Formal work culture is gaining momentum in Indian wood panel segment. Organised players are now able to do what was not possible 5 years ago. I would not hesitate in saying that steady rise of MDF has given a taste for formal working among trade people and stockists. In the past two years, the availability of capital at low interest, coupled with assured margin of 2-3% plus earnings on MDF stock offered a taste for ‘set earnings’.
Supply shortage in MDF established the comfort among dealers and hence ‘a certain income with ease’ is being experienced by traders now. This has not only made big distributors comfortable but also adding to the taste of aligning with good Brands. This factor is normally seen in FMCG sector and that is why all the brands are now seeing a turnaround. It is an important point to note for the industry and stockist.
In recent industry performances, India's pioneer brand, Century Ply has performed very well on all fronts as reflected in the 3rd quarter results. It is important to note specially when majority of firms operating in wood panel segment were pained by weak demands, raw material issues and uncertainty.
Century Plywood’s growth is an example that point to the need of right planning, marketing, combined with strategic steps. The company has noted sharp rise in realisation in almost every product category. Sales especially in plywood have shown sharp growth which is important to mention if I compare with others in the peer group.
The issue with MSME is often about Capital and Clarity. Unfortunately, they seldom talk about Clarity.
The fight has become tough yet there are possibilities for brave hearts and clear minds. The future lies in Big volumes, Pre-finished products, Strong channel network and Brand goodwill. Every one can’t have each of these yet with joint ventures and forming alliances, new possibilities can be explored.
The Ply Reporter will continue to extend support with news that the industry can use in order to move in the right direction.
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Pragat Dvivedi
Founder Editor
Mail to “dpragat@gmail.com”, ( M) 9310612991.