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Headwinds Galore For The Unorganised Wood Panel Space: ICICI Securities 

Headwinds Galore For The Unorganised Wood Panel Space: ICICI Securities

A worker secures a piece of plywood on a window of a building. (Photographer: David Paul Morris/Bloomberg)
A worker secures a piece of plywood on a window of a building. (Photographer: David Paul Morris/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

We expect unorganised players in the wood panel space to get significantly impacted in the near term due to a sharp rise in input costs and shortage of key raw materials.

Due to steep rise in raw material costs, the unorganised wood panel sector is facing plant shutdowns and lower order offtake, especially in the plywood and laminate segments.

In laminates, prices of phenol, melamine, formaldehyde and craft paper have risen significantly, while in plywood segment timber and face veneer prices have also risen.

In the case of medium density fibre/particle boards, importers are struggling due to higher freight costs and container availability.

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ICICI Securities Wood Panel Thematic.pdf

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