India is a major exporter of high pressure laminate with an export value around Rs 1200 crores during year 2016-17. There is an increase in HPL export value in 2017-18 in double digits where stronger dollar has played significant role. Although the companies also import a higher amount of raw material in laminate segment compared to their sells yet they are better placed compared to all domestic market oriented companies.
With Dollar crossing 70 mark against Rupee, the advantage has turned in favour of HPL exporting companies on the contrary impacting number of business activities in wood, MDF & PB imports, floorings and other surface décor panels. The cost of imported raw materials for High Pressure laminates manufacturing too has rose sharply for materials such as Décor Paper, Formalin, Phenol, Press Plate Moulds.
The decorative laminate exporters have a clear advantage over all-domestic oriented manufacturing companies as they have comparatively higher input cost. A major market share of HPL export business is being led by brands like Merino, Greenlam, Sytlam, Century Laminates, Rushil Décor, Alfa Aca, Royal Crown, Purbanchal Laminates, Airolam etc.
Industry sources in decorative laminate segment feel that now increase in the prices of finished goods can no longer be awaited or put on hold. That is why except a dozen of companies who are also exporting, majority of the HPL producers are desperately conducting meeting to reach to a joint price increase announcement as soon as possible.
It is noted that Rupee against Dollar was hovering around 63 during January 2018, which has crossed beyond 70 during beginning for September 2018, hence Rupee has depreciated by approximately14-15percent during last 9 months.