Leverage PLI to save the laminate industry

- Antenna - Vivek Mehta

- In the international market, China is offering laminates products at 45 to 50 percent cheaper than India, but India is beating them in terms of quality.

- Laminate manufacturing industries have been moving on the growth path since last decade. Apart from meeting hundred percent domestic demand, its exports also increased from 2500 crores to Rs. 3000 crores. Manufacturing of laminates Rs. 10000 crores has exceeded. India's share in the total market of laminates in the world is 3.5 to 4 percent and it is likely to increase to more than 10 percent in six to five years. Today it ranks 5th in the world in the export of laminates. Indian manufacturers are ahead of China in terms of quality of laminates. However, Indian exporters are struggling to cope with China's aggressive pricing. There is another reason for it. China has agreements with many countries for duty free export of laminates. Some countries have imposed a very nominal duty on laminates imported from China.

However, till the time of Corona, the most reliance was placed on China for laminates. Due to China's role in spreading Corona, many countries of the world are reducing trade with China at a slow but steady pace. So there is a gap in the world market. South-East Asian countries are using their full strength to fill this gap. They are trying to increase their share in the global trade of laminates. India's manufacturers also see a huge opportunity in it. According to Laminates Manufacturers Association, 'Corona has provided a new opportunity to India's laminates industry. Secondly, after the corona period, the property market is experiencing a boom. So the demand of laminates is bound to increase naturally. Laminates industries are benefiting from it.' The furniture business in the world is estimated to be worth 580 to 620 billion dollars. In the furniture market, 40 to 42 percent of this demand is met by China, Malaysia and Vietnam. This furniture market is growing at an annual rate of approximately 4.5 percent. Its advantage is also likely to reach the exporters of laminates in India. This can increase the export up to Rs.1500 crore. India wants to account for three to four percent of furniture exports in the world market in the next five years. Today, best quality laminates are being exported from India to 100 countries of the world.

That is why there is a demand for the government to come up with a production link incentive scheme for laminates manufacturers. If so, Indian manufacturers will become more competitive in the global market. There is still scope for 200 percent increase in exports of laminates from India. The decorative laminates market in India is estimated to be around Rs.10,000 to 12,000 crores. In the year 2027, its size will increase to Rs. There is a possibility that it will touch 18,000 to 20,000 crores. However, to survive in the export market, an aggressive approach is required to bring down selling prices. Imports raw materials like kraft paper, design paper, phenolic resins, phenol, melamine and menthol, besides decorative paper, kraft paper to make laminates. 60 to 70 percent of raw material has to be imported. If a production link incentive scheme is provided in it, India can become self-sufficient in the production of raw materials. If it starts to be produced at the local level, new employment will be created along with self-sufficiency in it.