road to india wood market feasibility studys3.amazonaws.com/zanran_storage/ import item, accounting...

Université du Québec en Outaouais

Luna Design Group Consultants Presents

Road to India Wood Market Feasibility Study

Project Client of CWC

Mr. Kirill Popov

Project Champion

Professor Tomas Koplyay, PhD

Project Team Dana Khreis Sharique Ahmad Rong Liu Chao Sun

December 2006


Luna Design Group Consultants 2

Table of Contents

1 Executive Summary 4

2 Introduction 5

3 Why India? 6

4 Feasibility Analysis 7 4.1 Marketing Feasibility Analysis....................................................................................7

4.1.1 Market Overview 7 4.1.2 Competitive Environment 16 4.1.3 Customers 26 4.1.4 Market Logistics 29 4.1.5 Conclusion 36

4.2 Technological/Technical Feasibility Analysis ...........................................................37 4.2.2 Fire hazard 41 4.2.3 Finishes 44 4.2.4 Fasteners and fastening techniques 46 4.2.5 Structural integrity 49

4.3 Environmental Feasibility Analysis ..........................................................................50 4.3.1 Forest Resources 50 4.3.2 Warm-Humid Climates 51 4.3.3 Conclusion 52

4.4 Institutional Feasibility Analysis ...............................................................................52 4.4.1 Import Regulations 52 4.4.2 Import Restrictions 54 4.4.3 Investment Policies 54 4.4.4 Export Credit Risks, Restrictions on Letters of Credit, Currency Controls 54

4.5 Social Feasibility Analysis........................................................................................55 4.5.1 Introduction 55 4.5.2 Wood products for housing 55 4.5.3 India woodworking machinery Industry 56 4.5.4 Conclusion 57

4.6 Economic Feasibility Analysis..................................................................................57 4.7 Risk & Challenge Analysis.......................................................................................58

4.7.1 Tariff Barrier: (High Impact) 58 4.7.2 Humid Climate: (High Impact) 58 4.7.3 Moth-Eating: (High Impact) 59 4.7.4 No awareness of Canadian products: (High Impact) 59 4.7.5 Cultural Preference: (Medium Impact) 59 4.7.6 Disorder Market: (Medium Impact) 59 4.7.7 Competition: (Medium Impact) 59 4.7.8 Forestation: (Low Impact) 60

5 Conclusion 60

6 Appendix A: Key Contacts and Support Services 61

Canadian Government Contacts ...........................................................................................61 Indian Industry Contacts ........................................................................................................63 Building and Construction Trade Shows (2006-2008) - India................................................69



7 Appendix B: Survey Questions for Indian Firms 73



1 Executive Summary India’s boom in industrial and residential construction, brought about by consistently good economic growth and increases in disposable income, is translating into a growing demand for wood and wood products by commercial and private customers.1 The Indian market for softwood lumber and wood building products is estimated to be about $4.3 billion, with a 6% annual growth rate. Some segments, such as wooden furniture, are growing at much faster rates. The level of imports has also increased dramatically: by 80% in the last five years. India’s shortages of domestic wood, its uncompetitive, low-tech domestic processing sector, and its increasingly liberal trade environment have created considerable opportunities for wood and value-added wood products imports. Rough wood is the biggest import item, accounting for almost US$820 million of the US$976 million in wood and wood products imports in 2004-05. While the market preference strongly favors tropical hardwoods, softwood imports have increased in recent years. Canadian wood products exports to India (mainly furniture, veneer sheets and veneer-laminated plywood) reached US$1.6 million in 2004-05, accounting for 0.16% of Indian imports that year. There are few trade barriers in this market; for example, import tariffs are being reduced progressively and there are no mandatory quality standards (except for supplies to government projects). Foreign companies can set up wholesale distribution networks in India, with specific permission from the Indian government. Opportunities for Canadian firms include providing treated and sawn lumber, decorative veneers, ready-made doors, furniture, and, to a much lesser extent, up-market wood-frame housing solutions. There are more opportunities in Institutional markets (e.g. real estate developers, hotels and building contractors) for panel products, doors and furniture. There are also opportunities to supply secondary products to industrial customers (e.g. plywood units to housing developers), and to distribute end products in the consumer retail channels. However, it is important to note that the Indian market has had a limited experience with soft woods, and the experience with imported soft woods is almost entirely with Radiata pine from New Zealand. To gain market share, Canadians must create awareness in India of the range and suitability of Canadian species to target applications, particularly in the country’s two largest wood products markets, Mumbai and Delhi.



2 Introduction As one of the fastest growing economies in the world, India, nowadays, has caused a global attention. After having grown by 6% annually over the decade of the 1990s’, its economy has been dramatically increasing with an annual growth rate of close to 8% for three years consecutively since 2002. And it is estimated that this growth will continue for the next five years. A report by economists at Doldman Sachs’ shows that if these growth rates continued, by 2025 India would be the fourth largest economy in the world---larger than Italy, France, United Kingdom and Germany, on the one hand. On the other hand, despite a poverty rate of more than 25%, India has a consuming middle class of 300 million people. As predicated, this amount will reach 544 million in the next 6 years. At the same time, more than 50% increment of the middle class in the developing world will stem from India. Furthermore, in 2004-05, India imported nearly $1.04 billion worth of rough wood and semi-processed wood articles (plywood and boards), and close to $52.6 million worth of value-added products, principally furniture articles. And also, India is one of the major users of wood in the Asia-Pacific region. According to the Food and Agriculture Organization (FAO), India’s wood consumption in primary and converted forms is estimated to be close to 75 million cubic meters (mcm), and is expected to grow to nearly 92 mcm by 2010. In general, India is a huge potential market. From international trade perspective, a good manager will always see it as the lifeblood of business and competing in the context of a globalized world. Put in this context, Luna Design Group Consultants under the supervision of the University of Quebec and in agreement with the Canadian Wood Council (CWC) decided to do the study entitled “Road to India” aiming at exploring the feasibility for Canadian engineered wood products to enter Indian market. The study involves the highlights of Indian economy, environment, institutions concerned, and risk analysis. We hope the result of the survey provide the businesses which plan to tap Indian engineered wood market with strategic insight on what works and what doesn’t in the crucial Indian market. Table 1. India’s Wood Demand Trends, 2000-2010 (mcm) Sector 2000 2005 2010 Sawn wood (housing, furniture, implements, packaging) 47 50 54 Pulp (newsprint, paper) 23.60 28.50 35.00 Plywood 1.45 1.69 1.92 Particleboard 0.34 0.49 0.65 Fiberboards 0.22 0.32 0.41 Medium-density fiberboards 0.40 0.67 0.95 Total 73.01 81.67 92.93 Source: FAO, Asia Pacific Forestry Outlook Report (2001-2)



3 Why India?

FACT: India is Canada's largest trading partner in South Asia

Long regarded as the last great developing market, India has shed its image of "potential unrealized," with economic forecasters now predicting that it will become one of the top five economies in the world within 30 years. – EDC report Winter 2005

The Indian market has an increasing consumption growth potential supported by an increasingly educated public and growing income levels. India's structural reforms and the development of a modern economic base have led to major economic reforms in India. These reforms removed much of the government regulations for investment and trade, eliminating the quota and tariff system that kept trade low.

Important to continued growth and economic development has been the emergence of "New Economy" sectors, such as information technology, telecommunications, media and entertainment. India is moving to a modern economy with diversified industries and sophisticated financial and service sector.

There are a number of good papers and web pages on the subject of Why Export to India ...

• EDC recently supported the publication of Canada-India: Moving Forward, a special guide on the prospects and realities of competing in the Indian market. A full copy of the guide (in English only) can be viewed from the co-publisher's Web site (L.B. Associates) at: http://www.diplomatist.com/page/canada.htm.

• The McKinsey Quarterly has a Quarterly special edition covering issues including the current climate for business in India called "Fulfilling India's promise". Also in the edition is an interview with India's Prime Minister, Dr. Manmohan Singh, discussing his country's prospects and challenges. Click here for the interview.

• The Goldman Sachs report, "Dreaming with BRICs: The Path to 2050", predicts that India has the potential to grow even faster than China over the next 50 years and that by 2010 India's growth rate should exceed that of China.

• Why Trade Matters – read how trade enhances quality of life for Canadians and the people in India.

• "What Works, What Doesn't in the Indian Market, – A Strategic Guide for Canadian Business", Asia Pacific Foundation of Canada, May 2004

• Export Development Canada (EDC) provides a number of related reports on trade advantages with India:

o India – "The Dawn of a New Era", Export Wise (Winter 2005) o India – It's budget time – July 12, 2004

• Excerpts from the "Canada Report", Financial Express of India, February 2000



4 Feasibility Analysis

4.1 Marketing Feasibility Analysis

4.1.1 Market Overview Products considered for this report are wood in rough and sawn form; panel products (plywood and boards, particleboard, medium-density fiberboards [MDF]); builder’s joinery (doors and windows); flooring; and furniture. Based on information compiled from various sources, the Indian market size for wood products of specific interest to this study is estimated to be in the region of $4.28 billion, in terms of end-use applications. National consumption of wood products is growing at more than 6%, which is in line with the overall economic growth trends, and the increase in disposable incomes is translating into demand for housing and home goods. Based on that 6% growth rate, the market for value-added wood products is expected to grow to about $5.7 billion by 2010. Growth is higher in urban India, with demand rising in some segments like furniture and kitchens, and in construction. Table 2. Market Size, by Value-Added Product Segment Market Size (US$ million) Panel products 504 Joinery 596 Furniture 2 520 Kitchens 183 Flooring 23 Total 3 826 (C$ 4 280 million) Source: Compiled from assorted sources by Ace Global Table 3. Wood Consumption Trends to 2012-13 (mcm) Description 1999-00 2002-03 2005-06 (p) 2012-13 (p) Logs 48.0 50.5 57.0 70.5 Sawn wood consumption 31.2 31.7 33.2 37.8 Veneer and plywood 2.1 2.6 2.9 4.9 Builder’s joinery 3.3 3.4 3.5 3.9 Timber in construction use 14.9 15.5 16.3 19.2 Source: International Tropical Timber Organization (ITTO) Report 2004 (p): projection

4.1.1.1 Market Segments

Joinery Based on housing stock growth trends, annual demand for joinery is projected to be around 36 million doors and 36 million windows. According to industry sources, ready made doors account for less than 15% (about 5 million doors) of the market per year. Wooden doors account for 70% (about 3.5 million doors) per year. Flush doors account for 65-70% of the market, while panel doors account for an up-market 10% share. Doors made from MDF and molded-skin high-density doors account for 10% of



the market. Doors made from other materials, including rubber wood, make up the rest of the market. In value terms, the Indian market for ready-made wooden doors and windows is estimated to be in the region of Rs 24 billion, of which doors account for $520 million.

Plywood and Panel Products According to the Federation of Indian Plywood and Panel Industries (FIPPI), the total output of the plywood and panel products sector is around 220 million square meters (msm), with a market turnover of approximately $585 million. This output falls short of the projected 290 msm of demand this year (see Table 4). The industry operates at less than 33% of capacity, due to the shortage of domestic raw materials and also the poor financial health of several players (see also, Local Capabilities). Table 4. Market Size of Panel Products, msm on 4 mm basis Segment 1990-91 1996-97 2000-01 2006-07(p) Plywood and block board

120 139 159 203

Particleboard 34 40 45 58 Fiberboards 14 20 23 29 Total 168 199 227 290 (p): projection Source: FIPPI, Industrial Techno-Economic Services (INTECOS) The organized sector represents around 15% of the output volumes. Organized sector units manufacture an estimated 20 msm of panel products, and about 33 msm of veneers. Plywood accounts for 17.5 msm, almost 87% of the panel product volume output.

Wooden Furniture There are no official estimates of the furniture market, given the huge number of small companies making furniture in India and the small-scale industries policy (see Key Factors Shaping Market Growth). While estimates of the market size vary, between Rs 60 billion and Rs 300 billion, Ace Global suggests that a realistic estimate of the furniture segment is considered to be $2.86 billion. There is a general consensus that the commercial and residential furniture markets are approximately equal in overall market size terms, although the former has substantially higher unit values. Apart from the very basic furniture, i.e. shelves, beds, tables and chairs, the furniture market is essentially urban, located in the larger and economically more active cities.

Kitchens Traditionally, the usage of wood in Indian kitchens has been in the form of shelves and cabinets, mostly fabricated on site, according to space and user requirements. The increase in demand for luxury housing and the increase in the number of working women (see the appendix for general country information including demographics),



coupled with a general desire for a higher quality of living, have translated into a growing demand for modern kitchens. Based on recent surveys, including a primary survey by Ace Global in June 2005, there is a current demand for more than 20 000 high-end modular kitchens per annum, estimated at $208 million in revenue. The current supply level is much lower, around 6000 units per annum, of which a large share is accounted for by imports (Italy, Malaysia and China being the most important supplier countries). India’s main cities—Delhi, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata—account for more than half of demand. The kitchens market is reported to be growing by more than 30% per annum, according to manufacturers, and expectations are that the market size will grow to $780 million by 2010, as modular kitchens become standard offerings in all up-market housing projects. Several foreign brands, including some premium European brands have entered the Indian kitchens market.

Flooring The size of India’s floor coverings market, including plastic, linoleum and laminate flooring is estimated to be a 400 000 m2 market, according to Pergo Flooring India, a leader in the laminate flooring segment. Wooden flooring has traditionally been a very small (almost negligible) segment of this market. According to the International Tropical Timber Organization (ITTO), in 2002-03, less than 30 000 m3 of timber was reported to be used for flooring, in 12 major cities. In terms of value, this translates into a national market of approximately $15.6 million. However, there is a recent trend toward use of parquet flooring in urban homes in metros, especially in centrally temperature-controlled buildings. According to projections by the ITTO, the flooring market is expected to triple in size by 2012-13, driven by demand in upscale commercial and residential projects in the large cities. Import Trends

4.1.1.2 Market Price Retail prices for select products prevailing in Delhi have been featured below, to provide a flavour of the retail price points for these products. Table 5. Market Prices of Wood-based Panel Boards, 2006 (US$) Type Thickness Imported Indian Teak wood per cu. ft. 11.5 - 32 25-34 Pine wood per cu. ft. 3.2-6.3 3.4-6.3

19 mm (per sq. ft.) 0.6-0.65 0.55-0.62 Block boards 25 mm (per sq. ft.) 0.80 0.6-0.7 12 mm (per sq. ft.) 0.37-0.55 Particleboards 18 mm (per sq. ft.) 0.48-0.60 3 mm (per sq. ft.) 0.1 Hardboards 6 mm (per sq. ft.) 0.2



3 mm (per sq. ft.) 0.15 0.1 6 mm (per sq. ft.) 0.32 0.17-0.2 12 mm (per sq. ft.) 0.6 0.3

MDF

18 mm (per sq. ft.) n/a* 0.57 4 mm (per sq. ft.) 0.14-0.18 0.14 6 mm (per sq. ft.) 0.23-0.32 0.16-0.18 12 mm (per sq. ft.) 0.32-0.34 0.27-0.3

Plywood

18 mm (per sq. ft.) 0.43-0.46 0.46-0.5 4 mm (Donear) (per sq. ft.) 0.69-3.4

4 mm (Bhutan Tuff) (per sq. ft.) 0.41-0.57 4 mm (Greenlam) (per sq. ft.) 0.7-4.6

Plywood with imported veneer

6 mm (Teak veneer) (per sq. ft.) 0.4-0.7 Century Plywood teak (Indian) 230-300 Panel doors Other woods 70-140

Flush doors 15-28 Furniture 3’ x 2.5’ study table 180-205 57-183

6 mm (per sq. ft.) 2.8-3.4 1.1-1.8 Flooring 8 mm (per sq. ft.) 3.4-8 2-3.4

* n/a: not available

Source: Primary survey by Ace Global, 2005

4.1.1.3 Import Tends Domestic shortages of timber and overall import liberalization activities have resulted in a steady growth of wood and wood products into India. Since 2001, when all quantitative restrictions were removed on imports, imports have grown 81%—much faster than the sector’s 6% growth rate. In 2004-05, India’s wood sector imports were in the region of $1.06 billion, of which wood accounted for nearly 90% or $0.96 billion. Other 2004-05 import totals were panel products, $52 million; joinery $2.6 million; and furniture, $44 million. It is expected that the overall share of imports will continue to increase in future, given the continued shortage of timber, increasing availability and choice of imported products, declining tariffs on imports, and the disorganized and debilitated domestic industry (see Local Capabilities). Imports are expected to dominate the upper end of the market in all segments, especially furniture, kitchens and even decorative panel products. Table 6. Imports of Builders' Joinery, 2000-01−2004-05 2000-01 2003-04 2004-05 Code Description Qty.

