LITERATURE REVIEW

There are several areas in the plywood industry where Operations Research techniques
have greatly assisted in better decision-making. These have resulted in improved profits,
reduction of wood losses and better utilization of resources. Realizing these, some of the
plywood manufacturing firms in the developed countries have established separate
Operations Research departments or divisions. In the face of limited raw-material
resources, raising costs and a competitive environment, the benefits attributable to the use
of these techniques are becoming more and more significant. (Raghavendra, september
2007) The growing demand for the plywood is driven by rising construction activities
(both for residential and commercial purposes) and growing preferences for well-
designed floors, home ceilings and walls. Robust population growth coupled with rising
disposable income as well as rising preferences for branded plywood has expanded the
plywood market at a global level. Besides this, rising application of plywood for
automotive flooring is further likely to escalate the growth of the market all across the
globe. Further, the plywood is increasing being used in the marine industry, which might
lead to increase in the demand of plywood by structural design company. However, the
plywood industry is facing resistance from the plastic industry and increasing preference
for the other materials such as metals. The companies across the globe are incorporating
the green practices in their manufacturing process. However, the cost associated with the
plywood is relatively high as compared to the oriented strand boards (OSB). Thus, this is
anticipated to impact the growth of plywood market as the customers will start shifting
from the plywood to OSB boards. (GROWTH AND CHALLENGES, 2005) In 2018, The
plywood manufacturing capacity is set to rise by 25-30 percent thanks to new factories
and expansions taking place at various places in North India. Punjab, Haryana and Uttar
Pradesh shall witness beginning of around 150-200 new units within 2018 which will
certainly flood over the market compared to anticipated demand. The pressure on sales
will push the market towards “Buyers’ market” hence there will be a drop-in price of
finished goods specially after May 2018.The plywood production capacity in Haryana
alone is about to witness an increase of 35 percent during 2018. The numbers will further
blow up after freeing up of license in UP, hopefully in January month of 2018 itself. The
addition in number of factories in UP will take time but would create a pressure build up
on existing establishments involved in distribution and manufacturing. The small and
mid-segment factories will have to spend more to sustain in the growing competition
during 2018 and 2019 because of huge flow of plywood, boards and doors in markets.
Those who are entering in plywood manufacturing with a notion of decent profit-making
sector will confront the reality by 2018 year end. (AGARWAL, MAY 2011) Owing to
rising nuclear families, increasing disposable income, favorable demographics, and
upswing in the infrastructure industry the industry is expected to grow at CAGR 19.7%
for FY’2015 to FY’2019. There are certain hurdles in this industry such as availability of
raw material and forex volatility. With increasing plantation through agro forestry and
setting up face veneer plants in the foreign countries and by entering currency options
contract, the companies are expected to fare out well with these arising difficulties. The
plywood industry would play a vital role in fueling the growth of the country. Since
plywood and allied products are an essential part of housing and construction, the demand
of plywood is directly related to the real estate sector and the growth of infrastructure.
(PROKOPO, 2013) There are mainly two types of PLYWOOD 1) COMMERCIAL
PLYWOOD. Generally a red hardwood species is known as commercial plywood. It is
bonded together with an interior grade UF resin. It provides a veneered surface that can
be stained to match the predominant species in the construction. Price Range : Rs38-78
(18mm) ,Rs31-50(12mm) 2) WATERPROOF PLYWOOD: Plywood reacts with both
aluminium and marine plywood is known as waterproof plywood. It is for use on both
interior and exterior purposes. It has black coloured shades. Price Range: Rs77-
98(18mm),Rs54-75(12mm) (AKASH BARAJA, 2014) The publication Global Plywood
Market to 2019 - Market Size, Growth, and Forecasts in Nearly 70 Countries enables
readers the critical perspectives to be able to evaluate the world market for plywood. The
publication provides the market size, growth and forecasts at the global level as well as
the following countries mention below like .Argentina, Armenia, Australia, Austria,
Azerbaijan, Bangladesh, Belgium, Bolivia, Bulgaria, Canada, Chile, China, Colombia,
Czech Republic, Denmark, Ecuador, Egypt, Estonia, Finland, France, Georgia, Germany,
Ghana, Greece, Hungary, India, Indonesia, Iran, Ireland, Italy, Japan, Jordan, Kazakhstan,
Kyrgyzstan, Latvia, Lithuania, Macedonia, Malaysia, Mexico, Moldova, Mongolia,
Morocco, Nepal, Netherlands, Norway, Oman, Pakistan, Panama, Peru, Philippines,
Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, South Korea,
Spain, Sri Lanka, Sudan, Sweden, Thailand, Turkey, Ukraine, United Kingdom, United
States, Uruguay, Vietnam (VERONICA, 2015) Plywood industries is the major
consumption of composite wood in India. The industry is producing more plywood than
they have in the last 20 years.  Plywood industry claims bright future like other
manufacturing industries in the country. The history of plywood industry in India is
recent about 75 years ago. The Uttarakhand Plywood Manufacturing Association
(UPMA) believes that the industry will grow 25 per cent this year compared to last
year.The market for plywood and allied products in India is estimated to be about Rs
12000cr. (USD 2.50 bn.) with 70% dominated by a multitude of mutely players in
unorganized sector, the organized sector has been growing at between 25% and 30%.
(DAHIYA, JAN 30, 2015)( INDUSTRY DIP INSIGHT)

