A STUDY ON SHIFTING TRENDS INCONSUMERS CHOICES FROM NONBRANDED TO BRANDEDPLYWOOD.
INDUSTRY OVERVIEWThe history of plywood industry in India is recent about 75 years ago. Plywood industry claims bright future like other manufacturing industries in the country.The industry is producing more plywood than they have in the last 20 years. Plywood industries is the major consumption of composite wood in India.
Continues… The market for plywood and allied products in India is estimated to be about Rs 12000cr. (USD 2.50 bn.) with 70% dominated by a multitude of mutely players in unorganized sector, the organized sector has been growing at between 25% and 30%.The Uttarakhand Plywood Manufacturing Association (UPMA) believes that the industry will grow 25 per cent this year compared to last year.
COMPANY PROFILEGreen ply Industries Limited (GIL) is India’s largest interior infrastructure company with a whopping turnover of Rs. 1420 corer. They stand at top when it comes to plywood, decorative veneers and particle boards. They account for almost 25 percent of the organized plywood and 15 percent of the organized laminate market in India.
PRODUCT LINEGreenply Industries Ltd. Offers a wide variety of products :• Plywood• Block Board• Decorative Laminates• Decorative Veneer• Medium Density Fiberboard (MDF)• Flush Doors• Restroom Cubicles
PRODUCT DESCRIBTION1. Plywood is an engineered board made of thin layers of woods (plies). Plies are glued together and bonded under heat and pressure with strong adhesive.Application:• Furniture Shuttering• Paneling Wooden Partition• Flooring Sign Boards etc.
Laminates2. Laminates is the thin sheet of decorative paper pressed on a hard substance using adhesive. It is pasted on ply board, wood, MDF, Plain Particles Board etc. to give desired look to the interiors or furnitures.
Decorative Veneers3. Decorative Veneers refers to thin slices of wood glued onto core panels (typically, wood, particle board or Medium Density Fiberboard) to produce flat panels such as doors, tops and panels for cabinets, parquet floors and parts of furnituers. It is of two types :• Natural Wood Veneers.• Reconstituted Veneers or “Recon” Veneers.
Natural Wood Veneers1. Natural Wood Veneers are the natural and original slices which has been converted into the rectangular blocks of woods which is glued onto core panels of woods. It is designed to give the natural look to the furniture by using Natural Wood Veneers. Group-match is the difficulty which comes on the way of Natural Wood Veneers.
Recon Veneer 2. Recon Veneer is loosely called as man made veneers which uses real wood fiber with natural colorants to stimulate various colors, figures and grain seen in real wood veneers. MITT (Melamine Impregnated Tissue Technology) is used to produce Recon Veneers which insures uniform and strong bonding of decorative veneers with the base ply against the conventional glue-spreading technology.
Medium Density FiberboardGreen Panelmax MDF is a revolutionary product from Greenply Industries Ltd, is made with a unique fiber-interlocking technology which leads to high bonding strength and rigidity and is loaded with features which are best suited for constructing strong and durable furniture and creating unique interiors.
TYPES OF PLY SEMI-WATER PROOF PLYCOMMERCIAL WATER PROOF PLY PLY PLY
COMMERCIAL PLYIt is the lower ranged ply for general purposes, glued by the U.F. bonded i.e. Urea Formaldehyde Bonded ply resin.It is not water proof in nature and the durability of the plywood is considerably lower than other water-proof plywood.This type of plies would be suited best for interior locations only.
SEMI-WATER PROOF PLYIt is the medium ranged type of plywood for the interior locations and furnishings.It is glued by M.R. Grade i.e. Melamine Urea Formaldehyde resin.It possess the better water resistance properties compared to U.F. resins.It can bear the optimum temperature which makes it best for interior furnishings.
WATER PROOF PLYIt is the higher ranged plywood used for interior as well as exterior uses for furnishingsIt is glued by P.F. bonded i.e. Phenol Formaldehyde resin.It is the best resin used as a glue line for plies and woods.It gives the best qualities of water resistance, durability, long lasting gluing effect, unbreakablility for quiet a few years.
CONTINUED..The segmentation of market has been done on the basis of 4 categories of market. Sales Volume 10%- Labor/ Carpenter 10% 10% 10%- Green Club Plus 20%- Unorganized Sector 60% 20% 60%-(20%)-Green,(40%)EcotecGreenply Industries basically targets the 10% (Green Club Plus) customersand the majority chunk of 20% (Green) users and 40% (Ecotec) users.