(kg) Value (US$ million)

Qty. (kg)

Value (US$ million)

Qty. (kg)

Value (US$ million)

4418 Builders’ joinery and carpentry of wood, including cellular wood panels, assembled parquet panels, shingles and shakes

0.72 1.7 3.8



441810 Windows/French windows and their frames

11 059 0.05 153 0.01 19 490 0.4

441820 Doors, their frames and thresholds

28 980 0.07 49 910 0.15 82 440 0.53

441830 Parquet panels 164 232 0.47 347 140 1.18 733 630 2.31 Source: Director General Commercial Intelligence and Statistics (DGCIS), Ministry of Commerce

Table 7. Imports of Wooden Furniture, 2000-01−2004-05 (US$ million) Code Description 2000-01 2001-02 2002-03 2003-04 2004-05

940330 Office furniture 4.05 3.04 6.67 12.26 16.68 940340 Kitchen furniture 0.65 0.72 1.36 1.93 3.11 940350 Bedroom furniture 0.6 1.27 1.17 3.06 5.77 940360 Other furniture 2.78 4.14 7.12 7.79 12.32 Total Wooden Furniture 8.08 9.17 16.32 25.04 37.88 Source: DGCIS, Ministry of Commerce According to statistic, India wood product import has been increasing dramatically in recent years. In the fiscal year of 2005-2006, India imported US$955.54 million various kinds of wood products, increased by 5.31% against the previous fiscal year. It indicates, from certain extent, that the demand for wood products is growing. The characteristics for Indian wood import are as follows:

Sharply increasing in recent years. In fiscal year of 2004-05, the wood import increased by 22.6% against the previous year, and in 2003-04, increased by 66.7% in comparison with the year of 2002-03.

According to HS Code, the item 4403 - Wood in rough W/N striped of bark/sapwood or roughly squared - is the main imported item. The import value is US$831.73 million in the fiscal year of 2004-05, increased by 24.57%.accounting for 91.66% in the total import of wood products. In addition, the items 4407, 4410, and 4411 are also main items, respectively.

Main imported items are low value-added products. According to the statistics in the chart below, all the items belong to primary, low value-added products. It indicates that there is great potential in Indian market for value-added wood products, such as engineered wood products.

Table 8. India Main Imported Wood Items, 2001-02−2005-06 (US$ million) HS- Code

Commodity 01-02 02-03 Growth%

03-04 Growth%

04-05 Growth%

05-06 Growth%

4003 WOOD IN ROUGH W/N STRIPD OF BARK/SAPWOOD OR ROUGHLY SQUARED

509.77 373.06 -26.82 667.70 78.98 831.73 24.57 831.59 -0.02

4007 WOOD SAWN OR CHIPPED IN LENGTH SLICED OR PEELD W/N PLANED SANDED OR FINGER-JOINTD THIKNES ABOVE 6

11.06 7.06 -36.14 12.32 74.42 13.54 9.89 20.87 54.20



MM 4010 PARTCLE BORD

AND SMLR BORD OF WOOD OTHER LIGNUS MATRLS W/N AGLOMRTD WITH RESIN OR OTHR ORGNIC BINDG SUBSTS

8.57 7.16 -16.52 13.25 85.06 17.08 28.92 22.62 55.90

4011 FIBR BORD OF WOOD OR OTHR LIGNEUS MATRLS W/N BONDED WITH RESIN/OTHR ORGNIC SUBSTS

9.83 10.08 2.48 13.07 29.71 18.10 38.50 27.96 54.47

Source: Directorate General of Foreign Trade

4.1.1.4 Key Factors Shaping Market Growth The growing Indian market, demographic changes and weak domestic competition represent ideal conditions for Canadians to introduce their products to the Indian market.

Increased Use of Softwood Tropical hardwoods, especially teak, have been the wood of choice in India due to their hardness, durability and termite-resistant properties. In recent years, increasing prices and export restrictions (on primary forms) in several countries are affecting availability of teak and other hard woods in India. As a result, there is an increasing substitution by softwoods, dominated by Radiata pine from New Zealand and Australia (accounting for more than 90% of softwood imports). The bulk of softwood usage is in untreated form, in low-value applications such as shuttering, packaging, and as filler and core materials in plywood. There has also been some consumption in manufacture of furniture and other added-value products (albeit with poor results, attributed mainly to sap stain, warping due to improper seasoning and susceptibility to termites).

Demographic Trends According to the National Council for Applied Economic Research (NCAER), India’s premier economic research institution, income levels are rising all over India, especially among the higher income groups that already have disposable incomes. According to NCAER data, the number of “very rich” households (having a per capita income of more than $ 19,500 per annum) is set to triple from 2 million households in 2000 to 6.2 million in 2007. This creates new demands, based on lifestyle and aspirations, including for up-market household products. Growth in demand is expected to be stable in view of consistently good economic growth in all sectors of the economy. Also, the increased availability of consumer finance in recent years and the increase in women working outside the home (see Appendix C) has further stimulated purchases of consumer durables.



Housing Trends

As per National Building Organization (NBO) projections, by 2011 there will be 87 million urban households and 152 million rural households. Forecasts of housing availability indicate that the building stock will rise by 6 million units each year till 2011 (see Table 9), generating related demand for wood in construction (e.g. shuttering, structural applications) as well as interior uses (e.g. furniture, flooring). According to the Building Materials and Technology Promotion Council, timber accounts for close to 6% of construction costs of residential buildings in urban areas, close to 8% in rural areas, and 4-8% in commercial constructions. Therefore, the demand for timber is projected to rise directly in line with the growth trends in housing and construction. Table 9. Construction Sector in India, 1991-2011 (No. of Units, million) 1991 2001 2006* 2011*

Residential 39.1 55.02 71.24 86.17

Non-Residential

13.03 16.54 23.75 28.72

Urban

Urban Total 52.13

26.6%

71.56

28.7%

94.99

33.0%

114.89

36.2%

Residential 107.88 136.1 144.92 151.79

Non-Residential

35.96 41.44 48.31 50.6

Rural

Rural Total 143.84

73.4%

177.54

71.3%

193.23

67.0%

202.39

63.8%

Residential 146.98 75.0% 191.12 76.7% 216.16 75.0% 237.96 75.0%

Non-Residential

48.99 25.0%

57.98 23.3%

72.06 25.0%

79.32 25.0%

Grand Total

Total 195.97 249.1 288.22 317.28 * NBO projections for 2006 and 2011 Source: Census of 1991 and 2001

Wood Supply Imbalance and Import Liberalization India’s forestry and trade policies have effectively resulted in increased dependence on imported sources for raw materials. India currently imports close to 1.7 mcm of industrial round wood, a level that may grow to 3 mcm by 2012. Therefore, considerable potential exists for the supply of logs. Also, given the limitations of the domestic processing sector, the rising demand for up-market furniture and other wood products is unlikely to be met by domestic industry. These factors, along with an increasingly open import policy and reducing tariffs, present sustainable growth opportunities for the import of value-added products.

Small-Scale Industries Policy India’s policy for small-scale industries (SSI) is aimed at generating viable livelihood and self-employment opportunities in a large number of traditional and low-tech



production areas. The SSI policy reserves more than 500 products—which include several wood products—for manufacture exclusively in small-scale enterprises, i.e. units having investments of less than Rs 10 million ($260 000) in capital goods. Wood products currently reserved for exclusive manufacture in the small-scale sector include sawn timber, seasoned wood, wooden crates, tea chest plywood, wooden cable drums, tent poles, bamboo handles, wooden plugs, wooden furniture and fixtures, wooden storage cupboards, shelves and racks. As a result, India’s domestic industry in wood products is dominated by small players, with low capital and low-tech investments.

Ban on Forestry and Forest-based Units India’s northeastern states were once the main source of forest wood to the industry. In 1997, acting on a public interest petition against the unscrupulous felling of timber in forest areas, the Supreme Court of India imposed a total ban on felling of timber in those states. The Court also ordered the closure of all saw mills, plywood factories and other secondary processing units operating near forest areas in those states for a period of five years. The Court ruling led to a partial relocation of saw mills to other states, and closure of a large number of units that could not relocate. The ban continues on all processing units located on forest fringe areas, and new as well as relocating units require specific location clearances from the Ministry of Environment and Forests. Clearances are issued based on declarations that the sources of timber shall be only plantation forests and not natural forests.

Ban on Wood Products in Government Projects In 2000, the Indian government enacted orders proscribing use of solid wood articles in all government constructions, as a signal to encourage conservation of forest resources. As a result, only non-wood materials (e.g. poly-vinyl chloride [PVC], steel and aluminum) or reconstituted products (e.g. MDF, particleboard and straw board) are allowed in government buildings and other public construction activities. This policy took away the entire government market for wooden doors, windows, cabinets and shelves, estimated to be more than 15% of the Indian market.

Non-standardization The Indian market faces problems of high degree of non standardization, both in building constructions, as well as in wood products used in construction and in interiors. Absence of standardization in construction: Building regulations and bye laws on housing and construction are promulgated by urban municipal bodies, but deal more with issues of encroachment, land usage and permissions for public utilities rather than the specifications and quality of constructions, which are entirely at the discretion of the consumer and building contractor. As a result, the interiors of residential buildings and dwelling units are not governed by any mandatory provisions, although some specifications are laid out for factory and industrial constructions. Even large real estate developers do not fall under any statutory



regulatory body that sets building standards or ranks buildings or development projects by quality standards. This lack of standardization manifests as variations in internal dimensions of living and utility spaces in mass housing projects, a result of the one-off and manual construction methods employed in the sector. In turn, this causes practical difficulties in bulk supplies of building materials- including shelves, cabinets and modular kitchen elements, in a large number of projects. This lack of standardization in buildings construction supports the one-off, on site fabrication of wood products, and explains the low penetration of mass-manufactured products in standard sizes. Recently, the Bureau of Indian Standards, along with the National Buildings Construction Corporation, India’s apex body in the housing construction sector, has embarked on developing new standards for building construction specifications, to supplement the standards already specified for individual wood products such as doors and windows.

4.1.1.5 Opportunities Steady import liberalization and progressively lower import tariffs have facilitated the entry of world-class, competitive products into the domestic market, effectively overthrowing the weak and uncompetitive domestic industry. The entry of foreign companies into the trading and retail sector adds to the opportunities for international companies to distribute their products directly in India. Based on the current market trends, opportunities for Canadian companies include softwood lumber for low-value applications including packaging; high-value, appearance-grade softwood in joinery, millwork and doors/windows; sawn and treated lumber, including impregnated and glue-laminated lumber, for premium real estate projects; ready-made panel doors; hardwood parquet flooring; decorative plywood and face veneers; and office and home furniture, including pre-cut kitchen cabinets. These opportunities lie within three broad categories: Import and distribution of ready-made doors, decorative veneers and wood flooring: The enormous growth in real estate construction, including in premium commercial and office space, opens opportunities for high-quality products available in standard, repeatable sizes; large-volume lots; and a wide range of aesthetic designs. These characteristics cannot be offered by the domestic industry. Canadian companies have good prospects for sales in large construction projects. This market can be best served through a combination of project sales and a few wholesale traders located in the major cities. Supply of design solutions and treated, sawn lumber for premium housing projects: Projects like Amby Valley, by the Sahara Housing Construction Group near Mumbai, which have plans for large-scale wood-frame housing, represent a nascent but potential market, and should be explored initially for supply of sample home designs



and subsequently for turnkey supply of treated, cut-to-size lumber. Of note is that the initial experience with Australian and New Zealand pine has not been very encouraging in some projects, and there would be interest in exploring other species. Price would be a key factor for entering this market segment. There are practically no opportunities in the low cost housing segment, however. Retailing of ready-made imported furniture: Demand in the Indian market is dictated by what importers want, not what manufacturers will supply. Canadian products can be best promoted through one or more exclusive retail outlets in each major market, beginning with Mumbai and Delhi. This would enhance the visibility of Canadian products and promote manufacturers’ rather than private-label brands, as is presently the case for products from Italy, Malaysia and China. Furthermore, January’s changes in India’s retailing policies now permit foreign investment (up to 51%) in single-brand retail activities. This could provide internationally well-known brands the opportunity to have a more-effective presence in India and build their product portfolio, while minimizing the risk of having importer-distributors switch to competing products after the supplier commits considerable investment in market development. Opportunities are also discussed in the sections dealing with customers, below.

4.1.2 Competitive Environment

4.1.2.1 Local Capabilities India’s wood processing sector is highly unorganized and technologically underdeveloped. Serious domestic shortages in wood supplies and relocation of forest-based industries have resulted in closures and low-capacity utilization. Indeed, capacity utilization in registered enterprises is rather low across the sector, plywood manufacturers, for example, are operating at less than 35% of capacity, and some large furniture plants have closed manufacturing operations in the past three years. India’s manufacturing base now consists of more than 4500 registered plywood and board units, 4 MDF board units, fewer than 10 large furniture and furniture component manufacturers, besides an indeterminate number of sawmills, seasoning and treatment units, carpentry shops and small-scale units producing a vast range of wood products.

Sawmills There are more than 1000 registered saw mills in India, each with a sawing capacity of 1 metric tonne (MT) per hour or less (saw mills are reserved for small-scale units). Many of the country’s northeastern mills have either closed or relocated close to the port cities receiving imported timber, such as Kandla.

Plywood and Panel Product Manufacturers



Although the domestic industry in panel products is spread over several regional locations, production of plywood is concentrated in north India. Yamuna Nagar in Haryana is India’s major production cluster and has more than 300 sawmills, more than 200 plywood/block board units, and 150 veneer-making units. These are all small-scale units with capital investments of less than US$0.2 million, as specified under the SSI policy. There are 20 large plywood units operating under special license (these units existed prior to the SSI policy implementation). Most of these units—including most of the nationally well-known brands—are located in east and northeast India. Following the 1997 Supreme Court ban, many of these units have either partly relocated to other parts of India or reduced the scale of their operations. There are also four MDF manufacturers in India, accounting for about 8% of the panel production. MDF demand is driven by the growth in office space needs, especially from India’s booming information technologies (IT) sector, as well as from the government (thanks to its policy of using only reconstituted products). Table 10. Structure of India’s Wood Panel Industry Type Market Share Presence of

Unorganized Sector No. of Organized Sector Manufacturers

Block boards 40% Significant (70%) 20 Particleboards 20% Nil 5-10 Hard boards 5% Insignificant (10%) 4 MDF 5% Nil 4 Plywood and others 25-30% Significant 200* * The industry association could not provide an exact number, as many units have closed down Source: Ace Global (primary survey interviews)

Joinery The joinery market is scattered and is composed of thousands of small-scale fabricators. According to Wood News, an industry journal that tracks the sector, there are an estimated 60 factories with facilities for seasoning, treatment and mechanical processing of doors, with production capacities ranging from 1000 to 10 000 doors per month, of which the majority produce less than 2000 doors per month. There are practically no nationally known brands in the segment.

Furniture Manufacturers There are only a handful of large furniture manufacturers in India, including two joint ventures with European companies Groupe Seribo of France and Saporiti of Italy. Modular office furniture, partitions, chairs and storage units are the major products from these companies, although Saporiti specializes in lounge furniture. Godrej2, an Indian company, is the largest office furniture manufacturer. There are several smaller players producing a range of plastic furniture, office chairs, partition panels and other items. The large-scale manufacture of wooden furniture has remained

2 For contact information regarding key organizations mentioned in this report, see Key Contacts and Support Services. Key companies are also listed in the appendix.



problematic in India, given the easy availability of carpenter-made customized products at lower prices. As a result, organized players are able to survive only on demand for large orders, from the institutional and corporate market. The increasingly easy availability of imported products is a further challenge to the sustainability of large-scale production units. Summing up, local capabilities are seriously inadequate in quality and scale, and are increasingly vulnerable against competitive, higher-quality imported products.

