A Project on

Information Search & Analysis-ISAS Group Project

Industry: Plywood (India)

Course: Marketing Management-1

Professor: Dr Kapil Chaturvedi
Date: 05/08/2018
Place: Institute of Management Technology, Nagpur

Project by:
Section-A Group-3
1. Abhijit Kulkarni (201811002)
2. Chirashree Mitra (201811011)
3. Kanika Kalra (201811023)
4. Richa Thakur (201811036)

This report provides an insight into the Indian Plywood industry covering all its essential aspects.
This includes Key industry players, their market shares, Product mix, 4 P’, Growth strategies and
their Branding elements. Report also spreads light on Consumer Behaviour and trends towards
industry, value assessment, and leading and lagging indicators.

1
 Table of Contents

Sr. No. Topic Page No.

1 Industry overview 3
2 Key industry players, BCG Matrix 4
3 Product Mix of Players 5
4 4 P’s and Product Plans of Players 7
5 Growth strategies of Players 13
Consumer Behaviour and Trends for
6 16
industry
Value Assessment, Key features &
7 18
Product KRA’s
Leading & lagging Indicators for
8 19
Industry
Branding Elements of Players-Name,
9 Logo, Slogan, Positioning, Ad copy 20
& Brand Promise
Porter’s five force analysis for Indian
10 22
Plywood Industry
11 References 23

2
1. Industry overview
Plywood is the largest segment of Wood Panel industry with other two segments being Medium
density Fibre (MDF), Veneers and Laminates. Wood Panel industry has improved economically as
well as technologically over the past few years. It is one of the major contributors to India’s GDP.
The Indian Plywood industry is on an upward growth trajectory and is expected to grow at CAGR of
19.2% in the next 5 years.

Industrial revenue is as follows:

In 2017 US$ 4.2 Billion
By 2023 (Expected) US$ 5.5 Billion

Plywood is a factory-produced sheet of wood, manufactured from thin layers of wood veneer of
softwood, or hardwood, which are glued together in adjacent layers to form a thicker and flat sheet.
Apart from this, a thin outer layer of additional materials such as plastic, resin-impregnated paper,
fabric, Formica, etc. can be added to the face and back veneers to improve durability of plywood. It
also helps in preventing the plywood from moisture, abrasion and corrosion along with facilitating
better binding of paints and dyes. Plywood is available in the market in four types - structural
plywood, external plywood, internal plywood and marine plywood.

Import-Export scenario:

India is a major importer of raw materials for plywood rather than importing plywood as a whole.
The industry is unable to fulfil overall plywood domestic demand due to shortage of raw materials.
The ban of timber exports by the government of Myanmar in 2014 has increased shortage of timber
for manufacturing of plywood.

2016-2017 2017-2018 % increase

Imports US$ 384,357 Million US$ 465,580 Million 21.13
Exports US$ 275,852 Million US$ 303,526 Million 10.03

Service sector:

In plywood industry, companies sell their products to the end consumers in mainly two ways. Firstly,
directly through retailers distribution network and secondly through builders, contractors, carpenters
and architects.
For enabling retail purchase, company directly reaches to the client or through the wholesaler,
distributor or stockist.

In the recent years, preference for plywood has been greatly influenced by the quality issues such as
durability, strength and others. The presence of counterfeit products and cheap and low quality
Chinese alternative has greatly influenced choices towards branded and quality products. Increasing
expenditure on furniture and furnishings and growing demand of household owing to internal
migration has been further driving the demand.

3
2. Key Industry Players:
The Indian plywood market is dominated mainly by the unorganised sector. The unorganised sector
have ckusters mainly in four regions operating in Yamunanagr, Haryana and Ernakulam, Kozhikode
and Kannur in Kerala.

In the organised sector the main players are as follows;

• Century Ply industries
• Green Ply industries
• Kitply industries
• Archidply industries
• Sarda plywood industries

In this report we will be considering only two players which dominate the organised sector of
plywood industry.

