The rise in competition index for wood panel industry and trade parallely offers threats and negative outlook for small and unorganized companies or those who are still not taking their
enterprise seriously. 2019 will establish the ‘importance of accounted cash flow, adequate marketing strategy, spending and need of efficient sales professionals’ up to an extent that was never felt needed before.
The new year 2019 hold prospects, opportunities and plenty of scope for fit, focused and hardworking companies, distributors and dealers. The new year is the starting time for all entrepreneurs including retailers who are ready to go out of their comfort zone for sales and exploring new markets. The rise in competition index for wood panel industry and trade parallely offers threats and negative outlook for small and unorganized companies or those who are still not taking their enterprise seriously. 2019 will establish the ‘importance of accounted cash flow, adequate marketing strategy, spending and need of efficient sales professionals’ up to an extent that was never felt needed before. Presently the entire building material segment is facing weak demand and payment worries apart from rapid change in trade buying practices.
Cheque has become the new cash hence organized brands are gaining preference. With merely 14.0 % market share in value terms, the plywood category has plenty of room for growth to serious quality conscious branded player. The rise in raw material prices, huge production output will lead to competition and consolidation during 2019. Branded companies will continue to gain apart from growth of new players seeking branded status. In plywood product category, the combination of clarity, effort and capital required to be called as brand, is so rare that except a few counted names the 30,000 crore plywood industry still awaits brave and ambitious entrepreneurs who make their way to top 5 slot. The acceptance of branded product is anticipated to grow with narrowing gap of price between GST paid and non GST attracting product. Year 2019 is set to be the beginning of rigorous and hardworking era hence gear up to compete fierce.
In 2019, It is also hoped that GST slab will come down and provide more gain to branded players as the gap between branded and unbranded will further narrow down. With ease in financing options from banks and NBFC’s for SMEs and MSMEs, I strongly believe an ease in liquidity in second half of 2019. The Election year always carry a drifted business mood for around 3 to 4 months time, that means during ‘April to June’, large projects and big business decisions will be under wait and watch mode. The remaining effective 9 months of working period will be full of surprises from central government and high optimism will keep nation mood positive.
LETS WELCOME A BRIGHT & PRSPEROUS NEW YEAR…
Pragat Dvivedi
Founder Editor
Mail to “dpragat@gmail.com”, ( M) 9310612991.