 This industry report analyzes the market estimates and forecasts of all the given
segments on global as well as regional levels presented in the research scope. The
study provides historical market data for 2014, 2015 revenue estimations are
presented for 2016 and forecasts from 2017 till 2025. The study focuses on market
trends, leading players, supply chain trends, technological innovations, key
developments, and future strategies. The market data is gathered from extensive
primary interviews and secondary research. The market size is calculated based on the
revenue generated through sales from all the given segments and sub segments in the
research scope. The market sizing analysis includes both top-down and bottom-up
approaches for data validation and accuracy measures. (WOOD, 2017) India’s rich
and varied forest wealth with a variety of deciduous, coniferous, tropical and
evergreen trees is an essential resource for the wood panel industry. Plywood is
manufactured from timber logs and formed by combining thin sheets of face and core
veneer. The industry is undergoing a transformational shift from unorganized market
to the organized. An increased willingness to spend on branded plywood amongst
middle class and above has been noted in the recent years, which implies greater
importance being given to the quality of the product. The revenue of plywood market
in India was estimated to be INR ~ million for FY’2014 and grew at 25% during
FY’2010-FY’2014. The market was dominated by the unorganized players, who
captured 12% of the total market sales value in FY’2014, while the remaining 13% of
the share belonged to the organized players. In accordance with the lifestyle and
preferences of different regions, the maximum demand of plywood was registered
from North and South India. (RAHIL, 2018) The Go Green Strategy of plywood
manufacturers are yet another factor that has led to the higher demand for plywood
market expansion all across the globe. Moreover, the burgeoning middle class
population especially in Asian countries has led to increase in the growth of plywood
markets. It cannot be ignored that plywood costs are cheaper than the wood boards
which have further impelled the growth. These boards are made from small fibers of
woods and glued together to form a hard wood, resulting in their low cost. As a result,
they are used in the construction of the office furniture. (huang, 5th october 2018) The
Global Plywood Market is expected to grow at a CAGR of around 9.7% over the next
decade to reach approximately $75.2 Billion by 2023. The plywood is anticipated to
witness significant demand from construction by application. Moreover, the
economical price of the plywood is likely to further drive the market. North American
region has been consistently dominating the market globally, in terms of the market
demand for plywood. This has been primarily due to high plywood consumption by
the construction sector. It will be followed by North America and Europe occupying
the second position in the market. Asia Pacific is anticipated to showcase robust
growth in the next few years. Moreover, plywood market in Asia Pacific will further
increase due to the massive growth in construction sector. Apart from this, the
countries with rich forests and woods such as India, Brazil and South Asian countries
have the potential to be the key suppliers of plywood in the near future. Further, the
growing indigenous demand for plywood in India as a result of rising disposable
income among the growing middle and affluent class and the growing infrastructure
in recent times is expected to make India an important consumer of plywood in the
near future. (GLOBAL MARKET, 5TH OCTOBER 2018) Increasing Households
and Rising Commercial Space to Shape Future Growth” provides a comprehensive
analysis of the plywood market in India. The report covers various aspects such as
market size of plywood, segmentation on the basis of organized and unorganized
sector, regional demand, and distribution channel, types of plywood grades and
thickness of plywood. The report covers trade scenario of plywood in India, growth
drivers and restraints, government regulations, Porter Five Forces Analysis, Trends
and Developments, Competitive Landscape and company profiles of major players in
detail. The report also shows the future prospects of plywood Market in India, with
the correlation with the macroeconomic variables considered in the report. (ADOM,