• Century Ply industries

• Green Ply industries

Their Market share and Revenues of these two companies for the FY 2016-2017 are as follows:

Sr. No. Company Revenue Sales (In Rs. Crs) % Market share
1773.14
1 Century Ply 22.60
1654.90
2 Green Ply 16.91

• The Boston Consulting Group’s Growth-Share Matrix

Although it is difficult to differentiate between two players as they are very competitive and hence
cannot be clearly distinguished as Market Leader and Market Challenger. Based on the data for FY
2016-2017 they can be classified into BCG matrix as follows:

Stars Question Mark

High Growth Market High Growth Market
High Market Share Low Market Share

• Century Ply • Green Ply

Cash Cows Dogs

Low Growth Market Low Growth Market
High Market Share Low Market Share

4
3. Product Mix of Players
3.1 Product Mix of Green Ply:
Green ply is a manufacturer of several products related to interior infrastructure. It is a recognised
brand that is committed to offering quality products of international standards to its users. Green Ply
has adopted the eco-friendly approach and latest technology to provide best available options. It has
a comprehensive product portfolio of commercial and residential floor products under several brand
names. Its plywood is manufactured from the timber of A+ grade and is borer-free and termite
resistant. Some of its products in market are as follows-
Blackboard and Plywood

Specialized Applications

Decorative Veneers-

• Spectrum wood
• Green Naturals
• Black Forest

Ready to install

• Ready-Lines Green Doors

• Ready-Lines Green Plywood

Doors

• Green Edge
• Decorative-Veneered Doors
• Decorative-Primered Door
• Green-Door Stellar
• Green-Club Door
• Green Doors

Green terrors Wallcovers

• Embellish
• Silk Road
• Missiva
• Artisan
• Baroque
• Enigma
• Demure
• Zenith
• Tintura
• Pure Passion
• Twilight
• Vista 5
• Privy

5
3.2 Product Mix of Century Ply

When it comes to plywood, Century Ply is by-far, the undisputed leader with a plethora of award
winning as well as innovative products designed around you, the global Indian. The signature
plywood products are used extensively in commercial and domestic settings. Century plywood is
affordable yet durable and offer unmatched strength and oodles of style to complement modern,
urban living

As a part of its product portfolio restructuring plan, century ply divided its entire plywood
product category into four major lines:

• Plywood
• Laminates
• Veneers
• Pre laminated particle board (PRELAM)

6
4. 4 P’s and Product Plans of Players
4.1 4 P’s of Players
4.1.1 Green Ply:
Place in the Marketing Mix of Green Ply:
Green Ply is an Indian company with its presence spread over an estimated twenty-one states and
three hundred cities in India. Its registered office is based at Tinsukia in Assam and its corporate
office is based in Kolkata in West Bengal. Green Ply has five manufacturing plants and its first
facility was established at Behror in Rajasthan in the year 1993. In the year 2006, another was
established at Pantnagar in Uttarakhand. Other plants are established at Tizit in Nagaland,
Bamanbore in Gujarat and Kriparampur in West Bengal. Green Ply imports firewood and timber
from Russia, Burma, Africa and Malaysia and processes it in its own plants.

The company exports to several countries in world market including Malaysia, Europe, China,
Dubai, Kenya, Singapore, Indonesia, Saudi Arabia, Mexico, Australia, United States, Hong Kong,
Bahrain, Canada and Taiwan. Green Ply has a wide distribution network that includes forty-eight
branches of the company along with thirteen thousand dealers, distributors, sub-dealers and retailers.

Price in the Marketing Mix of Green Ply:

In the financial year 2012-13, Green Ply recorded Rupees 2,044 crs of net turnovers. The company
has a diversified product range that caters to different customers across mid-market, high-end and
value-based segment. It has adopted premium pricing policy for its high-end products and perceived
value pricing for mid-market and value-based products.

It also faces competition from rival companies and in order to combat their advances and to penetrate
in further markets Green Ply has gone for penetration and competitive prices. Its price range is
actually quite reasonable if one compares it to the premium quality of its products and hence these
affordable rates have helped it to garner greater revenues.

