Growing competition and industry capacity has put pressure on Century Plyboards India Ltd.'s medium-density fiberboard business, but the headwinds will only last for another two-three quarters.
That's according to Managing Director Sanjay Agarwal who expects the vertical to perform well in another 12 months as competition subsides.
“I don't think further pressure will come. We will have to survive this pressure for the next two-three quarters before the growth takes up with the available capacity,” he told BloombergQuint in an interview.
The company is bullish about the future as new entrants in the market have already succumbed to pressures. “All the newcomers who were planning new capacity and plants and were not in the industry, all of them have totally closed their shops,” Agarwal said.
“At least for the next two-three years, new capacities will not come in this business. So that gives us a lot of consolation in our mind that maybe after a year, MDF will also do well,” he said.
Watch the entire conversation with Sanjay Agarwal here:
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