4.1.2.2 International Competition The leading competitors in imports differ from product to product. Malaysia is the most significant competitor in a large number of products, including tropical hardwood, parquet flooring, joinery and furniture. Countries from within the Association of Southeast East Nations (ASEAN) and Africa are the major suppliers of rough wood; Malaysia, China, Myanmar, Indonesia and several European origins are the major suppliers of value-added products. Major supplier countries, by product type, are: • tropical hardwood: Malaysia, Myanmar, Ivory Coast, Benin and Ghana; • softwoods: New Zealand, Australia (and some from Europe); • plywood, veneer sheets: Myanmar, Italy, United States, China; • particleboard: Nepal, Bhutan, Belgium; • plywood veneered panels: Thailand, Myanmar; • parquet flooring: Indonesia, China, Malaysia; • joinery: Denmark, Italy, China, Malaysia; and • furniture: Malaysia, Italy, Singapore, Germany. Table 11. Market Shares of Top Three Supplier Nations, 2004-05 HS Code

Description India’s Total Import US$ million

Rank 1 Rank 2 Rank 3

4403 Wood in rough 820.24 Malaysia 39%

Myanmar 27%

Ivory Coast 7%

4407 Wood sawn 13.24 U.K. 23%

Germany 17%

South Africa 13%

4408 Veneer sheet and sheets for plywood

4.90 Myanmar 20%

Singapore 18%

Italy 15%

4409 Wood (incl. strips, friezes for parquet flooring, not assembled)

2.10 Indonesia 32%

Malaysia 30%

China 12%

4410 Particleboard and similar board of wood

16.76 Nepal 30%

Belgium 24%

Bhutan 24%

4411 Fiberboards of wood or other ligneous materials

17.50 Sri Lanka 36%

Malaysia 16%

Thailand 9%

4412 Plywood veneered panels & 5.08 China Thailand Myanmar



similar laminated wood 38% 16% 13% 4418 Builders' joinery and

carpentry of wood 3.80 Denmark

15% China 13%

Malaysia 13%

9403 Other furniture and parts thereof

89.93 Malaysia 27%

Italy 8%

Singapore 5%

Total 973.55* * The entry in the official database shows 976.72 as against 973.55, which means some miscellaneous categories of imports that are not of interest to the study. Source: Directorate General of Foreign Trade Concerted market development programs are being followed by trade promotion bodies and industry associations from Malaysia, Italy and New Zealand, to sensitize Indian consumers and differentiate their products. These activities are seen to be generating good business returns, as substantiated by the import market shares of these countries.

4.1.2.3 Canadian Position Imports from Canada remain insignificant compared to some other origins. In 2004-05, India imported US$1.6 million of wood and wood products from Canada, accounting for less than 0.2% of imports in the sector. Imports from Canada fell from US$2.35 million in 2003-04 to US$1.6 million in 2004-05—at a time when overall imports in the sector grew by nearly 25%. Principal products imported from Canada in 2004-05 were furniture, rough wood, veneer sheets and plywood veneered panels (see Table 12). Masonite Doors, a Canadian company, is the first and only foreign player to have entered the Indian joinery market. Masonite has launched a premium range of doors, in partnership with Godrej Furniture, India’s largest manufacturer of steel furniture and modular office furniture products. The products are imported from Canada and the United States, and are presently available in a few outlets in Mumbai and Delhi. Table 12. Imports of Wood, Wood Articles and Related Items, 2004-05 (US$

million) HS Code

Description India’s Total Import

Imports from Canada

4403 Wood in rough whether or not stripped of bark/sapwood or roughly squared

820.24 0.36

4407 Wood sawn or chipped in length sliced or peeled w/n planed sanded or finger-jointed thickness above 6 mm

13.24 0.10

4408 Veneer sheet and sheets for plywood (w/n spliced) & other wood sawn in length sliced/peeled w/n planed or finger jointed thickness <= 6 mm

4.90 0.17

4409 Wood (incl. strips, friezes for parquet flooring not assembled) continuously shaped (tongue grooved v-jointed etc.) along any edges/faces whether or not planed

2.10 0.03

4410 Particleboard and similar board of wood other ligneous 16.76 0.10



materials whether or not agglomerated with resin or other organic binding substances

4411 Fiberboards of wood or other ligneous materials w/n bonded with resin/other organic substances

17.50 0.04

4412 Plywood veneered panels & similar laminated wood 5.08 0.13 4418 Builders' joinery and carpentry of wood incl. cellular

wood panels assembled parquet panels shingles & shakes

3.80 0.01

4421 Other articles of wood 3.17 0.06 9403 Other furniture & parts thereof 89.93 0.60 Total 976.72 1.6 Source: Directorate General of Foreign Trade There is an absence of knowledge in trade circles of any imports of wood products from Canada, unlike that of other origins such as Italy, Malaysia, China and New Zealand. This observation was made in all product segments, regardless of Canada’s import share. There is an absence of knowledge in trade circles of any imports of wood products from Canada, unlike that of other origins such as Italy, Malaysia, China and New Zealand. This observation was made in all product segments, regardless of Canada’s import share. Canadian Export to India Analysis of Canadian exports to India (In latest 5 years-2001-2005;based on top 25 chapters) : 1. The general trend is growth. Take the export of wood and wood products for example. The export to India in 2005 increased by 33.66% than that in 2004.The average growth rate within the 5 years is 71.56%, 14.31% increase annually. 2. The exports of wood and wood products to India account for less than 0.1%.For example, in 2005, the Canadian lumber exports totally reached US$16.223 billion, however, only US$1.918 million to India. 3. Significant dependence on the U.S. market. Currently, more than 80% of Canada export products enter American market. In 2005, exports to the U.S. accounted for 83.85% in Canada's total exports. In 2004, it was 84.53%.And the same for wood articles. Moreover, the dependence on the U.S. market has increased year by year. In 2005, Canada's total timber exports were US$20.279 billion. Of which, US$17.886 billion into the U.S. market, accounting for 88.20% of Canada's total timber exports. This shows that Canadian export has a great dependence on the U.S. market, which could probably lead to Canadian timber exporters having no ideas where on earth the destinations for their products are. Table1. Canadian Total Exports Title Canadian Total Exports Products Top 25 Chapters (HS2 Codes) Origin CANADA Destination ALL COUNTRIES (Total) Period Latest 5 years



Units Value in Millions of Canadian Dollars 2001 2002 2003 2004 2005 27 - Mineral Fuels, Mineral Oils, Bituminous Substances and Mineral Waxes 57,794 50,035 61,442 68,669 88,035 87 - Motor Vehicles, Trailers, Bicycles, Motorcycles and Other Similar Vehicles 82,144 85,718 77,488 80,160 78,346 84 - Nuclear Reactors, Boilers, Machinery and Mechanical Appliances 34,699 33,493 30,684 32,752 33,750 85 - Electrical or Electronic Machinery and Equipment 22,086 19,109 17,081 18,837 20,529 44 - Wood and Articles of Wood (Incl. Wood Charcoal) 19,117 19,004 17,680 21,983 20,279 48 - Paper, Paperboard and Articles Made From These Materials 18,306 17,172 15,111 15,436 15,352 39 - Plastics and Articles Thereof 11,632 12,096 12,072 13,150 14,228 88 - Aircrafts and Spacecrafts 13,243 11,644 11,075 9,448 9,662 76 - Aluminum and Articles Thereof 8,139 8,415 8,102 8,768 9,540 94 - Furniture, and Stuffed Furnishings; Lamps and Illuminated Signs; Prefabricated Buildings 8,291 8,561 7,900 8,096 7,974 71 - Pearls, Precious Stones or Metals, Coins and Jewellery 4,162 4,759 5,421 6,846 7,387 47 - Pulp of Wood and The Like; Waste and Scrap of Paper or Paperboard 7,442 7,116 6,924 7,307 6,492 73 - Articles of Iron or Steel 5,476 5,682 4,905 5,748 6,225 72 - Iron and Steel 3,405 4,414 4,159 5,331 5,840 29 - Organic Chemicals (Including Vitamins, Alkaloids and Antibiotics) 3,702 3,512 3,385 4,823 5,137 90 - Optical, Medical , Photographic, Scientific and Technical Instrumentation 4,894 4,383 4,238 4,701 5,120 02 - Meat and Edible Meat Offal 4,452 4,382 3,777 4,603 4,763 28 - Inorganic Chemicals and Compounds of Precious Metals and Radioactive Elements 2,742 2,827 2,684 3,029 4,152



2001 2002 2003 2004 2005 30 - Pharmaceutical Products 2,186 2,373 3,225 3,849 4,131 75 - Nickel and Articles Thereof 2,260 2,371 2,511 4,350 4,107 40 - Rubber and Articles Thereof 3,996 4,084 3,719 3,939 4,003 26 - Ores, Slag and Ash 2,410 2,416 2,178 2,297 3,798 03 - Fish, Crustaceans, Molluscs and Other Aquatic Invertebrates 3,736 4,269 4,039 3,951 3,774 31 - Fertilizers 2,904 3,170 2,575 3,022 3,762 10 - Cereals 4,665 3,679 3,404 4,213 3,434 SUB-TOTAL 333,884 324,683 315,777 345,308 369,819 OTHERS 70,201 71,698 65,223 66,532 66,376 TOTAL (ALL PRODUCTS) 404,085 396,381 381,000 411,840 436,195 Source of data: Statistics Canada Report Date: 01-Dec-200 Table2. Canadian Exports to India Title Canadian Total Exports Products Top 25 Chapters (HS2 Codes) Origin CANADA Destination India Period Latest 5 years Units Value in Thousands of U.S. Dollars 2001 2002 2003 2004 2005 48 - Paper, Paperboard and Articles Made From These Materials 65,089 46,814 111,765 125,582 162,685 07 - Edible Vegetables and Certain Roots and Tubers 127,985 77,983 87,365 81,835 139,431 31 - Fertilizers 28,005 31,758 58,725 69,909 115,289 84 - Nuclear Reactors, Boilers, Machinery and Mechanical Appliances 20,915 41,231 32,660 56,382 71,307 47 - Pulp of Wood and The Like; Waste and Scrap of Paper or Paperboard 41,336 49,763 56,881 64,028 68,009 85 - Electrical or Electronic Machinery and Equipment 40,194 70,601 43,108 52,879 66,993 72 - Iron and Steel 9,378 8,043 14,262 30,475 44,733 26 - Ores, Slag and Ash 13,377 21,110 16,520 11,285 40,958 90 - Optical, Medical , Photographic, Scientific and 39,384 17,231 16,921 51,900 33,722



2001 2002 2003 2004 2005 Technical Instrumentation 71 - Pearls, Precious Stones or Metals, Coins and Jewellery 297 155 768 421 26,499 25 - Salt, Sulfur, Earths, Lime, Stone, Cement and Plastering Materials 19,580 18,855 15,892 28,518 25,103 88 - Aircrafts and Spacecrafts 305 2,041 40,708 12,872 18,509 75 - Nickel and Articles Thereof 8 5,520 8,342 12,454 11,172 63 - Other Made-Up Textile Articles and Worn Clothing 1,891 2,981 5,607 5,947 9,329 39 - Plastics and Articles Thereof 2,489 1,580 2,694 4,221 7,877 29 - Organic Chemicals (Including Vitamins, Alkaloids and Antibiotics) 1,004 1,127 2,103 4,755 5,310 74 - Copper and Articles Thereof 2,663 950 1,031 1,008 4,896 73 - Articles of Iron or Steel 1,198 513 1,367 3,376 4,563 40 - Rubber and Articles Thereof 3,585 2,405 601 754 4,131 38 - Miscellaneous Chemical Products 1,435 3,500 2,867 2,567 4,106 28 - Inorganic Chemicals and Compounds of Precious Metals and Radioactive Elements 1,155 1,218 2,294 1,715 2,623 44 - Wood and Articles of Wood (Incl. Wood Charcoal) 1,118 1,817 1,168 1,435 1,918 30 - Pharmaceutical Products 857 1,245 734 1,856 1,872 27 - Mineral Fuels, Mineral Oils, Bituminous Substances and Mineral Waxes 25 2 627 9,824 1,551 76 - Aluminum and Articles Thereof 120 83 117 544 1,512 SUB-TOTAL 423,391 408,524 525,125 636,541 874,098 OTHERS 13,450 21,451 18,740 23,855 21,866 TOTAL (ALL PRODUCTS) 436,842 429,974 543,866 660,396 895,965 Source of data: Statistics Canada Report Date: 01-Dec-2006 Table3.Canadian Exports to U.S. Title Canadian Total Exports Products Top 25 Chapters (HS2 Codes) Origin CANADA



Destination United States (U.S.) Period Latest 5 years Units Value in Millions of U.S. Dollars 2001 2002 2003 2004 2005 27 - Mineral Fuels, Mineral Oils, Bituminous Substances and Mineral Waxes 36,082 30,737 42,607 51,145 69,530 87 - Motor Vehicles, Trailers, Bicycles, Motorcycles and Other Similar Vehicles 51,741 53,242 53,263 59,607 62,210 84 - Nuclear Reactors, Boilers, Machinery and Mechanical Appliances 18,777 17,788 17,623 20,056 21,669 44 - Wood and Articles of Wood (Incl. Wood Charcoal) 10,552 10,364 10,753 14,742 14,763 85 - Electrical or Electronic Machinery and Equipment 12,248 10,109 9,465 10,920 12,473 39 - Plastics and Articles Thereof 7,083 7,300 8,128 9,414 10,862 48 - Paper, Paperboard and Articles Made From These Materials 10,302 9,656 9,365 10,262 10,860 76 - Aluminum and Articles Thereof 4,647 4,548 4,986 6,012 7,029 94 - Furniture, and Stuffed Furnishings; Lamps and Illuminated Signs; Prefabricated Buildings 5,135 5,212 5,367 5,904 6,172 88 - Aircrafts and Spacecrafts 6,267 5,365 6,296 5,406 5,921 73 - Articles of Iron or Steel 3,338 3,442 3,265 4,085 4,714 72 - Iron and Steel 2,040 2,603 2,627 3,711 4,221 40 - Rubber and Articles Thereof 2,459 2,459 2,503 2,781 3,070 29 - Organic Chemicals (Including Vitamins, Alkaloids and Antibiotics) 1,955 1,802 1,754 2,613 3,024 90 - Optical, Medical , Photographic, Scientific and Technical Instrumentation 2,397 2,182 2,081 2,327 2,593 30 - Pharmaceutical Products 1,179 1,220 1,841 2,224 2,452 47 - Pulp of Wood and The Like; Waste and Scrap of Paper or Paperboard 2,189 1,963 2,053 2,347 2,409 28 - Inorganic Chemicals and Compounds of Precious Metals and Radioactive 1,383 1,341 1,397 1,738 2,342



2001 2002 2003 2004 2005 Elements 71 - Pearls, Precious Stones or Metals, Coins and Jewellery 1,967 2,277 2,061 2,421 2,306 02 - Meat and Edible Meat Offal 1,900 1,859 1,724 2,212 2,243 74 - Copper and Articles Thereof 1,176 1,109 1,084 1,638 2,106 31 - Fertilizers 1,120 1,206 1,221 1,499 2,097 03 - Fish, Crustaceans, Molluscs and Other Aquatic Invertebrates 1,731 1,830 1,897 1,892 1,858 19 - Preparations of Cereals, Flour, Starch or Milk (Including Bread and Pastry) 976 1,144 1,360 1,499 1,649 49 - Printed Books, Newspapers, Pictures, Manuscripts and The Like 1,186 1,265 1,306 1,329 1,356 SUB-TOTAL 189,830 182,023 196,028 227,782 259,931 OTHERS 37,331 37,906 37,073 39,696 41,952 TOTAL (ALL PRODUCTS) 227,161 219,929 233,100 267,478 301,882 Source of data: Statistics Canada Report Date: 01-Dec-2006

4.1.2.4 Competitive Advantage through Canadian Policies and Initiative

Canadian Commercial Corporation The Canadian Commercial Corporation (CCC) gives Canadian companies access to financing and better payment terms under the Progress Payment Program (PPP). The PPP concept was developed as a partnership between major Canadian financial institutions and the CCC. It enables the exporter's bank to open a project line of credit for the exporter's benefit, based on CCC approval of the project and the exporter's ability to perform. The CCC will also act as a prime contractor on behalf of Canadian small and medium-sized enterprises (SMEs), giving those businesses increased credibility and competitive advantage.

Export Development Canada Export Development Canada (EDC) offers export financing and insurance to Canadian exporters. Additionally, insurance can be provided for larger transactions that are subject to the terms and conditions established by the buyer. EDC prefers to work through letters of credit, bank credits or bank guarantees. Approval for financing is considered on a case-by-case basis. Further information is available from EDC’s



Internet site at http://www.edc.ca or by calling, toll-free, 1-866-283-2957 (for companies with annual export sales up to $1 million) or 1-866-278-2300 (for companies with annual export sales over $1 million).

International Business Opportunities Centre The International Business Opportunities Centre (IBOC) connects Canadian companies, particularly SMEs, with foreign buyers through its unique company matching service. In providing its business lead service, IBOC works closely with the Canadian Trade Commissioner Service, which consists of trade officers located in Canadian embassies and consulates around the world. The business opportunities are handled on a case-by-case basis, spanning all markets and all sectors. The Centre searches the Trade Commissioner Service database and Industry Canada’s Canadian Company Capabilities database, as well as the vast resources of the Internet. In addition, IBOC taps into an impressive Canada-wide network of industry-sector experts at Industry Canada, Agriculture and Agri-Food Canada, and other federal Team Canada Inc departments and agencies. The organization also consults regularly with industry associations and provincial trade offices. IBOC communicates business leads in two different ways: through direct personal contact with individual suppliers or electronically through e-mails sent to appropriate Canadian suppliers. These electronic leads are delivered through the Virtual Trade Commissioner (VTC; see below).