Brand: Green Ply Brand: Green Ply

Rs.102/Square feet Rs.3360 /Number
Abrasion proof: Yes Abrasion proof: Yes

Termite resistant: Yes Termite resistant: Yes

Sanded: Yes Sanded: Yes

7
Promotions in the Marketing Mix of Green Ply:
In order to strengthen its position in consumer market Green Ply has adopted innovative marketing
strategies. It was the first company in India to offer a lifetime guarantee for premium products.
Several of its products are certified by official bodies making them superior and high-end. Green Ply
is committed towards removal and reduction of carbon footprint.

Waste-by-products are being recycled and the company is using eco-friendly options for packaging.
Green Ply had previously roped in Indian actor Arjun Rampal to act in its commercials which were
shown on different television channels. Advertisements are aired on radio, displayed through the
print media on billboards, newspapers and magazines. The brand has taken help of social media and
its ads are shown on various platforms like YouTube.

8
4.1.2 Century Ply:
Place in the Marketing Mix of Century Ply:
Century Ply is one of the India’s leading plywood company and it has its manufacturing factories
located in six different states. Manufacturing units are located in Kolkata-West Bengal, Chennai-
Tamil Nadu, Guwahati-Assam, Karnal-Haryana, Kandala-Gujrat, Roorkee-Uttarakhand.

Price in the Marketing Mix of Century Ply:

Brand: Century Ply Brand: Century Ply

Colour: Brown Colour: Brown
Grade: First Grade Grade: BWP Grade

ISI Marked ISI Marked

Core material: Gurjan Core material: Neem wood

Promotions in the Marketing Mix of Century Ply:

Century ply declared its association with the Bollywood superstar Shahrukh Khan, thus constituting
the first time in the Indian market that a commodity such as plywood endeavoured to create an
association with glamour.

The company released a 30seconf television commercial campaign co-branded with jai ho, a music
video entitled you are my destiny. To keep brand consumer interaction memorable, century ply most
important innovation was its product catalogue creation. Since brands were positioned on the
glamour, fashion and lifestyle platform, century ply product catalogue utilizes a high degree of
creativity thereby transforming each publication into a collector's masterpiece experience.

9
4.2 Projected plan of Players
4.2.1 Projected plan of Green Ply:

Green Ply: preparing for a better future after GST:

Green Ply getting ready to meet the expected higher demand as a result of implementation of GST,
which may encourage a shift from unorganized to organized markets. The company will add
plywood and allied product capacity at the planned facility in Hardoi by 13.5 million sq. m., taking
its total capacity to 45.9 million sq. m. This expansion will entail an investment of Rs120 crs, out of
which Rs80 crs will be funded by debt and the rest through internal accruals, said V. Venkatramani,
chief financial officer at Green ply Industries. The plan is easy on the balance sheet. Expansion
capex (capital expenditure) isn’t a concern as Green ply’s balance sheet is healthy (debt/equity of
~0.4 times in fiscal year 2016) and would remain so despite the incremental capex (debt/equity of
~0.6 times in FY19), pointed out Arun Baid, an analyst at Religare Institutional Research. However,
the benefits from this plan will not be visible immediately. “Given that the new facility will be
operational in Q3FY19, we expect a meaningful contribution to earnings from FY20 onward,” says
Religare in a report on 17 March.

In a way, the company is getting ready to meet the expected higher demand as a result of
implementation of the goods and services tax (GST), which is likely to encourage a shift from the
unorganized to organized markets. In fact, this anticipated shift to organized markets is also a reason
for the optimism in the Greenply Industries stock, which has risen as much as 57% so far this fiscal
year. Currently, one share trades at nearly 22.5 times estimated earnings for FY18; suggesting
investors are capturing a good portion of the brighter picture

Planning to expand plywood capacity:

