Gandhidham, Gujarat based, JG (Jai Gopal) Group manufactures of laminates, plywood and face veneer. The group is also know for trading timber and logs from Africa, New Zealand, Malaysia, Canada, Burma, Vietnam, Germany and other African & Asian Countries. They recently focus on Laminates and plywood manufacturing, and going to double its manufacturing capacity by adding more production lines. During a talk with The Ply Reporter, Director of the company Mr Jai Gopal Gupta shared his vision and plan to cater quality plywood and laminates market.
We have been in wood panel industry for 35 years. We started import of timber in India during 1985 with Teak logs from Africa and Russia. The firm name is Jai Gopal International Impex Pvt Ltd. Mr Vijender Gupta, son of Late Sh. Radhey Shyam Gupta developed this symbol of growth and under his expertise, experience and close attention to each and every detail of products Jai Gopal Group become a leading saw miller in Gandhidham and importer of round logs & lumbers in the Indian wood industry in a few years. Today JG (Jai Gopal) Group manufactures laminates, plywood and veneer. The group is distributing their products in Indian markets as well as exporting laminates to a few Asian countries.
The company regularly imports timber and logs from Africa, New Zealand, Malaysia, Canada, Burma, Vietnam, Germany and other African & Asian Countries.
When and where did you enter into manufacturing of plywood and laminate?
Since a decade, we have been manufacturing plywood,face veneer, block board, flush doors etc. And one year earlier, we have ventured into laminate manufacturing. All these operations are based at Gandhidham, Gujarat in a good area of land. We are observing a considerable growth, as of even today we are one of the biggest timber importers in India. We have also associated units of face veneer in Gabon.
What are your infrastructure and production capacity in different segments?
We have established various units at one place in Gandhidham. There are 25 sawmills for sawn timber, a separate unit dedicated for face veneer with 100 cbm peeling capacity a day. The modern plywood plant is with a capacity of one lorry a day. The decorative laminate unit has 1.25 lakh sheets per month capacity. We have an import house over there and go-downs at Mundra port and Kandla ports and are also involved in importing melamine, PVC resin and some chemicals which are used in footwear and plastic industry.
What is the specialty of the products you are offering?
Our operations are very much quality oriented. Right from the beginning we have been manufacturing only Phenolic Gurjan based PF plywood. In flush doors and Block-board we are using only pine wood and Gurjan face. We don’t use any kind of local timber like Poplar, Safeda, Rubber, etc. We are using 100 percent imported face veneer and the core is extracted from our own setup of peeling units. We are one of the biggest importer in North India for timber and face veneer.
What is your expansion plan and capacity building mechanism?
We are coming up with 1mm range by March in HPL segment. We are also coming up with HPL cladding range, door skin and increasing the production capacity to double by installing another press of 16 daylights. We are increasing the production capacity of plywood too in 2020. In this segment we are using semi-automatic machines to get perfect dimension of plywood and other panel products. We are already doing nationwide marketing under the brand name of Kriday Mica and Kriday Plywood.
What is your focus area in plywood segment? Our focus area is flush door with quality offerings, as in projects people want quality flush doors. We supply flush doors across the country such as Haryana, Punjab,
What is your view on timber availability and rising input cost?
Definitely there is scarcity of timber, as well as scarcity of demand in the market. Factories are facing operational constraint due to high raw material cost. But, the situation is affecting us positively, because we are using 100% imported wood. A year before local timber was cheaper, so we were facing lot of competitions in the market. Now people’s inclination is towards Gandhi Dham(Gujarat) which has benefitted us. They are at par us in terms of price but our quality is far better.
It’s been more than two years of GST implementation, what changes did you observe in plywood industry?
After GST implementation the paper work has reduced a lot, which is a great advantage for manufacturing establishments. Now people do not want to hesitate in paying tax. Our work efficiency has improved.
What is your vision to promote Genuine Marine grade ply?
We are already making IS:710 marine grade plywood and we are advertising it in a balanced manner. Gandhidham is known for quality and anyone buying plywood, block board, flush doors from Gandhidham should be confident of quality. We are purchasing standard quality raw material from better international market, so Gandhidham has a standard and is well known for it.
What is your plan for the next five years?
We are trying to improve ourselves on daily basis and in next five years we will achieve our production target like 2.5 lakh sheets per month in laminates, 600 sheets plywood, flush doors etc. In timber we are leading with the higher imports, catering to demand from customers across the country, also we are trying to export laminates and plywood in other countries.
We are getting very good response for each and every product offerings. A year beforem we launched laminate with brand name Kriday Mica in 0.8mm and 0.72mm. Despite, slowdown in the market in 2019 we got good demand with 100% capacity utilisation and 24 hour factory operation. In laminate we produce 100% phenol without using urea.
What challenges do you see from the alternative products such as WPC, PVC boards, MDF, Particle Board etc. available in the market?
I think for a standard product like flush door, there is
no other alternative. In Plywood segment one can say
there are alternative solutions like WPC, MDF, Particle Board etc are available. WPC awareness is increasing and for mainly in kitchen application some people like it due to its different advantages like being water proof, termite proof etc. But plywood has different uses and its demand is increasing day by day. 20 years back 80% furniture is being made of sawn timber and 20% of alternate products like plywood, MDF, Particle Board etc. In door frame segment also the alternative products like SS, WPC, uPVC are moving ahead in place of use of timber, which was once priority in this segment. Today Gandhidham is only place which is considered as the dockyard of timber logs and quality offerings for wood and wood-based panel products.
What is the success mantra that you believe of being a successful entrepreneur and one of the leading manufacturers in wood panel industry?
Our success mantra is that we never compromise with quality. What we say, we give at any cost and deliver with quality. Secondly, our main motto is customers’satisfaction and we believe one should be fully satisfied with our offering after using it, either it is plywood, laminate, sawn timber, door frames, flush doors etc.
What are your views on present market scenario and the response you received for your new brand?
We are getting very good response for each and every product offerings. A year before we launched laminate with brand name Kriday Mica in 0.8mm and 0.72mm. Despite, slowdown in the market in 2019 we got good demand with 100% capacity utilisation and 24 hour factory operation. In laminate we produce 100% phenol without using urea.
In your opinion, what is the scenario of doors industry?
Day bay day people are shifting towards readymade products as they don’t have time. Secondly, the market is also offering cost effective quality solutions of doors and door frames. Now people want less use of carpenter work as it becoming expensive due to increasing price of raw material for furniture and wages of carpenters. They are opting for flush doors, laminated doors, veneered doors, moulded doors, etc.
In changing business scenario after GST people are more organized and focus on brands, what’s your take on brand promotion?
It is right people are more brand oriented, and many of the manufacturers are going through this route. Secondly, after GST, people are also focused to brands as they are more concerned to quality so they are also opting for brands. Their purchasing standard has increased and they first look for brands with trust and genuineness. But, there is also a large market for all and society has different requirements and purchasing capacity. Like 18mm plywood is available in Rs 35 to Rs 125 per sqft in India. It all depends on their capacity and choice. For cheap products branding does not play any role.
What are your marketing and promotion plans?
We are more focused on advertising and marketing with a dedicated team of professionals. We are also opening company outlets/offices/ display centres in most of the major cities in the country. Like in Chennai in Tamil Nadu, some cities in Haryana, Lucknow and Gorakhpur in UP we have already initiated the working for opening display centres and many will be opened shortly. Advertising plays an important role in brand promotion. But for its budget, all depends upon the capacity of production of the company so our spend will grow with time and growth.