Duroply Industries is India’s one of the leading brands in plywood manufacturing well recognized for its deep-dive innovation, unmatched craftsmanship & unparalleled customer service.
DURO product range comprises Plywood, Block Boards, Doors, and Veneers. DURO believes in sustainability and environmentally friendly techniques and processes for wood materials.
In the September 2022 quarter, Duroply Industries reported a standalone net profit of Rs. 1.19 crore. What are your top priorities right now for the growth of the company?
The last few years have been very challenging, especially due to the COVID-induced lockdowns that significantly hampered business operations. In the current financial year, we have seen a significant uptick in business, boosted by strong demand growth and our sustainable and subsequent return of the company to profitability. Our focus remains on growing our business footprint across India along with improvements in business operations that result in better profits.
What are your business plans for the next five years in terms of the Indian market, the cities you aim to enter, and the markets you wish to penetrate?
The future of plywood in India is very bright. To put things in perspective, our population is nearly at par with China’s, but for every 1 unit of plywood consumed in India, 20 units are consumed in China. India’s rapid interior infrastructure growth has only begun, and we are keen on playing a major role in this transformation.
As one of the oldest brands in the plywood segment, we have a pan-Indian presence, with our products being sold in more than 25 states. Our overall penetration is the highest in North India, and over the next few years, we will be looking to further grow our presence in the South, West, and East of India.
Can you give us an overview of your various product portfolios? Which products have been and are still particularly successful for Duroply? What has been the market response to them?
Our product portfolio includes plywood, block boards, flush doors, and decorative veneers. All these products in various categories have been extremely successful. They all form part of a strong basket of solutions for anyone looking at long-lasting woodwork or interiors.
What are the industries/segments in which you work? Where do you believe the biggest demand exists? What will be the next steps for expansion?
We have primarily been focused on the higher-end segment of the industry. However, with the growing population and demand, we have also started focusing on the mid-segment product. It is our belief that the aspiration of having high-quality woodwork interiors is no longer a dream just for the elite but something that every member of our society now aspires to have.
What challenges do you foresee the company and the wood panel sector as a whole to face going forward?
The negativity that plywood is a wood-based product and, hence, must not be eco-friendly is a complete myth. Plywood is one of the most eco-friendly solutions that we have. Today, in India, over 90% of the wood sourced for plywood is sourced from sustainable plantations. Keep in mind that wood as a resource only requires sun, water, soil, and time to grow. Short plantation timbers today require only 8–10 years and form a very sustainable form of income for farmers. Consider the other alternative products that are available for interiors and their impact on the environment and then you realise that plywood is one of the most sustainable and durable options out there.
What impact has the COVID-19 pandemic had on the industry? How did it impact revenues and business operations, and are sales and the supply chain operating normally again?
Plywood distribution in India is highly dependent on trade. With these and other disruptions, we saw retail trade come to a virtual halt in 2020 as well as in 2021. This had significant impact on business during the impacted times which saw minimal lifting of material.
But with god’s grace, we are not only back to pre-pandemic level of business, but the Industry is seeing an overall strong growth. At Duroply, we have become one of the fastest-growing plywood brands and look forward to continuing this momentum for years to come.
There is a huge gap between the demand and supply. What strategies do you employ to address supply chain and logistical issues in wooden industry?
We have a robust supply chain and logistics network to ensure that our products are there on time across all centres, from our factory to the frontlines. We follow a hub-and-spoke model where we have carefully chosen, logistically connected centres acting as hubs. Adopting suitable forecasting tools, we keep sufficient stock of various brands and products at these nodal centres and feed our frontline sales team from there to ensure that our customers get their desired product in time.
Interview Attributes:
Akhilesh Chitlangia
Executive Director and Chief Operating Officer, Duroply Industries Limited