Green Ply Industries In quarter 2 of FY12, the revenues were up by about 43% at 413 crs and the net
profit stood at close to Rs 10.10 crs. The EBITDA was up 11.57% at about 48.5 crs. The profits
would have been far higher. The profit after tax levels if the foreign currency movements would not
have impacted us. So we had a big impact on the foreign currency fluctuations. Otherwise the
business was pretty healthy for us, the sales were pretty healthy, the margins were slightly under
pressure on the MDF busin .. On the revenues side, we should be able to grow up business about 30-
35% odd this financial year compared to FY11. On the profit front, on the EBITDA front, we have
already done about 90.18 crore. So we should be in the vicinity of 180-200 crores on the EBITDA
and profit after tax should substantially improve keeping in mind that the forex rates are at one of the
highest levels we have ever seen. So overall we are pretty positive about how the business is going to
shape up from the next two quarters.

Green Ply Eyes Tripling Capacity in Next 12 Months:

Gabon Expansion
The company began production at the Gabon unit earlier this month. The unit will add 35,000 cubic
meters to the company’s capacity and at peak production, will add Rs 100-110 crs to the topline of
the company, said Venkatramani.

10
Greenply’s consolidated net revenue for the financial year ended March stood at Rs 1,660 crore,
while net profit stood at Rs 125.4 crore.
The company has been facing pressure on realisations in the domestic market. Volumes were lower
as a result of demonetisation in the second half of the last financial year. The first quarter of the
current financial year has also seen some softness in volume as channel partners are reducing stocks
ahead of July 1 deadline for the Goods and Services Tax (GST) regime.
The company also faces challenge from the domestic market, where it is yet to see pick up in the real
estate market. Volumes for FY18 would be around 5-7 percent and realisations are expected to
recover after a 3.5 percent price hike which the company undertook on June 1, Venkatramani said.
Wood under GST:
The government has brought wood under GST. It has imposed a 18 percent excise duty on normal
shaped wood as compared to it being exempted earlier. This would increase the tax outgo for the
company

Green Ply Plans To Finalise Medium Density Fibreboard Division Demerger in 3 Months:
Green Ply Industries Ltd. plans to finalise the various details of demerging its medium density
fibreboard division into a wholly-owned subsidiary in the next two to three months, its Chief
Financial Officer V Venkataramani said.
The board of Green Ply Industries has given an approval to demerge the company’s MDF division
into its wholly-owned subsidiary Greenpanel Industries.
The company expects the MDF division to grow much faster than the plywood segment, and hence it
is focusing on the business through the demerger process, Venkataramani told BloombergQuint in an
interview, explaining the rationale behind the demerger.
The MDF division is likely to get better valuation going forward from the third quarter of financial
year 2018-19, as the business environment is not too conducive for strong top line growth at the
moment,

11
4.2.2 Projected plan of Century Ply:

Century Ply knocks at Chinese firm’s door for joint venture:

Century Ply has entered into a tie-up with a Chinese laminated door manufacturing company,
Goldea, for making flush and panel doors.
According to Sajjan Bhajanka, Chairman, Century Ply, the joint venture company Century Goldea
Ltd will be incorporated after receiving the requisite approvals from the Registrar of Companies.
Century Ply will hold 60 per cent stake in the joint venture, while Goldea will hold the rest. The total
investment in the first phase will be to the tune of ₹80 crs.
“The commercial production on the first phase of the project, where we will produce around 2,000
doors a day, is likely to begin by September 2018,” said Bhajjanka here on Friday. The capacity is
likely to triple to nearly 6,000 doors a day in the second phase of the project.
The city-headquartered plywood-maker has already put up a 198,000 cubic metre medium-density
fibreboard (MDF) facility at Hoshiarpur in Punjab, at an estimated investment of ₹400 crs. MDF will
be used as the raw material for manufacturing the doors, he said, adding that the company is in the
process of acquiring some more land near its MDF plant for setting up the new door plant.

Value add:

The investment in this joint venture will be a part of the company’s bigger plan to foray into the
manufacturing of MDF-based value-added products such as laminated MDFs, flooring and
decorative veneer.
The estimated investment on creating capacity for value-added products would be close to Rs 200
crs.

