Published on 10th July 2018
THE PLY REPORTER JULY 2018
VOL.18 ISSUE 07 JULY 2018
A Techno-Informative Magazine EDITORIAL & CORRESPONDENCE 40/76, LGF, C.R. Park, New Delhi - 110 019. Tel.: 011-4678 0023 Email : plyreporter@plyreporter.com ADVERTISING Tel.: +91-9310612999, E-mail: devplyreporter@gmail.com CONTENT Tel.: +91-93106 12993 E-mail: plydata@gmail.com SUBSCRIPTION / CIRCULATION Tel.: 011-46780023 Mob.: +91-93106 12995 / 2 E-mail: subscription@plyreporter.com ACCOUNTS Tel.: +91-93106 12996 E-mail: bigseamarcomindia@gmail.com
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CONTENTS Regular Coloumn 20-22 Editorial
24-26 Apni Baat
283 Advertiser’s Index
284 Fair News
News Watch 28 I Core Veneer Prices jump by 20%, Plywood Prices to rise,
dksj fofu;j ds jsV 20 Qhlnh rd mNys] IykboqM gksxh eagxh
36 I Alternate ply set to return, ‘All Poplar Ply’ unviable
ÞvYVjusV IykbZÞ dh okilh] ^v‚y iksiyj IykbZ^ ds fnu chrs !
40 I UP Govt invites application for new Plywood licenses
;wih esa u, IykboqM ykblsl a [kqyus ds volj
44 I Bulk Phenol Buying could Save on Cost
QsukWy dh Fkksd [kjhn ls gks ldrh gS cpr
48 I Despite higher wages, Labor shortage prevails
Åaph etnwjh ds ckotwn] yscj dh deh cjdjkj
50 I Savitri woods, Biggest Plywood Plant in North under one roof, set to begin production.
Þlkfo=h oqM~lÞ mÙkj Hkkjr ds lcls cM+s IykboqM IykaV esa mRiknu “kq: djus dks rS;kj
52 I Weak rupee offers some support to Laminates exporting Companies
#i;k detksj gksus ls ysfeusV~l fu;kZrdksa dks Qk;nk
60 I Padam Jain owned New Pragati Plywood Industries begins production in July
ine tSu ds LokfeRo okyh daiuh ^U;w çxfr IykboqM baMLVªht^ esa tqykbZ esa mRiknu “kq:
62 I India Coverings Expo’s (ICE) 70% of space has been booked
ANNUAL SUBSCRIPTION Rs. 1,100/-
Printed, published and owned by Pragat Dvivedi, Printed at Modest Graphics Pvt. Ltd., C-53, DDA Shed, Okhla Industrial Area Phase-I, New Delhi-110020 and published at F-1118, C.R. Park, New Delhi - 110 019. Editor Pragat Dvivedi The views expressed in the columns of ‘The Ply Reporter’ are not necessarily those of the editor or the publisher & they accept no responsibility for them. No part of this magazine including advertisements designs, prepared by us or through us should be copied, reproduced or transmitted by anyone without prior written permission of the publisher. The Magazine is not responsible for the opinions & ideas presented on the following pages. All disputes regarding this magazine will be settled in Delhi (India) Jurisdiction only.
TOTAL NUMBER OF PAGES - 300 www.plyreporter.com
282 Horoscope
64 I Dolby Mica launches exclusive catalogue for architects and interior designers 68 I Action TESA HDHMR Board widely accepted by Indian Interior Industry... 130 I SAUVE FINISH – The Subtle Kaiya Wonder from Aica 295 I ALSTONE SHRI PVC SHEETS FOR FLUSH DOORS & DOOR FRAMES 124 I Krinkle Finish of Kaiya from AICA 82 I
124 I 301 I
The Ply RePoRTeR july 2018
Contents
Contents
One 2 One Pg.
94
A Talk with
Visionary leader Mr. Sajjan Bhajanka, Chairman, Century Plyboards Ltd. Pg.
132
Pg.
Loyal of Aica
134
Mr. G.K Bihani, Propritor, Runicha Enterprises, Jaipur
Pg.
142
Regency Club
Mr. Mukesh Jain Manoj Jain, Apurvam Laminates, Nashik
Mr. Abhijit Pahare, Mahaveer Plywood, Malegaon
Update
Dexarte brings innovative and exclusive PVC range of products Mr. Nirmal Jain, Mahaveer Enterprises, Chennai
www.plyreporter.com
Mr. Tarun Soni of Rubika’s Decor, Pune
Mr. Vinod Jain, Mahaveer Enterprises, Hyderabad
Mr. Girish Jain, Jain Laminates and Veneer, Chandigarh
THE PLY REPORTER JULY 2018
CONTENTS
CONTENTS Pg.
