Greenlam Industries, leading laminates and veneer manufacturer, may go for 2-3% price hike in February-March to absorb the increased cost of production. It may be recalled here that the company had taken 2-3% in December 2020 also.
According to the people in the industry, prices of both chemicals and craft papers used in the industry have gone up recently which has necessitated successive price hikes. While chemical prices have gone up by 20-25%, craft papers have become costlier by 6-8%.
Further, manufacturers in unorganised sector are worse off than their counterparts in the organised sector due to various issues being faced by them. Unorganised players along with several organised players are facing severe supply side issues on raw material procurement (including chemicals). This is helping the established players like Greenlam to gain market share.
The industry is also facing problems on imports and exports businesses. Import of veneer and export of laminates is affected due to vessel delays, non-availability of containers and ongoing farmer agitation. The industry expects the normalcy to return by the end of this financial year.
Meanwhile, Greenlam is awaiting the necessary approvals for the new greenfield capacity in Andhra Pradesh with a capacity of 1.5mn sheets and expects to begin construction by the third quarter of next financial year and complete the project within 12-15 months.