Fact: The 0.9 Mm Laminate Folders Are Loss Making

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0.92 mm laminates range was born in Indian retail market 3 years ago with cheap offerings first copy of 1.0 mm pattern. The competition in 1.0 mm category led few of the new laminate manufacturers to accept distributors proposal to create 0.9 thickness range but promoted in line of 1.0 mm. This a segment emerged entirely as brain child of market driven forces, who successfully convinced the producers that, it is one of the smart way for those, who are eager to enter upper or sub 1 mm range. Resulting to these logics, many small players got convinced or those are not able to utilize their capacity. This laminates range is cheaper than 1mm laminates by almost 20% to 25% per sheet depending on quality, designs and company. Market price for such range sheets slowly went further down and today the ex factory price difference has a gap of whopping 30 to 35% after the price revisions.

Now with roaring prices of different raw materials, the laminate industry players are started calculating their profits or survival on the basis of present input cost and selling price. The cost sheet has been affecting the quality of 0.92 mm laminates and net realization are not enough even to survive. Now majority of such manufacturers are in trouble and are in state of realization of their mistakes. Majority are aware that it is a way to loose money for no ones profit. If there is, then it can be obtained only by loosing money or manipulating further on quality.

The Ply Reporter study finds that there are approx 40 catalogues are available in this laminates range and its sale has crossed to more than 6 lakhs sheets per month but half of the manufacturer of this quantity are questioning their stand on .9 folder offerings. It does not make sense to sell a laminate sheet 30% lower price of 1.0 mm where as cost is having hardly any difference for the sake of mere .08 mm difference. Speaking to various producers in Morbi, Ahmedabad and North India, The Ply Reporter finds that offering and producing 0.92 mm laminate is a loss making proposition at present price levels vis a vis raw materials cost, and companies are unable to stop this range, because there are stocks at distributors/dealers level, hence either they have to manage this loss or convert this catalogue into 1 mm category to save them a big loss in future.

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