Century Plyboards India ltd is India’s largest company with complete bucket of wood panel products like Plywood, Laminate, MDF, Particle Boards, decorative veneers and Face veneer for the plywood industry. Century Plyboards has come a long way since its inception in 1984 where it started from scratch to the present status of a large successful corporate company. People say that Brand ‘Century Ply’ is built on the basis of Honesty, Consistency and visionary leadership of Mr Sajjan Bhajanka.
The Ply Reporter met with the most successful, experienced and visionary person, Mr Sajjan Bhajanka to know his views on the present state of the wood panel industry and future changes anticipated by him.
The free license policy will enable farmers to produce more timber and it will make India a sustainable supplier for world because we are very good in manufacturing plywood from plantation timbers.
The need for forest license in Wood Industry has been debated since a long time, what are the current happenings around licensing?
It is a question of time. All the factories that are based on Agro-based are sooner or later going to be free from licensing. This is already happening in many states such as Andhra Pradesh, Punjab, Uttarakhand, etc. These states have already notified that they don’t need license. I believe that it will soon happen everywhere, there is no problem as such.
What about Uttar Pradesh?
UP has also notified the same but few people went to the High Court, where they got a stay on the clause. There is a notification from center MOEF that already states about no need of licensing till a particular log girth that has established the fact of not considering ‘Wood Industry License’ as a need. Meanwhile, UP started registration process for issuing license for wood industry based on availability of timber that was later challenged in NGT.
NGT has raised a question about the assessment and calculation done regarding timber availability from the government forest and private, only because the basis in UP was timber availability and consumption that was incorrect, instead what they should have said is that this licensing it is required for only the material, we give for the reserved forest. And if you are using plantation timber then there is no need for any license. Just plain registration has to be done so the registration format should have been shared.
I have written to the Chief Minister as well urging him to notify this issue and thereon all these factories can start with the registration and commence work.
What do you think will happen ahead in this regard?
The efforts have been done to reach out to ministry and decision makers in this regard by FIPPI. Since there has been some changes in ministry portfolio, so the present Minister will have to revisit the subject. The decision of subject of licensing is pending but definitely an understanding of the same has to be done before clearing it.
It appears that there is a parallel work happening here. One is the act while second is notification from the UP Government.
The last minister has said that the DG Forest had heard and suggested that would explain the act. Further, it was suggested that they should go ahead with both: notify and issue new guidelines on the lines of 2021, after the 2018 guidelines and then draft the act. We hope that things will be clearer and happen in a way what should be genuinely done. To make India as a manufacturing hub and to strengthen the export, such policy decisions in right direction are vital for the growth of the country and our economy.
Does this mean that the state government would take some steps in this direction? Notify on it for UP issue and create a nationwide act?
There is a set of guidelines that are drafted by a set of Industry experts which are also based on the Supreme Court’s direction. The MOEF direction that had come around 2017 in response to directions from the Supreme Court is also in similar direction of making the wood industry free from license things in case of plantation timbers. If state governments will consider that notification seriously, it is already very much in line of what industry needs today.
Is there a possibility of exporting plywood in the near future?
Right now, India is on equivalent with China. The labor cost and containers freight from China are very expensive. Today rates are high in China as compared to us so there is a good chance of getting plywood exported from India. The cheaper plywood made with Rubber wood is already getting exported from Kerala. And it is very much possible to export plywood if timber is available and that is directly related to plantation. The free license policy will enable farmers to produce more timber and it will make India a sustainable supplier for world because we are very good in manufacturing plywood from plantation timbers.
In India, mostly people prefer Plywood to MDF and Particle Board. So the demand for high grade plywood is going to be there. Secondly, the trend for readymade furniture has not yet started in India and the distribution module is inefficient in furniture. Selling through showroom is not viable.
How do you see plywood demand in next couple of years ahead?
What I feel is that in the coming days there would be scarcity of plywood even in India. The demand for plywood is going to increase. There is a lot of pressure building on the housing sector and housing’s adjusting inventory is growing at an alarming rate. As the inventory is getting diluted in a fast paced manner, the building community will be eager to complete the incomplete projects so I see a lot of materials demand as the halted constructions projects will resume. Now, there is development at all stages.
What is your view about alternate substitutes to Plywood?
In India, mostly people prefer Plywood to MDF and Particle Board. So the demand for high grade plywood is going to be there. Secondly, the trend for readymade furniture has not yet started in India and the distribution module is inefficient in furniture. Selling through showroom is not viable. DIY and selling furniture online is still at an infant stage. As demand for this will rise, the raw materials connected with it will get more demand, including plywood. Thin MDF will be used on furniture replacing thin plywood, which will be good for plywood segment actually. Particle Board will be used predominantly in readymade furniture.
Why industry is not adopting thin MDF as a base ply in decorative veneer category?
So far as decorative veneer is concerned, there are some challenges in applying decorative veneer on MDF so for this there is a need for change in the concept. I believe the change is on way in this direction as well.
What are the expansion plans of Century Plyboards?
We are in plans to increase our laminate and MDF capacity with Particle Boards as our second priority. And lastly we would increase the capacity of plywood. All our capacities are around 30000 NA per day, some factories are also at 40000 NA while our target is to take them to 50000 NA every day.
How is Century Ply differentiating in quality front?
Century plywood has been highly sensitive and concerned to bring quality enhancements. Today we add three different types of chemicals to kills germs. To make it virus resistant we add nano particles. Apart from that we add different chemicals for delivering genuine Fire Resistant ply. And now we have developed E-0 as well. So all the best attributes that are required in a ply are all available and executed religiously in CenturyPly. There is not a single piece that is left in exception.
Why is Birch plywood getting imported in India? Can this product not be manufactured in India?
The face of Birch is not preferred in India. If Century imports Birch timber to make Birch core, eucalyptus is comparatively cheaper. It is fire resistant, naturally preventive to insects, strength wise, eucalyptus is better. In finishing, there is 3-stage pressing concept so the process is also adapted and quality is good.
What is your opinion about face veneer? Do you see any success in various opportunities being offered in the South?
In face veneer, I do not see much of the possibilities in India. It has to be imported, either Gurjan or Okume.