Domestic Particle Board production is on the rise as the demand performed satisfactory last year despite of pressure on prices. The price moderation observed in Particle Board category impacted the imports, pulling it down considerably last year. According to recent reports and data’s from Government reports revealed that import has dropped by 6% reaching to Rs 208.14 crore in year 2017-18 from Rs 222.63 crore in the year 2016-17.
The demand of imported particle board is continuously going down since last five years. With increasing domestic production capacity, the import of particle boards has seen a huge drop of 40 percent compare to the situation five years ago. It is noted that Particle Boards import was valued Rs. 316.27 crore in year 2012-13, which was registered Rs. 222.63 crore in the FY 2016-17. And this year also it has witnessed a marginal drop by 6% reaching to Rs 208.14 crore.
Despite constraint in availability of raw material in particle board manufacturing, new industries and capacity expansions are taking place every year that consolidated the grip of domestic particle board manufacturing companies slowly. The Ply Reporter survey finds that market share of domestic producers has increased significantly during last three years supported by new manufacturing establishments.
With more than 10,000 cbm per day capacity at present,India has been adding approximately 600 cbm production capacity every year since last four years and the trend is expected to continue for next three years. With certainty of grant of new licenses in UP, a few more industries can be announced during FY 2019-20 as well that will further impact Imported particle board market.
The particle board industry is largely divided in wood based and bagasse-based where both are having almost equal capacities. With bright prospects of bagasse availability this
year, there is little scope for any turnaround in imported particle board segment finds ply reporter during its market surveys.