QCO and Sluggishness of the Industry

August 3, 2024
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Final dates for mandatory BIS implementation is approaching nearer. Non licencee industrialists are still in deep sleep. Do these industrialists are accustomed to the procedures to be followed in BIS, or do they just don’t care? Or do they think that they will get additional time again from the government and it will be postponed.

Ply Insight has a candid conversation with Abhishek Chitlangia about the prevailing mindset of the current and forth coming licensees. Abhishek Chitlangia, the young executive of Duro Ply Industries, is keenly interested in understanding and solving the problems of the industry. Duro Ply, a 67+year old company, has a strong hold in the Indian plywood and panel market.

Your opinion about mandatory BIS

Currently, multiple issues regarding the problems of the current license holders, are being discussed repeatedly in various meetings and webinars. Of course, these problems need to be addressed sincerely. But at the same fine these discussions are airing a negative message in the industry that the industry is happier without BIS standards.

Now as the BIS and DPIIT have cleared that QCO will not be extended further, it becomes necessary for the industry to be prepared for the show. Industries who have not yet applied for a BIS license should contact the concerned officials and put forth their issues before them. It is necessary to resolves the issues well in time so that they can get out of their fears.

As manufacturing products as per BIS standards and smooth compliance of the license is not a very tremendous task. Initially, everyone hesitates. However, a little bit of expenditure will increase for the industry. But it is also true that when a product is qualified and marked for quality, the product itself bears this expense, that means, it easily gets this increased price from the market.

Why is the local industry afraid?

The producers fear that the shopkeeper will prefer to sell the goods of his choice (more profitable) to the consumers. If products without BIS standards will be allowed to be sold freely in the retail market, then why will the shopkeeper would bother to keep the BIS marked products?

How will BIS stop such shopkeepers? What plan has been made to check such practices? Until, there is any clarification and assurance by the administration, doubts will prevail in the industry. And this suspicion is justified. Because many licensee (industrialists) complain that more than the quantity actually sold by them are sold in the market in their name. In this regard, Indian law and regulator both are weak, which annoys the industrialists.

There are some established manufacturers who sale their products on the reputation of their quality where BIS mark is irrelevant for them. Such producers feel that the additional expenditure incurred on the license will just slash their margins.

How will the industry be assured?

The most important question is how will the consumer become aware?

The government has implemented BIS on many products, but how many people are aware of this? Till the end consumer is not aware, the situation is not going to change. Till the time the people upto the interior villages and cities of the country do not know that they have to buy products of BIS standards only, this QCO will not achieve the required results, and the producers will remain in dilemma.

BIS and DPIIT should run a wide public awareness campaign. The general public should also know the importance of this quality control order and they should also be motivated to buy such products in the national interest.

Apart from newspapers and TV, this publicity can be done exclusively by using social media. Such efforts have a wide impact.

What are the issues in operating license?

At present, there are many such rules of BIS, which troubles current licensee.

The marking fee of BIS is high.
The process of drawing samples from the market is not perfect. There is a doubt whether the drawn product is really genuine or fake marked.
Longer time is consumed to test the sample in the laboratories.
If the sample fails twice, there is a provision of stop marking. If this happens after mandatory QCO, then production will have to be stopped until clearance is obtained.
Shopkeepers can also sell goods by putting fake mark.
Apart from this, it is also being said that only 30 percent of the manufactures are BIS license holders. If all the producers come under the purview of BIS, will the present laboratories be able to do so much testing on required time?

Most of the manufacturers are still not inclined on standards

The indigenous manufactures who are not yet enthusiastic about obtaining the license of BIS, need to be explained the benefits of standards along with the assurance that the government and this QCO is for their help and progress. And they should also be assured that every possible technical help will be provided in the early phase and compliance will be made easy.

Naturally we tend to fear for unseen. Apart from this, fear increases further after listening to the various grievances of the current licensee. In a previous webinar of Ply Insight, this apprehension was also expressed that many such industrialists close their current industry very often and choose to move to a new field.

The WBI organizations along with the government should try to promote the benefits of standards and QCO in detail and assure all industrialists that everyone’s interests will be protected.

However, at present most of such manufacturers will come under the purview of MSME, who will get an additional six months for their preparation. Which is a good opportunity for them.

Many small and micro industries may be apprehensive about the consumption of time and resources to maintain the license.

The government should present a plan for such industrialists, so that they are comfortable.

Can QCO have a negative impact on the industry?

Rather, in the long run, it is going to be very beneficial for the industry. Because in the beginning, willingly or unwillingly, everyone will have to produce products of a certain standard conforming to BIS standards. Which will eventually become everyone’s habit. A new era of standardization will begin in the industry, due to which products below a minimum quality standards can not be produced.

At present, we may say that there is no special demand for such products. According to a survey of the Indian markets, the market for high quality products is gradually increasing as compared to cheap products. This also applies to the wood industry. As the general public is progressing, the demand for high quality, durable products is increasing gradually.

Of course, additional investment is required to create quality. But the results are over whelming. Yes, it does take time. Additional investment on quality will be beneficial for the industry in the long term. So we should give it momentum by complying to the BIS standards.

The pertinent question is whether we want to make a standard product?

Are we ready in our inner depth to put additional resource for it?

Do we visualise India as an exporter of wood products?

Are we prepared to touch new height ?

In fact, if our quality is upgraded, we can even dream of exports. We can also make India an exporter of wood products. Just like China and Vietnam export their products to the whole world.

We may have a slow start. But eventually we can make ourselves successful. That is why QCO compliance is a necessity which can move the industry to new heights.

Where Duro Ply stands as on date?

Today Duro Ply is India’s prominent Brand in plywood manufacturing, well recognized for its unmatched craft man ship & unparallel customer service.

Duro ply 68+ years old company established by our grandfather Sri P.D Chitlangia. He was a great visionary, always focussed on the quality, whose small dream transformed us into a plywood manufacturing giant.

All the seven decades journey was not full of roses. We have seen lots of ups and drawn. Every thing has been changed since our inception, but what has not changed, is our ability to challenge the ordinary and our vision to excel in all our endeavours.

We are following BIS standards since 1976, and additionally we have conceptualized the global standards in our products.

Our customer purchase our different products, with a confidence that they are getting valued quality and benefits against a normal price. We are thankful to our loyal customers, who are using our product through generation.

Sometimes, our customer exclaim, that, if we use Duroply in our furnitures, we don’t have the chance to purchase plywood in our life, as it will not deteriorate till then.

Hence Quality remains forever.

Duro Flex