GST is supposed to be implemented from 1st July 2017 and it appears that government has been proactive to implement it from this date. GST is the most awaited and biggest tax reform which may prove to be a new beginning for Indian economy and trade.
Manufacturers understand that offering of Genuine Marine Grade Plywood will certainly help them to fight competition with brands after GST. Since genuine Marine Ply market is largely hold by branded and organized sector, the post GST era will open new avenues for those companies who are prepared to be called as organized manufacturers. The current market for waterproof plywood is based on reliable image and genuinety hence more of the brands are expected to enter in waterproof manufacturing and selling during 2017-18. The increases supply of good quality IS 710 grade plywood will help the market to expand and will give tough time to dipped MR segment where majority of share is held by local dealers under self-brand category.
Reputed mid segment plywood producers are seeing better order flow in marine ply grade future to increase supply of Genuine Marine Grade IS 710 plywood, which they feel that would help them in market after GST. Such segment Producers from North and South opines that they have planned to inflow huge budget in marketing and branding in this financial year to take GST advantage, but these costs are viable if they sell high cost materials that is Marine Grade. They also feel that Genuine marine grade plywood will help them to establish brand image as well as it is a survivor once their input cost will increase post GST.
Every industry and trade is planning to take advantage of the new taxation format and is preparing themselves accordingly. Indian Wood Panel Industry, majorly driven by informal sector, having 75 % market share, will be definitely a case study for researchers because organized sector is hoping better future for their companies and are going to expand production capacity by adding new factories and machines, where as informal sectors (mainly mid segment companies) are also eying to take benefits through supplying quality materials, new products categories, innovation, capacity expansion, marketing and branding.
It is noted that GST impact related talks have created a huge awareness and eagerness among small and medium wood panel manufacturers about way of functioning and impact of brand image. The industry is recognizing the future growth prospects if they step up work effort in organized manner as well as value added products offering.