Despite the rising input cost of raw materials, the growing demand of PVC edge band tape is maintained. The reason behind is booming work in interior infrastructure in the country post covid 2.0. It is also booming because imported edge bands tapes are costing much higher than domestic produced PVC tapes. Researching on the same, The Ply Reporter findings show that readymade Furniture is helping the demand. The PVC edge tape manufacturers explain that ‘price rise has been nearly 20.0 % in recent past but the demand is not affected’. They believed the analogy ‘the ratio of cost on use of edge band w.r.t. the cost of furniture is negligible.’
Mr. S. Karthikeyan, Chairman & MD, Red Star Plastic Pvt Ltd said that it is the evince fact that PVC price has gone up, but the impact on edge band category is not much. We have been affected before, as China has been pumping a lot and it was killing our market. But, now the imports are coming down so the markets are for us. We have bigger market to operate so the sales volume is going up. The cost of edge banding is very small in making of overall furniture. If the price of edge band tape increases by even 20% that is not going to affect furniture manufacturers, because of that our price goes unnoticed. In last one year we have three price evasion and all have been accepted in the market.”
Mr. Jay Garg, Director, E3 Group said, “I think the price escalation is not much more neither it will increase at rapid pace in future also. Quality is most important, so those who are making quality are growing well and increasing their capacity also. The edge band industry is growing by 20 to 25% every year so the volume consumption is very good and most of the time the price escalation is observed by the manufactures itself due to increasing market, volume and sales. There are several units that fought with Chinese imports targeting the importers. They were working on very thin margins and with rise in raw materials cost they have to increase the price because they were already making low quality product and it cannot go further down, therefore there is no option other than increasing the price”.
After Covid Pandemic, the growing trend of readymade furniture demand and decreasing imported furniture market, this product demand has been registered good growth, with more capacity addition in 2020 and more expansion in pipeline in 2021.