Seeing the market demand, Salasar Laminates Group is expanding its HPL manufacturing capacity by setting up new unit in Gandhidham, Gujarat. With new plant, the company will cater both overseas and domestic demand. During one 2 one interaction with The Ply Reporter, Managing Director Mr. Vikas Agarwal expects to exceed Rs 500 turnover of his entire laminates business by 2024.
You are going to establish a new Laminates manufacturing unit in Gujarat. Please tell us about that.
There is selling potential in the market and demand is there as well. From the current unit, we are exporting and, in that context, our target objective is to cater to the need for which the unit was established is not getting fulfilled. We are unable to stock an adequate number of sheets of the products placed in the folders for the domestic market. Due to that, sometimes our supplies are delayed as well. In liner grade, we are unable to work openly, so this customer segment remains untapped. These are the reasons we have planned for a new unit. After that, we will cater to the domestic market along with our export offerings in continuation.
What would be the infrastructure, capacity, and machine installation at the new unit?
In the first phase, 3 presses will be started at the new unit in the Gandhidham area, in which two presses have an 18-day-lights capacity and one has a 16-day-lights capacity. The sizes of production will be as per the requirements in the market, probably in different sizes, as if we have to be open; we will not have to curve in sizes. However, major production will be in 8x4mm and will be open to different sizes because we believe we will be able to secure the business if given the opportunity. There could be more than 9 fits above as well, like 9.25 ft x 4.25 ft, and 10 x 4 sq ft besides 8 x 4 sq ft. We are trying to deliver the production by July 2022 from new unit.
Which is your best value for money brand and folder which you'd like to promote especially?
Every folder is a good value for money. Those who wish to have products in the high-end segment will find our Heritage catalogue is a good choice for them. For those who wish to have an economical range, our Hutch Smart, Shree, Rolex, etc. for 0.8mm and Craftlam for 0.92mm are value for money. For our projects, we have different catalogues like D-Lam, Holmark Pro, etc. So, we try to address each and every customer requirement in the best possible way.
How do you see the future of 0.92 mm or 0.8 mm for the growth of a company and why?
In today’s time with raw material crisis and price volatility, the customers of 0.92 mm or 1 mm are not attracted to it due to the thickness of the product, but the colors, designs, presentation of the catalogue, range, and colour combinations play an important role in this regard. With the rising cost of products and dearness everywhere, people still want the same products as 0.92mm, but they see the affordability and close to finishing in the second best offerings like 0.8mm and go for that with savings.
This is the reason 0.8mm is growing. But if we talk about 0.8 mm three years ago and what it is today, the equation has changed; today 0.8 mm has come closer to 0.9 mm. The 1 mm has different segments that each maintains their own position, but the 0.8 mm and 0.92mm segments will merge and form a new segment in the future. The 0.8mm segment of previous times with laud textures, flashy finishes and designs is going down.
How do you see the export market in the laminate segment?
The export market is growing, and it will grow in coming times also. Indian materials have acceptance across the globe. But, if anyone wishes to achieve success overnight, it will not work. In this segment also, one has to work gradually and slowly to maintain quality, price, supply as well as relationships. Gradually, it will happen. Exports are even tougher than domestic because export buyers are few. Still, there is a big potential.
What is the turnover of the Heritage Group?
In this group, except for the associated businesses, our turnover is about Rs 300 crore, but very shortly we will reach Rs 500 crore. If we include our agro panel business, it could be around Rs 400 at present. With the new unit coming up, we will get another Rs 100 or Rs 150 crore. But these are just expectations; the market will tell you what you can do. We want to exceed Rs 500 crore in revenue and are confident that we will be able to do so due to our networking, customers, partners, and business relationships with them. We are a family, and together we can achieve that with the grace of God.