As per the experts, the liquidity crunch persists owing to the investment in property, shares and goldsilver in recent months. Hence many entities are lamenting about the lack of cash flow and payment delays which impact the recurring demand. In the coming month, the liquidity will depend on the RBI’s discretion on interest rates and amount disbursed by various state govt under different infrastructure & development schemes. These factors have direct bearing on the demand in the building material industry, which is already hard to come by in the face of stiff competition. However boutique stores witness slightly better demand.
Today, the decorative products companies do not have a well-established team and better advertising policy. Even after fixing the supply chain, they get stuck somewhere in cheap pricing wars but the market clearly demands more than just cheap goods, it demands support reliability, variety with reasonable rates.
As far as Plywood companies in Yamuna Nagar and north region are concerned, the demand is plenty hence the situation is relatively better than south, chiefly because of raw material availability, the regions like Andhra Pradesh, timber availability is slowly improving following the import of logs at many Vizag based companies which will certainly put a check on the price of Veneers.
In contrast to North & South, the plywood companies, based in East India, followed by the producers in West (Kandla, Gandhidham) are in a better position owing to abundance of timber. If there are no plywood plants in these three or four regions of India, then selling plywood at equal price from one factory is almost difficult. That is why, whether it is the plywood, MDF or particle board, there will be at least two plants because it reduces the expense incurred in freight.
[Published in Ply Reporter's March 2026 Print Issue]