Kerala Emerging as Sourcing Hub for Many Brands

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Perumbavoor region in Kerala is a plywood manufacturing hub with more than 400 factories. In last few years, the region is gaining hold on manufacturing quality products hence attracting few brands to outsource their material. The Ply Reporter recent visit to Kerala found that approx 40 to 50 units are producing good quality materials following BIS norms. The plywood manufacturers in the area are using local timber and Eucali that results in average quality plywood for mass consumption and economy grade. India’s branded players are seeing potential in this area for sourcing cheap plywood with an objective to cater eco-grade market. Recently pioneer brands have introduced eco range brands to capitalise on the opportunity post GST and take a big share from unorganised players by offering competitively priced materials.

There are number of ply units in Kerala that seems ready to offer material for any such brands which do not have a factory in that region. If catering to Southern markets is on radar then Permbavoor could be the right place for outsourcing plywood in coming months. The Kerala Plywood Manufacturer Association (KPMA) has also taken a tough stand to stop unhealthy practices after GST hence plywood producer are finding a new buyer who can support to the manufacturers new terms.

KPMA has made special task force of their member to check every lorry and assure that each load must be billed. They have also created safer way to secure the GST amount that will be paid to vendors when they will deposit the amount first. Mr Mujeeb Rahman, President of Kerala Plywood Manufacturers Association said to The Ply Reporter that “KPMA has taken firm decision to make our plywood industry of Kerala as an organized place and they would take all necessary measures to make everyone follow in the organise work practices.”

 

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