ACP Recovery is Faster than Expected

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ACP sector was guessed to be hard hit when ACP manufacturers talked about post covid scenario. Owners and Experts believed that projects and commercial building construction will be struggling to reach to pre-covid normalcy due to shortage labor and fund crunch. But seeing the recovery of branded segment sales in last two months, it is confirmed that ACP segment has recovered by up to 70 to 75 percent so far till August. Sources from Alstone, Alstrong, Aludecor, Viva, Eurobond, timexetc reveal that volumes and quantity numbers have reached to 70 to 75 % sales of pre-covid during last three months, because of quick start of many sites including government, Industry, highways & transports, commercial and office space constructions. It is equally true that demands for average quality materials from ACP producers are noted to be higher in this period compared to premium products due to faster recovery in many of the tier 2, tier 3 cities.

Mr. Pawan Garg, Director, Alstone ACP confirms that he produces only high quality ACP, and recovered our sales to 75 % in last 3 months, we have lots of pending orders of good quality Decorative Surface ACP products, as we don’t product partition panels. A NCR based builder says that ACP is very economical façade material, which is available @ range of 55 to 65 depend on quality, and it is suitable for fast execution and good supply.

Although, retail demand of Partition panels were also reported to high recovery after post unlock period, because there is high demand received for making temporary Covid Home, Hospitals, Cabins, Bathrooms and doors. Partition panels segments have reported to reach its 80 % level due to new demand, aggressive pricing, good supply as well as ease to work with this. With over 40 ACP manufacturing establishments, there is more than enough supply of Partition Panels in India, which available in market @ range of 32 to 36.

Rs. 2200 crores Indian ACP industry (pre-covid) with 40 plus manufacturing establishments, has reached approx 60 % capacity utilization after Unlock, which is good sign of recovery for this emerging segment. Although Quality producing brands have expressed that there is still a long way to go if quality product demand and future growth is considered.

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