Mr. Rakesh Mehta has entered the plywood trade in 1991. Started out with 0.6 mm laminates and gradually moved to plywood with Greenply. He connected with Merino laminates for his laminate requirements. His journey in plywood trading has been challenging but a beautiful learning curve. He is very much happy to be a part of this trade. Now, he is associated with Greenpanel, Merino Laminates, Pidilite, Bison Panel, Action Tesa, and Trojan. During a talk with The Ply Reporter’s ‘Market Movers” Column, he has explained his successful journey, market scenario post Covid and tips for dealers.
What was the turning point in your business and how it is going on today?
The major turning point in my business was when I started dealing with Merino laminates. Merino introduced me to a new perspective of the trade, which taught me in ample amount. For instances, I learnt how to serve economic products with good service and developed a new respect for business ethics. Key learning was that profit is not always the top priority, it’s important to develop the relationship with your channel partners as a family and this is my secret to success.
To put this to practice, I always keep up my commitment with my suppliers in terms of volume and payments. Now I am happy with my business and business partners.
What changes do you observe in last 10 years that changed the distribution business in your region?
In the last 10 years some good changes have come into force with respect to distribution. Some companies have stopped direct sales to projects and are supplying the products through Channel Partners. This has strengthened the supply chain.
As distributors if we maintain our commitments, the companies always supports us.
What change do you observe in plywood trade after COVID-19 pandemic?
COVID-19 pandemic has impacted every aspect of life and the trade. The major changes observed are strict credit policy followed by the suppliers and dumping of materials has stopped. Overall, the payment system has been strengthened.
What is your view on present market situation?
Keeping the pandemic in mind, the market has exceeded our expectations. Companies are breaking their sales-record. The current market position is good with great sales and on-time payments.
What is the credit period at present and what it will be in future?
The credit period at present is 30 days and I am positive that the future business dealings will be cash and carry.
What would be the scenario for a retailer and a readymade furniture manufacture ahead?
The current market is very favourable for the retailer. There is no need for maintaining a large stock and order based supply is very much preferred. The readymade furniture market share has
The current market is very favourable for the retailer. There is no need for maintaining a large stock and order based supply is very much preferred. The readymade furniture market share has increased multiplefolds and I believe it is the future.
What changes do you see in policy adoption by top brands v/s mediocre brands?
Top brands have adopted the policy of offering cash discount to ensure payments and have also entered the lower-cost material market to compete and increase their market share.
On the other side, the Mediocre Brands are high on credit sales and low price sale. This has resulted in them suffering now.
How do you see the future of MDF in comparison to Plywood?
MDF sale is increasing while the plywood sale is decreasing. The multiple varieties, high quality, lower cost and lesser complaints is increasing the demand of MDF and is going to take over the plywood demand in the near future.
How do you see the future of laminates v/s PVC laminates?
Laminates business is evergreen. PVC laminates are not widely accepted as laminates. So, no worries for laminates.
What is your vision of 2021?
Provide all interior solutions with best quality and at a reasonable price.
What is your suggestion to the dealers at present?
My suggestion to all dealers is to conduct business with ethics and have a positive approach. Get the customer by highlighting the positives of your products rather than pointing out the negatives of the other’s products. Always support your suppliers with volume sales and payment, and they will support you too.