There is so much rush in every product category to put up factories. It’s strange to see so many additions despite pressure on demand and margins. The Plywood sector alone is adding up to around 200 presses by end of 2023. The decorative laminate sector is also having 45% surplus capacity yet new players are adding to the list. The same has happened in decorative veneers, WPC, louvers etc.
Similar situation is seen in particle board and MDF as well. The rapid growth in particle board capacity during the past few years has created excessive supply thus pressure on prices is mounting making it tough for the plants to run. Leading OEMs and furniture producers feel, quality board manufacturing is still lagging behind in India.
The same is happening in MDF where India is about to double the capacity in a year time, and I foresee a very tough competition in 2024. One of the reasons for the rush to add capacities and new factories could be FOMO – the Fear of Missing Out! The Gen next future leaders are joining as well and they want to add to the growth, leading to capacity additions.
A major reason for over supplying is the lack of adequate research before entry. Organised players usually plan, create, research and finally enter the market while most of the unorganized players do not resort to these.
What I fear the most is lack of good people, right product training and guidance to sellers and sales professionals. The emerging readymade furniture sector is also not fully equipped when it comes to workmanship and knowledge. I feel our industry has two segments operating from one plane - one that is clear while the other that is adding to the clutter, thus pulling the trade backward.
Going forward, consolidation is in the cards, especially, if the players keep on adding capacities blindly. Seeing the market closely, Ply Reporter, Surfaces Reporter and Furniture Design & Technology magazines are working tirelessly to bridge the gap. With our seminars, exhibitions, live shows and monthly publication we intend to make this sector knowledge driven and organized.
The sales professionals and the technocrats need to be thoroughly trained. No matter how big a plant, knowledge and trainings is the need of the hour or else, over supply and bad competition will continue to haunt Indian woodpanel, decorative and furniture sectors.
Support our efforts in this direction by joining us at multiple talks and definitely at MATECIA EXHIBITION which is expected to host 350+ exhibitors during 18-20 August at Pragati Maidan, New Delhi.
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Pragat Dvivedi
Founder Editor
Mail to “dpragat@gmail.com”, ( M) 9310612991.