With pre-laminated particleboard and MDF becoming increasingly profitable new capacity is being added in India. Reports suggest that in 2014 capacity in the wood based panel sector expanded at around 700 cubic metre per day.
India has extensive sugar plantations and generates a huge quantity of bagasse suitable for the panel industry. Three new panel mills have been commissioned this year and one more is soon to begin production in in Chennai.
Wood Plastic Combination boards are also becoming popular as they are considered strong, waterproof and easy to work and finish. Such products, which are new to the Indian market, make use of a wide variety of wood and agri-residues which help reduce dependence on imports.