A very sharp growth in demand for Aluminium composite panels (ACP) was witnessed in 2017. The growth surprised ACP industry players who existed since decades but never attentive to the low priced applications this product had. The demand attributed from Non-reality sector like retail, interior décor, kitchens, bus bodies, shop façade, gift packaging and partition panel. Telecom players used ACP panels in decorating their shops in specific solid colours that helped the ACP industry to reach to bigger volumes during 2016-2017.
The sudden upward curve in demand in urban and semi urban areas led to increase in number of manufacturers and establishments of new lines during 2016-17. The demand for commercial spaces, government activity for public facility structures like ‘Metro rail and railways’ and expanding urbanization boosted the sales and ACP uses in 2017. 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 45 plus. Apart from new units, majority of plants have added manufacturing lines to feed the bulging demand in this product category.
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 14 percent in value terms. The volume wise growth has been higher because of commodity selling in this segment. 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. Post GST ACP will be a product category that may see few changes if billing practices gain transparency among unorganized players.
2017 was a game changing year as branded ACP companies witnessed positive spread through trade and channel partners. The prospects of export of ACP panels to Sri Lanka, Nepal, Bangladesh and countries in Middle East helped the growth of ACP markets. 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.
A bunch of many other important changes were noticed during 2017 but accommodating them all in one issue is difficult.