Jorhat, Assam based Gattani Industries is one the prominent producers of Plywood in India, and leading manufacturer in North East Region. Its brand ‘Gattani’ and ‘Oxford’ is very popular in Plywood market because they have retained high quality products standard sustainably despite of all challenges in this area related consistency in timber supply. The company is planning to diversify into Decorative Laminates manufacturing, and they will start their production in 2021. Talking with The Ply Reporter, Mr. Makhan Gattani, Managing Director of company has explained his future plans and present situation of plywood industry in North East Region. The excerpt….
How, Covid has impacted Plywood industry and Trade of N-E region?
North East Region means 7 states (Assam, Meghalaya, Nagaland, Arunachal, Mizoram, Tripura & Manipur). Our factory is located in Assam and we procure raw materials mainly from Meghalaya, Nagaland, Arunachal & Manipur. But due to COVID situation all the states have imposed restricted movement to other state Vehicles and persons. Thus, we faced shortage of raw materials in these months.
What is the demand scenario at present time?
The demand scenario at present time is improving and we are expecting a better tomorrow
How much did you recover your business post covid?
The demand scenario is good and we are working at 100 % efficiency.
What change do you observe in plywood trade post covid?
We don’t feel any change in Plywood Trade Pre or Post Covid Scenario.
Price hike is a part of business it depends on demand & supply. The chain of supply of raw material like Chemicals and Face Veneer, which is mainly imported has been disturbed due to Covid Scenario. So, it might take a few more months to regularize everything. We hope by then the price hike might decline.
How do you see impact of present raw materials price hike on plywood industry?
Price hike is a part of business it depends on demand & supply. The chain of supply of raw material like Chemicals and Face Veneer, which is mainly imported has been disturbed due to Covid Scenario. So, it might take a few more months to regularize everything. We hope by then the price hike might decline. But we fear that if the price hike continues the consumers might search for substitute products.
How has been Timber availability scenario for N-E region Plywood units?
Timber is available but timber is controlled by Forest Departments and they don’t have any Long-Term Policies so they are not even bothered about the wellbeing of the industry
Apart from some units like yours, the sustainability is very difficult for most of plywood units in this region, what is your view.
The sustainability of any unit depends on long term planning and policies in all sectors like Purchasing, Production, Sales, Quality, Consumer satisfaction etc. And you have to keep a minute check on all these sectors on a day to day basis with a good team.
What is the future of Assam based plywood units if we compare with UP and other North region?
The future of Assam based Plywood Industries is not that bright as the raw materials is controlled by the Forest Department which has led to shortage of raw materials sometimes. If we compare it with UP and the other North regions the government there has allowed their farmers to grow and sell their timber, which more or less helps the plywood units in UP and North Region to run it smoothly.
In this situation, how do you position your brand in the market?
We tend to position our brand “Gattani” and “Oxford” as the brand which is absorbing major part of the price hike of raw materials and ensuring the availability of the product despite all odds but maintaining the quality which we are known for.
Would you plan to expand your production capacity further?
We definitely plan to expand but since the department policies in north eastern regions are not favourable to us sometimes, we are planning to expand in any other part of India.
We tend to position our brand “Gattani” and “Oxford” as the brand which is absorbing major part of the price hike of raw materials and ensuring the availability of the product despite all odds but maintaining the quality which we are known for.
We increased our sales from 100 tons per month to 1600 tons per month in the present-day. We have at present 175000 square foot of manufacturing space with a wide product range Plywood, BlockBoard, Flush Door, Shuttering Plywood, Membrane Doors.
Would you plan to diversify in other related manufacturing biz?
We are planning to manufacture High Pressure Laminates in coming year.
Brief about the growth story of Gattani Industries
We started Gattani Industries in the year 1991 as a Core-Veneer manufacturing unit and expanded it by starting manufacturing of Plywood in April 1996. But unfortunately, due to the ban imposed by the Honorable Supreme Court in December 1996, we had to shut down our unit until the year 2002. During these 6 years the whole chain of plywood industry collapsed in the North East Region and the whole north eastern market was captured by other states of India. The ban was removed in the year 2002 and we restarted the unit with a sale of around 100 tons per month because the supplier and buyer chain were broken.
We gradually worked to get back into the chain and increased our sales from 100 tons per month to 1600 tons per month in the present-day. We have at present 175000 square foot of manufacturing space with a wide product range Plywood, BlockBoard, Flush Door, Shuttering Plywood, Membrane Doors.