Defaulter Parties are a Growing Worry

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The cases of disputes, complaints and dealers denying payments on the decided terms and deadlines has increased multifold that reflect in an industry survey conducted by the Ply Reporter in manufacturing and selling plywood, doors, laminates and other decorative materials segments.

There is a sharp rise in numbers by up to 4 times if it is compared to years prior to 2015 expressed majority of respondents during the Ply Reporter survey conducted on the topic ‘Supply, Demand & Payment cycle in wood panel trade’ recently.

According to the survey conducted during Feb, March & April 2018, the most troublesome places where parties have defaulted on their commitments or not responding to repeated calls or visits are Gujarat, Telangana, Bihar and MP. There is spurt in dispute issues in almost every state in North and Western India compared to South and Eastern region. The statistical modeling indicate that 65 percent of the cases related to payment failures have been reported from North and West. The survey was conducted among 165 manufacturers of various products from 7 key clusters where manufacturing of panel and laminate is happening.

The rise in dispute has increased so much that every manufacturing association has began discussing the issue and are formulating the ways to prevent such cases in future. There has been serious discussion in AIPMA, ILMA, PPMA, UPMA, TPMA or APMA etc to form a dispute settlement committee and to print a list of habitual defaulters within association circles so that no one shall supply the material to such parties.

There is a wider complication in disputes due to over supply and huge rise in numbers of material manufacturing companies. Being an unorganized industry, the Ply Reporter has tried its best to create awareness and preventive safety measures to be protected from bad parties by creating a party wise data base with remarks based on good will, history and its focused priority in growing the business in this segment. The growing numbers of disputes have resulted into rise in calls for verification at Ply Reporter office apart from confirmation from manufacturers and reliable sources.

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