12
5. Growth strategies of Players

5.1 Growth strategy of Green Ply:

Green Ply has made conscious shift to be a product+service brand: Green ply Industries Ltd (GIL)
recently kicked-off the second phase of its breakthrough ‘Ask Green ply’ campaign, after the
immensely popular ‘Ask Green ply’ campaign last year. Conceptualised by Ogilvy & Mather, the
latest campaign continues in the humorous vein of the previous TVCs. This time, ‘Ask Green ply’ is
not only the guide for choosing the right plywood, it also monitors and leads the customers in the
right direction to help them avoid social embarrassment caused by using cheap plywood. Speaking
on the concept of the campaign, Mishra explained that the elements of the first phase of the
campaign worked very well to spread the message across for the brand, but the company felt the
need to connect with the consumers on a deeper lever. “Hence, we designed ads that believe that
Green ply must act, feel and behave like a category leader. As leaders, we must guide the customer
such that he makes better brand and product related decisions and encourage them to come to us for
their indecisiveness about purchasing the right plywood. Green ply uses emotion to connect with its
audience. We don’t follow any strategy as such, but we feel that we can strike a chord with our
consumers if we perceive the product and the brand from their point of view and thus we engage
with them on a personal level.”

Green Ply expects robust volume growth post GST and capacity expansion:
In a recent analyst meet, Green ply Industries appeared optimistic about organized players gaining
market share in plywood and medium density fibre (MDF) post GST. At the same time, it expects
margin pressure in MDF segment, while operating leverage will benefit the Plywood segment.
Green ply enjoys leadership position in plywood and MDF, accounting for almost 26% of the
organized plywood and 30% of the MDF market in India. The Indian Plywood and MDF industry
size is estimated at Rs18000cr and Rs1600cr respectively. The company has a presence in over 300
cities across 21 states serviced through a well entrenched distribution network of 2,500 dealers and
10,000 retailers and 39 branches across India. Increasing urbanization, high disposable incomes,
GST implementation and government’s construction of 100 smart cities are long term growth
drivers for the company. Green ply is currently trading at Rs326, up by Rs15.9 or 5.1% from its
previous closing of Rs310.1 on the BSE.
Diversified portfolio, GST sweetener, deepening reach: Market share gain catalysts Century has,
over the years, diversified its portfolio across all wood panel products— plywood, veneer, laminates,
MDF, etc—and is currently amongst the top 3 organised players in every segment. Robust
distribution network and healthy advertisement spends will ensure that market share gains sustain.
Moreover, cut in GST to 18% and ban on timber export by Myanmar & other neighbouring countries
are likely to provide significant challenges for unorganised players. This will not only propel
Century’s market share, but will also enhance outsourcing of lower quality products to struggling
unorganised players. Recent capacity additions in MDF and laminates make it the largest and third
biggest player in these segments, respectively.

13
5.2 Growth strategy of Century Ply:
Century Ply extends ad campaign for sub-brand:
A brand breakthrough in the commoditised marketing space like plywood does not come by easily. It
came through in a decent measure last year for Century Ply boards India after its plywood and
laminates brand campaigns.
Inspired by the impact, reflected in the improved sales in the categories, Century Ply boards has
extended its TV advertisement campaign (TVC) focus to one of its sub-brands in the plywood
category.

Sales turnover Under Century Ply, the umbrella brand, the company has three other sub-brands –
Club Prime, AchitectPly and MarinePly. All these brands bring in sales turnover of around ₹1,400
crore.

However, the non-pricy Sainik stands out in terms of growth potential among other premium or
speciality brands, for the price-sensitivity of the Indian consumers.
This year, Century Ply board aims to increase the ad spend to 4 per cent of the turnover, from 3.8 per
cent last year.
The company plans to come out with two more new brand TVCs – one for Century Ply and another
for Century Laminates.

