September month sales have been a morale booster for all in wood panel sector, especially for the organized players. The sudden returns of massive orders have surprised the entire plywood and laminates industry, but the organized sector claims are indicating a better comeback. With wide network across the country, backup of strong supply chain and well laid manufacturing plants with right process and system in place, organized sector have reported very promising supply to the markets. According to present scenario, the bumper order flow in September has clearly given a solid support to organized brands which will reflect in their cumulative second quarter sales. There are reports hinting at surprising and improved profit margins compared to previous quarter in plywood and laminate category
The quarterly result of organized brands such as Greenply, CenturyPly, Greenlam, Stylam, Greenpanel, Royale Touche, ArchidPly, Austin Plywood, DuroPly etc will announce after writing this report, but the market data reflect that these brands have registered a significant improvement in August and September that is far higher than anticipation. Other organized plywood and laminates brands have also noted increased demand, which reached to almost 100 percent in MDF, 90 percent in Plywood and 80 percent of pre-covid level in Laminates
Commenting on order pressure during September, pioneers have explained that on one in the industry anticipated 15-20 percent drop in financial year revenue, but with ongoing speed, FY 2020-21 might be reaching to same levels of last year. The company top management officials are now estimating, if market sustains the same momentum, the organized wood panel and decorative sector will pop up brighter results as there have been a lot of cost shakes up taken place in every organization.
It is noted that first quarter (April to June) sales of organised brands were reported a drop of 45 to 55 percent in sales compare to previous month sales. Although, Panel and decorative industry reported better come back than anticipated in July 2020. The plywood and laminate industry witnessed above 60% production whereas the order book noted almost double the order.