Despite huge capacity addition at domestic level, the MDF imports have achieved a high growth of 39% in FY 2018. The upward import curve of MDF for last 5 years was turned town in the year 2016-17, but this year it has attained a huge boost. According to the data revealed by DGCI&S, this year import of MDF/Hardboard has reached to Rs 778.53 crore from Rs 560.31 crore in the year 2016-17 giving a boost of 39% (Rs 218 crore).
The MDF is mostly imported in India from Vietnam, Thailand, Malaysia, South Korea etc, and these imported materials, mainly in lower thickness, have significant market share in Tamil Nadu, Kerala, Telangana and Mumbai market because its proximity at ports. Although the growing import is a challenge for domestic producers, who have recently expanded their capacity by adding new high capacity manufacturing lines but market is driven by price and imported MDF are more competitive in some regions in India.
With commencement of production of new plants, India’s MDF production capacity has reached to 4500 cbm per day. Green Panel new plant in South India is set to push the supply in southern India market in coming years of 2019 and 2020. Some new plants are also commenced in South and North India, which may start production in 2019.
With the growing furniture manufacturing industry and increasing application of MDF in furniture and interior purpose, partition and flooring huge capacity addition is taking place at domestic level also. MDF is a suitable all rounder substrate for multiple applications in readymade furniture, routing and other surfacing requirements as well as in consumer appliance such as Photo frames, Shoe heels, Gift box, Grills, Routed tops, Wall paneling etc.