Kolkata-based plywood maker Century Plyboards (India) Limited is upbeat on the MDF segment and is also working on some new age PVC products. Given the pace with which PVC edge raw materials is gaining prominence in the building material category, the company is contemplating to establish manufacturing facilities in these new age panel products, once the desired sales levels are achieved. CenturyPly's reasons that the growing presence of organised retail players led by global majors such as Ikea and indigenous omni-channel brands like Pepperfry and Urban Ladder, and the growing customer preference for factory-made furniture will lead to greater consumption of MDF. In fact globally MDF accounts for nearly 80% of all the manufactured furniture; while in India 80% of the furniture manufactured consumes plywood.
CenturyPly is betting on the Affordable Housing project to further boost its MDF business. The revival in the realty sector has seen to it that MDF's demand has increased by 20%.
The organised furniture industry is making greater use of MDF and particle board, which are more affordable, possess a smoother surface finish and can be easily machined and painted. Despite being a late entrant in MDF manufacture in India, Centuryply has emerged as a preferred provider of this product on account of its quality, durability and higher product customisation possibilities. Through its economy segment product like ‘Bond710’, ‘Sainik’ and ‘Sainik710’, the company is constantly increasing its capacities and penetrating the mid-market and affordable segments.
The company’s MDF unit is operating at more than 65% capacity utilisation and it is planning to invest in a particle board unit in Sitapur, Uttar Pradesh to address growing demand from Northern India. The plant, expected to be commissioned with a capacity of 500 cbm per day, is expected to quadruple the company’s particle boards manufacturing capacity. It is also contemplating a brownfield expansion of its MDF plant in Sitapur. Not only this, CenturyPly has already invested Rs 30 crore to set up a face veneer unit in Gabon with a capacity of 2500 cbm per month. The unit is expected to be operational by the end of Q3FY20, addressing the raw material needs for its mass brands like Sainik and Bond. Going forward the company has planned a capex of Rs 90.37 crore for the next two years; in the last five years its capex has been Rs 792.8 crore.
CenturyPly is the largest seller of plywood and decorative veneers in the Indian organized plywood market, catering to both residential as well as commercial consumers with a range of products that are attractive, durable and safe.