162
Cover Story : Gabon Will OKOUMÉ be the Game Changer…
Mr. Jasveer Singh, CEO, GSEZ
Mr. Kailash Nemani, Gabon Eco Wood
Mr. Sunil choudhary, Evergreen Veneer
Mr. Archit Goel, Gabon Veneer
Mr. Amit Garg, Solid Wood
Mr. Praveen Goel, Sun Veneer
Mr. Ankur Modi & Ashish Singhal, Accurate Inds.
Mr. Shubhranshu Modi, Mr. Rajesh , Africa View Mr. Sharad Marathe, Woods International Otim Veneers
Pg.
206
Mr. Sudeep Jain, Greenply, Gabon
Mr. Vivek Agarwal, Timberworkz
Mr. Umar Farooq, Afeefa Overseas
Mr. Abhay Jain, ART BOIS
JALANDHAR
TALK OF TOWN series Ply Reporter’s 4th Seminar on Market Acceptance of Okoume Face Veneer held in Jalandhar Event Watch 258
Gabon Wood Show concluded with a good note 272
Archidlam dealers’ trip to Bali www.plyreporter.com
268
Advance emporio bags launching ‘Road Show’ Stylam Industries ‘India’s greatest held in Kanpur, & Hisar brands & leadersJaipur 2015-16’ award 276
Chitwan ply celebrates a decade of Stylam Industries bags ‘India’s greatest excellence brands & leaders 2015-16’ award
271
Axilam Laminates opens full sheet display centre and launched their first catalogue at Mehsana 264 Greenpanel’s carpenter Guru 2.0, mobile app launched 265 Rehau India opens its first retail store in North India: MGM Cucine in Gurgaon 266 Trustlam unveiled its new laminates range at Indore 267 ‘Studio Airolam’ opens at Raipur, Chhattisgarh 273 Aica showcases exclusive Kaiya range at the ‘TalkOfTheTown’ Seminar 274 Archidlam celebrates world environment day on 5th June 2018 275 Alstone’s in shop carpentors’ meet in Bhopal 279 A divine launch of Bigwig plywood, a new brand of Krishna Decoratives 280 Floresta WPC organizes ‘In shop meet’ at Dehradun, Noida & Jaipur
The Ply RePoRTeR july 2018
It’s tIme for ‘rate revIsIon’
Editorial
Pragat Dvivedi, Founder Editor
20
I believe, the wood panel & surface material segment has sustained demand but Payments and need of Capital is alarmingly serious. The time for revising the rates has begun that can be only negotiated by Cash rich buyers. The Mid Segment companies need banking support and Capital but situation on banking front is adding pressure on industry and market flows.
M
onth of June was a buzz with talks of weak cash flow, weak demand and impact of rising competition. There has been sharp rise in manufacturing cost of Plyboards hence a price increase by 5-6% could be seen in July month itself. The price escalation in Eucalyptus, Poplar, Chemicals and Labor wages shall push up the plywood prices by 7-8 % in next four months. The plywood industry is expected to reduce or slowly stop Poplar plywood dispatches in next few months as timber price rise looks imminent. The branded plywood companies have already announced 4.0 % increase in prices. After GST, Branded plywood market is growing due to rise in sub brands. The semi branded plywood category In North & South is also increasing its market spread and sales growth after E-way bill. The Decorative Laminate industry is the most impacted by cost increase in raw materials in entire product category of wood panel decorative category. Raw materials like Paper, Phenol, Tissue, Moulds, Folders etc. have pushed up the manufacturing cost but the Semi branded, and unorganized segment is struggling to implement price increase. Dollar has escalated the cost in 1.0 mm segment, which may push the branded laminate segment to announce a price increase of Rs 30 per sheet of laminate. The worst hit product category is 0.8 mm thickness segment, where design and quality expectancy is very high but prices are flat. Although a Rs 20/sheet increase in liner category has happened two months ago. The rise in laminates manufacturing cost is so hard that many units have stopped taking orders of Liner laminate, blaming it as a loss-making product. Manufacturers are unable to pass on the cost risein 0.8 mm due to throat cutting competition. The HPL manufacturing companies are reeling under suffocation and acute pressure on margins which shall eventually lead to closure or Change in management at few plants by next Financial year itself. Around half a dozen of laminate manufacturers from Gujarat, North India are struggling to sustain afloat. The MDF segment is also staring at raw material cost rise but healthy margins and huge flow of finished material is expected to keep MDF prices under check. The top three players Action Tesa, Green Panel Max and Century are selling aggressively to fetch a larger market chunk thus turning the market in favour of bulk buyers. I believe, the wood panel & surface material segment has sustained demand but Payments and need of Capital is alarmingly serious. The time for revising the rates has begun that can be only negotiated by Cash rich buyers. The Mid Segment companies need banking support and Capital but situation on banking front is adding pressure on industry and market flows. The scenario in coming months will be driven by capital rich players and times are very troublesome for weak ones. It’s time for distributors to be active, and every growing company/entrepreneur shall focus on payments, capital through bank and expanding sales network. Best Wishes
Pragat Dvivedi Founder Editor www.plyreporter.com
Mail to “dpragat@gmail.com”, ( M) 9310612991.
