With a spike in demand for wood panel products, many emerging wood and decorative panel brands are looking for expansion but they wish to expand in core business categories. Plywood producers are entering into MDF, Particle Boards and Laminates manufacturing, whereas Laminates producers are diversifying to Plywood and Particle Boards manufacturing. It has been happening since the last 5 years because these products are selling through similar channels partners, who are drivers of these product categories.
Recently, seeing the potential and good market prospects with increasing interest of consumers for plywood, some laminate players are entering into plywood manufacturing. Gujarat based Airolam has entered into this segment, whereas Morbi based Laminate producers are also investing in Plywood manufacturing by setting up units in Gujarat. Sources also confirm that Leading decorative laminate brands such as Greenlam, Stylam, Royale Touche etc are also exploring to enter into Plywood manufacturing.
According to the market sources a number of laminates manufacturers have already ventured into plywood manufacturing and many are planning for it. More Gujarat based brands are looking to enter into plywood and a number of North Indian players are also planning for it.
It is noted that a laminate brand has more market reach with similar retail networks. Laminate producers feel that they can get advantage of good brand image among retailers, and they might take share of good quality and organized market, if they offer good quality Calibrated Plywood.