Across India, Plywood and Laminate manufacturers are once again running towards their pre-Covid capacity utilization reflect data gathered by Ply Reporter and BSMR research fellows. The bumper orders lying with every factory received in September has given immense strength to the manufacturers as if things have started falling back in place. The Industry data shows the utilization nearing around 85 percent of Pre-Covid level. The order flow is expected to continue in October and November with growing pending orders at branded and good players. Some good plywood producers, having extensive Dealers network and strong finances, have already successfully bounced back to 100 percent of pre Covid level.
According to reports, the Plywood manufacturing establishments based in Punjab, Yamunanagar, DelhiNCR and Uttar Pradesh have been able to use their optimum capacity because they have sufficient work force present at their mills now. Manufacturers are upbeat with growing demand from Gujarat, MP, UP, Bihar, Jharkhand, West Bengal, Maharashtra (except Mumbai and Pune), Rajasthan, Delhi-NCR, Punjab, Haryana and some part of Southern States. Ply Reporter’s survey indicates that the lesser supply from Kerala, Gandhidham etc are also helping North India based Plywood industry demand.
The catch in present order flow is that it is very sensitive to price and economical grade materials. Practically there is more demand of economical grade products compared to higher grade finished goods. Talking to Ply Reporter team the different manufacturing clusters, producers sounded confident of faster recovery reaching to pre-covid level. The price rise in raw material cost is also driving cost pressure economics but it is actually helping the traders sentiments to place more order. The sudden jump in order flow has brought smile to manufacturers after covid induced setback. Laminates producers are also upbeat with demand enough demand needed for the liner and 0.8 mm categories. The demand run is visible among manufacturers.