The Ply RePoRTeR july 2018
laikndh;
Editorial
vc jsV esa cnyko t:jh
22
esjk ekuuk gS fd oqM iSuy vkSj ljQsl esVsfj;y lsxesaV us ekax dks cjdjkj j[kk gS ysfdu isesaV vkSj iwath dh t:jr [krjukd fLFkfr esa gSA njksa esa cnyko dk le; “kq: gks x;k gS ftls dS”k fjp [kjhnkj gh eSust dj ldrsa gaSA feM lsxesaV daifu;ksa dks cSafdax liksVZ vkSj iwath dh vko”;drk gS ysfdu orZeku esa cSafdax dh fLFkfr] m|ksx vkSj ekdsZV ¶yks ij ncko c<+k jgh gSA
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u esa dS”k ¶yks dh fdYyr] detksj ekax vkSj c<+rh çfrLi/kkZ ds çHkko dks ysdj ppkZ dk cktkj xeZ jgkA IykbZcksMZ cukus dh ykxr [kpZ esa rst o`f) jgh] urhtru flQZ tqykbZ eghus esa gh dher esa 5&6 Qhlnh dh o`f) ns[kh tk ldrh gSA lQsnk] iksiyj] dsfedYl ds jsV vkSj etnwjh nj esa o`f) ds pyrs vxys pkj eghuksa esa IykboqM dh dherksa esa 7&8 Qhlnh dh c<+ksrjh gks tk,xh gSA gkykr ;g curs fn[k jgsa gSa fd vxys dqN eghuksa esa iksIkyj IykboqM dk mRiknu o vkiwfrZ de ;k can gkss ldrh gS D;ksafd ydM+h dh dhers c<+uh r; gSA czkaMsM IykboqM daifu;k¡ dherksa esa 4 Qhlnh dh o`f) dh ?kks’k.kk dj pqdh gSA th,lVh ds ckn] czkaMsM IykboqM cktkj esa lc&czkaM dk cktkj c<+ jgk gSA mÙkj vkSj nf{k.k esa lseh czkaMsM IykboqM dsVsxjh Hkh bZ&os fcy ykxw gksus ds ckn] vius cktkj ds foLrkj vkSj fcØh esa o`f) dj jgh gSA Msdksjfs Vo ySfeusV baMLVªh] oqM iSuy Msdksjfs Vo dsVx s jh dh iwjh mRikn Js.kh ds dPps eky ds ykxr esa c<+krs jh ls lcls T;knk çHkkfor gSA isij] QsukWy] fV”kw] eksYM~l] QksYMlZ bR;kfn tSls dPps eky us mRiknu ykxr dks c<+k fn;k gS] ysfdu lseh czkM a M s ] vkSj vu&vkxZukbt lsxesVa ewY; o`f) ds fy, la?k’kZ dj jgk gSA etcwr MkWyj us 1-0 ,e,e lsxesVa esa ykxr c<+k nh gS] ftlls czkMa Ms ySfeusV lsxesVa esa 30 #i;s çfr “khV dh o`f) gks ldrh gSA lcls T;knk çHkkfor mRikn Js.kh 0-8 ,e,e gS] tgka fMtkbu vkSj DokfyVh dh pkgr cgqr vf/kd gS ysfdu dhersa fLFkj gSAa gkykafd nks eghus igys ykbuj dsVx s jh esa 20 #i;s@”khV dh o`f) gqbZ gSA ySfeusV~l eSU;wQSDpfjax d‚LV esa o`f) bruh eqf”dy iSnk dj nh gS fd dbZ bdkb;ksa us ykbuj ySfeusV ds vkMZj ysus can dj fn;s gS] vkSj bls ?kkVs ds mRikn ds :i esa nks’kh Bgjk jgs gaSA dM+h izfrLi/kkZ ds dkj.k fuekZrk 0-8 ,e,e ds jsV c<+kus esa vleFkZ gSaA ,pih,y mRiknd cM+h ijs”kkuh dk lkeuk dj jgsa gS vkSj cgqr T;knk ncko eglwl dj jgsa gSa] tks varr% vxys foÙkh; o’kZ rd dqN IykaV ds can gksus ;k çca/ku esa cnyko dk dkj.k cu tk,xkA xqtjkr vkSj mÙkj Hkkjr ds yxHkx vk/ks ntZu ySfeusV mRiknd viuk fLrRo cpkus ds fy, dM+k la?k’kZ dj jgs gSaA ,eMh,Q lsxesaV esa Hkh dPps eky dh ykxr esa o`f) ij utjsa fVdh gSa ysfdu vPNk ekftZu vkSj rS;kj eVsfj;y ds vPNs ¶yks ds pyrs ,eMh,Q dh dhersa fLFkj jgus dh mEehn gSA rhu cM+s Iys;lZ ,D”ku Vslk] xzhu iSuy eSDl vkSj lsapqjh ,d cM+s cktkj fgLlsnkjh gkfly djus ds fy, vkØked fcØh ij tksj ns jgs gSa blfy, cktkj Fkksd [kjhnkjksa ds i{k esa py jgk gSaA esjk ekuuk gS fd oqM iSuy vkSj ljQsl esVsfj;y lsxesaV us ekax dks cjdjkj j[kk gS ysfdu isesaV vkSj iwath dh t:jr [krjukd fLFkfr esa gSA njksa esa cnyko dk le; “kq: gks x;k gS ftls dS”k fjp [kjhnkj gh eSust dj ldrsa gaSA feM lsxesaV daifu;ksa dks cSafdax liksVZ vkSj iwath dh vko”;drk gS ysfdu orZeku esa cSafdax dh fLFkfr] m|ksx vkSj ekdsZV ¶yks ij ncko c<+k jgh gSA vkus okys eghuksa esa iwath ls etcqr Iys;lZ gh] ekdsZV dh n”kk vkSj fn”kk r; djsaxs vkSj detksj yksxksa ds fy, cgqr ijs”kkuh Hkjk oDr gksxkA ;g forjdksa ds lfØ; gksus dk le; gS] vkSj izR;sd c<+rh daiuh@m|eh dks isesaV] cSad ds ek/;e ls iwath vkSj lsYl usVodZ ds foLrkj ij /;ku dsafær djuk gksxkA
