With rise in awareness and application of Medium density fiber-board, India is consuming more MDF than ever. Thanks to designers using MDF in different applications, this category is growing at 22 percent annual growth despite of many odds. With present installed capacity of 2400 cbm per day, Indian MDF market is around Rs 1800 crore as of now. The growth in value terms in MDF segment has not been very promising though volumes have grown by 22 percent. The key players in Indian markets are Action Tesa, Green Panelmax, VIR MDF, Century Ply, ASIS MDF and Pioneer.
Apart from Indian producers, major play is pulled by importers who are getting materials from Thailand, Vietnam, Malaysia, Indonesia etc. Australia, New Zealand etc also contribute to Indian market as they are Pie based material specifically used by many furniture makers. With more of CNC routing application on MDF and increasing taste for unique/creatively designed furniture MDF panels are looking at a decent growth run.
With commencement of production of two new plants in India the MDF capacity is set to reach 4500 cbm per day by the end of 2018-19 FY. Action Tesa and Shirdi Industries expansion in MDF plants in Uttarakhand and Green Panelmax and Rushil Decor new plant in South India shall be pushing the market expansion in coming years of 2019 and 2020. Growth is expected in MDF due to rise in application of material in surfacing, partition and furniture making. The development work from government departments and PSUs and acceptance of MDF is also going to help the demand boost in the segment. There are high chances that a price war will begin in second half of 2018.