Century Ply ad campaign to focus on families and homes:

Century Ply as a brand has not really followed a defined communications strategy. This campaign
addresses that need. The earlier campaign was based on the durability of its plywood and was single
product-centric. Century Ply’s other offerings — laminates and veneers — were not quite
recognised, concluded a survey conducted before conceptualising the campaign.
Gope said the campaign attempts to re-define the outlook for the category. It is also seeking a
“leadership stance” in terms of communication, much like the paint industry did to promote its
brands.The six-week initial television media plan focuses on general entertainment, regional and
news channels. Hindi speaking markets are the prime target. Tamil Nadu, Andhra Pradesh,
Maharashtra and Bengal will be the focus among regional channels.The campaign will also be
supplemented on the radio for three weeks. Digital media will play a critical role and the company’s
Web site has a new look as well.

Spotlight on family:
The campaign’s four TVCs, created by Mudra DDB, will have emotional, family themes in an
attempt to sway consumer preference. The ads revolve around surfaces, which are witness to
everyday moments of joy and happiness, and focus on families and furniture, and how these become
more than products.

14
A report in ‘The TELEGRAPH’:

Calcutta, Aug. 31: City-based plywood maker Century Ply has decided to tweak its retail strategy
by planning to go online rather than operating through stores.

Century Ply had entered the readymade retail furniture business in 2012 by opening stores under the
Nesta Furniture brand. Company officials today said the business could not break even on account of
the high cost of operating stores and tough competition from e-commerce companies such as Urban
Ladder and Pepperfry.

"The showrooms are not making profit. So, we are not expanding that business," chairman Sajjan
Bhajanka said after the company's annual general meeting here today. He added that the company
had been gradually scaling down the number of stores.

Executive director Keshav Bhajanka said the company had around nine showrooms in Calcutta,
Siliguri and Ranchi. "Before the end of the year, we would like to wind up this business. Our core
strength is in manufacturing. We would like to offer online solutions to our customers instead,"
Bhajanka said. He added that company might opt for its own e-commerce solution or look to partner
existing players.The company is expanding its manufacturing footprint in Laos by setting up units
under both FDI and joint venture routes. The company will also explore opportunities in Indonesia
and Africa.

In India, Century Ply is looking to invest Rs 380 crs in a medium density fibreboard plant with an
annual capacity of 200,000 cubic metres.

15
6. Consumer Behaviour and Trends for Plywood industry

In the past decades, the expenditure on furniture has increased as a result of increasing incomes,
urbanisation, investment in real estate, western influence, etc. Expanding distribution network and
exclusive outlets of furniture manufacturers in the region has also helped in influencing the market
for plywood. Owing to this, the market is further expected to reach a value of US$ 5.5 Billion by
2023.
On the basis of end-use the market is segmented as commercial and residential. The residential sector
is the largest consumer for Indian plywood, accounting for more than half of the total shares.
One criterion of this is the analysis of psychic phenomena. Customers with individual personalities
show various behaviours when affected by different environmental stimuli. The researchers of
customer and consumer behaviour attempt to typify individual decisions and, as a result of this,
several customer behaviour models have been created since the 1960s. In the majority of these
models the process of decision making can be interpreted by the chain of problem recognition –
information search – evaluation – purchase – use – follow-up evaluation, these are then determined
by factors the different authors consider important.

Customer’s viewpoints-
Architect’s views:
According to an architect, things which they look forward to are:

• Quality of the product.

• Durability period of the product.
• After sales services provided by the company.
• Price of the product.
• Company’s initiatives.

Customer’s Demand:
There are different categories of customers who seek different varieties of product:
1. Top Customers.
• These customers are not price sensitive about the products.
• They follow the quality, features/benefits of the products.
• They consult the interior decorators and architects for the selection of products.
• They seek longer durability period in the products.
• The returns from this segment of customers are considerable for the company and for
the customers as well.

2. Middle Customers:
• This segment wants a blend of quality with affordable prices which should match
their standards.
• They require quality with affordable prices and higher durability period of the
products.

16
 • In this category, the products offered by the company have more varieties and ranges.
• These customers generally prefer waterproof and semi proof ply woods.