Virtual Trade Commissioner The Virtual Trade Commissioner is an on-line service offered by the Trade Commissioner Service of International Trade Canada. Through a personalized and password-protected Web page, VTC-registered Canadian exporters will receive timely and relevant information on contacts and business opportunities in targeted foreign markets. The VTC offers registered users direct on-line access to market information, including market reports, business news, events and business leads related to the companies' industry sectors and markets of interest. Users can request services on line from a trade commissioner responsible for the industry sector in their target markets. They will also automatically receive new information as it becomes available. Canadian exporters can register for a Virtual Trade Commissioner at http://www.infoexport.gc.ca.

4.1.3 Customers

4.1.3.1 Private section customers There are two primary private-sector customer markets—institutional and retail—each large and with its own specific characteristics.

Institutional Market



The institutional market is the fastest-growing segment in India’s wood and wood products market. It consists of residential and commercial real estate developers and building contractors, as well as infrastructure providers (hotel, recreation centre and other business customers). These customers are open to the latest trends, including premium materials and imported products, which are considered up-market. This segment is highly competitive on price, but offers the potential for large sales volumes. Customers in the institutional market have large volume requirements for wood products as building materials and for interiors. India is building commercial and office spaces at a frenetic pace, driven by demand from the fast-growing services sectors such as information technology. The boom in commercial demand is equally visible in metros and in other fast-growing smaller cities. Additionally, the increase in business tourism has created a new demand for hotel accommodation, exhibition halls and conference centers, and other related infrastructure needs, resulting in a rapid growth in demand for wood products (among other building and interior products). India’s nearly one million square feet of prime commercial office space scheduled for completion in 2006 in the major cities will constitute the main institutional demand for furniture, paneling and other wood products. Given the high quality specifications and tight completion deadlines in commercial projects, many developers prefer to work with imported products, citing the advantages of ready stock, capacity to deliver large lots with consistent quality and a wider choice of design and appearance options. As a result, this market segment offers the most prospects for foreign suppliers of rough/sawn wood and value-added products. Several real estate developers also register foreign suppliers based on specific prequalification procedures, and invite them to participate in tenders. Supplying the institutional market requires taking note of the following aspects:

Delivery: Some tenders require supplies on a door-delivery basis, i.e. customs-cleared, duty-paid, and inland freight paid to the final destination. This may require foreign companies to work with local agents or clearing/forwarding companies to offer door-delivery solutions.

Trade margins: Despite India being a very price-sensitive market, trade channels tend to be rigid about their margins, which range from 25% to 35% for retailers, and 8-15% for wholesalers. As a result, foreign suppliers have to work within very lean margins to be competitive in the Indian market, which makes it difficult for European and North American suppliers.

Credit terms: Institutional customers often ask for 180 days usance letter of credit (LC) terms, or open credit of 45 days. Open credit can be risky, as enforcement of payment obligations can be a lengthy and expensive process.

Under-invoicing: Some importers like goods to be under-invoiced (up to 50% in some products) to save on customs duties. This is not in the interests of suppliers, as variations in invoice values for similar products can lead to scrutiny and also to investigations for “dumping” goods below the fair market value.



A survey of some of India’s leading manufacturers, importers and dealers revealed that numerous companies are interested in wood housing solutions and may welcome Canadian suppliers and/or manufacturing agreements. While their expressions of interest need to be vetted out through specific discussions, the companies surveyed include New Delhi-based Ashita Impex (P) Ltd, Nuchem Ltd (Nuwud Division) and Zircon Exports; Mumbai based Camp Master Infrastructures Services ptv. Ltd, Dynamic Engineers & Erectors, the Indian Plywood Mfg. Co. Ltd. and Mahindra Gesco Developers Ltd.; Amrapali Group (Ghaziabad); JAYPEE Greens Ltd (Greater Noida; interested in housing and resorts); Macsar Mercantle Pvt.Ltd. (Gurgaon); and Tirupati Tradelink (P) Ltd (Gandhidham [Kutch]). In addition to providing housing solutions, Nuchem Ltd markets intermediate products such as panels, laminates and imports broken wood for use as raw materials at its MDF manufacturing plant.

Retail Market The retail consumers market, representing private end-consumers, is a large, price-sensitive market. This segment features a growing demand for up-market furniture (in particular, beds, shelves, dining tables, and living room furniture), flooring, modular kitchens and, to an extent, ready-made doors and windows. These customers tend to have no prior experience with international products, and hence are “brand-neutral”; they are price-sensitive, but are looking for premium and unique solutions. This market has some special characteristics that can influence the customer’s opinion of wood and wood products:

More than 90% of wooden joinery is fabricated on site, by small carpentry firms, and there is considerable lack of standardization in sizes. Even a large percentage of ready-made doors are produced through traditional techniques, without mechanization.

Flush doors command a leading share of the doors market, on account of the lower price of flush doors compared to solid panel doors.

There is considerable use of metal joinery, especially in windows, with a 30-40% price difference between wood and steel alternatives.

Plastic furniture, particularly chairs and tables, is very popular in rural India, as well as in primary schools in several parts of India.

Furniture purchases tend to be piece-by-piece, not of complete sets in one purchase.

Festival occasions are considered to be auspicious times to buy household goods.

4.1.3.2 Public section customer Government institutions are among the biggest customers of wood products of interest to this study. The government procurement market is primarily one for joinery and panel work made from reconstituted composites, besides for basic office furniture



Government procurements specify only wood composites for doors, windows and partition panels, as a conservation measure following the 1997 Supreme Court ban on felling of forest timber. There is also considerable substitution with lower-cost alternatives such as aluminum, steel and plastic, which affect opportunities for wood-based joinery and panel products in government projects.

Government Procurement Regulations Government departments generally have their own procurement policies. However, several standard products are also procured under rate contracts, which are notified by the Directorate General of Supplies and Disposals (DGS&D). Potential suppliers of products of interest can register with the DGS&D for products of interest and offer a fixed-rate valid for a specified period (e.g. one year) on which orders can be placed by any government department. The Central Public Works Department, the major contractor of government projects, has its own procurement tendering procedures. Generally, products supplied to government projects must have approval under the respective Indian Standards, issued by the Bureau of Indian Standards. Government procurements, which can be considered cumbersome and somewhat non-transparent in procedure, provide assured payments and decent margins even on large volume purchases. However, the scope for supplies is limited to basic products, and is often of a low level of sophistication. Please refer to Appendix A for Key Potential Client Contacts.

4.1.4 Market Logistics The major consumption centers in India are in the west Indian cities of Mumbai, Pune and Ahmadabad; the northern cities of Delhi, Kanpur and Lucknow; Kolkata, in the east; and Bangalore, Chennai and Hyderabad in the south. Mumbai, Delhi and Bangalore are the most promising markets in which to introduce Canadian products, on account of the resident purchasing power and propensity to use premium, imported products. Addressing these markets requires dealing with a mix of distribution channels, or working with strategic partners introduced throughout this document. Figure 1. Softwood Import Distribution Channels



Typically, the log import structure is headed by larger importers and, increasingly, importer consortia that join together to import full shiploads of timber from specific origins. Shipment loads are in the range of 25 000 m3 to 30 000 m3, with split bills of lading. In the past, some suppliers also used indenting agents in India to book and consolidate orders to make a full shipload. The importer community is a small oligopoly of family-owned and owner-managed enterprises, led by about 10 dominant players in Mumbai and Kandla. Some importers also finance others’ shipments. The principal customers of importers are institutional customers from the furniture sector and other industries (e.g. cooling tower manufacturers), the plywood and panel industry and saw mills. Saw mills are located in principal port locations, as well as close to consumption markets. The difference between the units located near the ports and those near the markets is in scale, with port locations like Kandla having large-capacity saw mills, complete with seasoning and some treatment operations as well. On the other hand, saw mills in consumption areas often cut smaller, customized sizes from sawn lumber obtained from the larger saw mills. The most commonly found saw mills have capacities of less than 1 MT per hour. Leading timber wholesale merchants in various trading centers procure sawn lumber from saw mills in port locations or from intermediaries. Usually, wholesale traders also own trucks and storage yards/warehouses and distribute sawn lumber into smaller, interior towns in the region. Increasingly, given the premium on real estate in major cities, wholesale yards are found on outskirts of big cities. Seasoning and storage practices at wholesale yards, when present, are rudimentary. Interestingly, there is no separate retail tier in secondary wood products. These wood products are handled by wholesalers in the larger markets and, to a lesser extent, by sanitary and hardware stores. Wholesalers in larger cities stock the range of secondary products: plywood and boards, MDF, decorative laminates, veneers and, of late, ready-made doors. In Delhi, for example, there are seven timber wholesale markets; the wholesalers here also sell to small real estate contractors, carpenters and even consumers directly. In smaller towns, the retail role is played by sanitary

Exporters

Agents/Importers/Consortia

Saw mills, panel industries

Timber wholesale traders

Builders Retailers

Large customers/ manufacturers

Regional distributors

Retailers



and hardware stores offering a full range of building materials (e.g. cement, bricks, timber, plumbing materials, tiles and sanitary ware). Retail channels lack specialized personnel with technical knowledge of the merchandise to guide customers in selection of suitable products. A large share of the business is done on cash terms, without entering the account books. This also means that replacement of defective goods is often at the seller’s discretion. The absence of branding, origin marking and other types of product identification also lends to passing off lower-quality or spurious products as genuine or prime-quality materials. Therefore, suppliers interested in dealing with retail channels need to invest in training of personnel as well as in good merchandise practice, such as customer advice, product displays and product/brand selection. Figure 2. Import Distribution Channels for Value-added Products

At the top of the value-added product distribution chain are large independent distributors, representing international brands and/or importing products as private-label merchandise. Importers are currently fully Indian-owned entities, as the effect of January’s new regulations on permissible foreign investment in retail trading is not yet known. At present, furniture retail environments in India fall under three categories:

Small manufacturer outlets: In some cities, especially Delhi, there are furniture markets where several small-scale manufacturers have their own showrooms, displaying products and booking orders from institutional customers and retailers, besides selling direct to retail customers. Often, the product brand name is an eponym of the enterprise. Some large furniture manufacturers especially chair manufacturers (Godrej, Featherlite and Eurotech) and kitchen brands (Veneta Cucine, Haecker) have exclusive outlets in cities in addition to supplying independent retail outlets.

Stand-alone retail outlets: These retail both unbranded and branded products. For most outlets, volumes come from (mostly unbranded) beds, dining tables, sofas, chairs and showcase cabinets. However, these outlets are small, often not more

Exporters (brand)

Bulk importers/agents

Regional distributors

Third-party retailers Captive retail outlets

Large institutional customers



than 300 m2 in floor space. A typical characteristic of Indian middle-class consumers is the à la carte purchase of furniture. This buying preference suits these small outlets, as a large part of the stock in trade comes in the form of one-off products produced by small-scale manufacturers and even small carpenters. Another advantage is that product portfolios change frequently, and completely different merchandise finds display space as older stocks are sold. This reduces product risks at the retail level, while providing customers the choice of purchasing one-off products that are not to be found in neighbours’ homes.

Multi-store chains: The dominant trend in furniture retail in big cities is that of multi-store formats, owned by the importers, selling under the importer’s store brand names. Major importers such as Durian and Style Spa (a large furniture manufacturer turned importer) have retail outlets in all major cities. Durian, India’s largest imported furniture marketer has an estimated annual retail turnover of $31 million. Unlike stand-alone retail outlets, multi-store chains sell exclusive lines.

The large-format retail outlet in building materials and furniture, along the lines of Home Depot or Ikea, has not taken hold in India and some initial attempts in this direction have failed. For example, Arcus, India’s first home store selling imported and modern Indian furniture, modular kitchens and bathroom fixtures, was set up in 2000 in Gurgaon, outside Delhi, and subsequently in Mumbai. Arcus implemented all the merchandising and store practices found in international chains, offering ambience, product range, customer assistance and a one-stop experience in home products. Arcus, however, had a contradictory marketing mix, aiming to attract wealthy consumers in its air-conditioned store, but offering often poorly crafted modern style furniture at prices 20% higher than prices in traditional furniture shops. Its kitchen and bathroom appliances were also very highly priced and limited in range. Though the store did fairly well in Gurgaon, it suffered massive losses in Mumbai and consequently had to close both outlets. Perhaps the lessons to be learned from Arcus’ experience are that a) whilst Indian shoppers enjoy a pleasant retail experience, they also demand value for money, and b) to succeed, up-market retail environments are expected to retail up-market and high-quality merchandise.

4.1.4.1 Distribution channels

Direct Sales There are no known examples of Canadian direct sales to end users in the wood sector. However, major real estate construction projects, including hotels, are known to import products directly from international sources. This is particularly seen in sales of furniture in hotels, commercial projects, and even in up-market residential projects offering furnished apartments. Prospecting usually takes place during exhibitions, whether in India or targeting potential Indian customers at shows in other countries, followed by visits to responsible territory managers.



Agents and Sales Representatives

The terms agents and sales representatives overlap with the official classification of authorized distributors and retailers, except when agents and sales representatives act only as indenting agents. Given the necessity of physical demonstration/display of wood products, purely indenting arrangements do not present an effective marketing channel for wood products. As a result, there are practically no known indenting agents or sales representatives in the wood sector.

4.1.4.2 Market Entry considerations There has been substantial liberalization in import policies since India signed the WTO agreement in 1994. There are no import restrictions—not by volume nor in terms of currency controls—on wood products, including rough logs, sawn lumber and value-added products. Imports are allowed for own consumption as well as for stock and sale purposes. These policies are consistent with those of the World Trade Organization (WTO), and WTO-member India is not likely to revert to a more restrictive trade environment. Together with India’s growing dependence on wood imports, the market conditions are appropriate for Canadian companies to take a more active interest in the Indian market.

Suggested Business Practices Personal Contact. Use of an agent. Cultural etiquette.

India is geographically and demographically diverse, with many characteristics that are considerably different from other markets for Canadian wood products. Nevertheless, its growth potential and current state of evolution makes it a market not to be missed for products like furniture, high-quality panel products, doors and flooring, and supplies of treated and sawn lumber. Canadian companies may wish to consider the following initiatives to enhance knowledge and sales of their products.

Collective Initiatives Given the low visibility and penetration of Canadian products in India, Ace Global suggests that the most important short-term requirement would be to undertake a product awareness program. Such a program would be targeted at trade channels and the institutional market, including developers, interior designers and architects. The key objective of the program would need to be to demonstrate Canadian lumber and value-added products as competitive alternatives to currently imported products, especially in the premium segment. This would require enhancing awareness of major Canadian timber species and their properties, suitability for various end uses,



treatment standards, etc., through catalogues, presentation materials, samples and demonstrations. Sponsored features in media publications, especially industry trade journals (e.g. Wood News, Interiors, Inside Outside, and Hardware Sourcing) and mailers could also be used as awareness-building tools for Canadian products. The program would likely include a targeted business mission (see below). A targeted business mission involving several Canadian companies need not be very expensive and experience suggests it can be organized through industry associations in Canada, with assistance from the Canadian High Commission and industry organizations in India such as Federation of Indian Chambers of Commerce & Industry (FICCI) or Confederation of Indian Industry (CII). Although many products offer business potential for Canadian companies, the dispersed processing sector as well as unorganized distribution channels can make prospecting by individual companies difficult as well as expensive in the initial stages. Industry-specific business missions could present well-researched prospects for both Indian and Canadian parties, provided there was thorough preparation, including short listing and match-making companies prior to departure. The key destinations for such missions are:

for lumber: Kandla; for panel products: Bangalore, Kolkata and Delhi; for furniture: Mumbai, Delhi and Bangalore; and for doors and flooring: Mumbai, Delhi and Bangalore.

Individual Initiatives

Companies seeking to enhance knowledge of or sales of their products specifically could consider undertaking a demonstration project, such as for plotted wood-frame housing. The potential for wood-frame housing as a niche theme in up-market residential housing has been demonstrated by the high-profile Amby Valley project. However, there is no current channel that provides wood-frame housing as an option to the private home owner, despite the demand in some foothill cities. This can become a niche for Canadian companies providing wood-frame housing solutions. Initial promotional actions in this direction could include walk-in demonstration units supplied and built on site, in collaboration with a plot owner or developer. Besides a display of model units, a complete catalogue of standard designs with a list of materials and prices would stimulate demand for one-off projects as well as for community projects. Sawn lumber exporters might consider the possibility of developing opportunities for Canadian sawn lumber for specific high-value applications by placing the product through a dedicated sawn lumber distribution channel in the major consumption centres. The sale of improperly seasoned/treated imported softwood lumber has limited its usability in high-value applications in India. At the same time, customized treatment and seasoning schedules for each imported species are not practical, especially as log importers do not have stakes in the end products. The absence of



origin marking and treatment/grade marking on sawn lumber also removes distinction among a wide range of imported softwoods. Ace Global suggests that Canadian lumber could have distinguishing marks that reflect the country of origin, density grade, treatment standard, suitability for specified interior and exterior uses, and special treatments, including termite treatment, impregnation, finger jointing and glue lamination. With these innovations, high-grade sawn lumber could command a sufficient premium that would more than overcome the 10% customs tariff differential between rough and sawn lumber. This would also enable Canada to launch a number of softwood species in India, even at container-load volumes, unlike logs, which need to be brought in shiploads. To begin with, distribution channels should be set up in Mumbai and Delhi, which are the biggest and most-advanced consumption centers. (See also Local Standards, Certificates or Regulations.) Exporters of doors, panel products and high-grade veneer could offer wholesalers point-of-sale support that could act as incentives to promote Canadian products in preference to competing products. Support could be in the form of providing display and shop-in-shop counters and training the wholesaler’s sales staff. The wholesale markets in Delhi would be a starting point for Canadians to find prominent dealers. Canadian companies can also enter into alliances with leading Indian manufacturers to complement their product range, while leveraging their established distribution channels.

