With more industrialization and acceptance of fast and pre - assembled structures in industries, the prospect of specialty plywood applications are growing. The general film face plywood limit its uses to construction sector where as other materials like LVL, Pallets, electrical grade and transport sector plywood are performing better compared to previous years. The growth in demand for Laminated Veneer Lumber is visible due to growing Pre - hung door practices adopted by reality players or premium house constructions.
Despite of weak sentiments in auto sector, growing network of highways and organized warehousing is leading to demand of trucks of larger sizes. The expansion of road highways and central government focus to invest more funds in road infrastructure is motivating transport sector companies for further growth, which would be catalyst of the demand of chequered plywood for flooring purpose. The commercial vehicle industry has been on an upswing since the past many months. Fundamental growth in demand coupled with continued investments in infrastructure activities has helped boost demand.
The goods logistic sector uses a lot of densified chequred for flooring purpose to be applied in Trucks and Buses report a significantly brighter prospects compared to previous years. Further, sales at many truck makers were higher in the year - earlier period, when some of the state governments started strictly implementing a ban on overloading of vehicles. Supreme Court of India also stated that the vehicles which meet the Euro VI fuel standards would be allowed to be sold in the country starting in April 2020. Furthermore, fleet buyers are also apprehensive about the new emission norms that will kick in less than 18 months. Ban on old diesel vehicles, will also fuel the demand of new Trucks and Buses, which will attract more light weight flooring panels demand in coming future.
The leading Automobile manufacturing companies such as Tata Motors, Ashok Leyland, Mahindra & Mahindra, Bharat Benz, Eicheretc are expected to do better once liquidity issues are eased in mass markets' as per market experts opined. The application for FR grade plywood is also witnessing significant surge after stringent actions taken by government on safety from fire issues. The demand for Pallets are also expected to be better thanks to growing industrial activities.
According to reports, 4 new manufacturing companies are entering into these product categories in different parts of the country. They have also planned different big sized presses to cater to this sector. Surat Based Malchand Group and Sons, a leading plywood producer, is going to install new press for this segment. Director of the company Mr. Amit Agarwal said, “We have already producing Truck/Bus Flooring plywood but we are expanding with brighter growth prospects in this segment. With an eye on domestic as well as export market, the
new products will add to our existing offerings of film face, densified shuttering, Fire rated plywood and high density Marine grade plywood. Apart from this, UP based Amba Group, Yamunanagar based Shivam Plywood and 2 more plywood manufacturers in Uttar Pradesh are planning to enter into these product manufacturing.
There are reports that 2 more companies from South India are completing their feasibility report based on timber species and market prices from South. Sources from Machinery suppliers also confirm to Ply Reporter correspondent that they have received queries for such high density big size presses for producing truck / bus flooring. A year ago, Yamunanagar based Sunrise Panels group has entered in manufacturing of these products and they have been successfully growing with riding the demand from transport sector.