Plywood demand is reportedly touching Pre-Covid level having boost since last two months. For many manufacturers demand is even better than Pre-covid levels. But it is to be noted that demand of economical grade products are higher than premium products. The increasing demands have helped producers to reach to brave hopes, who were uncertain after Covid Pandemic. Market reasoned that more demand is coming from tier 3 cities and rural markets, but the Metro cities, Tier 1 and Tier 2 cities are also buying cheaper materials aggressively. The aim is to survive the competition with better earnings.
Yamunanagar, Punjab, UP and Kerala based plywood manufacturers too agree that 80 percent orders in plywood are under Rs 40 and below range products. Despite having enough production capacity of good quality full core - full panel plywood, calibrated plywood and water proof plywood, which are ranging between 44 to 50, the demand is for sub 40 brackets. The demand for cheap quality simply means that cheap plywood is being sold in the name of good quality and furniture makers are driving this demand.
The phenomenon is temporarily supporting the plants but this trend is not good for the future of the plywood industry and trade because big quantity of economical alternate products are strongly standing behind them, they are ready to take their market share in a more prevalent way. They are increasing their capacity in large scale and ready to serve the furniture industry with prompt supply. Hence, it is a hard fact that the growth and sustainability of plywood industries would maintain if they produce/sell their more volume of its high quality products with good margins and respect
This trend is challenging not only for producers but is more challenging for distributors, whole-sellers and retailers, because they should understand that they would be losing advantages in the long term, if they don’t endorse/promote good quality premium plywood products. They can lose their business turn over, profit margins and goodwill in their respective markets. Once their enterprises will have a tag ‘SASTAWALA or halka material wala’ their earnings will be hit, goodwill, image and ultimately people will not turn up for quality decorative surface materials where margins are decent. The pushing up for cheap will equalise the quality of readymade furniture and carpentry made furniture and hence retailers will be losing business to OEMs faster than imagined. There has to be a balanced approach in trade to promote and push sales of quality materials to consumers, not just placing bet on cheap prices. Hence, for your own future growth, you must do justice with your business and products.
This October issue is packed with lots of news reports, market updates and product launches related to plywood, laminates, particle boards, timber, chemicals, decorative surface materials etc. The one 2 one interaction with Mr. Surendra Kumar Agarwal, Managing Director, Austin Plywood on Austin Anti-Virus plywood and his future plans is worth reading for the entire plywood sector. The extensive feature reports on rising prices of WPC/PVC boards and Government proposals on ‘Disengaging IPIRTI from MOEF’ are covered in this issue. Besides, many happenings in the industry and trade, virtual launches and discussions organised by Ply Reporter are interesting to read.
Read Ply Reporter and be ahead of time!
Rajiv Parashar
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