Laminate Industry in a “Wait and Watch” Phase

A detailed and engaging summary of the discussion with Rohit Vashishtha, Director of Shridha Laminates, highlighting the current condition of the laminate manufacturing industry, the challenges arising from market volatility and raw material fluctuations, and future strategies.

Laminate Industry: Crisis, Challenges, and Survival Strategy

At present, the laminate manufacturing sector is going through a very difficult phase, where every step needs to be taken cautiously. Due to international geopolitical tensions (such as wars and statements by global leaders like Trump), there has been significant volatility in raw material prices.

1. Raw Material Crisis and Rising Prices

• Daily Fluctuations: Raw material prices are highly unstable, with new rates emerging almost every day. This makes long-term deals risky.
• Affected Materials: Almost every component used in laminate manufacturing has become expensive. Major price increases have been seen in: Phenol, Melamine, Methanol (for Formaldehyde), BOPP film, and PVC granules.
• Difficulty in Cost Calculation: The situation is such that if cost is calculated today, it changes the very next day. Due to this, there is a strong possibility of a third price revision after March 31.

2. Market Response and Demand

• Mixed Response: The market has accepted increased prices for liner products, but demand remains slow in the decorative range (1mm, 0.8mm).

• Wait and Watch Approach: Distributors are currently in a “wait and watch” mode. Factors like financial year closing (March ending), festive season (e.g., Ramadan), and shortage of skilled labor have also contributed to market sluggishness.

3. Financial Pressure (Working Capital Pressure)

• Due to rising raw material costs, manufacturers are facing an additional 30% to 40% working capital burden.
• This extra financial load has to be managed internally, as immediate support from the market is limited.

4. Dual Strategy for the Future: Plan A & Plan B

To navigate the crisis, the industry is working with two strategic approaches:

• Short term-Plan A: Continue full production with the expectation that conditions will normalize by April. The aim is to maintain at least 70–80% service levels to dealers so that the supply chain continues smoothly.
• Long term-Plan B: If the crisis extends until June–July, the strategy will shift. Production may be reduced to create demand in the market and stabilize prices. Companies will also focus on working only with select, reliable partners for long-term sustainability.

5. Refinement of Relationships

This challenging period is also being viewed as an opportunity. Manufacturers are now refining their dealer networks, focusing on: Supporting only loyal and trustworthy partners  Building a stronger and more reliable business chain for the future.

Conclusion: Currently, the industry remains in a “wait and watch” mode, hoping that 2026 will bring better stability and growth. Until then, a cautious, step-by-step approach is the only viable path forward.

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