Organized Plywood Distributors Gain; as Orders Routing Through Them

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The Indian market has witnessed a sharp rise in demand for wood panel products at organized distributors end. The demand from retailers to distributors is a shift of orders from direct manufacturers to marketing houses, say, retailers. On the contrary, many manufacturers see a drop in orders from retail points. Every developed market and metro city in the country has witnessed a ‘rise in tendency of a number of orders being passed to an organized distribution house’ which is partly a shift from an unorganized manufacturing unit. The reasons behind this shift are appearing as pressure for quick payments and commitments of a fixed date by plywood manufacturers.

After GST, the market was very dull in demands and now when there is some movement happening, the conditional dispatches by Plywood factory owners in North India is making the small load buyers switching to organized distribution houses. In a similar development, the distributors and stockiest who have been dealing in branded items are witnessing demand for branded items because the demand on the bill is rising.

The distributors are exploring new brands and looking at new plywood manufacturers who are economical and reliable with organized work culture because they are receiving massive enquiries for materials from this segment. The market for alternate plywood and Marine grade looks clearly benefitted in the south and western India where demands in renovation and industrial sector has witnessed growth.

The inputs received by The Ply Reporter team is showing some good prospects for emerging mid-size organized players who offer acceptable quality material at genuine price. And such distributors who have this combination are preferred because they are probably able to offer capital support. The hope for reduction in GST slab has further pushed retailers to take material from organized distributors so that their load for payments and inventory will remain less.

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