4.1.4.3 Non-tariff considerations In general, there are no non-tariff barriers targeted to curb import of wood and wood products into India. The main requirements are that wooden logs and sawn wood should be accompanied by a phytosanitary certificate from the country of origin, and should be free from any pest or pathogen that is not accepted under Indian standards. In case any contamination is observed in import lots, consignments follow due detention and disposal procedures under Indian laws. Infested consignments may be subjected to fumigation treatments and if this is not found effective, the consignments can be incinerated. (For complete details on phytosanitary requirements, see Appendix D) India does not require pre shipment inspections to be done by Indian agencies, and accepts certifications issued by approved institutions from the exporting country. India also follows the WTO valuation procedures, under which the onus of proving value is with the customs office, not with the importer/exporter. At present, there are no specific restrictions on wood treatment chemicals used in imported products; however, specific treatment prescriptions exist in Indian standards, to meet environmental standards. For example, arsenic treatments are not



allowed in India, on account of their toxicity. However, Chromated Copper Arsenate (CCA)-treated wood can be imported into India.

Local Standards, Certificates or Regulations India has its own national standards (Indian Standards [IS]) system, which is fairly harmonized with international systems. There are close to 100 standards for wood products, covering various aspects of wood processing and treatment, including:

classification of commercial timbers, specification of coniferous logs, specification of logs for specific end uses, specification of coniferous sawn wood (baulks and scantlings), specification of converted timber (various end uses), specification of plywood and boards, specification of cut sizes, testing methods, and Codes of practice for seasoning, preservation and treatment.

Products conforming to Indian standards are entitled to affix the IS mark on the product as well as on the packaging. Obtaining registration under Indian Standards is not compulsory for wood products except for supplies to government projects. Canadians should note that certification can be imposed on imports in case of representation by Indian manufacturers of equivalent products, or by consumer groups. Voluntary quality standards could become important in differentiating Canadian products from cheaper products, amidst growing competition from China, Malaysia and other origins. Voluntary certification can be particularly useful for treated and seasoned wood, on which there is practically no origin marking, grading or treatment marking to specify suitability for certain applications, e.g. in exteriors.

4.1.5 Conclusion There were survey questions that were sent to potential clients in India. We did not receive prompt reply but got few answers over the phone and also meeting them personally. The survey result showed that the southern part of India should be targeted first as we got good response from the south Indian companies. The awareness of Engineered Wood Product (EWP) was low and we need to inform and educate people from India about the EWP. The Indian clients showed their interest in receiving information regarding EWP. They would like to have partnership organization with Canadian organization to learn more about EWP. Please refer to Appendix B regarding Survey questions.



4.2 Technological/Technical Feasibility Analysis Wood, When Wisely Used, can last indefinitely, as demonstrated by houses in the United States that are giving excellent service after more than 300 years, and wood structures in Japan that are in superb condition after more than twice that time. It is primarily when wood is misused that problems develop. In the United States, wood has been losing markets to competitive materials as exterior covering for houses largely because of poor performance of exterior finishes. Part of the problem is due to moisture, either external or resulting from high interior relative humidities. Poor performance may also result from selection of species, grain orientation, or both, incompatibility of finishing systems, and construction or maintenance practices. The potentials of nonfilm-forming finishes such as stains and water repellents that emphasize the basic beauty of the wood are being demonstrated by research, as also are treatments that stabilize wood against ultraviolet deterioration and thus provide a better substrate for finishes. One of the attributes of wood is its ability to be easily and rapidly assembled into sound structural elements with mechanical fastenings. This is particularly true of softwoods. When hardwoods are used, they are frequently assembled in the green condition; while this provides for greater ease of assembly, it is also likely to result in splitting of the wood elements with subsequent loss in joint strength as drying occurs. Hardwoods can be assembled dry if they are predrilled, or if slender high-strength steel nails are utilized, usually with the aid of heavier hammers. Fastenings have been improved through research to provide nails with deformed shanks with higher holding power, high-strength steel bolts, timber connectors, truss plates and power-driven staples. The staples offer advantages in assembling hardwoods since their more slender legs reduce splitting tendencies both during driving and subsequent seasoning. On-site gluing has not been effective as a means of component assembly largely because of use difficulties and lack of quality control. In recent years, mastic-type adhesive systems have been introduced that offer considerable promise. The better of these systems can be used at low temperatures, on wet and rough wood, and seem to be durable and resistant to high temperatures. Used with a limited number of mechanical fastenings to provide gluing pressure, they may be an answer to more effective structural use of hardwoods. Wood structures can resist earthquakes or hurricanes. The basic concept is that all components of the structure must act together. It is recognized that the slight movement possible in mechanical joints permits the structures to give slightly under shock loadings without serious structural damage. It is also evident from studies of structures after severe earthquakes or hurricanes that if the mechanical fasteners are used in accordance with good design practices they will provide the needed structural integrity. Suitable fasteners or fastening systems must tie the floor structure to the foundation, walls to floors, and roof to wall. The structural elements are then covered with correctly fastened sheet materials to provide the structural unit which can resist these severe loadings. Water and wave damage can be severe in hurricane areas. This can be minimized if the structure is built on and firmly attached to piles, or if a pole-type structure is built where the poles form continuous structural elements from the embedment in the ground to the roof structure. The other building elements are firmly



attached to the poles to give a structure resistant to the most severe wind and wave forces. Fungi and Insects Wood's excellent potential as a structural material can be negated by the attack of and deterioration from fungi and insects. Therefore, if wood is to be effectively used in housing construction, practices that minimize these hazards must be followed: building techniques that prevent undue wetting of elements; the use of heartwood of naturally resistant species; the treatment of less resistant species with preservatives; suitable treatments for the eradication of pests. When these protective measures are taken, wood and wood-based materials can be used effectively under nearly all service conditions.

4.2.1.1 Fungi Fungi of a number of species are able to attack wood and, through enzymatic processes, degrade and decompose its cellulose and lignin, thus decreasing its mechanical strength properties. Other fungi may cause surface staining, which may not seriously impair the strength of wood but decreases its economic value and creates a suspicion of more serious degradation. Three types of wood destruction result from fungal attack-brown rot, white rot, and soft rot. The hyphae of the brown and white rot fungi grow through the cell walls in small holes and decompose them from within, whereas soft rot fungi are mainly confined to the central cell-wall layer. Brown and soft rot fungi attack the cellulose in the wood, while white rots simultaneously degrade the cellulose and lignin. Soft rot fungi normally change the colour of wood only slightly although a dark brown colour sometimes results, while brown rot and white rot give it a brownish or whitish colour. Where decomposition takes place, loss of wood results and mechanical strength decreases. Strength losses are much more rapid than loss of mass and may reach 50 percent at mass losses of 5 to 10 percent. All properties are not affected to the same degree; those involving energy absorption are most seriously affected, while the decrease in stiffness is much less rapid. Fungi need food, moisture, and favorable temperature conditions in order to grow. The minimum moisture content for growth is 22 to 23 percent, although many fungi require moisture nearer the fiber-saturation point. Many fungi, however, are able to survive for long periods under too wet or too dry conditions until a favorable environment for growth again exists. Most fungi are active at temperatures from several degrees above 0°C to 35°C with an optimum temperature of 30°C. Some species can tolerate higher or dower temperatures, and fungi with high tolerance to changing environmental conditions are the main destroyers of timber in interior use.

4.2.1.2 Insects The primary wood-destroying insects are termites and beetles. Termites (white ants) are widespread in India and 50 of some 2 000 species cause major economic



damage. Termites need an almost saturated humidity environment in order to live; thus, when they leave their nests in the soil they build sheltered galleries. These provide visual evidence of their attack on structures. Optimum temperatures are 26°C to 30°C and, while tropical termites require 20°C to 22°C temperatures, those in temperate climates can endure temperatures near freezing point. Most wood-destroying termite species are soil dwelling (subterranean), nesting either in soil or in attacked wood. Some species, however, can live without access to the soil and can cause serious damage to wood construction and furniture. Termite damage wood by gnawing holes or galleries in it until the member is little more than a shell. The softer springwood normally preferred. Deterioration can take place very rapidly, which means constant vigilance of untreated species is necessary. The most important wood-destroying beetles are the Cerambycidae (longhorn), Anobiidae (furniture or deathwatch), and Bostrychidae and Lyctidae (powder post) beetles. Destruction is caused mechanically by the larvae which gnaw galleries through the wood and live on the wood substance. Destruction varies, since a generation from egg to adult varies from several weeks to some years, depending on species, food, and climatic conditions. Many beetle species need wood moisture content above the fiber-saturation point. Others develop under drier conditions and these are most damaging to wood. Lower moisture contents are from 8 to 12 percent, depending on species. Optimum temperature for many species is 26°C to 30°C. Temperatures above 36°C are lethal to all species but critical exposure time may vary.

4.2.1.3 Prevention and Control Methods Since adequate moisture is a major requirement for the growth of fungi and many insects, care should be taken to keep moisture away from wood and wood-based materials. Proper construction techniques should be used to eliminate trapping of water and to facilitate drying out of wood that does become wet. Suitable ventilation should be provided for all areas where condensation of moisture can take place. Coatings and water-repellent treatments can also be used to retard moisture absorption. Poured concrete foundations, walls, and floors free from cracks are a barrier against termites. Metal shields between termite-proof piles or walls prevent access of termites to the upper part of the building. Periodic examination for termite galleries should be made. In India protective soil poisoning to eradicate termites is a common practice. This must be renewed at proper intervals to maintain toxicity. In Canada a combination of termite attractant and poison on stakes spaced at 5-foot intervals around the structures has been found a promising prevention measure. Nontoxic dusts like silica gel or fine clay cause insects coming into contact with them to dehydrate and die. Contact insecticides in rooms not inhabited by humans or used for food storage can protect timber from beetles if the female is killed before egg-laying. The heartwood of some timbers has high natural resistance to attack by fungi and insects. It is important that such species be identified in India so the wood may be



used where high hazard conditions prevail. Sapwood of all species is normally vulnerable to attack.

4.2.1.4 Wood Preservation It is recognized that the use of pesticides can create problems. They can be injurious to humans, domestic animals, plants, fish and wildlife. Thus they must be used selectively and carefully. To be effective, the preservative should be applied with sufficient penetration into the wood and have sufficient retention, and the flammability and strength properties of the wood should not be changed materially. In some wood products the preservative must be compatible with the adhesive system or with subsequent finishing operations. Compatibility with fastening methods and other materials used with wood may also be necessary. Water-soluble compounds meeting the basic requirements of a preservative include those of boron, fluorine, zinc, copper and arsenic. Resistance to leaching by water is often provided by the addition of chromium compounds. In the oily wood preservatives tar oil creosote plays a most important role where its odour and colour are acceptable, as in piling and other exterior uses. Odour and colour are reduced and may even be neglected in preservatives that consist of carrier oils with the addition of fungicides and insecticides. These additions may consist of special fractions of creosote. The most important organic fungicide in India is pentachlorophenol. Copper pentachlorophenate, copper and other metallic naphthenates, tin compounds and organic mercury compounds are also used. Against wood-destroying insects, synthetic contact insecticides like dieldrin, chlordane, and organic phosphorus ester compounds arc very efficient. Efficiency and permanence vary between groups of preservatives and with different organisms. Toxic limit thresholds also vary with the preservative and the organism, and above-threshold retentions are desirable for most conditions of service. For example, development of brown rot fungi can be prevented by loadings of I to 2 kilogram/cubic meter of wood of boron and fluoride compounds, and by about 3 kilogram/cubic meter of a chromium-copper-boron mixture. Soft rot and Bluestein fungi are more tolerant to a number of compounds than brown or white rot fungi, while toxic limits against beetle larvae are generally lower than those for fungi. Arsenic compounds are the most efficient water-soluble substances against termites. The best creosote products have thresholds against many brown and white rot fungi in the range of 5 to 10 kilogram/cubic meter, but this threshold may rise to 30 kilogram/cubic meter or more for more tolerant species. Pentachlorophenol has thresholds for many fungi of from 2 to 3 kilograms/cubic meter, but against some beetles the threshold is more than 10 kilograms/cubic meter.

4.2.1.5 Treating Methods The primary requisite for successful preservation is sufficient penetration of the toxic substances into and distribution within the wood. When preservative fluids are applied, an exchange with the air in the wood tissue takes place; the ease with which



this exchange takes place varies with species. Fluids may be injected into the wood by pressure methods, applying vacuum or high pressure. Non pressure methods involve wood's adsorption and capillarity to achieve penetration. Diffusion is also important in the case of water-soluble salts. Time requirements for treatment vary widely. Spraying or dipping can be carried out in a few seconds or minutes, pressure methods take hours, soaking in open tanks takes a few days, and the diffusion process needs weeks. Pressure treatments provide the maximum degree of protection, soaking or dipping processes provide some penetration, while spraying or brushing are superficial surface treatments. In the United States a promising non pressure method uses double diffusion. Green wood is soaked first in one chemical solution and then in a second. The two chemicals diffuse into the wood and react with each other to form an insoluble toxic compound.

4.2.1.6 Eradication of Wood-Destroying Organisms The damage from various organisms may be halted by eliminating one of the factors necessary for their growth, such as moisture, or by poisons or preservative fluids applied in place. Gases can be applied for killing wood-destroying insects if the rooms can be made gas proof or the structure covered with a plastic tent. The gas most commonly used is methyl bromide. However, this is highly toxic to humans and a more promising gas treatment uses sodium methyl dithiocarbamate. Insects and fungi can also be killed by heat, either from hot air or high frequency in the wood. Under special conditions, gamma radiation may be used. Once the damage has been halted, a decision must be made as to whether the wood elements are sufficiently strong to remain in place. Prompt recognition and halting of damage will, of course, minimize the costly removal and replacement problem.

4.2.2 Fire hazard While no known treatment can make wood noncombustible, research has shown that under many conditions it may be safely used as a construction material and may perform better than noncombustible materials.

4.2.2.1 Exposure to Heat When exposed to a sufficiently intense source of heat wood will burn, and it is desirable to avoid its use where burning or flaming may be a hazard to life. Long-term exposure to elevated temperatures may cause deterioration with resultant loss in strength. Since this is an important consideration in structural use, it is a good rule to avoid using timber in situations where its temperature is likely to exceed 75°C to 100°C for extended periods of time.



4.2.2.2 Structural Requirements Timber can function as a structural, protective or decorative material in construction, and in each category the associated fire hazard and protective measures required differ. Desirable fire behavior also depends on whether it is regarded in terns of occupant safety or survival of the structure and contents. Fire resistance is not solely the property of a material but includes the quality of construction that will ensure the confinement of fire or, failing that, to ensure that the building will withstand a burnout without collapse. It is measured in terms of stability, integrity, and thermal insulation: stability, to ensure structural survival; integrity, to prevent passage of flames and hot gases to other parts of the building; and insulation, to ensure that combustible materials in the area are not ignited by conducted heat. Not all of these criteria need to be satisfied in all situations. Structural elements (beams and columns) must meet stability criteria, while walls and floors may need to meet all three criteria to give acceptable performance. Timber structural elements may possess a high degree of fire resistance. For example, a 12-inch-square European redwood column 10 feet long and designed to carry a load of 90 tons would have a fire resistance of approximately 45 minutes. An unprotected steel column designed for the same load would fail in 15 minutes. The wood column would fail by burning and charring and the steel column by softening due to exposure to high temperatures. The performance of both could be improved by enclosing them in an insulating material such as vermiculite plaster. The rate of charring of timber subjected to standard heating conditions is about 1/40 inch per minute for the most frequency used structural softwoods. This varies to some extent with species, particularly hardwoods which may exhibit considerably greater resistance to charring. Tests on Douglas fir and pine floor joists showed the existence of a good relationship between fire resistance, imposed stresses, and joist sizes which allowed prediction of fire performance from calculations. Addition of a timber floor to the joists adds to their fire resistance, and tongued-and-grooved boards will perform better than those with plain edges. A ceiling beneath the joists will also add fire resistance. In traditional small houses, joists with a wood-lath and plaster ceiling below and plain-edge boards above will satisfy integrity and insulation requirements for 15 minutes and will resist collapse for 30 minutes. Greater resistance may be obtained by the addition of 1/2-inch plasterboard over the ceiling or 3/16-inch plywood or dense hardboard over the floor. Floors give a higher degree of fire resistance if joists and decking are constructed with protective insulation. In walls and partitions, wood can provide a considerable range in fire resistance. If the walls are sheathed with nominal 2-inch tongued-and-grooved boards, fire penetration time is about 10 minutes. A double layer construction of nominal 1-inch boards with a sheet of asbestos paper separating them is effective for 25 minutes. The weakness of such structures is in the joints, and fire resistance can be improved with the use of panel materials. Timber frame partitions covered with l to 5/8-inch plywood can resist penetration for periods of 10 to 25 minutes. If wall cavities can be filled with a mineral fiber insulation that will remain in position to protect frame and facing, fire resistance can be increased to nearly 1 hour.



