Wood and the stuff made out of it plays a huge role in our daily lives. When it comes to India, here are the main categories of wood based panels:
- Blockboards and flushboards
- Particle boards
All kinds of wood based products such as boxes, flooring, casks and building material are on fire at the moment. In india, the most popular wood based products are undoubtedly the doors, windows, moldings and all kinds of wall panels. Although the production of wood based productions is a big deal in India, it is not very organized. It is extremely fragmented and usually, most of it is done by the car-painters hired by the general households. As the consumption has increased, there is a need to organize this sector and make the most out of it. Although the amount of wood imports we get from America are small at the moment, but the percentage is steadily growing. Indian wood production and supply is very little in the grand scheme of things. Due to this shortage, the focus has been on imports for the raw material and semi-finished goods. Even these imports are going up by the minute.
When the common wealth games took place in India, the demand for wood was exorbitant. About 20 percent of our wooden needs are fulfilled by imports. Plantations and forestry units fulfill the rest of it. A huge amount of logs are imported to India every year. The import tariffs are low and we have a lot of demand for semi processed wood. The logs fit right into it. The import of logs has gone up to 1.14 billion US dollars. That’s a lot of money. These imports are done usually from places like Malaysia, Ghana and New Zealand, as we have a clear freight benefit in these transactions. After logs comes the furniture. This is our second biggest wood processing sector. Thanks to furniture, India is a fast emerging superpower when it comes to furniture.
The pre-fabricated doors and windows have recently been brought into production. The current growth rate is making the manufacturers will optimistic. The annual market for this segment is almost 1.25 billion US dollars. 90 percent of these are wooden goods. The goods with a brand on them are also witnessing a high growth rate.
Fiber, veneer and particle board are being imported at a very high rate and volume. The last 10 years have seen a lot of high numbers in this area. The indications are all pointing towards high demand in the near future as well.
India is going through a phase of acute urbanization. The lifestyles are changing and the demand for engineered wooden products is going up by the second. The infrastructure expectations are high and so it the need for good wood. This market is very hot at the moment, perfect for starting up a venture with a guarantee of positive returns. Of course, it will require some foresight, a lot of capital and the ability to think on the creative side of things.