3. Lower(Economic customers):
• These customers generally seek the low price range of products.
• They are price sensitive in nature and quality is the secondary factor for them.
• These customers are generally found in the rural sectors of India.
• For this segment, company offers the economic range commercial ply woods, which
provides lower quality range of products with affordable prices.

17
7. Value assessment, Key features and product KRA’s

7.1 Value assessment

• Manufacturers of commercial vehicles require increasing quantities of chequered plywood for

applications in automotive flooring.
• Plywood also finds application in marine industry for construction of decks.
• The plywood industry depends mainly on the supply of tropical hardwood species from
evergreen forests and insignificant amount of imports of sandalwood and other hardwood
species.
• This industry is considered as the most promising among other composite wood product
industries.
• Plywood is inexpensive, flexible, workable and reusable.
• It has excellent resistance properties to cracking, splitting and warping.

7.2 Key Features:

There are four groupings of plywood products, with each group designed for specific applications:

• Structural
• Exterior
• Interior
• Marine.

Plywood offers the following benefits:

• Increased stability: Plywood offers all the inherent advantages of the parent wood plus
enhanced properties in its laminated structure.
• High impact resistance: Being a wood based material, plywood has the ability to
accommodate the occasional short-term overload; up to twice the design load. This is useful
where seismic activity or cyclonic winds can occur. This property is also effective when used
as construction flooring or as concrete formwork. Plywood's laminated structure distributes
loads from impact over a larger area on the opposite face, which effectively reduces the
tensile stress.
• Surface dimensional stability: The cross laminated construction of plywood ensures that
plywood sheets remain relatively stable under changes of temperature and moisture. This is
especially important in flooring and formwork construction where moisture exposure is very
likely.
• High strength to weight ratio: With high strength and stiffness to weight ratios, plywood is
very cost effective to use in structural applications such as flooring, shearwalls, formwork
and webbed beams.
• Panel shear: The panel shear of plywood is nearly double that of solid timber due its cross
laminated structure. This makes plywood a highly effective material to use in gussets for
portal frames, webs of fabricated beams and as bracing panels.
• Chemical resistance: Plywood does not corrode and can be used in chemical works and
cooling towers as a cost-effective, durable material when preservative treated.

18
8. Leading and Lagging indicators:

Leading indicators:

• Big market potential in design sector and emerging new market segment in services
• Lower labor costs in outsourcing
• Very little competition in modern future design
• Cheap Semiskilled manpower.
• Possibility of introducing more value added products.
• Import of superior machines/technology and corresponding benefits in productivity and
quality.
• Awareness and need to explore foreign markets and intention to launch a bid for competing
them.

Lagging indicators:

• Increasing gap between technological developments and product specifications abroad and in
India.
• Poor mechanization and excessive dependence on contractual and migratory labor.
• Labor intensive production: Labor intensive processes at factory means that they are
vulnerable to risks from labor unrests etc
• Raw material price fluctuations: Timber prices are volatile in nature exposing the industry to
volatile margins.
• Influx of local brands: Local brands get aggressive with prices and branding exercises to
challenge the established brands.
• Growth of substitute products: Products such as MDF and particle boards have been
expanding their market share in the furniture segment.
• Stringent environment laws: Increased environment consciousness and green campaigns are a
threat to the raw material procurement.

19
9. Branding elements of Players:
9.2 Green Ply industries:

Slogan - Conceptualised by Lowe Lintas, the television commercial titled 'Always hoyenga', relives
Green ply Plywood's promise to last for generations.

Positioning – Green ply

ly is the obvious choice for innumerable home and office builders and
occupies 26% share of plywood and 30% in MDF market in India.

Promotion - In order to strengthen its position in consumer market Green ply has adopted innovative
marketing strategies.
trategies. It was the first company in India to offer a lifetime guarantee for premium
products. Several of its products are certified by official bodies making them superior and high-end.
high
Green ply is committed towards removal and reduction of carbon foot footprint.

