Plywood Retailers Express Tiredness over Persistent Slowdown

person access_time   4 Min Read 07 May 2019

The year end survey done by the Ply Reporter found acute dullness across all states in India in plywood, laminate, other wood panel hardware sales. The trade counters, retailers expressed helplessness and frustration with continued lacklustre demand of building materials. The survey that was conducted in West Benagal, Bihar, Uttar Pradesh, Andhra Pradesh, Telangana, Delhi - NCR, Rajasthan and Gujarat resulted into conclusion that market is indeed down by 40 percent hence there is no point increasing sales push until election results and new government policies are out.

Although, the survey conducted in Orissa, Tamilnadu and Karnataka offered a better market sentiment compared to above probably because the competition in these states are also lesser comparatively. These states are still consuming better compared to other states' found on the estimates concluded by per capita consumption study done by BSMR & Ply Reporter.

The ongoing gloom has led to plenty of defaults and disappearance of dealers in plywood laminate segment lately in many states that led Ply Reporter to do an exercise on ply - lam consumption and market demand readiness.

Out of 16 states, in 10 states, the company official confirmed that payment through cheques, and daily collections are drastically slow. Dealers and customers are unable to pay because they don't have sufficient capital left or some stuck payment in projects. Although organized Laminates companies are running aggressive and target driven hence they are some - how maintaining their revenues due to their brand presence and very aggressive working.

In general, plywood dealers and distributors are expressing suffocation where many have started to choose for some manufacturing line up in their area. The Ply Reporter feel that post election, if there is a stable government at the centre, the wood panel market will come out of the deep slowdown that it has been facing since last 7 to 8 months. The main reason behind growing restlessness and fall in consumers buying and rise in number of shops' that will streamline only with the emergence of new and willing customers. Till then it is a tough and caution walk for all.

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