Nipponply to invest ₹250 crore in expansion, e-commerce, export push

Gujarat-based Nipponply Industries on Friday said it will invest ₹250 crore over the next three years to ramp up production for exports, develop e-commerce infrastructure, and establish warehousing and design centres.

At present, the company is investing ₹65 crore in panel and furniture manufacturing expansion.

"Our future roadmap includes a ₹250 crore investment over the next three years for export-compliant production, e-commerce infrastructure, warehousing and design centres, and strengthening global partnerships," Nipponply Industries Managing Director Ketan Thakkar said.

He said that the furniture sector holds huge potential in both India and other countries, including Europe.

The key trends that are shaping the furniture industry in the country include a shift from local carpentry to modular, branded solutions; and growing adoption of wood-veneered plywood over MDF (medium density fibreboard), Thakkar said.

 

"India is already a champion sector in the furniture sector, and with proper support can lead in global modular exports," he said, adding that the company is in talks for partnerships in Europe, the Middle East, and North America for exports.

However, he added that there is a need to focus on addressing certain challenges, such as price volatility in timber and coatings, limited eco-certified raw material vendors, and inconsistent last-mile furniture delivery.

He further said the government measures, such as issuance of quality control orders (QCOs), which is essential to build consumer trust and global competitiveness.

"These regulations will filter out substandard imports and promote certified Indian manufacturers," he said.

At the GST front, Thakkar suggested a 12 per cent slab for certified furniture.

At present, furniture and panels are taxed at 18 per cent, which raises the burden for affordable buyers, he added.

"We recommend input tax credits for exporters and GST relief for modular MSME (micro, small and medium enterprise) exporters as this would boost adoption of green materials and improve cost parity," he said.

The company has a team of over 100 professionals across operations, design, surface finishing, logistics, and marketing.