The Indian Woodworking Machinery (WWM) industry is made up of over 200 types, classified into Solid Woodworking Machinery and Panel Processing Machinery. The WWM market is estimated at USD 70-80 million, including imported and domestically manufactured products. These are the findings of a report published by Feedback Business Consulting Private Limited.

Of the overall market, panel processing machinery accounts for 30–35 percent, which is largely dominated by imported brands. Edge Banders, CNC Routers and Panel Saws are some of the popular products, accounting for around 15 percent of the panel processing machinery market. On the back of the growth in the modular furniture industry, these products have gained popularity in the last few years. However driven by their demand for good quality and timely delivery of products, the furniture and construction segments prefer imported machinery.

Solid woodworking machinery however continues to be dominated by Indian manufacturers. Sanders, Moulders, Tenoners and shapers are a few fast moving products, accounting for nearly 15 percent of the solid woodworking machinery market. Solid woodworking machinery users are largely fragmented, unlike panel processing users, which allows the presence of regional suppliers.

There are around 5 large Indian companies participating in the business, which includes the likes of Jai Industries and Kalyan Industries. Foreign companies, such as Homag, Biesse and Felder have a direct presence in India through subsidiaries. There are over 100 small Indian manufacturers in the fray as well and large import agents, such as HBR Consultants and Woodtech, who are positioned as consultants. Some of the Indian manufacturers also import products from Taiwan and China to complete their product range.

The industry mainly caters to the needs of the primary processors, which would mean the primary saw mills and secondary saw mills, the secondary processors of plywood, particle board and MDF and the manufacturers of end products such as furniture, construction and panel boards under panel processing products and construction and woodcraft, under solid woodwork.

The future of the industry is projected to be healthy, considering the long-term stability in the Asian and Indian markets. Construction is one of the sunshine segments in India, which falls under the main agenda of whichever government that comes to power. The fundamentals like growing demand for houses and commercial space in India will largely drive growth, coupled with positive government policies.

Though in the near term, considering the following challenges we see a lower growth, the scenario is expected to improve over the long term.

• Tight Liquidity

• Lower economic growth projections in the near term

• Weakening rupee value

• Increasing Inflationary conditions

• Upcoming elections

• Deterioration in credit metrics

• Declining profitability

• Lower absorption rates of residential & commercial properties

Though the downturn poses challenges, it also opens up a certain kind of opportunity in terms of exploring the market and planning the market entry well, setting up facilities and building channel / distribution capabilities.

Feedback Consulting’s report analyses these parameters well to project the long term sustainability of the business. The report also assesses the market for Woodworking Machinery in India for FY 2013 and forecasts the same until FY 2018. The aim of the research is to present a comprehensive overview of the WWM market, the market practices, the factors driving it and its future outlook in India.