izxr f}osnh Mail to “dpragat@gmail.com”, (M) 9310612991 www.plyreporter.com
THE PLY REPORTER JULY 2018
SHUTTERING PLY, SUSTAINABLY GROWING PANEL PRODUCT
APNI BAAT
Rajiv Parashar, Editor
24
India’s Film faced plywood market will be sustainably growing and irreplaceable product category which will be first to turn in to formal business practice product from plywood product bucket in next two-three years. Game changer GST will boost formal sector growth in this segment that will help this sector to scale up for further growth.
W
ith boom in real estate in 2001-07, the construction activities was needed large quantities of Glossy finished shuttering ply to obtain smooth & even cement surface, column finish. During this period, the demand grew, and requirement of film faced shuttering picked up momentum. North base Ply industry jumped in it, slowly North emerged as a hub for Film faced ply. Today North alone list around 100 shuttering ply establishments other than being produced in states like Kerala, UP, Bengal, Bihar, Rajasthan and even in Gujarat and Tamil Nadu. With growing awareness, Film face it is reaching to small cities and rural markets too. Despite of substitute e.g MS sheets, Aluminum Formwork, Plastic sheets, Timber planks etc., ease in availability, finish, light weight and versatile usage of Film face plywood makes it a sustainably growing product in the country. Film face plywood is an important material whose demand is synched with the momentum in real estate. Unfortunately, Film face ply has become a commodity grade material just because, the informal sector has major role where KG is the judgement factor not the brand or quality. The ply Reporter believes, with an estimation of around Rs 4600 to 5000 cr of annual market size, India’s Film faced plywood market will be sustainably growing and irreplaceable product category which will be first to turn in to formal business practice product from plywood product bucket in next two-three years. Game changer GST will boost formal sector growth in this segment that will help this sector to scale up for further growth. Film face ply manufacturing has many positives because it helps in consuming maximum portion of timber because it is made of full core and short core both. Lately quality is deteriorating and so is the drop-in smoothness and glossy surface. Now, if producers want to grow further in this category, they must concern about their quality, look and finish of the product. Since film face plywood category lacks Brand identity and knowledge on testing practices, this product is running as commodity which may run in risk if undesired over supply and informal business practices continue for long. The advice is to keep focus on quality commitment and maintain the customers trust. This July issue, features One 2 One interaction of Visionary industry leader ‘Mr. Sajjan Bhajanka, Chairman, Century Ply’ whose views on the future of Plywood and alternate panels, is a worth read for all, be it any individual from the industry or trade. A Special Cover Story on ‘Gabon: As an emerging hub for veneer and plywood manufacturing’ would be a knowledge based experience for readers in this issue. It has been made post week long Gabon tour by team Ply Reporter. Apart from these, lots of reports related to timber price hike, opening of License for Ply-peeling units in UP, high raw material costs affecting margins, etc are published with many happenings in wood panel sector.
