Ranked as one of the top three most
attractive investment destinations in the world,
India is also one of the fastest
growing economies in the world.
The Indian woodworking and furniture manufacturing industry
is pegged at a massive $ 20 billion in size and employs more
than 3,00,000 people in the organised sector. The furniture
sector in India makes a marginal contribution to the Gross
Domestic Product (GDP), representing about 0.5 per cent of
the total GDP. On a per capita basis, the market is still under
penetrated compared to more matured markets.
The Indian furniture Industry is valued at being the 14th
largest furniture market in the world driven largely by the
increasing income levels and influence of global lifestyle
trends making the wood and furniture industry one of the
most attractive investment opportunities.
In spite of furniture manufacturing in India undergoing
transition, around 60% of the furniture is imported from other
countries. Hence, the scope for machinery companies to
capitalise on this demand-supply gap in India is high. In the
machinery segment, the industry has potential to grow in the product groups like solid and panel wood processing,
finishing lines, tools and accessories etc. Apart from the
above, major investments in particle board, MDF manufacturing,
laminates have been made in the recent years in India
and these materials and value added products also offer
huge opportunity for both national and international
While the wooden home furniture is the biggest segment, the
fastest growth is seen in the modular furniture and the kitchen
segment. The industry has seen a compounded annual
growth of 30%.
The current e-retailing boom also offers immense business
opportunities to the entire eco-system.The entering of
international and national players like Amazon, PepperFry,
UrbanLadder, Flipkart, Snap Deal,etc has raised the
benchmark for quality in the furniture industry.
The non-machinery segment also has high prospects to
attract more international companies from the product
segments like fittings, hardware and structural parts, function
and components, lighting systems, lights, electrical fittings for
furniture production and Interior designing, raw materials,
timber and lumber, materials for furniture production, semi
finished products for cabinets, office and modular furniture.
In order to conserve forests, cutting of soft jungle wood has
been banned by the Indian Government and this offers wide
opportunity for timber exporters from other countries to enter
the Indian timber trading market. Already our woodworking
shows are represented by various International timber
councils like American Hardwood Export Council, American
Softwood, French Timber, Canadian Timber, Malaysian
Timber council, etc. With more than 67+ countries already
exporting sawn timber and wood based materials to India this
product segment will attract more international companies to
India. According to the Department of commerce, in the year
2014 – 2015, India has witnessed an import of USD 225
million in this product segment.