How do you see the market today (September-October) after covid?
The months of Sept-Oct were having heavy demand and the reason for it I see that the construction activities are very high. In my observation, the demand has reached the pre covid level. I can clearly see the material shortage in the market.
In which segment do you see high demand?
Timber is already in demand, along with that in panel solutions like plywood has not shortfall and the MDF, HDF demand has increased. In plywood, the local sales are getting better against branded ones. In the non-branded mid-segment, the quality has improved, the customers have become quality specific rather than brand. Lower segment demand is also good. I think the small builders are moving faster than the big builders.
What impact of price increase do you see on the market?
In terms of a price increase, the customers hesitate first, but ultimately they have to pay the increased price. Still, we are not able to increase the price of the product what pressures we are getting from the manufacturers or distributors. The profitability is not increasing but the demand is there in the market due to which the survival stage is maintained.
What changes are being observed during this period?
Today the payment is faster than ever before. Today you cannot hold after having the order delivered. The old practices are not prevailing now because the factory owners are also choosy in the present time. They have trust with; they can go ahead in credit also. Like with me they don’t have upper limit because they know that the payment will definitely come. Most importantly the players based at Yamunanagar have reduced the far-away travels and capturing surrounding markets demand.
What changes do you see in customers’ behaviors?
In my opinion, the belief in the secondary market is getting stronger now. I believe that the customers should come to shop because when they come to the shop their attitude remains different. Ours is fixing price shop so the customers come to us to buy the product rather than to just enquire about the rate.
Is there any product that’s the price has risen unexpectedly?
In liner laminate, there is an unexpected rise in price. In laminate, segment liner has observed maximum price rise. In plywood, the shopkeepers increase the price with caution despite numerous letter issued by the association.
What about the WPC/PVC board?
In this segment also the price has risen very high, but I think the sales are there intact, only the profitability has lost its ground. Recently we have ordered for WPC board. They are asking for Rs 140/kg. if we sell it below Rs 150 that is not viable because there are a lot of expenses in between.
How do you see the future market in the wood panel and decorative segment?
I think the growth will be there in continue and demand will also be there, because this is the season of construction. We can see the scenario of timber imports, which is in shortage for at least two-three months. It indicates that the price will rise to another level. Teak price has also increased recently. So, the material shortage is there that indicates that the demand will not be going down in near future.
What message would you like to give to the dealers’ community?
I would like to say that you have to work hard and compromise with profitability. Undue advantage should not be taken from customers because in bullish markets people have the intention to take advantage. We should take a mid-way and settle the deal so that no one remains at a loss.