Read and send your feed back
Rajiv Parashar www.plyreporter.com
(I appreciate your feedback. Write at plydata@gmail.com or SMS on 93106 12993)
The Ply RePoRTeR july 2018
viuh ckr
apni baat
’kVfjax IykbZ] yxkrkj xzksFk djus okyk iSuy mRikn
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Hkkjr dk fQYe Qsl IykboqM cktkj yxkrkj xzksFk djus okyk vkSj vifjorZuh; iSuy mRikn cu x;k gS tks IykboqM mRikn ds xzqi esa vxys nks&rhu lky esa lcls igys QkWeZy fctusl çSfDVl ds mRikn esa cny tk,xkA xse psatj th,lVh bl lsxesaV dks QkWeZy lsDVj dh o`f) dks c<+kok nsxk tks bl {ks= dks vkSj vf/kd fodkl djus esa enn djsxkA
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’kZ 2001&07 esa fj;y ,LVsV esa rsth ls] fcfYMax daLVªD”ku esa Nrksa ds phdus vkSj lery lhesaV ljQsl] d‚ye fQfu”k bR;knh gkfly djus ds fy, Xy‚lh fQfu”k “kVfjax IykbZ dh vko”;drk cgqr T;knk FkhA bl le; ekax c<+h] vkSj fQYe Qsl “kVfjax IykbZ us rsth dk j¶rkj idM+kA mÙkj Hkkjr fLFkr IykbZ m|ksx blds mRiknu esa vkxs vk;k] vkSj /khjs& /khjs mÙkj Hkkjr] fQYe Qsl IykbZ mRiknu ds gc ds :i esa mHkjk x;kA vkt vdsys mÙkj Hkkjr esa 100 ls vf/kd “kVfjax IykbZ cukus okyh daiuh gSA blds vykok dsjy] ;wih] caxky] fcgkj] jktLFkku vkSj ;gka rd dh xqtjkr vkSj rfeyukMq tSls jkT;ksa esa bldk mRiknu gksus yxkA tkx:drk c<+us ds lkFk] fQYe Qsl NksVs “kgjksa vkSj xzkeh.k cktkjksa rd Hkh igqapus yxk gSA ,e,l “khV~l] ,Y;wfefu;e Q‚eZodZ] IykfLVd “khV~l] fVEcj IySad bR;kfn fodYi ds ckotwn] vklku miyC/krk] fQfu”k] gYds otu vkSj fQYe Qsl IykboqM ds cgqeq[kh mi;ksx ds pyrs] ;g ns”k esa yxkrkj xzksFk djus okyk iSuy mRikn cu x;kA fQYe Qsl IykboqM ,d egRoiw.kZ esVsfj;y gS ftldh ekax fj;y ,LVsV ds xzksFk lkFk tqM+k gqvk gSA nqHkkZX;o”k buQ‚eZy lsDVj dh otg ls fQYe Qsl IykbZ ,d deksfMVh xzsM esVsfj;y cu x;k] D;ksafd buds fy, fdyksxzke fu.kkZ;d gS uk fd czkaMA IykbZ fjiksVZj dk ekuuk gS fd 4600 ls 5000 djksM+ #i;s ds okf’kZd cktkj ds vuqeku ds lkFk] Hkkjr dk fQYe Qsl IykboqM cktkj yxkrkj xzksFk djus okyk vkSj vifjorZuh; iSuy mRikn cu x;k gS tks IykboqM mRikn ds xzqi esa vxys nks&rhu lky esa lcls igys Q‚eZy fctusl çSfDVl ds mRikn esa cny tk,xkA xse psatj th,lVh bl lsxesaV dks Q‚eZy lsDVj dh o`f) dks c<+kok nsxk tks bl {ks= dks vkSj vf/kd fodkl djus esa enn djsxkA fQYe Qsl IykbZ eSU;wQSDpfjax esa dbZ ldkjkRed xq.k gSa tSls fd ;g ydM+h ds vf/kdre fgLls dk mi;ksx djus esa enn djrk gS D;ksafd ;g Qqy dksj vkSj “k‚VZ dksj nksuksa ls cuk;k tkrk gSA vktdy bldh xq.koÙkk [kjkc gks jgh gS vkSj blds LewFkusl vkSj Xy‚lh ljQsl esa Hkh fxjkoV ns[kus dks fey jgh gSA ;fn fuekZrk bl dsVsxjh esa vkxs c<+uk pkgrs gSa] rks mUgsa mRikn dh xq.koÙkk] yqd vkSj mRikn dh fQfu”k ds ckjs esa lkspuk pkfg,A pwafd fQYe Qsl IykboqM dsVsxjh esa VsfLVax dks ysdj czkaM vkbMsafVVh vkSj u‚yst dh deh gS] blfy, ;g mRikn deksfMVh ds :i esa py jgk gS] tks vokafNr vksoj lIykbZ vkSj vukSipkfjd O;kolkf;d çFkkvksa ds yEcs le; rd tkjh jgus ds dkj.k tksf[ke esa iM+ ldrk gSA blls cpus ds fy, lykg ;g gS fd xq.koÙkk ds dfeVesaV ij /;ku dsafær djsa vkSj xzkgdksa dk fo”okl cuk, j[ksaA bl tqykbZ vad esa] m|ksx ds fotujh yhMj lsapqjh IykbZ ds ps;jeSu Jh lTtu Hkktadk ds lkFk lk{kkRdkj çdkf”kr dh xbZ gS