+
FASTEST GROWING Wood and Wood Product COMPANIES IN INDIA
Products

FASTEST GROWING Wood and Wood Product COMPANIES IN INDIA

The plywood and laminates industry is one of the oldest in India. However, it still comprises a large number of unorganised players. With factors like clustered manufacturing facilities and environmental factors impacting the manufacturing process, there are very few large players in the sector...

The plywood and laminates industry is one of the oldest in India. However, it still comprises a large number of unorganised players. With factors like clustered manufacturing facilities and environmental factors impacting the manufacturing process, there are very few large players in the sector. Today, the industry is valued around Rs.22,500 crore but this is largely contributed by unorganised players. A few brands are available but these are mainly focused on urban areas. The impact of unorganised players and the cutthroat competition in the industry can be understood by the fact that there are 2,800 manufacturing units in the industry; however, capacity addition over the past two years has resulted in similar units having the capacity for around 4,000 units. This clearly indicates that the sector is going through a supply glut. That said, there are long-term growth drivers in place. Rapid urbanisation, a growing number of nuclear families and improved standard of living will make sure that the growth in the sector is sustainable.The Indian plywood and laminates industry manufactures various engineered woods like plywood, laminates, MDF and veneers. Plywood is the product most in demand, followed by laminates. MDF, on the other hand, still constitutes a small segment. The market can be divided on the basis of distribution channels where the unorganised market accounts for the major share. However, with changing consumer preferences, the market has seen a shift towards the organised segment owing to increased demand for good quality and branded products. The share of organised players in the industry is expected to rise further in the years to come. This shift is taking place primarily because of urbanisation and more disposable income.The market for plywood and laminates is mainly driven by increasing demand from the housing market. The demand has increased owing to the growing significance of the new construction industry. Plywood and laminates have become an indispensable part of big and evolving markets like the real-estate, furniture, modular kitchen and flooring markets. Increased demand in these markets triggers demand in the plywood and laminates market. Apart from this, increasing urban population, rising per-capita income and a gradual shift towards the non-food industry are other key factors driving the growth of plywood and laminates in India. Further, the implementation of the Goods and Services Tax (GST) will provide an impetus to the industry.Because of slow real-estate growth in India and lack of liquidity owing to the COVID-19 pandemic, the Indian laminates sector was affected in FY2020-21. However, leading branded players recognised this as an opportunity and launched a few new variants of upgraded laminates. As a result, the leaders in the industry, despite a weakness in the market in the H1FY21, reported positive cash flows, which helped enhance their market share. Going ahead, the country’s growing population and the proportion of individuals in the economically active age bracket of 25-45 will further contribute to the growth of the laminates sector. The Indian decorative veneer market was valued at `2,000 crore in 2020, of which organised players accounted for 60 per cent market share. The growth driver of the segment was demand from the residential, high-net-worth individual and hospitality segments.

Next Story
Technology

Minda, Qualcomm Join Forces for Smart Auto Cockpit Tech

Minda Corporation Limited, the flagship of the Spark Minda Group, has announced a strategic partnership with Qualcomm Technologies, Inc. to develop intelligent and connected cockpit solutions for the Indian automotive market. The upcoming smart interface will be powered by Qualcomm’s Snapdragon Cockpit Platform.Commenting on the collaboration, Suresh D, Group CTO of Minda Corporation, said, “This partnership with Qualcomm Technologies marks a major milestone in advancing Minda’s digital cockpit capabilities. By utilising Qualcomm’s cutting-edge automotive platforms, we can now offer se..

Next Story
Infrastructure Transport

Railways Spent Rs 604.7 Billion on Passenger Subsidy in FY24

New Delhi – The Indian Railways provisionally spent Rs 604.7 billion in subsidies during the financial year 2023–24, covering 45 per cent of passenger travel costs, Railway Minister Ashwini Vaishnaw informed the Lok Sabha on Wednesday.In a written response to questions from multiple Members of Parliament regarding the recent rail fare hike, Vaishnaw stated that the Indian Railways continues to offer one of the most affordable transport services globally, ferrying over 7.2 billion passengers annually."The total amount of subsidy provided in FY 2023–24 on passenger travel is provisionally ..

Next Story
Infrastructure Urban

Auto Sector Can Cut Emissions by 87% by 2050: CEEW

India’s automobile industry could reduce its manufacturing emissions by 87 per cent by 2050 through a shift to green electricity and low-carbon steel, according to a study released by the Council on Energy, Environment and Water (CEEW).The report estimates that if original equipment manufacturers (OEMs) and their suppliers target net-zero emissions by 2050, annual emissions could fall from a projected 64 million tonnes of CO₂ (under the business-as-usual scenario) to just 9 million tonnes. This would require OEMs to adopt 100 per cent green electricity and steel suppliers to source 56 per ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?