Timber usage for structural elements such as beams and columns has been limited by the availability of high-quality timber. With the development of glued-laminated construction this trend has changed, and glued-laminated wood columns, beams and arches are increasingly used. With suitable adhesives the fire resistance of glued-laminated construction is similar to that of solid wood elements of comparable sizes. Actual fire resistance of columns will be influenced by shape, species, type of adhesives, and loading condition. Fire resistance of beams may be calculated assuming the rate of char is constant during fire.

4.2.2.3 Protective Requirements Building protection implies protection from weather as well as fire. In roof construction, for example, the roof must provide protection from weather as well as preventing fire penetration from the burning of an adjacent building or ignition by radiation. Good protection of timber decking roofs can be obtained with a suitable covering, such as asbestos-based bitumen felt faced with aluminum foil. Buildings with external coverings of combustible materials must be spaced apart to avoid spread of fire from one building to another. Research work on radiation has resulted in design criteria that establish safe separation distances. Where these cannot be maintained, fire resistance in the external wall constructions must be provided. Doors present a special problem in protection, since the access they provide may constitute a breach in an otherwise fire-resistant construction. Ideally, the door assembly should have the same fire resistance as the partition in which it is contained. It should prevent penetration of smoke and toxic gases and hinder the passage of fire to other parts of the building. Doors which meet stability and integrity tests are termed fire-resistant, whereas if they perform satisfactorily except for the occurrence of small orifices they are termed fire-check doors. Assuming the same standards of workmanship, hardwoods and softwoods are equally suitable for doors. The greatest weakness is around the edges, for once the stop are consumed flames can pass between the door and the frame. One method of prevention is the use of intumescing paint in these areas, which swells under the influence of heat and closes gaps.

4.2.2.4 Decorative Requirements When wood is used as a decorative material it usually performs no structural function so the primary problem is to provide resistance to ignition and flame spread. The flame-spread resistance can be improved by the application of fire-retardants, either by impregnation or surface treatment. Many such treatments are water soluble, and others are affected by ultraviolet radiation, so outdoor permanence is lacking. Treatments also may detract from appearance, but studies are under way that may minimize these problems.



4.2.2.5 Fire-Retardant Treatments The main effect of fire-retardants on timber is to retard ignition and limit surface flaming. In a fully developed fire, however, fire-retardant treatments have no significant effect on the rate of decomposition and charring of wood. Thus, these treatments are necessary to restrict flaming where it would be a hazard to life.

4.2.2.6 Non-Technical Considerations Technical problems involved in the use of wood as a structural material and related to fire hazard are universal. Interpretation and application of research data related to these problems involve feasibility, economics, degree of risk involved, and level of protection available. Economics require that attention be given not only to safety, but also to building survival, extent of damage, and repair costs. All these involve a subjective approach, and vary from country to country.

4.2.3 Finishes

4.2.3.1 Characteristics Finishes for wood may be placed in two categories, each having its own characteristics and attributes. Film-forming finishes provide a film, layer, or coating on the wood surface, and include paints, varnishes and lacquers, as well as overlays. Penetrating finishes-fungicides, preservatives, and pigmented stains-leave no layer or surface film. Finishes such as paint, the most widely used, provide most protection against sunlight and offer the greatest selection of colors. When these coatings are nonporous and intact, they retard moisture penetration and thus reduce paint peeling, staining by extractives, and dimensional changes. If coatings become cracked, however, they offer none of this protection, but leave the wood even more vulnerable to decay since coatings are not preservatives. Film-forming finishes are also susceptible to blistering and peeling problems. Costs are usually higher and more care needs to be exercised in their application than for penetrating-type finishes. Paints include oil-base or solvent systems and latex or water-base finishes, and form an opaque surface coating. Transparent coatings such as phenol, alkyd, polyurethane, or epoxy varnishes may also be used as surface coatings. While they greatly enhance the beauty and grain of the wood they lack exterior permanence in sunlight. Synthetic resin film overlays that are glued to the wood surface offer great promise as lasting surface finish. Without any finish or treatment the surface of wood exposed to weather changes slowly to a grey colour and becomes roughened. Further changes with time will be negligible unless decay sets in. A simple fungicide or preservative penetrating finish can inhibit the fungal growth or mildew that causes the grey colour, and greatly enhances the appearance of the wood. Colour can be achieved with penetrating pigmented stains without hiding the wood grain or surface texture, or otherwise covering the wood surface.



4.2.3.2 Deterioration Painted surfaces normally suffer little deterioration in the first two or three years of exposure. After this time the effect of moisture, type of substrate, paint porosity, or age may induce paint failures. These include cracking, curling, checking, flaking, blistering, and peeling of the paint film. The weathering of finishes is a process that includes photo degradation by sunlight, leaching, hydrolysis, and dimensional change effects of water and the discoloration and degradation effect of microorganisms. Degradation by sunlight involves photo-oxidation, resulting primarily from the ultraviolet or high-energy portion of the spectrum. Photo-oxidation produces checking and embitterment in clear coatings, shallow checking in paint surfaces resulting in chalking or erosion, and roughened surfaces on wood. Heating and cooling of the wood surface due to absorption of radiant energy cause moisture movement in the wood that also influences deterioration. One method for retarding the adverse effects of photo degradation is the polymer-pigment overlay for wood. The polymer is transparent, does not absorb ultraviolet and thus has an indefinite life. The pigment provides permanent ultraviolet absorption to protect the wood. The most widely employed construction feature to retard sunlight deterioration of finishes is the roof overhang. A 4-foot overhang gives almost full protection to the upper two thirds of a one-storey wall. Since this can reduce maintenance costs, the added cost of the overhang can be easily justified. Vertical siding may also offer some advantages since the boards shed water more effectively and is less perpendicular to the incident sunlight than conventional bevel siding.

4.2.3.3 Moisture Effects Water, either outside or inside the structure can affect the performance of paint coatings. Rain and dew enter the wood through weathering cracks in the finish, particularly at the ends and edges of boards, and result in blistering and peeling of paint. Even seasonal changes in relative humidity can cause checking of the wood surfaces and cracking of the finish. Roof leaks, inadequate drainage and ice dams on the roof can allow water to enter the side walls and cause paint failure, discoloration from movement of water-soluble extractives, and decay. Interior water can attack paint films by diffusion through the walls. While this water can come from such things as shower spray or faulty plumbing, the primary source is water vapor inside the building. This moisture is attracted to the cold surfaces of the outer walls during the winter season. It passes into the walls and condenses in the wall cavity or on the exterior siding as water or frost. With warmer weather the moisture causes paint blisters and peeling. The typical home has many sources of water vapor. The normal living habits of a family of four can contribute as much as three gallons of water per day to the atmosphere. Un-vented heaters, clothes driers and humidifiers add additional moisture, as do improperly designed and vented crawl spaces. Fortunately, most of these problems can be controlled or minimized by good construction. Properly designed roofs and guttering with correctly installed flashing



can eliminate leaks. Ice dams can be largely eliminated by reduction of heat losses from dwelling interiors and adequate venting of attic space. Wide overhangs will reduce the wetting of exterior walls from rain and dew. Water repellents can be used to treat decay-susceptible species, particularly where water may be trapped and on the ends of boards. Good architectural practices can be followed to avoid undue water entrapment. The primary deterrent to damage from interior moisture is a good vapor barrier, properly installed and maintained. In new construction, a polyethylene film placed on the warm side of the wall will be very effective. In older constructions, painting the interior wall and ceiling surfaces, especially with aluminum paint, will reduce moisture transmission. Proper ventilation of attic and crawl spaces will eliminate moisture vapor buildup. Excessive interior relative humidity in the winter season in more severe climates should be avoided. If the interior is humidified for comfort, a proper balance must be maintained between inside relative humidity and exterior weather conditions, if serious paint problems are to be avoided. The potential damage applies to paint films. Penetrating finishes without a surface film do not trap water in the wood and thus are virtually free of these problems.

4.2.3.4 Fungal Organisms Fungi, growing under favorable moisture and temperature conditions, can result in discoloration of paint surfaces. Usually this does not damage structure or finish but does detract from appearance. Where excessive moisture is trapped, conditions may be favorable for decay which could cause structural problems. Normally this is avoided by the use of heartwood of decay-resistant species in high-hazard areas or by treatment of the wood with water-repellent preservatives. Fungal growth on finishes may be inhibited by the addition of fungicides to the finish itself.

4.2.4 Fasteners and fastening techniques

4.2.4.1 Wood-Fastener Relationship There is considerable information available on the characteristics of a wide range of fasteners, particularly as they are used with softwoods. In India, however, most house construction will utilize hardwoods and the factors that influence fastener use with these species must be analyzed. Problems are related to the density, hardness and shrinkage of hardwoods, as well as to economic and social factors, and levels of training and experience. In contrast to the softwood structural timbers of the northern hemisphere, with densities of about 25 pounds per cubic foot at 12 percent moisture content, hardwoods from India average 35 pounds per cubic foot with a range of from 20 to more than 65 pounds per cubic foot. While nail-holding power will increase with density, this assumes that a well-nailed joint has been produced. This may be difficult in hardwoods. At moisture contents of 12 percent or less, it is very difficult to fabricate



nailed joints in high-density hardwoods. To compensate for this, hardwood timbers are frequently assembled green, but then problems arise from subsequent shrinkage and distortion. Harder nails are frequently used in hardwoods to minimize nail-bending tendencies and are often driven with a heavier hammer to overcome driving resistance. Sometimes the shank of the nail is lubricated with soap or grease to facilitate driving. When common nails are used with hardwoods, an accepted practice is to pre-drill a lead hole of approximately 80 percent of the nail diameter. This has no effect on the bearing strength of the joint and does result in well-made joints with fewer splits. Splitting can markedly reduce the effectiveness of the joint. It may result from the nail-driving operation or from subsequent wood shrinkage if green wood is used. Splitting is minimized by pre-drilling or by the use of a compensating number of smaller gauge nails. Nail points also affect splitting, and a blunt-pointed nail that tears the fibers rather than wedges them apart will reduce splitting. Such nails may be purchased or can be made by blunting the point of the common nail before it is inserted in the wood. Shrinkage of hardwoods tends to be two to three times that of structural softwoods. Thus, when several nails are placed in a joint, they impose severe local restraint and splitting is likely. This can be minimized by spacing the nails uniformly across the joint to force several small splits that have less effect on joint strength than one or two large ones. Shrinkage of framing members can result in nail pops or nail head protrusion from the surface of wall linings or floors. Seasoning of framing before attaching covering materials will minimize this, and it can also be reduced by using short nails with deformed shanks to give needed holding power with less penetration. Fastening by means of adhesives has been used extensively for softwoods, primarily under conditions where adequate quality control can be maintained. Gluing of hardwoods can present several new problems related to greater shrinkage and warping tendencies. It is probable that good glue joints can be produced in hardwoods below 40 pounds per cubic foot in density, if they are properly seasoned to uniform moisture content and surfaced just prior to gluing When any question of gluing capability is raised it may be solved by tests of the species and adhesives to be used. Techniques are available for gluing fire-retardant and preservative-treated timber and these should be closely followed if quality glue bonds are to be obtained. Very recently in the United States a mastic-type adhesive system has come into use. The better of these adhesives can apparently be used on wet wood and at low temperatures, and still produce good joints. The better joints also appear durable and resistant to elevated temperature deterioration. They need additional study, but may provide an effective method of assembly for hardwoods.

4.2.4.2 Effect of Exposure Conditions The performance of fasteners can be affected by changes in the moisture content of wood members, severe loading conditions such as wind, earthquake, or blast, and corrosive atmospheric conditions. Where fasteners are exposed to changing humidity conditions where wood members shrink and swell, some reduction in joint strength



may be anticipated. At high relative humidities or high moisture contents fastener corrosion could take place, with resultant wood staining and a decrease in fastener strength. Where corrosion or staining may be a problem, corrosion-resistant fasteners should be used. When mechanical fasteners are properly used they enable wood structures to perform well under the action of hurricane winds or earthquake shocks. It is essential that fasteners of the correct size and number be used to fabricate individual elements and to tie the elements together into a structure that will perform as a single unit to resist these forces. In some instances special fastenings such as framing anchors may be necessary. Alternately, galvanized mild steel strapping can be made to serve the same function, usually at less cost.

4.2.4.3 Nail Characteristics Nails made of mild steel wire should be satisfactory for most uses in India, provided fastening techniques are adjusted for species characteristics. Hardened steel nails may be necessary for fastening wood to concrete, and corrosion-resistant nails may be required for specific uses. Normally the use of more costly nails of high carbon steel, stainless steel, aluminum, copper, and so on, will not be justified. Nail shape can influence fastener performance and should be investigated. In general, however, common wire nails with round shanks will be satisfactory and the cheapest for construction use. If high resistance to withdrawal is necessary, particularly after exposure to wetting drying cycles, nails with deformed shanks may be used. The nail head should be consistent with fastener use. Where nails are used to attach flooring or trim and are driven beneath the wood surface, a small-headed nail (Australian bullet head or American finishing nail) is required. For fastening covering materials to walls, flat-headed or countersunk flat headed nails will be satisfactory. Spring-head nails or nails incorporating a washer or seal under the head are the most suitable for attaching corrugated iron or similar roofing Nail points influence ease of driving and service performance. Sharp points separate wood fibers as they wedge their way into position and thus have greater splitting tendencies. Blunt-point nails are harder to drive but tend to shear the wood and minimize splitting. The simple diamond point is most satisfactory for all-purpose use. Nail surfaces can be treated to increase withdrawal resistance or improve appearance. Galvanizing is probably the best general-purpose treatment for appearance, and gives corrosion resistance.

4.2.4.4 Other Wood Fasteners In addition to nails, other mechanical fasteners can be used for wood assemblies, including staples, screws, timber connectors, bolts and sheet metal plate fasteners. Staples, normally driven with a stapling gun, can result in less splitting either during driving or during seasoning of green lumber, because of their thinner legs. More staples need to be used to give the same lateral resistance to the joint. Screws are normally not important in wood construction. When used with hardwoods, they must be driven in predrilled holes and are often lubricated for ease in driving Timber connectors, including split ring, shear plate and tooth plate, are used with bolts for



structural elements. As a rule these are too massive to be used in house construction, but may be required in low-rise commercial structures. Bolts are used as fasteners but are little used in house construction except to join prefabricated components or in foundation anchorages. Sheet metal plates, or truss plates, are extensively used in the fabrication of light monoplane roof trusses. Where many houses are to be built, prefabrication of roof trusses using these fasteners may be economical. The plates are usually galvanized and may be made with projecting pointed teeth, punched for use with nails, or both.

4.2.5 Structural integrity Anderson (1) concludes that good construction practices can minimize the damage to light-frame structures resulting from hurricanes or earthquakes. While it is impractical, if not impossible, to design wood structures to resist the forces of a tornado, proper construction techniques can ensure minimum damage to such buildings on the periphery of the tornado's path.

4.2.5.1 Hurricane Resistance Hurricanes, with winds that can approach velocities of 200 miles per hour, combined with effects of high water and wave action, impose severe loadings on any type of structure. At wind velocities up to 100 miles per hour, damage is largely confined to windows and roofs; from 125 to 150 miles per hour extensive damage can result to the roofs, walls and foundations of poorly built structures. Foundation damage usually results from wave and water action, although lack of proper anchorage of the house to the foundation can result in severe house damage even though the foundation retains its structural integrity. Siding materials may be damaged by water action but more often the walls are harmed by wind-blown debris. Wood and plywood covering materials of many types offer a resistance to such damage that cannot be obtained with brittle materials. Roof damage, to the covering material or to the roof structure itself, is a most common effect of hurricane forces. Wood shingles and shakes provide excellent resistance to wind and proper anchorage of structurally adequate roof members will eliminate or minimize damage to the roof structure. The primary consideration in the building of a hurricane-resistant structure is to ensure that all components are well tied together, to enable the structure to perform as a single unit. This requires proper embedment of foundation elements, anchorage of floor system to foundation, proper ties between walls and floor, and adequate fastening of roof structure to walls. Anderson describes other good construction details that will ensure hurricane resistance:

Treated pile or post foundations with sufficient embedment depth and bracing to provide racking resistance.