ftudk IykboqM ds Hkfo’; vkSj vyVjusV iSuy ij fopkj lHkh ds fy, i<+us yk;d gS] pkgs og m|ksx ;k O;kikj dk dksbZ Hkh O;fä gksA ^xsc‚u % fofu;j vkSj IykboqM eSU;wQSDpfjax ds fy, mHkjrs gq, dsaæ^ ij ,d fo”ks’k doj LVksjh ikBdksa ds fy, tkudkjh ls Hkjk vuqHko nsxk] tks Vhe IykbZ fjiksVZj }kjk iwjs lIrkg ds yacs xsc‚u nkSjs ds ckn rS;kj fd;k x;k gSA buds vykok] ydM+h dh dherksa esa c<+ksrjh] mÙkj çns”k esa IykbZ&ihfyax bdkb;ksa ds fy, ykblsal [kqyus dh laHkkouk,a] ekftZu dks çHkkfor djus okys dPps eky dh maph ykxr] rFkk oqM iSuy baMLVªh ds dbZ vU; ?kVukvksa ls lacaf/kr dbZ fjiksVZ çdkf”kr dh xbZ gSA
i<+sa vkSj viuk QhM cSd Hkstsa!
jktho ikjk’kj www.plyreporter.com
(I appreciate your feedback. Write at plydata@gmail.com or SMS on 93106 12993)
THE Ply REPoRTER july 2018
Core Veneer PriCes jumP by 20%, Plywood PriCes to rise
T
NEWS WATCH
here has been unprecedented jump in Poplar and Eucalyptus prices during month of June. The upward trend started from June beginning itself following which poplar and eucalyptus logs stocking by manufacturers began. The supply became tighter with the rise in demand and prices of timber went up by Rs. 150 to 170 per quintal in Poplar and Rs. 75 to 90 in eucalyptus. Till writing the news log prices were climbing nonstop hitting core veneer price rise by up to 20 percent.
28
The prices of timber have impacted entire plywood industry no matter where ever it is located. Manufacturers in Haryana, Punjab, UP, Rajasthan, DelhiNCR and Uttarakhand are considering a price increase ranging between 7-8 percent. According to reports, the manufacturing establishment in Yamunanagar and Punjab are more affected because many new manufacturers are buying timber by paying more to have stocks. Old plywood manufacturers feel that new players are panic unnecessarily which is leading to undesired spurt in log prices. The cost of core veneers is estimated to have jumped by 22-24 percent in just one month. Mr. Davender Chawla, President, AIPMA says that high timber prices push up our manufacturing input costs, and the prices of finished good should be increase to compensate the cost. â&#x20AC;&#x2DC;On the other hand, the farmers may get good return of their crops, which would motivate them to do more plantation in futureâ&#x20AC;&#x2122;, he further adds. According to field reports, the timber prices are expected to strengthen further in coming months because of the increasing consumption of timber due to return of labors and increase in production hours in Punjab and Haryana. There are also reports that with installation of 75 more
new presses, timber prices will continue to rise from now onwards. Labors had left for their native places in the month of April, the production at North India dropped by 50 percent due to shortage of manpower. New plants, Capacity addition and installation of new machines in almost every factory is going to give jump in plywood supplies but at a higher price thanks to rise in timber cost. The prediction made by The Ply Reporter in 2018 January issue is becoming true, which was written about higher prices of timber by mid of this year.
