A very sharp growth has been seen in demand for ACP during last two years. Year 2016-17 has a sudden upward curve due to demand in urban and semi urban areas in applications of signage’s and partition panels. According to data till 2014 there were 23 manufacturing establishments for ACP were in operation in different states. But 2017 pointing the number of manufacturers reaching to 40 plus. Apart from new units’ majority of plants have added manufacturing lines to feed the bulging demand in this product category. According to Ply Reporter estimates the Aluminium composite panel units capacity has grown by almost 45 percent during last two years, where as production volume too has grown by 25 percent.
According to observed figures by the Ply Reporter team, the Aluminium Composite Panel industry has crossed Rs 2000 cr market size with an annual growth of 12 percent in value terms. The volume wise growth has been higher because of commodity selling in this segment. The prospects of export of ACP panels to Srilanka, Nepal, Bangladesh and countries in Middle East are helping the growth of ACP markets. The ACP segment is growing due to its increasing uses in mobile signage in retail as well as advertising. The rising menace of termite attack is also helping the growth of ACP demands in rural area where people have begun using panels in Aluminium doors.
The study of Ply Reporter hints at further manufacturing expansion in 2017-18 with arrival of a dozen fresh new lines for manufacturing of ACP. There are reports of new coating lines coming to Indian manufacturers that will help them to reduce inventory and serve in better way to their Indian customers. It is to be noted that Gujarat based ACP manufacturers are facing stiff competition from North based manufacturers in terms of pricing, delivery or faster decisions. Post GST ACP will be a product category that may see few changes if billing practices gain transparency among unorganized players.