Kajaria Ceramics, India’s largest tiles manufacturer, has decided to foray into plywood sector. The company will be investing Rs 15 crore in Kajaria Plywood Private Limited which will engage in plywood business. According to company sources, the company has a huge network of dealers and distributors for its tiles business. It will use part of this network to do plywood business also. First two years, the company will concentrate only on trading. The company sees huge opportunity in organised plywood business post GST implementation.
Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and is the 9th largest in the world. It has an annual capacity of 68.37 mn. sq. meters presently, distributed across eight plants – one in Sikandrabad (UP), one in Gailpur (Rajasthan), One in Malutana (Rajasthan), four in Morbi (Gujarat) and one in Vijaywada (AP).
Greenply and Centuryply are the leading players in Indian plywood industry. Industry is dominated by the unorganised sector which is now facing the heat post GST and E-Way Bill system introduction. There are estimated to be around 2,200 plywood suppliers in unorganised sector who may find the going tough in the coming days and slowly their market share may be up for grabs. Most of the players in organised sector are readying themselves for taking full advantage of the market share shift which is likely to take place in the coming days. Like Kajaria, there may be others too who may take a plunge to grab a share of the expanding market.