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Current Scenario of Indian Panel Industries Flipbook PDF
Current Scenario of Indian Panel Industries
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PLY INSIGHT - July 2020
Current Scenario of
Indian Panel Industries Principal Technical Adviser (FIPPI)
DR. C.N. PANDEY
PANEL PRODUCT Ø Indian wood based panel products consist of Ø Plywood Ø MDF Ø Particle board Ø Other miscellaneous products such as Block Board, Flush Door, OSB etc.
Plywood
Medium Density Fibre Board
Particle Board
Door, Block Board
Plywood
Flush Door 38
PLY INSIGHT - July 2020
Different sources of wood Forest: Govt. owned forests Ÿ %Trees Outside Forests (TOF) Outside the govt. forests/Agro-forestry Ÿ %TOF in Rural area Ÿ TOF Urban area Imports: wood imported from different countries
-
3
-
92
-
5%
Sector-wise consumption of wood Ø FSI report (2017) estimated annual potential of production of tree outside forest (TOF) as Ø Ø Ø Ø
74.5 million CBM. Out of 74.5 million CBM total production, 60% goes to fuel wood and remaining 40% for industrial use, ie. 29.8 million CBM. Out of 29.8 million CBM, the distribution ratio between Pulp & Paper and Panel industries is 40:60. Indian panel industries is growing at a rate of 10-12% annually. In the said growth, 90% is towards new houses and 10% for renovation are responsible.
Pattern of Industrial wood utilization
16%
Pulp & Paper
60%
Panel Industry 24%
Fuel Wood
Plywood and Panel products Plywood industries is growing at a expected Compounded annual growth rate (CAGR) of 10%. Ÿ MDF industries expected CAGR rate is 20 % Ÿ Particle board expected CAGR rate is 13% Ÿ
Changing trend in consumption of Panel products Ÿ Ÿ Ÿ Ÿ Ÿ
Rapid urbanisation nearly 33% settled in urban area Infrastructural development Increased demand by the furniture industries Govt. initiatives to have housing for all by 2022. Another govt. program such as developing of 100 smart cities 39
7-
PLY INSIGHT - July 2020
Plywood sector There are total 3300 units of plywood industries, The total supply is 10 million cbm, import ~0.3 million cbm, thus doemstic production is 9.7 million cbm Ratio between organised and un-organised sector is 20:80 Un-organised sector holds market share of nearly 80%. Out of 3300 units, nearly 2500 SSI units which were earlier exempted from tax regime but after Ä GST came into picture, where exemption threshold limit was brought down from 150 lakhs to 20 lakhs, so more number of units came under the purview of Taxation structure. rd Ä It is worth noting that nearly 1000 (1/3 ) units of 3300 make their production conforming to BIS standards Ä Ä Ä Ä Ä Ä Ä
Domestic Plywood Production share Organised Sector 20%
Centuryply, 26%
Centuryply Other,48%
Greenply Other
Greenply, 26%
Un Organised Sector 80%
Organised Sector Organised Sector
Un Organised Sector
MDF Sector There are total 8 units in India Sr. Industry No.
Location
Plant Capacity Plant Capacity /day (m3) /year (m3)
1
Pioneer Panel Products,
HARYANA
200
4
2
Metro Decoratives Pvt. Ltd.
HIMACHAL PRADESH 300
6
3
Shirdi Industries Ltd.
UTTARAKHAND
200
4
4
Rushil Decor Limited
KARNATAKA
350
7
5
Balaji Action Buildwell
UTTARAKHAND
1200
25%
6
Greenply Industries Ltd.
UTTARAKHAND
600
12%
7
CENTURY PLYBOARDS (INDIA) LIMITED,
PUNJAB
600
13%
8
Greenply Industries Limited,
ANDHRA PRADESH
1400
29%
4850
1455000
Total
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PLY INSIGHT - July 2020
Ø 1.10 million cbm is current domestic production against annual installed production capacity of nearly 1.45 million cbm. Ø 0.25 million cbm is imported(~20% of total MDF supply ie. 1.10+0.25= 1.35 million cbm) Ø It is a good sign that all the units make their production conforming to BIS standards, i.e. 100% units adhere to standards Ø Century Plyboards(i) Ltd contributes 13% of total domestic MDF production.
Global vs Indian Scenerio of product use
Ø Ø
MDF
Plywood
Global
65
35
Indian
25
75
In India, 20% product are imported Keeping in view of increasing the use of MDF product in comparison to Plywood in Indian market, there is good scope to growth for this sector.
Particle Board sector, Ø Ø Ø
There are nearly 35 manufacturing units . 50% units make their production adhere to BIS standards Annual supply is nearly 1.0 million CBM. Domestic production is 0.84 million CBM against 0.16 million CBM import.Domestic production is 0.84 million CBM against 0.16 million CBM import
Challenges before panel industries Ø Ø Ø Ø Ø Ø Ø
Sustainability of raw material and their cost uctuation Absence of Indian product in the global market due to certication issues Adoption of best available control technologies(BACT) Availability of trained man-power Support to industries R&D effort Policy issues related to this industry Market support mechanism.
Conclusion With the proposed implementation of the new forest policy 2019, where more thrust has been given to raise short rotation plantation / agro-forestry trees to increase the income of farmer and meet the ever increasing demand for the industrial wood. Plywood, MDF / PB have the potential to grow at a faster pace in future to cater the need of domestic and International market.
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