2019) In coming years, the plywood manufacturing capacity is set to rise by 25-30
percent where as market demand is growing at 9-10 percent YOY growth. Punjab,
Haryana, UP and Rajasthan are set to have approximately150 new units within 2018.
This rise in number of Plywood plants will create pressure on sales prices and volume
growth of each unit. The market in 2018 is not expected to bounce back because there
is hardly any sign of growth or demand pick up in reality sector. Compared to
anticipated demand the rise in supply will provide cheaper plywood to customers and
will lead to margin pressure on plywood factories. The pressure on sales is set to drive
the Indian plywood market in favors of buyers hence creating an additional challenge
to organized industries despite of GST implementation. The small and mid-segment
factories will have to spend more to sustain the growing competition during 2018 and
2019 because of huge flow of plywood, boards and doors in markets. Those who are
entering in plywood manufacturing with a notion of decent profit-making sector will
confront the reality by 2018 end. (GRAVY, 2019)GROWING MARKET OF
PLYWOOD.The boom in the residential real estate industry over the last few
decades has given enormous boost to entire home décor material market. The
products be it decorative laminates, plywood, doors, exotic wood veneers, high end
highlighters, decorative panels and finishes, PVC boards, paint and polishes,
adhesives and edge bands, kitchens hardware and slide systems etc, the demand for
each one of these has grown multifield. The demand in many of the decorative
products have risen up sharply thanks to an increased consciousness among home
owners for stylish interiors and beautiful indoors.No single item has been out of
demand going by the housing sector’s growth and urbanisation of many cities in the
country. The consumption of panel products has largely grown from two type of
consumption one that is new and the second that is renovation. Even big orders of
plywood, laminates comes from not the new houses but instead it comes from the
change in mindset of those consumers who are looking forward to redoing their home
or office space as well. These days such redoing of interiors is no more a once in a
lifetime, one-off occasion but keeps repeating the cycle more often is the trend and
like. (OPPORTINITY & CHALLENGES IN FUTURE, 2019). The Indian plywood
and laminates industry manufactures various engineered woods like plywood,
laminates, MDF and veneers. Plywood is the most demanded product of this industry
followed by laminates. MDF on the other hand is a small segment of the Indian
industry. The market could be segmented on the basis of distribution channels where
the unorganized market accounts for the major share. However with changing
consumer preferences the market has seen a shift towards the organized segment due
to increased demand for good quality and branded products. The share of organized
players in the industry is expected is rise further in the years to come. This shift is
taking place primarily due to urbanization and more disposable income. The market
for plywood and laminates is mainly driven by increasing demand from housing
market. The demand has increased due to growing significance of new construction
industry. Plywood and laminates have become an indispensable part of big and
evolving markets like real-estate market, furniture market, modular kitchen market as
well as the flooring market. The increased demand in these markets triggers the
 demand in the plywood and laminates market. Apart from this, increasing urban
population, rising per capita income and a gradual shift towards non-food industry are
other key factors driving the growth of plywood and laminates industry in India.
Further, the implementation of Goods and services Tax (GST) in the near future will
provide an impetus to plywood and laminate industry. Indian Plywood & Laminates
Market Report (MARKET REPORT)

Bibliography
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AKASH BARAJA. (2014).

DAHIYA, V. (JAN 30, 2015). INDUSTRY DIP INSIGHT.

GLOBAL MARKET. (5TH OCTOBER 2018).

GRAVY, J. (2019). GROWING MARKET OF PLYWOOD.

GROWTH AND CHALLENGES. (2005).

huang, C. (5th october 2018).

MARKET REPORT. (2015). PLYREPORT.COM .

(2019). OPPORTINITY & CHALLENGES IN FUTURE.

PROKOPO, D. (2013).

Raghavendra, B. (september 2007).

RAHIL, O. (2018). PLYWOOD DEMAND.

VERONICA. (2015). GLOBAL MARKET SIZE OF PLYWOOD.

WOOD, L. (2017). PLYWOOD SEGMENT .