Beams or girders bolted and strapped to the foundation piles or posts as a support for the floor system.

Wood floor framing anchored to beams and foundation with bolts or heavy strapping.



Plywood or diagonal board sub floor and sheathing. Extension of wall sheathing over floor joist headers to provide a good wall-floor tie. Anchorage of roof trusses or ceiling joists and rafters to walls with metal strapping

or commercial anchors. Plywood or diagonal board roof sheathing to provide lateral rigidity and racking

resistance. Wood shingles, wood or plywood siding, and shuttering.

4.2.5.2 Shock Resistance Earthquakes of varied intensity occur each year throughout the world. In March 1964, an earthquake of intensity 8.6 on the Richter scale, the strongest ever recorded on the North American continent, occurred in Alaska. Despite the severity of the earthquake, loss of life was low and structural damage to wood-frame structures was negligible. Most homes were well anchored to full basements and, despite the shock loading and its long duration, suffered little serious damage. In some areas the earth settled, cracked open, or slid on underlying layers to eliminate all support for the foundation structure. Even in such situations the structural integrity of the wood-frame houses was phenomenal; severely dislocated houses were so structurally sound that they could be put back into service on new foundations. When the walls frame structures were constructed to provide good racking resistance, and particularly when they were well anchored to floors, the unit action provided excellent resistance to damage. Structural rigidity of walls was provided by well-recognized procedures: let-in braces with horizontal wood sheathing, diagonal wood sheathing, or plywood sheathing, all well nailed to framing. Roof structures suffered little damage when the framing elements were well tied to the walls. Some of the details and techniques suggested by Anderson to ensure earthquake-resistant wood construction are: Good corner construction in exterior walls to aid in providing racking resistance. Good nailing of sheathing and siding to framing members to give structural rigidity. Nails in proper size and number provide design strength. Such fasteners apparently cushion shock loads. Unification of structure through proper ties between wall, floor, and roof elements, Anchorage of structure to foundation.

4.3 Environmental Feasibility Analysis

4.3.1 Forest Resources The forest cover of the country has been estimated to be 637,293 sq.km., which is 19.39% of the geographic area of the country. The dense forest, open forest and mangrove constitute 11.48%, 7.76% and 0.15% of geographic area respectively. Scrub and non-forest are the other classes in the scheme of classification.



Table: Forest Cover Class Area in sq.km. Geographic Area % Dense Forest 377,358 11.48 Open Forest 255,064 7.76 Mangrove 4,871 0.15 Sub-total 637,293 19.39 Scrub 51,896 1.58 Non-Forest 2,598,074 79.03 Total 3,287,263 100.00 Source: Ministry of Environment and Forest of India, State of Forest Report 1999 Classifying functionally:

Shelter forest: about 100 thousand sq.km, mainly for valley protection and ecological vulnerability of the soil and water conservation;

Production forests: about 150 thousand sq.km, mainly to meet the demand of industry, railway and defense;

Corporation forest: about 240 thousand sq.km, with the aim to meet the diverse needs of the people, especially the rural poor and tribal;

Protection Forest: about 156 thousand sq.km, in order to biocenology conservation.

“Many forests in the mid-1990s are found in high-rainfall, high-altitude regions, areas to which access is difficult. About 20 percent of total forestland is in Madhya Pradesh; other states with significant forests are Orissa, Maharashtra, and Andhra Pradesh (each with about 9 percent of the national total); Arunachal Pradesh (7 percent); and Uttar Pradesh (6 percent). The variety of forest vegetation is large: there are 600 species of hardwoods, and teak being the principal economic species.” (1) India's actual forest cover was 64 million hectares, less than 35 million hectares are productive forest. The high needs of the growing population are destroying to be degenerated the forest resources. Actually, despite large-scale tree planting programs, forestry continuously is regressed. The annual deforestation at about four times of growth rate is the major reason.

4.3.2 Warm-Humid Climates India's climate is Tropical-Monsoon, a perennial high air temperature with a variation. Annually, on the average temperature between 24-28 degrees Celsius change in the division of the average temperature of not less than 18 degrees Celsius absolute maximum temperature of little more than 35 degrees Celsius. Rainfall is heavy but it is not stable enough. Annual rainfall is generally 2000-4000 mm, and varies greatly from place to place, 80% of the rainfall in June-September. However, in different years, the beginning of monsoon and rainfall are also great variations. Due to this



instability, India is threatened by flood, particularly drought, the worst drought occurred once every five years. House constructing on tropical-monsoon climate is aimed by waterproof and sunscreen. In order to moisture proof, the bottom of wood house should leave the ground. Wood meets these requirements ideally. Its physical properties allow its use for spanning the large openings that permit maximum air movement and providing the framework required for overhanging roofs. Its low density, and its internal structure which traps air in its cells after seasoning, give it a high thermal resistance and low thermal capacity. Also, large quantities of wood are available in the hot-humid zones, which are estimated to contain three fifths of the world's timber resources. It is hardly surprising that building traditions in these climates are often based on all-wood construction. (-1)

4.3.3 Conclusion The nature disasters would bring medium impact to Canadian wood product to India. Warm-Humid climates, earthquake, hurricanes and tornadoes, all of these will challenge the quality of Canadian wood product. We have introduced some special methods for this situation; please refer to “Technological/Technical Feasibility Analysis”.

4.4 Institutional Feasibility Analysis

4.4.1 Import Regulations All categories of wood products can be imported without prior licensing and without any quantitative restriction. India has progressively reformed its tax structures in the past 10 years, and presently has a moderate tax structure. Major taxes and duties are: • excise duty, 16%, rebate-able, applied on some manufactured wood

products; • sales tax, varies from state to state, in the overall range of 4% to 12%; • service tax: 10.2% on value of services rendered; • Corporate income tax: presently 30.6%, consisting of a base rate of 30% and

surcharge of 2% on the base rate of 30%, i.e. 0.6%. • Capital gains tax: 20% on long-term gains and 30% on short-term gains. India uses an escalating tariffs structure, which protects domestic value addition. Import tariffs are currently 5.1% on rough wood, 15.3% on sawn wood, and 34.44%



on value-added products (see Table 13). Indian import tariffs are being reduced in a phased manner to attain parity with ASEAN tariff levels by 2006-07 (India has a free-trade agreement with ASEAN). As a result, import duties on value-added products are expected to be reduced further, to around 20% next year Table 13. Customs Tariffs on Wood and Wood Products, 2006-07 Category and Customs Code numbers

Basic Counter vailing duty CVD (% of CIF plus basic)

Subtotal Basic plus CVD

Special Counter-vailing duty (% of CIF value plus basic plus CVD)

Total import duties

Education Cess (2% of import duties)

Effective import duty as % of CIF Value

Logs 44.01- 44.03

5 0 5 4 9.02 0.184 9.384

Sawn wood 44.07

12.5 0 12.5 4 17.00 0.34 17.34

Veneer and plywood sheets 44.08

12.5 16.32 30.86 4 36.0944 0.7218 36.816288

Flooring 4409 12.5 16.32 30. 86 4 36.0944 0.7218 36.816288Particle board, fiber board, plywood, veneered panels and laminated wood 44.10 44.11, 44.12

12.5 16.32 30. 86 4 36.0944 0.7218 36.816288

Windows, French windows and frames 44181000

12.5 8.16 21.68 4 26.5472 0.530944 27.078144

Windows, French windows and frames 44181000

12.5 8.16 21.68 4 26.5472 0.530944 27.078144

Flush doors and thresholds of flush doors 4418 2010, 44182020

12.5 16.32 30. 86 4 36.0944 0.7218 36.816288

Other doors, parquet panels, shuttering for concrete construction work

12.5 8.16 21.68 4 26.5472 0.530944 27.078144

Furniture 94.03

12.5 16.32 30. 86 4 36.0944 0.7218 36.816288

* CIF=cost, insurance, freight



** The cess is a surcharge on duties, imposed for a public cause (in this case, education) Source: Customs Tariffs 2006-07 Tariff concessions are available for preferential origins, mainly South Asian and ASEAN member countries, with which India has special trade arrangements. Imports under the South Asian Free Trade Area Treaty (SAFTA) are on a duty-free basis.

4.4.2 Import Restrictions

(1) Tariff Barrier: Import duty rates for all timber products except roundwood to supply its´ timber processing industry range from 30% for sawn timber to in excess of 60% for sliced veneers and other value-added products as India protects its´ timber processing industry through the application of high import duties on all forest products other than logs and cants which have a lowered import duties to just 5%.So, over ninety percent of India’s forest product import are in log form.

(2) Climate Factor: The tropical climate in India is a main concern over the use of sawn softwoods due to Indian’s inability to stand up to the year-round hot and humid climate which includes periods of very heavy rainfall during the annual monsoon.

(3) Other Factors: There is also the question of termites and other wood boring insects which can quickly reduce softwood lumber (and many hardwood species) to piles of sawdust. There is very little experience with treated timber as most buyers are unwilling to pay the resulting price premium, arguing that their preferred species (Teak) does not require any preservative treatment and will last much longer than competing species.

4.4.3 Investment Policies There are some investment restrictions in products reserved for small-scale industries. Large-scale investments are not allowed in manufacture of reserved products. Also, ownership interests exceeding 24% in multiple small-scale units and cross-ownerships among small-scale units are not allowed. These SSI policy restrictions do not apply to export-oriented units exporting at least 50% of their output. Foreign investment in excess of 24% equity holding is not allowed in small-scale units, either. There are also restrictions on foreign investments in trading. Foreign direct investment (FDI) is not allowed in third-party retailing, but as of January 2006, FDI is allowed—up to 51%—in single-brand retailing. Foreign investment is also permitted in wholesale trading and cash-and-carry operations with the prior approval of the Foreign Investment Promotion Board.

4.4.4 Export Credit Risks, Restrictions on Letters of Credit, Currency Controls



India does not have any quantitative ceiling or prior approval requirement on foreign exchange for trade payments. Importers are only required to submit a declaration of imports in a prescribed format (the A2 form) along with import pro forma invoices, and an attestation certificate from a chartered accountant in India, that the documents submitted have been verified to be authentic. India does not pose any export credit risk at the sovereign level. Export-related claims can be resolved under applicable international commercial laws, and even foreign awards are enforceable in India.

4.5 Social Feasibility Analysis

4.5.1 Introduction India is one of the oldest in the world, the Indus Valley civilization dates back at least 5,000 years. According to census June of 2006, India a total population has been estimated to be 1,095,351,995. Hindi and English are Indian official langue. The National Capital of New Delhi is political nerve center. Bombay, India's largest city and port, is India's economic powerhouse. India has a consuming middle class of 300 million people. Approximately one-third of population lives in urban areas. “It is impossible to know India without understanding its religious beliefs and practices, which have a large impact on the personal lives of most Indians and influence public life on a daily basis. Indian religions have deep historical roots.” (2) According to census 2001, the distribution of religious based on population is Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, other 1.8%, unspecified 0.1%. It is well recognized that India has made great progress in economic investment and output. On the other hand, however, India still faces many severe problems such as fighting with Pakistan in the area of Kashmir, heavy pressing population problem, serious pollution, extensive poverty and ethnic and religious conflicts.

4.5.2 Wood products for housing There is a strong cultural preference for hardwood species in India, particularly Teak, against which all other species will be compared. Due to the reason of religious faiths, Indian is not too fond of European and North America furniture, Asian furniture is preferred more because of the similar culture. However, some of middle class has begun to pursue fashionable and high-quality products importing from Europe and North America more and more, and the number of middle class will continue to increase. One of the three basic needs of humans is shelter. Housing is the variety of architectural styles in India. The wide range of materials is used on construction of



variety of houses. On the other hand, 200 million people don’t have a roof over their heads. However, this doesn’t reflect a real situation as all non-cement units and 15% of these need rebuilding. Every year, the shortage of housing wood product is increasing, as the pace of construction can not catch up with the growth of population.

4.5.3 India woodworking machinery Industry India has one of the growing populations in the world. There is economic development, increase in personal wealth and strong growth in domestic demand. According to the Indian authorities estimated that India's domestic demand will grow by 2.1%, industry needs to grow by 5%. In recent years the demand for western style of wooden homes has grown tremendously. The Indian middle class and the upper class families prefer their investment in housing. Market report also showed more imports of wood products used in interior decoration, such as doors, window frames and wall panels etc. There is a growth of domestic demand that is increasing with the increase in population. Currently, the shortage of funds is still the main problems restricting the development of woodworking machinery industries. To maintain employment rates and lower production costs, the employment of a large number of cheap labor. A huge number of people, low-quality labor constraints woodworking machinery is not the only factor in the slow growth of industries. India has very high import tariffs on imports of high-tech equipment to give up part of the factory owners to produce high value-added products and increasing productivity. However, the main producers of wood in the wood industry have been aware of India's demand for the technology. That is why India woodworking machinery imports furniture manufacturing growth has increased. At present, Taiwan is one of the main sources of woodworking machinery in India. Taiwan's economy because of more equipment, and has developed close to the level of technology. Geographically, Taiwan Woodworking Machinery exports more than other countries than from India. This means lower transportation costs and shorter delivery time. Overall, India's imports of high-tech products of the woodworking machinery are quite low. Even so, there still exists the potential demand for high-tech equipment, but had not yet been "working on." Germany's exports to India are growing. In addition to the high-tech woodworking machinery products sold in India, foreign investors also found a suitable market: training local people to the main operation of the expensive equipment. ACIMALL According to the report, 250 Indian engineers in



Bangalore, India, to benefit from the advanced carpentry training centers and training courses. Training of local engineers to foreign investors is crucial, because they know that in the underdeveloped country where the technology is most needed and what kind of wood. Furniture and plywood production is the highest production in India. Those with certain technical and mechanical equipment used, it gives the woodworking machinery imports and investment value.

4.5.4 Conclusion Indian economic is flourishing in various fields, and an ever-increasing population will create a huge potential market of consumption. Whatever, India is developing rapidly, and social is stability basically. Doing business in India is feasible based on social feasibility analysis.

4.6 Economic Feasibility Analysis India is among the fastest-growing economies in the world, posting close to 8% annual growth for three years consecutively since 2002. With a gross domestic product (GDP) of close to $740 billion (Rs 28.38 trillion3 at factor cost) in 2004, India is among the world’s 10 largest economies in nominal GDP terms, and fourth in terms of purchasing power parity4. India’s economic outlook remains positive, with 8% annual growth expected to continue for the next five years5. The inflation rate has remained below 5% since 2001 but rose above 6% in 2005, mainly on account of the impact of global oil prices, which, as petroleum is India’s biggest import item, adversely affect India’s economy. There is a huge disparity in living standards. Despite a poverty rate of more than 25%, India has a consuming middle class of 300 million people. With its consistently increasing disposable income, India’s middle class outnumbers several of the world’s large markets in terms of market potential. In 2004-05, India imported nearly $1.04 billion worth of rough wood and semi-processed wood articles (plywood and boards), and close to $52.6 million worth of value-added products, principally furniture articles. India is also an exporter of wood products, especially high-value, ethnic furniture, with exports of Rs 8 billion in 2004-05. India is among the major users of wood in the Asia-Pacific region. According to the Food and Agriculture Organization (FAO), India’s wood consumption in primary and converted forms is estimated to be close to 75 million cubic meters (mcm), and is expected to grow to nearly 92 mcm by 2010. Non-paper applications represent nearly

3 Government of India. Economic Survey 2004-05, current price basis 4 US$3.3 trillion, which translates into per-capita GDP of US$3100 5 Government of India. Economic Survey 2005-06



65% of consumption, of which housing construction and furniture are the most important segments6, the Indian market size for wood products of specific interest to this study is estimated to be in the region of $4.28 billion, in terms of end-use applications. National consumption of wood products is growing at more than 6%, which is in line with the overall economic growth trends, and the increase in disposable incomes is translating into demand for housing and home goods. Based on that 6% growth rate, the market for value-added wood products is expected to grow to about $5.7 billion by 2010. Growth is higher in urban India, with demand rising in some segments like furniture and kitchens, and in construction. Table 14. India’s Wood Demand Trends, 2000-2010 (mcm) Sector 2000 2005 2010 Sawn wood (housing, furniture, implements, packaging) 47 50 54 Pulp (newsprint, paper) 23.60 28.50 35.00 Plywood 1.45 1.69 1.92 Particleboard 0.34 0.49 0.65 Fiberboard 0.22 0.32 0.41 Medium-density fiberboard 0.40 0.67 0.95 Total 73.01 81.67 92.93 Source: FAO, Asia Pacific Forestry Outlook Report 2001-2

4.7 Risk & Challenge Analysis

4.7.1 Tariff Barrier: (High Impact) Import duty rates for all timber products except roundwood to supply its´ timber processing industry range from 30% for sawn timber to in excess of 60% for sliced veneers and other value-added products as India protects its´ timber processing industry through the application of high import duties on all forest products other than logs and cants which have a lowered import duties to just 5%. Over 90% percent of India’s forest product import is in log form. So Tariff is a heavy barrier to enter of lumber market in India.

