Market Scenario

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 companies.

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.

 

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