"The projects are offering bright scope in 2024 as most of them are nearing the completion time. The overall scenario is certainly going to improve but the favour will be more towards branded and strong players. Year 2024 is expected to be better than 2023 in terms of demand as our economy and India’s growth story is bullish."
Year 2023 was full of ups, downs and surprises. Some of the turning points were; the rise of panel boards & plywood imports from Vietnam and Nepal, Mandatory BIS licence for all products in panel & furniture industry, rising graph of organised players’ market share with growing brand acceptance, Acrylic sheets & WPC door frames occupying a permanent placement in wood panel decorative folio, growing Hardware manufacturing industry in India etc
The most crucial change that is evident is, 2023 has been the speed and participation for plantation by Indian wood panel manufacturing companies. It is clear that Industry is moving towards becoming organised, sustainable, compliant and competitive. Competition in markets will be fierce along with growth in consumption. Growing capacities take time to be absorbed by markets.
The ongoing tepidness in markets was a concern during November 2023. The overall demand in November is said to be lower by 25 to 30% compared to October. The output at factories was subdued along with retail counters shrieking in demand with their “Slow payment” slogan. Although, the impact of dullness in few of the southern and central states was low. They performed better compared to rest of the country.
The demand in unorganised segment was even lower compared to organised sector in almost every wood panel category. The decorative surfaces and doors category were still moving but sluggishness has been all over in every product category including Hardware and MDF. At PLY REPORTER, these findings are mapping of market sentiments gathered from across India. Considering the average with the month of October, November was a bad patch.
With hopes of recovery and pickup in demand by trade and consumers, people are waiting for marriage season to be over. There is sign of partial recovery in December and January as workers have returned from their home towns. The payment scene is tight all over but this is also attributed to slow pickup. It is expected that by December mid, market will recover and move to better position till new budget.
In construction sites, work is picking up and the same with furniture makers. Though there are high inventories on factory floors, leading to pressure on sales and achieving better numbers in plywood and laminate segment. The state election results coupled with strong GDP numbers and bright prospects are showing upbeat mood among economist, investors and thus metros are expected to be the sales drivers in coming months.
The projects are offering bright scope in 2024 as most of them are nearing the completion time. The overall scenario is certainly going to improve but the favour will be more towards branded and strong players. Year 2024 is expected to be better than 2023 in terms of demand as our economy and India’s growth story is bullish. The next issue of the PLY REPORTER will have possibilities and predictions for 2024 which has been a tradition since last 23 years.
This will be beginning of 24th year for PLY REPORTER which is now supported strong with its two other sibling publications “SURFACES REPORTER” and “Furniture Design & Technology”.
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Wish you all the very best New Year 2024!
Pragat Dvivedi
Founder Editor