Plywood Manufacturers Association

All India Plywood Manufacturers Association (AIPMA) organized a meeting on April 14, 2018, at Hotel Hyatt Regency, New Delhi.

AIPMA President Mr. Devendra Chawla, Chairman Mr. Naresh Tiwari, Secretary Mr. Arun Mongia, Mr. Inderjit Singh Sohal from Punjab, Mr. Akhilesh Pratap from Uttarakhand, Mr. Vikash Khanna from Delhi, Mr. Bansant Bhai Patel from Gujarat, Mr. Mujib Rehman from Kerala, Mr. Gopal from Rajasthan , Mr. Ashok Agarwal from Uttar Pradesh, Mr. Rajesh Shah from Karnataka and Mr. Narender Bansal were present on the stage. Mr. Manish Kedia operated the platform. The meeting started with the National Anthem followed by the felicities from all the states honoured the Hon’ble President and Chairman.

This association, which was mainly constituted to reduce the GST to 28%, has expanded so much in the last few months that a proper forum has been created to solve the problems of the industry in which all can explain their sufferings and be benefited by their suggestions.

All India Plywood Manufacturers Association (AIPMA) organized a meeting on April 14, 2018, at Hotel Hyatt Regency, New Delhi.

AIPMA President Mr. Devendra Chawla, Chairman Mr. Naresh Tiwari, Secretary Mr. Arun Mongia, Mr. Inderjit Singh Sohal from Punjab, Mr. Akhilesh Pratap from Uttarakhand, Mr. Vikash Khanna from Delhi, Mr. Bansant Bhai Patel from Gujarat, Mr. Mujib Rehman from Kerala, Mr. Gopal from Rajasthan , Mr. Ashok Agarwal from Uttar Pradesh, Mr. Rajesh Shah from Karnataka and Mr. Narender Bansal were present on the stage. Mr. Manish Kedia operated the platform. The meeting started with the National Anthem followed by the felicities from all the states honoured the Hon’ble President and Chairman.

This association, which was mainly constituted to reduce the GST to 28%, has expanded so much in the last few months that a proper forum has been created to solve the problems of the industry in which all can explain their sufferings and be benefited by their suggestions.

General Body Meet
Judges
Group Of Members

While referring to the E Way bill, Mr. Chawla said that we have GST like a boon to our industry which can be realized only through e-way bill. When we have to take GST from our customers, then we should always use the method of making our day to day work easier. We have reached this point facing the rugged situation of our industry, but we should be prepared to create proper and handy background for our passionate and techno future generations. Along with this, discussing under- billing, he said that everyone has the right to the price of their goods. And all are quite different according to their technique and other abilities. It cannot be determined at the same one price. But as Mr. Naresh Tiwari told that since GST has been implemented, till now all the tax officials are inactive as per government. Now after the E Way bill is implemented and when they will be active, our vehicles remain safe in the traffic, we have to decide. So, prices should be kept genuine so that no one can point out. Final opinion was that it should be kept around Rs 20,000 / – per ton. With the consent of all industrialists, it should be controlled. Mr. Ashok Juneja urged to bring it at 100% according to one’s situation, and see the magical difference.

Due to the abundance of the Gurjan face at one point of time, the industry had kept red face forwarding. And gradually it was made the choice of all Indian customers. By the time the Gurjan face was available, at economical price, the industry had no problem. In today’s scenario, the abrupt increase in prices has worried all the industrialists. Now when we have found Okoume as a very good alternative we all should try our best to promote it. Some members however suggested that the use of Gurjan face should be stopped completely. But in the end, all the members come to one decision to end their reliance on the Gurjan face, and emphasize the sale of goods made from Okoume and Reckon face.

In the present scenario of production and distribution difference, the risk of payment in today’s market is increasing. Mr. Inderjit Singh Sohal, who was made the President of the Dispute Settlement Committee, presented a complete review picture. He gave the assurance of giving full support by this committee to all the members of AIPMA. With the help of social, political, and govt. officials, he has been already doing the same in Punjab province. “And now, for all the AIPMA members with support of Mr. Naresh Tiwari, we will make every effort to settle the disputes”, said Mr. Sohal.

Mr. Sohal warned all the members that before offering the goods to any dealers, their economic performance and social circle must be assessed. In spite of this, if there is any discrepancy, strict steps such as stopping the supply of goods by all to such dealers may be taken.

For this, Mr. Manish Kedia, Mr. Arun Mongia and Mr. Khanna called upon all to become members of AIPMA by filling up all their membership forms at the earliest. Those members who were not present, can also contact their respective state units to ensure their membership as early as possible (but before 15th May) and avail the benefit of the forum to avoid future problems.

In the same line, the industry’s next problem is the diffculty of timely payment. Most of the raw materials are purchased in cash. Payment of all taxes, including labour payments and GST, is also almost in cash. In such a situation, if payments from dealers are delayed by more than 30 days then the problems of the industry are started. It has been seen in these days that many dealers have made payment style such that they start paying in 30 days and the last payment gets stretched for 100-120 days. All present members insisted on arranging the boundary line for 30 days only. To put pressure on the dealers, it was suggested to apply interest on payments received after 30 days. A new formula is being developed in these days in the market. Putting the stamp of BWR in products of MR and moreover the desire or insistence of putting the Marine 710 upon it is holding a lot of pressure. Many plywood manufacturers are found to be flexible upon this demand from the dealers. In this process, the entire industry is losing so much.

All of us have read this story in childhood, that, how a king ordered that on a xed date, a pot of milk should be poured on Lord Shiva by all the countrymen. Everyone thought that in thousands of liters of milk none would notice my pot of water. But at the end of it – we all know – that only the stream of water flowed there.

For this not to happen with our industry, we have to create awareness within ourselves. We have to understand that we do not listen to such buyers’ insistence. Even though they keep saying that other people are used to this practice. We should be strongly determined.

Mr. Tiwari warned that if we remain dependent on the Gurjan face, then in the future, there will be an increase in the market demand of MDF that is emerging fast as the alternative of plywood, which will eventually end the plywood market. Therefore, it is pertinent to each angle that by promoting Okoume-reckon face and stopping Gurjan face will be sensible.

The main issue was constant increase in the price due to unlimited increase in prices of poplar and other raw materials. In this regard, organizations of various states like Rajasthan, Punjab, Uttar Pradesh etc. have already announced an increase of 8-10% in the rate of plywood. One idea also came out that the different types of ply should be increased at different rates. Some of the present members were unable to accept the increase in price not less than 10%.Because they believed that this increased rate will only be able to cover a small part of the cost involved. Present members felt that rate increase should be implemented gradually in the market, looking the weak position of the market. Thereby, the wholesale and retail distributors should not face any problem. Therefore, it was decided unanimously to increase 6% from the very day i.e. 14-04-2018 and the decision be strictly enforced.