The Ply RePoRTeR july 2018
IndIa has just 1 mIllIon cbm of mdf capacIty, compared to chIna’s 40 mIllIon cbm mdf consumptIon, yet chIna consumes around 60 mIllIon cbm of plywood. plywood beIng replaced Is too early to thInk for a country lIke IndIa huge populatIon where carpentry Is leadIng the segment
one 2 one
Mr. Sajjan Bhajjanka, Chairman, Century Plyboards
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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 strong hold in manufacturing face veneer for the plywood industry. Century Plywood 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 referred in India’s top 250 companies. With an annual turnover of approx Rs. 2000 cr during FY 2017-18, Century Ply has emerged as the Top most company in the country. 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 Bhajjanka to know his views on the present state of the wood panel industry and future changes anticipated by him. This “One 2 One” interview of Mr Bhajjanka, Chairman of Century Ply boards is of great use for those who are hesitant and confused on the future of plywood and panel industry and fear, that emerging substitute will replace plywood in Indian market sooner than expected. How do you see the growth in wood panel Industry from this financial year onwards? I think that, with GST in place, this is just the right beginning for our industry. Earlier it was tough to get all the products, and the way companies were operating on one scale. Until now, the growth has been haphazard, and the industry was not growing in the right direction. However, once 75-80% compliance is done, people will start working in a more organised manner. With new norms and systems that are under formation and shaping up, the unorganised industry of plywood panels will transform into an organised segment. I am confident to see some significant shifts in the next one-one and a half year now. The industry is not lagging behind anymore due to gap in norms. www.plyreporter.com
Can we hope that with many changes, such as the formation of right norms and the industry will turn into an organised sector? Earlier, it was believed, if a product is offered on zero duty then only a few, say 10% people would cheat but if the duty is converted to 100% then very few or say 10% people will comply to it and rest of the 80% are those who get influenced by govt policies, taxes and grants. Thankfully after GST, the implication of duty is less as it is down to 18%. On that around 10% duty is returned in grants to people on veneer, timber and others, which is reasonable. Moreover, there is a value chain formation in GST law. So, if someone is not paying GST, he will not be eligible for any GST refund too. Instead he will have to pay extra. So, this type of value chain will bring
The Ply RePoRTeR july 2018
a balance in the industry and reduce the un-billed, no taxed or informal work culture. Another year and a half and I believe there would be 75% to 80% of transparency in work culture.
TAKE AWAYS FROM THE LEADER’s PERSPECTIVE
Looking at the demand and supply scenario when do you see the rise in demand? Will the demand grow after the Lok Sabha elections now?
In another year and a half, there would be 75 - 80% of transparency in work culture in wood panel trade. With new norms & systems shaping up, then unorganised industry of plywood panels will transform into an organised segment.
The plywood is completely in co-relation with housing commodities like cement, iron and other construction materials. When construction starts in large scale then demand for cement and steel grows. At present, the demand for cement, steel etc has increased across the country. There is a lot of work happening around the affordable housing projects in the country. Currently, the construction is in full swing. The prices of iron have risen to around Rs 50/kg and the demand in cement is high too, which is a positive indication about the “about to come” demand for panels. So, when the units get ready, furniture and furnishing will be the next gainers.
Rise in demand of cement, steel gives positive indication on the “about to come” demand for wood panels & plywood.
MDF will have higher growth rate compared to plywood because it is comparatively newer product category.
Do you think India market will move to other wood based panels more like MDF/PB?
MDF will grow at around 20% where as plywood growth shall be around 8 to 10% YoY.
I think they will use both. Plywood would be the predominant product since India has a huge carpenter base who mostly prefer plywood. Though it depends on the cost and usage as well. They will begin to use MDF like table top, shutters, or cabinet, or the partition, or ceiling in the times to come.
We hope to cross Rs. 2000 crore turnover this year where Rs 500 crore is expected from decorative Laminate segment. “India’s present MDF capacity is just 1 million cbm where as China has 40 million cbm of MDF consumption, yet China consumes around 60 million cbm of plywood. Plywood being replaced is too early for a country like India with huge population where carpentry is leading the segment.”
Do you think China is using more of Plywood in such applications? Yes, China is using huge volumes of plywood and MDF both. In fact usage of plywood has been increasing as compared to MDF lately. I believe, both are needed in countries like ours, where the population is huge, and the requirements are diverse. In fact, not only in China but even in Europe, the demand for plywood has increased. There are some usages which are of structural importance and impact resistance needs, such as shutters and many others. How do you see the demand of Laminates, if plywood usage shrinks? Currently, the total consumption in China is estimated to be around 120 million cubic meters. Of this, 60 million cubic meters is plywood, 40 million cubic meters is of MDF, and 20 million cubic meters is particle board. In India, the present capacity of MDF is just 1 million cbm. There are many years left to discuss and think about shrinking of markets. In China too, some day it started from 1 million cbm from where it has today grown to 40
Timber availability is not very optimistic in the long term hence Industry people shall contribute and aware on plantation and its benefits.
million cbm of market today. There in China too, people and practices are same as it is in India. So, decorative laminate category too will witness growth because plywood demand is going to be better and growing. How do you see MDF growth vis-a-vis other products? In readymade furniture, the uses of MDF and Particle Boards are high. So, the MDF is used more in those places. I think that in future, the growth rate of panel products will be around 20%, where every product will see some growth. MDF will be growing around 20 % because it is comparatively newer category, whereas Plywood growth www.plyreporter.com
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There is too much time left for shrinking, Plywood demand is going to be better and growing further.
