India’s furniture market is undergoing a major shift with a move towards ready-made furniture and a rising preference for medium density fibre (MDF) over plywood in line with the global trends. Moreover, the culture of ready-made furniture is being accepted widely across India as we see in the case of IKEA. The growth rate of plywood today in the Indian market is about 8 to 9 per cent whereas the MDF business today is about 1700 crores, growing between 17 to 20 per cent per annum.
Witnessing a steady growth, MDF is now a replacement of plywood in India. Greenply recently demerged its EPD division and rebranded it as GREENPANEL under which the entire MDF business of the company would operate. As per a World Bank report, Asia is one of the largest consumer markets of furniture, with India accounting for a major share. Moreover, the Make in India initiative is encouraging domestic production of furniture. The WB study states India’s organised furniture market is expected to cross $32 billion by 2019, growing 20 per cent per annum between 2015 and 2020. Simultaneously, its luxury furniture market is projected to reach $27 billion by 2020, growing at a CAGR of 4.1 per cent during the same period.
MDF as a product is witnessing a rise in demand because internationally, 80 per cent of wood panels being consumed are MDF and particle board while plywood makes up only 15 to 20 per cent. In India today, the situation is vice versa, with plywood still dominating the market with 80 to 85 per cent consumption. Talking about the MDF industry in India, Shobhan Mittal, Joint MD and CEO, Greenpanel said, “While plywood is becoming expensive, and availability of raw material is reducing, MDF will be the future of interior infrastructure applications in the country. MDF is an engineered wood. It is manufactured with hardwood wood fibres that are bonded by synthetic resin adhesives under immense heat and pressure.”
Greenpanel is India’s largest manufacturer of wood panels. Their state-of-the-art manufacturing plants in Uttarakhand and Andhra Pradesh produce top-quality Medium Density Fibreboard (MDF), Plywood, Veneers, Wooden Floors and Doors. Greenpanel manufactures in excess of 500 million CBM of MDF annually, which is by far the largest in the country under any company. Greenpanel MDF is made using 100 per cent plantation timber.