18 % GST has made a positive impact on Decorative laminates demand in India. The market sentiment was dull till some time after GST due to confusion and rate revision. But lately the sales have picked up during September and October months for entire product segments and thus decorative laminate segment has reported to better demand and sales during quarter ending in September.
The sources from leading HPL manufacturing companies confirmed that they have achieved their revenue target in second quarter of this financial year and also have posted growth in revenue and profit. They admit that July was tough, and net sale was dipped but they have recovered in Aug and Sept months. Some HPL brands have posted the robust growth revenue in this period.
Mumbai market demand registered exceptionally well during this period because the prices were dropped approx Rs 200 per sheets, which has reported to help the demand of branded laminates as well. It is noted that Mumbai customers were paying extra in terms of octroi, which was abolished after GST. Mumbai is also known for Non-branded without folder laminates, but in GST regime branded HPL brands are feeling comfortable and expanding their reach. The report suggests that the branded segment has posted growth in Mumbai market in second quarter.
Experts say that 18 % GST on Decorative laminate is the biggest relief for them, because the price of HPL have come down by up to Rs 100 per sheets. The pricing in this product has provided it an edge for furniture makers metros and contractors in smaller cities and even in rural markets. Price economy of this product is helping the spread and boost to HPL demand at new places and finding new application areas. The innovation like anti finger print and wood- Veneer and stone k alike designs are helping HPL uses to expand from being applied just upon conventional furniture items.