The demand for MDF in south India has been very good and promising a decent growth in years to come. South India is the major market for MDF boards specially when the imports are not coming cheap anymore. The direct benefit is going to the two plants based in Andhra Pradesh, of Rushil Decor and Green Panel Industries’. With a total of 1100 cbm capacity at Rushil Décor and 1000 cbm capacity at Green Panel industries, Indian MDF manufacturing has become major stakeholder in south India market. With present price realisation for MDF above Rs 20000 per cbm, MDF manufacturing is one of the most promising industry w.r.to profits as well as growing demand in wood panel industry space.
The Greenpanel MDF plant located at Chittoor, Andhra Pradesh is currently operating at above 80% of the capacity whereas one of the Rushil Décor old plant located at Chikmangalur, Karnataka is running at 85%. The Rushil’s new plant located in Andhra Pradesh is reportedly running at 40% capacity during August September spell. The MDF demand is also being observed in overseas markets where Greenpanel has emerged as a leading player doing exports to middle east, UK etc. Rushil Décor is also doing some exports but the present focus seems to be on domestic demand. The Southern India is also going to see the beginning of work for Century Ply boards new facility coming in to MDF in Kadapa, Andhra Pradesh.
The MDF segment has also seen another announcement coming in western regions where Green Ply is starting their first MDF capacity in Baroda. There are possibilities of 2 more new players in MDF but the capacity and confirmation is yet to happen.
During taking update on MDF scene in Southern markets Ply Reporter spoke to some distributors who says that ‘the import viability in India in MDF category is ruled out due to very high logistics cost apart container availability is scarce.’ ‘The imports business has become very difficult and unviable due to logistics and large inventory investments during longer timings’ expressed importers operating in Bangalore and Chennai.
With the thin and thick MDF Boards (thickness ranging from 2mm to 30mm) is being produced in the country, the window of dealing in thin sheets are still open yet it is not so profitable as before’ said an importer based in Chennai