Waste-by-products
products are being recycled and the company is using eco
eco-friendly
friendly options for packaging.
Green ply had previously roped in Indian actor Arjun Rampal to act in its commercials which were
shown on different television channels. Advertisements are aired on radio, displayed through the
print media on billboards, newspapers and magazines. The brand has taken help of social media and
its ads are shown on various platforms like YouTube.

Brand promise - The tagline‘Always hoyenga’ expresses the brand’s promise of longevity and
durability.

Ad copy - The advertising strategy hook includes casting of National Film Award winner, Arjun
Rampal who plays the protagonist ‘Shaurya’, a promising magician who started his career from
being a small-time
time village magician and rose, by his exceptional skill, to being an internationally
famed magician, captivating audiences throughout the world. The TVC narrates the story of
Shaurya, his journey, his accomplishments,
complishments, the hurdles in his life and ends with his supreme
triumph and the special relationship with his magic box.

20
9.2 Century Ply industries:

Slogan – The advertisement shows parts of consumers' daily life and is a realization of the part
played by 'surfaces'. It stems from the simple insight that Century Plyboards is in the business of
creating surfaces which are witness to everyday moments of joy and happiness, hence the tagline
'Khushiyon Ka Rangmanch'.

Positioning - Century Plyboards has an 18% market share. It entered the MDF space in 2017-18
with a 198000-cubic metre manufacturing unit in Punjab.

Brand promise - Century Ply promises to deliver ‘Unbeatable performance at an Unbelievable

price’.

Ad copy – Century Ply Sofa TVC begins with a family seated on a sofa and cheering for India
while watching a cricket match. Nana Patekar is the only one who cheers for the Sofa and
goes on to explain, how sofa is the most important object here which we tend to ignore. It has
kept the family bond intact, as it allows all the members to come together and get seated.
With every four and sixes in the match, we show our excitement on this sofa and with every
loss, this lifeless object, bears the brunt.

21
10. Porter’s five force analysis for Indian Plywood Industry
Based on the above industry analysis, we can summarize the five forces for the Plywood industry as
follows:

• Rivalry among existing competitors – High to moderate

• Bargaining power of suppliers – Moderate (The raw material required for plywood manufacturing
is abundantly available except for face timber, which is largely imported from Myanmar.)

• Threat from substitutes – Low to moderate

• Bargaining power of buyers – High to moderate

• Barriers to entry – High to moderate (The business is also protected by the entry of fresh players
on account of the long gestation period needed to break even, limited availability of face veneer,
brand recall and distribution reach enjoyed by organized players, large investment in branding and
thin margins).

22
 11. References:

• Industry overview (Facts and figures)

https://industryoutlook.cmie.com/
http://commerce-app.gov.in/eidb/Default.asp
http://www.greenply.com/annual-results
http://www.afaqs.com/news/story/36797_Greenply-Out-of-the-box
http://www.greenply.com/images/pdf/Annual-Results-2017-18.pdf
https://www.moneycontrol.com/financials/centuryplyboards/profit-loss/CP9

• 4 P’s, Product plan and Growth strategies of Players, Value Assessments and Consumer trends
https://www.indiainfoline.com/article/news-top-story/greenply-expects-robust-volume-growth-post-
gst-and-capacity-expansion-117120500491_1.html
https://www.thehindubusinessline.com/companies/centuryply-knocks-at-chinese-firms-door-for-
joint-venture/article9842401.ece
https://www.livemint.com/Money/wy683EuBDo4lkJmFm2kMOM/Greenply-preparing-for-a-better-
future-after-GST.html
https://www.marketing91.com/marketing-mix-greenply/
https://www.centuryply.com/
https://economictimes.indiatimes.com/opinion/interviews/planning-to-expand-plywood-capacity-
greenply-industries/articleshow/10556690.cms

• Branding elements of Players

https://www.thehindubusinessline.com/companies/centuryply-extends-ad-campaign-for-
subbrand/article7482048.ece
https://www.imarcgroup.com/plywood-market
https://www3.epa.gov/ttnecas1/regdata/EIAs/eia11_22_02.pdf
https://www.youtube.com/watch?v=Qz46HSBRjiM&ab_channel=KingRagha

23