Finally E-way bill on interstate transportation of goods is mandatory. Above Rs 50,000 dispatches will have to log in for E-way bill and hence the era of data matching and catching the evasion masters will be easier. The whole process of “GST & E-way bill” will be complete, there will be interstate, intrastate and other inbound form provisions.
“If you miss the bus now, you may never reach your destination.”
The implementation of E-way bill is set to change the working and selling proposition in Plywood, Laminate and whole interior material sector. The importance of being a branded or organised company will be realised with each passing year from now onwards. With E-way bill impact, the gap between brand and non-brand products will be narrow hence dealers will prefer buying from better equipped and active manufacturers. It is certain that those who were selling without bill will not find this trade easy any more. They have to add taxes and hence there will be relief to branded and organised people from May 2018 onwards.
The raw material input cost has gone up for each product. Timber prices have gone up by 30% whereas face veneer, formaldehyde, phenol, pine or fuel (petrol, diesel) have shot up, hence impacting a price rise in tune to 6-7 % (till writing it ) hence Plywood, PB, MDF producers will need market support. The laminate producers have recorded price rise in base paper, phenol, melamine and transport cost hence a pressure on increasing price is inevitable and sooner or later the price increase will have to be passed on. The biggest impact going to trouble small players is for staff salaries and sales expenses to remain relevant in present market.
With time, as companies will add up taxation cost and various other expenses, the net price of finished material will climb up. And this is exactly why during last 1 year; stock price of every organised brand has appreciated. Dealers will have to adopt formal billing culture with good banking practices to grow and expand further. To succeed at such times, the advice to distributors and big dealers is to pour capital in business, be on toes to expand your network and take products from like minded manufacturers and organised players. If you miss the bus at this moment, you might never reach your destination. GST & E-way bill combined with state forms will certainly push the wood panel trade to be in a transformed business environment by 2020.