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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

40

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 certication 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.

41