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coveR sToRy: gabon
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Will OKOUMÉ be the GaMe ChanGer…
After logging ban in Myanmar, Laos and restricted log felling in Malaysia, Indonesia and other tropical timber exporting countries, Okoumé is vital wood specie that will suffice the emerging timber needs. Resourceful Gabon is an important place for the veneer and sawn timber production with around 50 Indian companies already operating in Gabon SEZ. This is why there have been rise in interest for investment in GSEZ for manufacturing of face veneer, sawn timber and furniture, which was visible at Gabon Wood Show recently held from 20th to 22nd June, 2018 in Libreville, the capital city of Gabon. The Ply Reporter team visited there and met every stakeholder to find out more on emerging opportunities, challenges in manufacturing, logistic scenario and ease of doing businesses. The visit was focused to meet with hundreds of people who are, face veneer producers, saw millers, furniture makers, forestry people, loggers, officials and key personalities of GSEZ of Olam international.
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Gabon’s sustainable forestry ecosystem is providing long term stability in timber availability and sustained supply for the industries operating here. Meeting with production and technical men, machineries suppliers etc, ‘The Ply Reporter’ is presenting a brief ground report from Gabon.
GABON FOREST Commercial forest harvesting in Gabon began as early as 1892, but only in 1913 was Okoumé, Gabon’s most valuable wood, introduced to the international market. Gabon supplies 90% of the world’s Okoumé also due to Forestry and timber processing that has been one of the driving sectors of the economy of Gabon. Gabon’s forests covers 22.8 million hectares, i.e. 88% of the country’s land surface. Until 2010 i.e. before ban on export of raw logs, Gabon was the largest exporter of raw wood in the region, and its sales represent 20% of Africa’s raw wood exports. Gabon’s reserves of exploitable timber estimated at 400 million cubic meters which includes 130 million cubic meters of Okoumé. Okume is a tree in the family Burseraceae, found in equatorial West Africa and mainly in Gabon. It is used decoratively as the top surface veneer in paneling and furniture also used as most suitable for rotary cut veneering. With very harmonious, good bonding performances and good compatibility with finished products, the log quality of Okoumé in Gabon is very high. The first grade is used for veneer and the second grade is used for sawing. Okoumé wood specie at solid timber www.plyreporter.com
cover story: gabon
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TalkOfTheTOwn series, The 4Th seminar on ‘MarkeT accepTance Of OkOuMe face Veneer’ held in Jalandhar
evenT waTch
The one day seminar on ‘Market Acceptance of New Face Veneer and Future of Plywood Industry’ was organized by The Ply Reporter in association with Greenply Industries Limited in Jalandhar, Punjab on 9th June, 2018. The seminar was attended by more than 100 plywood manufacturers of Punjab.
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A
fter the successful completion of three consecutive TalkOfTheTown series seminar on ‘Market Acceptance and Need of Okoume Face Veneer’, The Ply Reporter organized its 4th seminar in Jalandhar, Punjab on June 9th 2018 in association with Greenply. Mr Pragath Diviedi welcomed the august gathering and eminent personality from the industry and threw light on the objective of the seminar. The programme was moderated by Mr Rajiv Parashar, Managing Editor, The Ply Reporter. Addressing the audience Mr Pragat Dvivedi said that people want to have option of Gurjan face but they are in fear as the dealers still focus on Gurjan face. He said about this initiative and the purpose of the series of seminar which is going on in the country. In consequence to research on the subject, the industry feedback reveals that face availability of Gurjan and other species except Okoume is constraint which is becoming big trouble for the industry players/manufacturers. www.plyreporter.com
He further said that Greenply is always ready and open to all to make the industry learn this method and the R&D they have done and achieved a cost effective and better solution for ply-boards as an option to Gurjan. If they can shift their total ply-boards operation on Okoume and saving a lot, then everybody can benefit with it. “Gurjan face input cost in plywood manufacturing is around 22%
event watch
The Ply RePoRTeR july 2018
As the team Ply Reporter and Greenply have made commendable efforts to organise manufacturers to this point, if they have included leading dealers and wholesalers in this efforts, the success rate to this initiative would have been 100 percent right from the beginning. You must be aware that Okoume import to ICD (Inland Container Depot) Ludhiana and Delhi has reach to over 60 containers per month, which is a big boost.
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Mr. Naresh Tiwari
today, but Okoume face cost is 6 to 8 percent maximum. This vast saving due to different sustainable face adoption can be invested in other area of operation in the industry. And with all industry players move towards the industry will benefit with it in multiple way. With this objective we have done this seminar in Yamunanagar, Bareilly, Cochin and now in Jalandhar, because if the industry gets united can benefit more in this regards,â&#x20AC;? he added further.
Mr Naresh Tiwari, Chairman, AIPMA heartily congratulated the Ply Reporter and Greenply for their initiative to spread the knowledge and awareness among industry players which can benefit with its cost effectiveness and sustainable availability. Addressing the audience he said, â&#x20AC;&#x153;Okoume is a substitute of Gurjan. When we first came to the industry in the year 2002, that time people were talking that this is the future and next life to the plywood industry. That time it did not do
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