This website utilises cookies in order to secure its features and facilitate browsing by users, pursuant to its copyright, privacy & cookies policy. By clicking on "OK" button, the user accepts suck cookies' usePrivacy & Cookie policyOK
India’s Free Trade Agreements are impacting domestic
wood products manufacturers, especially the wood based
panel makers.
Domestic MDF and high density fibreboard, hardboard
and particleboard produced in India face stiff price
competition from imports. They found it hard to make
savings because of the relatively high cost of raw materials
in India.
Many panel product factory development plans have been
postponed or shelved. Some investors are considering relocating
production or acquiring plant in countries such as
Thailand, Malaysia or Indonesia where raw material
availability is better.
Reports say that Archidply, a major producers of panel
products with laminated particleboard and decorative
plywood plant at Chintamani in Karnataka, has decided to
delay the second phase expansion scheduled for 2009-
2010.
The company had reportedly planned expanding
particleboard production at Chintamani and a new MDF
factory at Rudrapur Uttarakhand.
In view of the severe weakness in the international
markets, panel product import prices have come down
drastically thus making domestic expansion of capacity
risky.
Domestic investment in panel production
Despite the global economic slow down India has been
maintaining 6% plus growth and there has been domestic
investment in finger jointing plant and some panel
products. These factories utilise wood waste and
agricultural residues such as cottonseed shells, ground nut
and soya bean shells and bagasse. Some is also converted
into briquettes, the use of which reduces dependence on
solid fuelwood from the forest.
Eurowood Lumber Pvt Ltd has plant at Bhachau in Kutch
district of Gujarat for fully automated UV coated solid
wooden flooring. They are also making finger jointed
flooring, being the first in India to produce very large
boards. The new facility includes a bio-briquette plant.