The Plywood industry’s Capacity vs Demand Gap has widened where capacity is higher by 50% or can say there is double the capacity
Only decorative plywood supplies do not create its demand but it needs lot of passion, practical knowledge and art of identifying the need of customers and its application sense.
प्लाइवुड, पैनल, डेकोरेटिव सर्फेस की तकरीबन 3000 उद्यमों में से मात्र एक दर्जन कंपनियां ही होंगी, जो बड़े उद्यम की श्रेणी में आती हैं, जिसको 30 फीसदी टैक्स के दायरें में रहना है। यानी छोटे व मझोले सेक्टर की वे कंपनियां जो नोटबंदी, जीएसटी.
Budget, E-way bill and ‘Better Demand’ are the key changes that are under way. FY 2018-19 Budget offers big support to SME’s where tax has been brought down from 30 to 25% for firms doing turnover up to 250 crores.
Entire Indian wood panel & plywood, decorative laminates, doors, WPC/PVC, furniture and kitchen manufacturing sectors are adding to their production capacity year on year.
Welcome to the year of hope and beginning of a new growth cycle. The retarding effects of GST, DEMO & RERA are still present but market recovery and growth is expected, especially from the first quarter of FY 2018-19.
The demand to reduce ‘GST from 28% to 18% on Wood Based Panel products’ under chapter 44 is being raised again and again by trade associations. Repeated efforts and persuasion is close to bearing fruit as ‘GST slab is almost set for a reduction to 18
The biggest change GST has brought in to Wood panel Trade is ‘everyone has learnt to pass on the tax to next level’ theoretically. The change in mindset is phenomenal and it is acting as a cleansing agent in itself.
India’s real estate sector is witnessing slow growth due to less housing demand since last 2-3 years. It has also affected the entire building material and wood panel products segment.
Post GST, as country is looking forward, most companies related to interior products are positive while major portion of wood panel sector is demotivated, feeling suffocated due to steep 28% slab.