SEGMENTATION Organized Sector Unorganized sector These sector are the Those companies which authorized sector, different manufactures plywood leading brands in our under a local brand and country which offers a doesn’t provide very high variety of woods and plies. variety of products and Greenply’s major after sales services. competitors in organized These sectors provides sector are- Century lower quality as well as Ply, MayurPly, Kitply, Uniply, lower price products. Donear, etc.
70 : 30 Ratio 70% 30% The overall scenario of The 30% of the market plywood industries is doesn’t get affected by the divided into 70:30 ratio. prevailing market The 70% market is condition. managed according to the It get fluctuated by the current market conditions. consumers demand and The pricing strategy of the buying behavior of the products are also based on consumers in the market. the market condition of the economy.
MARKET CATEGORIESAccording to Greenply Industries, Bihar is the leading state in case of sales. Different Distribution channels is the reason behind the highest sales :• Carpenter/ Architect channel• Retail Stores channel• Government Offices channel• Corporate channel• Real State / Builders channels
MARKET RESEARCH Indian • Estimated turnover Rs13000cr. Infrastructure Industry • Future growth rate at 10% p.a. • Company’s turnover Rs1420cr. GreenplyIndustry Limited • Bihar’s profit turnover Rs3cr.p.g.m.
MARKET ANALYSISThere are total 206 Dealers are available in Bihar region, in which 80 are Direct Dealers.In respect of Bihar, there are 8 to 10 Distributor offices present which gives a considerable amount of returns compared to others.There are around 3 Dealers are working strongly in Muzaffarpur(Patna 2) and alone Shree Ram Sales gives 23% of sales over total amount of sales overall and rest amount is covered by other dealers.
CONTINUED.. There are around 60% to 70% of sales gathered by Commercial ply and 40% are from MR and Water-proof Plies jointly. There are around 20 factories in Patna and 12 factories in Muzaffrapur which comes under the category of unorganized sector which manufactures plies and generally deals with commercial plies.Total percentage of sales earned under the brand Green (75%) and (25%) of sales are from rest of the brands of Greenply.
CONTINUED.. There are total 80 counters in Bihar in which 55 counters are from RSD (Rural Sales Distribution) or Rural area.There are total 6 factories in all over India which manufactures different product lines of Greenply Industries.In Patna 50% of sales are Apartment based and in Muzaffarpur 75% are Carpenter based sales.
DISTRIBUTION LEVELS There are total three levels of Distribution Channel which works for Greenply industries.I. 0 Level Distribution : KAT Builders / Real State (KAT = Key Account Team)II. Wholesale Distribution : Company Wholesaler Outskirt Retailers CustomerIII. Dealers Distribution : Company Dealers Carpenters Customers
ARCHITECT’s VIEWSAccording to an Architect, things which they look forward to are:I. Quality of the productII. Durability period of the productIII. After-Sales Services provided by the companyIV. Price of the product.V. Company’s initiatives.
CUSTOMERS DEMAND There are different categories of customers, who seeks different variety of products:I. Green Club Plus Customers :• These customers are not price sensitive about the products.• They follows the quality features/benefits of the products.• They consults the Interior Decorators and Architects for the selection of products.• They seeks longer durability period in the products.• The return from this segment of customers are considerable for company and for the customers as well.
CONTINUED..These are the different category of Customer :II. Green Customers :• These customers wants a blend of quality with a affordable prices which should be matching there standards.• These customers requires quality with affordable prices and higher durability period of the products.• In this category of customers, the products offered by the company have more varieties and ranges.• These customers generally prefers the Water-Proof and Semi-Proof plywoods.
CONTINUED..These are the different category of customers:III. Ecotec Customers :• These customers generally seeks the low price range of products.• These customers are price sensitive in nature and quality is the secondary factor for them.• These customers are generally found in rural areas of India.• For these type of customers, company offers the economic range (Ecotec) commercial plywoods, which provides lower quality range of plywoods with affordable prices.
LIMITATION OF CUTOMERSAccording to an Architect, limitation of the Customers are :I. Preference of Vastu-Sashtra over Functionality.II. Lack of awarenessIII. Limited Spending PowerIV. Taste differenceV. Snop Effect (Copying Mentality)VI. Culture differnceVII. Lack of initiatives and individuality.
SUGGESTIONS These are the suggestions given by the Architect :I. Ask for Consultancy.II. Better market exposureIII. Companies initiativesIV. Culture growthV. Growth of infrastructureVI. Change in buying behavior of customer.