FIPPI president Rajesh Mittal has said that the Indian panel industry is aligned with the aspirations of furniture manufacturers. Explaining the interdependence of the panel and furniture sectors, he asserted that collectively these sectors can have a significant impact on the country’s GDP. He also said that meaningful policies are leading to the emergence of India as a manufacturing hub for furniture that is cost efficient, innovative, and sustainable.
Mittal was addressing India’s leading panel furniture manufacturers at the recently concluded India Kitchen Congress in Bengaluru.
FIPPI (Federation of Indian Plywood and Panel Industry) is the apex industry body for timber-based plywood and panel products.
“The Indian panel industry is aligned with the aspirations of Indian furniture manufacturers, and it is transforming itself so that the full potential of the furniture industry can be achieved,” Mittal said after delivering his keynote address.
Plywood, MDF, and particleboard are the primary raw materials for furniture. These materials are sourced entirely from plantation timber, so they are intricately linked to the forestry and agriculture sectors.
According to FIPPI, one hectare of plantation accounts for 500 man days of employment, thus providing a direct link between panel manufacturing and the socio-economic status of farmers.
Panel manufacturing also results in increased demand for plantation timber, which brings about larger green cover and a robust carbon sink. “If the demand for panel products in India doubles by 2030, it will have a direct and beneficial impact on the plantation cover.”
According to FSI, India has 30.7 million hectares of tree cover outside the forest area. This accounts for 3.4% of the total green cover, while the forest area makes up for 21.76%. In all, 25.1% of the country’s geographical surface is covered by trees.
A forestry policy that is aligned with the furniture sector’s raw material requirements can significantly impact the country’s economy. This will lead to an increase in green cover outside forests, namely plantations, and better timber availability and optimised prices of plywood and panel products.
Mittal said that FIPPI members are aggressively undertaking plantation drives to supplement timber availability and make the industry sustainable.
Citing an example, he said, “The impact of focus on plantation can be seen in the fact that six districts around Greenply’s MDF plant in Vadodara have witnessed a 30% increase in their green cover over the past few years.”
Another key aspect of the Indian panel industry’s development is the implementation of Quality Control Orders, he said. “These QCOs have made BIS certification mandatory on several categories of panel products and laminates. This is a welcome step by the government as it will speed up the Make in India mission. This step will foster greater investment in domestic manufacturing and curb the imports of substandard materials.”
Mittal assured furniture manufacturers that the Indian panel industry is employing the latest European technology in its production processes. Besides, manufacturers are complying with the stringent QCO norms and developing new products to help make furniture production sustainable, efficient and innovative.
Busting the myth that prices of raw materials will increase following the implementation of QCOs, Mittal said that the domestic panel industry is rising to the occasion by rapidly incorporating testing and certification and augmenting production capacity to meet demand. “Besides, Indian industry is too fragmented to be dominated by monopolistic tendencies.”
View Rajesh Mittal’s full address here.