Published on August 4, 2014

The formation of new government with an unseen majority kept the industry in elated mood for around one month. The row of excitement could not last for long as the country has been affected by international crisis whether it was civil war in Iraq or delayed monsoon in country itself. Demand for laminates and plywood returned to original demand scenario where plants were operating at 50 to 60 percent of their capacities in the month of January to April.  Most of the manufacturers in this industry are Gujarat based. The slump is heavily visible in their profit margins. According to industry officials, the market remains depressing with limited sales. Stocks are piling up and demand is very limited with addition of delayed payments has further burdened the industry.

Prices for Methanol, the basic raw material tend to remain slow in the last few weeks but could not boost the laminate industry. Laminate manufacturers have been conscious enough in their purchasing and are making it on need basis. According to industry player this scenario is not new for them. Post summer and monsoon tend to remain slow for this industry. The industry will get fresh orders and revamp its activities in the month of September as realty and construction business resumes their operations. The market will bounce back and will grow gradually with the starting of halted projects.