Published on October 14, 2013
The plywood industry was started before more than 100 year in India. Plywood was imported for the first time-valued at Rs.32 lacs in the year 1906-07 in India. Imports rose steadily and it were worth Rs.90 lacs by 1924-25. Accordingly well equipped factories were started in different places like. Sitapur, Bangalore, Dandeli, Baliapatam and Coochbehar. Today, the market for plywood products in India is estimated to be about Rs. 12,000 crore (US$ 2.50 billion) with 70% unorganized sector. On the other side, the organized sector has been growing at a pace of 25-30%. The current plywood market is growing at 10% per annum.
After 1947-48, the industry resorted to diversification of its products. Block boards, flush doors, commercial plywood, decorative plywood, marine and aircraft plywood produced in Indian factories came into the markets which were second to no one in the world in quality. The Wood based Industry was under Compulsory Industrial Licensing from 1988 whether a small/medium or a large unit, new undertaking or substantial expansion would require Industrial License.
In Haryana, the plywood industry is concentrated in Yamunanagar city. There were over 600 small and medium wood based units and they provide 50-55% of India’s plywood need. The annual turnover of this industry is around Rs 1,000 crore and provides employment to around 50,000 workers. Punjab too, has 200 plywood manufacturers, with total production prized at Rs 500 crore per year. Imports constitute 20 percent of total annual consumption of wood in India, while plantations and forestry contribute 58 and 22 percent respectively.
The plywood industry is running with steady phase right now in India. Demand in this industry is good but not as per expectations as Diwali is just going to come. The industry is affected by increasing price of raw material. Plywood prices in north India have increased up by almost 5-7% within last two months. In the beginning of September manufacturers have decided to increase the price for plywood products from the first week of October but with rupee appreciation and some stability in rupee compelled them to delay this decision.
