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Scale Logging

Uttarakhand plywood sector set to scale higher growth

After witnessing a demand fall for more than a year now, the plywood industry in Uttarakhand is once again witnessing steady growth in business volumes. Small-scale units in the sector, which were facing tough times due to sluggish sales and poor margins, are now expecting to bounce back with good revenue earnings in the ensuing quarters.

Resurging demand in the domestic market buoyed by the pick-up in the realty market and the growing positive sentiment have brought back cheer to the Uttarakhand SMEs, engaged in the plywood industry. Furthermore, the positive trading outlook has made the sector hopeful of witnessing higher growth in the coming days.

Robust growth ahead

Uttarakhand plywood units, which witnessed demand contract by 40-50% on account of the global economic recession, are once again expecting their business to surge, both in the terms of value and volume in the wake of recovery signs witnessed in the real estate sector.

“Sales in the Uttarakhand plywood sector plummeted severely last year and things continued to remain poor even during the first half of the current financial year due to limited consumer spending in the domestic market. However, things have begun to look up now,” said Ashish Jain, proprietor of Deluxe Plywood, a small-sized plywood store in Nainital.

The growing demand has led the Uttarakhand Plywood Manufacturing Association (UPMA) to believe that the sector will grow 25% this year, as compared to last year.

“The improvement in the market has made small-scale plywood manufacturers and exporters in Uttarakhand hopeful of witnessing better growth in the market in the coming months. This, in turn, has also prompted some of them to increase capacity and resume their growth plans,” said Pritam Kumar, owner of TK Plywood, a small-sized plywood store in Almora.

The SME plywood units in Uttarakhand have also sought extension of government support in the form of incentives, tax breaks and extension of greater facilities to farmers to encourage the growth of eucalyptus and other trees that can be used in the plywood industry.

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About the Author

David Parks is a well known author and has written articles on Indian Automobile and Eyewear Companies, suppliers, Manufactures and many other subjects.

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