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India is known as one of the most populous countries in the world. Its economic
liberalisation occurred in 1991 allowed India to increase the high rate of GDP and became
a fast economy. The steadily growing middle-class has improved the local purchasing
power and developed the construction sector for housing and infrastructure. Significant
investments in these sectors have increased the demand for wood and wood products. As
such, the demand for plywood has grown in the domestic market and has opened an
opportunity for foreign investors and manufacturer countries to invest in the Indian
domestic market of plywood.
Despite the lack of information about Indian wood market, this research aims to
complement previous studies related to Indian wood products based on the use of a
descriptive and empirical research methods. The PEST analysis and an econometrical
demand model are used to provide an overall overview of the Indian plywood market at
local and global level; determine the potential drivers that impact the Indian demand for
imports of plywood; and propose the current challenges and opportunities for foreign and
Finnish investors to explore the plywood market in India.
As in previous studies related to demand models of wood products, this study confirms
that the demand for imports of plywood is positively related to consumer income (GDP per
capita) but negatively to price variables (Domestic price of plywood). However, the Indian
demand for plywood appears to be income elastic but price inelastic. Additionally, other
significant economic activity variables such as population density, economic openness and
unemployment were tested to determine the impact of significant cross-price elasticities
for products that show to be complements of plywood. Nevertheless, further modelling is
recommended for future studies related to wood products in India.
1 Exhibit constituents of 2
Indian plywood market
2 Exhibit constituents of 5
plywood industry size
3 Exhibit demand split and 8
nature of demand
4 Raw material usage in 10
indian plywood industry
5 Exhibit market share 11
6 Framework of study 20
I Introduction 1
1.1CompanyProfile 2-10
1.2IntroductionoftheProject/work 11-14
II Project Details 15
2.1Literature Survey 16-17
2.2Objectives 18
2.3Methodology 19-28
V Conclusion 55
5.1Conclusion 56
5.2Suggestions 57-59
5.3Recommendations 60-61
Bibliography/References 62