior product has become cheaper with 18% net GST paid on them. With rise in industry capacity, lesser tax cost, the net cost of furniture is going to be more economical in FY 2018-19 thus helping active and organized retailer to grow quicker. With data pointing to increasing sales in budget housing, The Ply Reporter is bullish on domestic demand coming in to each product category related to furniture making thus helping wood and panel industry at large.
FY 2018-19 will belong to sincere effort makers who save on raw materials, improve efficiency, establishing distribution and setting up teams and provide the best at cheapest possible.
Best Wishes
Pragat Dvivedi
Founder Editor
Mail to “dpragat@gmail.com”, ( M) 9310612991.