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Organised plywood sector to grow 25 pc year-on-year

Press Trust of India  |  Kolkata 

With rationalisation of Goods and Services (GST) from 28 per cent to 18 per cent on plywood, organised industry players of this sector are hopeful of increasing their marketshare.

The average growth rate of the industry which was about five per cent till now was expected to grow at least by 25 per cent year-on-year, industry sources said.


Century Plyboard MD Sanjay Agarwal said, at the same time it would be "wrong to believe" that the players of the unorganised plywood sector will be "washed out" with the revised rate effective from tomorrow,

It was perceived that the unorganised plywood sector, which accounts for 70-80 per cent of the estimated Rs 20,000 crore industry, would bear the brunt in the regime.

Agarwal told PTI, "rate rationalisation will bring massive change for the organised sector of the industry which account for just 20-30 per cent of the estimated Rs 20,000 crore market.

"But, it would be wrong to believe that the unorganised sector will be washed out with the reduction of 10 per cent in rate from 28 per cent."

Post rationalisation of tax, the industry would grow at least 25 per cent year-on-year, Agarwal hopes.

The plywood associations had been demanding a reduction in the ever since the new regime had been introduced.

The Council on November 10 decided to lower the rate on 178 items, leaving just 50 items in the top 28 per cent rate slab under the Goods and Services

Agarwal pointed that the price gap between organised and unorganised playboards will get squeezed to about 20 per cent down from 30-35 per cent, helping large plyboard makers to grab larger marketshare.

avoidance was the major reason for competitiveness in the industry dominated by the unorganised players.

Greenply, Century Plyboards, Kitply, and Uniply are the major players in the organised sector.

The items in wood panel industry are plywood, block board, decorative ply, medium density fiber board (MDF), particle board that will be benefitted.

Agarwal hoped that old stock would not be a major hurdle for retail customers to get benefit of the rationalisation with effect from November 15.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 14 2017. 13:13 IST
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