The wood panel industry and trade is big with numerous product categories like plywood, laminates, MDF, Particle Boards, Timber and allied sectors and provide more than 1.5 crores employments directly and in-directly in India. This entire wood and decorative panel sector must be having more than a few lacs of enterprises related to wholesale, distribution, retail and allied industries. Majority of these enterprises fall under small and medium scale business nature, hence their direct contribution to India’s GDP is not much significant, but its contribution to building material sentiments and employment is quite significant.
In Covid 19 era, entire economy, real estate along with wood and panel sector has been hit to bottom levels. All businesses have reported zero in April and approx 20 % in May if compared to pre-corona period. Now, almost everywhere, business operations are open in May and expected to pick up pace from June onward. Similarly positive and recovery cases of covid 19 are also increasing every day with opening of new markets.
Although the most number of cases are reported in major metros and big cities of the country such as Mumbai, Delhi - NCR, Ahmedabad, Indore etc, but the scenario indicates that the fear of corona has become more challenging at in present times. It is evident that the death rate due to corona is revolving around 2 percent of the covid positive cases, where as recovery rate is noted around 50%, means the fatality chances are very-very less here in India compared to global average. Means panic shall be avoided but prevention must be adopted. But, if panic remains in business, the business failing rate might be increasing to fatal blow in 90 percent of business enterprises in India.
As per feedback from Ply Reporter’s team, correspondents and opinion of entrepreneurs reaching to us during Ply Reporter’s series of webinars, it can be concluded that after June onward if an enterprise (manufacturing and trading) runs below 20 percent of its operation, they will certainly incur bigger loss, and if it continues, many of enterprise will be unable to sustain their business in future. If an enterprise manages from 30 to 40 percent of its operation, he can sustain but probably he has to invest more capital in its business. If an enterprise is able to run at 50% and above with well managed payment rotation, and begin taking appropriate steps for June, July and August months will still be termed as a real growth bound enterprise for future, but that has to throw off their Corona Fobia up to an extent.
Hence, use all safety measures suggested by government, take proper care of every one belongs to you and your society but not be panic. It is advised by experts and suggested by the government and needed by the markets that 'Get Back to business with brave mindset, don’t hesitate to invest money if requires'. Government has launched many plans through banks to infuse fund in business, come forward and take the advantages. Once business starts to run, the manpower crisis will be over gradually. If your wait will be longer, your survival will be difficult.
We have printed and published our May 2020 issue after getting a report of opening the maximum enterprises, company offices, manufacturing establishments, ply-lam and wood panels shops and showrooms in the entire country. We have started sending couriers, postals to our database from today. This issue is very much significant because the news reports published are indicators of present market momentum and helpful to take your next step. The views of industry leaders, the expectation and demand of the wood panel industry from the government is also covered in this issue.
Ask for your copy now! Be safe, make your business safe!