Published on May 27, 2014

In Rs. 5000 cr. worth Indian Decorative Laminate Industry, a lot is occurring and altering every year. In Laminate industry production capacity is continuously emerging with the dozens of new players entering and old players adding to their capacities but margins are not as the demand is stumpy.
Indian HPL industry added two dozen of new presses in 2013-14 and increases the production capacity 2.5 million sheets every month. The growth is driven by few serious players but mainly by the sentimental entrepreneurs they only know the rough estimate of production cost, selling price and hint of imaginary margin.
Report said that market was more or less flat during last FY with almost negligible growth compared to previous year market demand and capacity grew by approximately 15 percent but demand did not match the same pace leading to a situation of oversupply. Source said that market will become crowded leading to unhealthy competition and within a couple of years it could sort of survival of the fittest.
Demand of textures in retail segment is helping mid size laminate brands largely but the fight is getting tough day by day. Some industry players said that there is a light of hope as demand for Liner or balancing grade laminate grew, offering a life support system for many entrants as well.
Some of the analyst said that to cater the needs of expansions and new opportunities in near term market players are planning to attract investment from suppliers, service providers to develop allied industries.