4.7.2 Humid Climate: (High Impact) The tropical climate in India is a main concern over the use of sawn softwoods due to Indian’s inability to stand up to the year-round hot and humid climate which includes periods of very heavy rainfall during the annual monsoon. The special quality of lumber is necessary due to the humid climate.

6 India’s wood sector is dominated by a large, unorganized sector, which leads to a lack of official data on the sector. Consequently, market size information is derived through numerous sources, including interviews with industry associations. The estimates are given to provide readers with a useful starting point into understanding the Indian market.



4.7.3 Moth-Eating: (High Impact) There is also the question of termites and other wood boring insects which can quickly reduce softwood lumber (and many hardwood species) to piles of sawdust. There is very little experience with treated timber as most buyers are unwilling to pay the resulting price premium, arguing that their preferred species (Teak) does not require any preservative treatment and will last much longer than competing species.

4.7.4 No awareness of Canadian products: (High Impact) As a consequence of the conservative nature of the Indian trade, there is virtually no awareness of Canadian timber species, their characteristics, and their potential applications.

4.7.5 Cultural Preference: (Medium Impact)

A strong cultural preference for hardwood species is particularly Teak, which all other species will be compared against.

Due to the reason of religious faiths, Indian are not too fond of European furniture, Asian furniture is preferred more because of the similar culture.

4.7.6 Disorder Market: (Medium Impact) India is different from other countries and regions, timber market is disorder, scattered. This disadvantaged cause that plastics, aluminum and steel replace parts of wood furniture and construction, accounting for 25% of the demand for wood.

4.7.7 Competition: (Medium Impact)

It is estimated that as much as 80% of India’s timber consumption is Teak, supplied from natural forests in Asia and, increasingly, from plantations in S.E. Asia, Africa, and South America. And also, piles and piles of tropical hardwood species from Malaysia and Myanmar, Radiata Pine logs shipped from New Zealand.

In addition, some European companies have established joint ventures with Indian partners to manufacture and sell furniture to the Indian market, such as Kronnotex and Pergo.



4.7.8 Forestation: (Low Impact)

Federal government and the state government have formulated a number of policies to encourage forestation and develop tree nursery to increase reserves and timber outputs. The work began in the early 1990s, thousands upon thousands of acres of protected forest reserves thousands of tons of logs. Therefore, in the foreseeable future, large quantities of domestic industrial timber logs will provide reliable material.

5 Conclusion

Rapid increases in the import of wood products by wood processors in India suggest that the country is opening up to the international timber trade. This can be in a large part attributed to a series of policy decisions including the economic liberalization policies implemented since 1991, timber harvest restrictions in public forests and a gradual reduction in timber import restrictions. However, gaining successful entry into the Indian market will require a concerted effort on the part of Canadian forest products manufacturers and industry associations. With liberalization of the economy and increase in income of the middle class population, the demand for wood products is expected to increase substantially. Various estimates suggest that the size of the Indian market with both an income and interest in wood products could be as high as 150 million people. India has a traditional culture of wood and consumers have had a preference for teak based on its durability, beauty and resistance to termite attack (a big concern in many parts of India).

Canadian forest products exporters continue to face several challenges in the Indian market, including the price sensitivity of the Indian market, lack of knowledge of Canadian wood, and a tariff structure designed to discriminate against the import of higher value-added wood products. Despite this, the size and nature of the Indian market suggests that this is a market that the Canadian forest products industry would do well to investigate more closely. At present the market lacks sufficient information on the physical attributes and workability of softwood species in general. With rising incomes, a continued opening to global trade, a substantial wood deficit, and attempts to increase knowledge of North American wood species, India should prove to be a profitable market for Canada.



6 Appendix A: Key Contacts and Support Services

Canadian Government Contacts Canadian High Commission in India 7/8 Shantipath, Chanakyapuri New Delhi 110021 India Contact: Viney Gupta, Senior Advisor (Trade) Tel.: (91-11) 41782456 Fax: (91-11) 41782041 E-mail: [email protected] Internet: http://www.newdelhi.gc.ca Consulate General of Canada Fort House, 6th Floor 221, Dr. D.N. Road Fort, Mumbai 400 001 India Tel.: (9122) 55494444 Fax: (9122) 55494454 E-mail: [email protected] Consulate General of Canada SCO# 54,55,56, Sector 17-A Chandigarh 160 017 India Tel.: (91172) 5050300 Fax: (91172) 5050341 E-mail: [email protected] Consulate General of Canada YAFA Tower, 3rd Floor 18 (old 24), Khader Nawaz Khan Road Chennai 600 034 India Tel.: (9144) 28330888 Fax: (9144) 52159393 E-mail: [email protected] Consulate General of Canada Duncan House 31 Netaji Subhash Road Kolkata, West Bengal 700 001 India Tel.: (9133) 22308515 Fax: (9133) 22426828 E-mail:[email protected] Canadian Government Trade Office 103 Prestige Meridien I 29, M.G.Road Bangalore, Karnataka 560 001 India Tel.: (9144) 28330888 Fax: (9144) 52159393 E-mail: [email protected]

Industry Canada 235 Queen St. Ottawa, ON K1A 0H5 Internet: http://www.ic.gc.ca Trade Team Canada Building Products Manufacturing Industries Branch 300 W Georgia St., Suite 2000 Vancouver, BC V6B 6E1 Contact: Kraig Short, Senior Industry Sector Officer Tel.: (604) 666-3026 Fax: (604) 666-8330 E-mail: [email protected] Internet: http://strategis.gc.ca/mib International Trade Canada (ITCan) 125 Sussex Dr. Ottawa, ON K1A 0G2 Internet: http://www.infoexport.gc.ca Asia Commercial Relations (WOA) Contact: Ranjan Banerjee, Trade Commissioner Tel.: (613) 996-8199 Fax: (613) 944-1604 E-mail: [email protected] Market Research Centre (BMR) Contact: Rachelle Monniaux Trade Commissioner and Senior International Market Analyst Tel.: (613) 995-1713 Fax: (613) 943-1103 E-mail: [email protected] Internet: http://www.infoexport.gc.ca Market Support Division (BMM) Contact: Nicolas Osenton, Trade Commissioner Tel.: (613) 996-0684 Fax: (613) 943-8820 E-mail: [email protected] Internet: http://www.infoexport.gc.ca Tariffs and Market Access Division (EAT) Tel.: (613) 992-2177 Fax: (613) 992-6002 or 944-4840 Technical Barriers and Regulations Division (EAS) Tel.: (613) 944-0756



Canada Mortgage and Housing Corporation (CMHC) National Office 700 Montreal Rd. Ottawa, ON K1A 0P7 Contact: Jay Thakar, Housing Exports, Asia Representative Tel.: (613) 748-2437 Fax: (613) 748-2302 E-mail: [email protected] Internet: http://www.cmhc-schl.gc.ca Canadian Commercial Corporation (CCC) 50 O’ Connor St., Suite 1100 Ottawa, ON K1A 0S6 Tel.: (613) 996-0034 Fax: (613) 995-2121 E-mail: [email protected] Internet: http://www.ccc.ca Export Development Canada (EDC) 151 O’Connor St. Ottawa, ON K1A 1K3 Tel.: (800) 850-9626 or (613) 598-2500 Fax: (613) 237-2690 E-mail: [email protected] Internet: http://www.edc-see.ca

Fax: (613) 943-0346 E-mail: [email protected]

Canadian Industry Contacts BC Wood Specialty Group 31088 Peardonville Rd., Suite #1 Abbotsford, BC V2T 6K5 Contact: Dave Farley, Manager Tel.: (604) 556-3373 Fax: (604) 556-3385 E-mail: [email protected] Internet: http://www.bcwood.com Canadian Chamber of Commerce Delta Office Tower, 350 Sparks St. Ottawa, ON K1R 7S8 Tel.: (613) 238-4000 Fax: (613) 238-7643 E-mail: [email protected] Internet: http://www.chamber.ca Canadian Manufacturers and Exporters Association (CME) 1 Nicholas St., Suite 1500 Ottawa, ON K1N 7B7 Tel.: (613) 238-8888 or (416) 798-8000 Fax: (613) 563-9218 Internet: http://www.cme-mec.ca

Canadian Wood Council (CWC) 99 Bank St., Suite 400 Ottawa, ON K1P 6B9 Tel.: (613) 747-5544 Fax: (613) 747-6264 Internet: http://www.cwc.ca Council of Forest Industries (COFI) 700 W Pender St., Suite 1501 Pender Place I Business Building Vancouver, BC V6C 1G8 Tel.: (604) 684-0211 Fax: (604) 687-4930 E-mail: [email protected] Internet: http://www.cofi.org Quebec Wood Export Bureau (QWEB) 979 de Bourgogne Ave., Suite 540 Sainte-Foy, QC G1W 2L4 Contact: Sylvain Labbe, Chief Executive Officer Tel.: (418) 650-6385 Fax: (418) 650-9011 E-mail: [email protected] Internet: http://www.quebecwoodexport.com



Canadian Standards Association (CSA) 178 Rexdale Blvd. Toronto, ON M9W 1R3 Tel.: (416) 747-4044 Fax: (416) 747-2510 Internet: http://www.csa.ca

Wood Products Group (Atlantic Canada) 1350 Regent St. Fredericton, NB E3C 2G6 Contact: Fred Nott, President and CEO Tel.: (506) 457-0841 Fax: (506) 457-0851 E-mail: [email protected] Internet: http://www.woodproducts.nb.ca

Indian Government Contacts High Commission of India 10, Springfield Road. Ottawa, Ontario, K1M 1C9 Canada Tel: (613) 744-3751/52/53 Fax: (613) 744-0913 Email: [email protected] Website: www.hciottawa.ca

Bureau of Indian Standards Manak Bhavan 9 Bahadur Shah Zafar Marg New Delhi 110 002, India Tel: +(91-11) 23230131, 23233375, 23239402 (10 lines) Fax: +(91-11) 23234062, 23239399, 23239382 Email: [email protected] Web: www.bis.org.in

Directorate General of Supplies & Disposal Ministry of Commerce (Govt. of India) Jeevan Tara Building 5, Parliament Street, New Delhi - 110 001 Fax: +(91-11) 23340497 E-mail: [email protected] Website: www.dgsnd.gov.in

Central Public Works Department Ministry of Urban Development (Govt. of India) Nirman Bhawan Maulana Azad Road, New Delhi - 110011 Tel: +(91-11) 23022199 Fax: +(91-11) 23061446, 23061379 Website: www.cpwd.nic.in

Directorate of Plant Protection Quarantine & Storage Ministry of Agriculture (Department of Agriculture & Cooperation) CGO Complex, NH-IV, Faridabad - 121001 Tel: +(91-129) 2413985 E-Mail: [email protected] URL: http://dacnet.nic.in/ppin/

Directorate General of Commercial Intelligence & Statistics Ministry of Commerce & Indystry (Govt. of India) 1, Council House Street, Kolkata-700 001, India, Tel: +(91-33) 2483111(4 lines) E-mail: [email protected] Website: www.dgciskol.nic.in

Indian Industry Contacts North Mr. Shiv Priya, Executive Director – Marketing Amrapali Group Plot No 1/3, Vaibhav Khand Indirapuram, Ghaziabad (UP) Tel: +91-120-3951968, +91-9899107050, +91-9811502155 E-mail: [email protected] Website: www.amrapali.in

Mr Narotam Sayal- Managing Director Ashita Impex (P) Ltd R-258-A Greater Kailash-1, New Delhi-110004 Tel: +91-11-2647 6858 Mobile: +91-9810696054 E-mail: [email protected]

Century Laminating Co. Ltd. Village Achheja, P.O. Hapur

Merino Panel Products Ltd. 44 KM Stone, Delhi- Rohtak Road



Dist: Ghaziabad, Hapur- 245101 (U.P.) Tel: +91-122-2308601 ~ 09 Fax: +91-122-2308611 Email: [email protected] Website: www.merinoindia.com

Rohad, Dist: Jhajjar, Haryana - 124 501 Email: [email protected] Tel: +91-12276-276335 / 276337 / 276338 / 276339 Fax: +91-1276- 276336 Email: [email protected] Website: www.merinoindia.com

Mr. Ajai Jhunjhunwala, Managing Director Global Corporation Limited A-8, Chittaranjan Park, 1st Floor New Delhi-110019 Tel: +91-11-26275577, 26276727, 26295529, 26275543 Fax +91-11-26276400 E-mail: [email protected]

Mr. Jagmohan Kejriwal, Managing Director Greenwood Plywood 2941/3, Chuna Mandi. Paharganj, New Delhi-110 055 Tel: +91-1123587853, 23583969 E-mail: [email protected]

Mr Ajit Sarin, Director Macsar Mercantile Pvt. Ltd. C-301, Central Park I, Sector 42, Gurgaon 122 009, Haryana Tel: +91-124-3941119, 2574974 Mobile: +91-9810041559 E-mail: [email protected] Website: www. macdonaldsarin.com

Mr. Girish Sharma, Project Manager JAYPEE Greens Ltd G Block, Surajpur Kasna Road, Greater Noida - 201306 Distt Gautam Budh Nagar (U P), India Tel: 91-120-2326533/34/35/36 Toll Free No: 1800-180-9900 (National) Fax: +91-120-2320150 E-mail: [email protected] Website: www.jaypeegreens.com

Surya Vikas Plywood (P) Ltd. (Donear Ply) Surya Boards Ltd. 20 North West Avenue, Punjabi Bagh New Delhi- 110026, India Ph: +91-11-25222236/25221487 Fax: +91-11-25224083 Email: [email protected] ; [email protected] Website: www.donearply.com

Mr. Sanjeev Jajodia Zircon Exports Tirupati Tradelink Pvt. Ltd. 2/25, Kirti Nagar (WHS) New Delhi - 110015 Tel: +91-11-51420433, +91-9810115582 Fax: +91-11-25152865 E-mail: [email protected] Website: www.zircon.co.in (under construction)

Mr. Sudev Barar, Vice President & Director Nuchem Ltd. Nuwud Marketing Division E-46/12, Okhla Industrial Area Phase II, New Delhi-110020 Tel: +91-11-41611847/48 Mobile: +91- 9313293773 Fax: +91-11-41611846 Email: [email protected] Website: www.nuwud.com

Sahara India Commercial Corporation Ltd. Sahara India Bhawan, 1 Kapoorthala Complex, Lucknow – 226 024 Tel: +91-522-2337777 Fax: +91-522-2378200 E-mail: [email protected] Website: www.ambyvalley.com Amby Valley Embassy: 1st Floor, Sahara Star, Santacruz (East), Mumbai - 400 099, India Tel.: +91-22 2616 8600 Fax. +91-22 2615 6972 [email protected]

Highland House (P) Ltd B-147, Sector-6 Noida, Uttar Pradesh 201301 Tel.: +91-11-120 4421800 Fax: 4421820,

Mr. K.R. Shivshankar, CEO Pergo India (P) Ltd 5, E Block Shopping Centre, Masjid Moth, Greater Kailash -II,



E-mail: [email protected] New Delhi – 110048 Tel: +91-11-41435741/41435742 Email: [email protected] Website: www.pergo.com

Mr. Anil Gupta, Chief Architect Mr. Anil Sharma, Dy. Manager, Purchase DLF Universal Ltd. DLF CENTRE, Sansad Marg, New Delhi-110 001 Tel: +91- 2371 9300 Website:www.dlf-group.com

Mr. R B Jhalani, Addl. General Manager Mr. R K Gupta, Senior Manager, Purchase Unitech Limited Unitech Signature Towers, GF South City-I, NH-8, Gurgaon - 122001, Haryana, India Tel: +91-124-408-2020 / 4086677 Fax +91.124.408.3355 Website: www.unitechgroup.com

Mr. A. K. Aggarwal Senior General Manager (Construction) Ansal Housing & Construction Ltd. 15 UGF, "Indra Prakash", 21 Barakhamba Road, New Delhi - 110 001 Tel: +91-11- 23352063-67, 23357103-06 Fax: 23350847 Email: [email protected] Website: www.ansals.com

Mr. Devinder Kumar Gupta, Director Mr Prabhakar Srivastava, Sales Executive Delhi Doors Pvt. Ltd. C-104, Sector 2, NOIDA – 201 301 Tel: 91-120-2452222, 2453333

West

Mr. P R Kelkar, Partner Dynamic Engineers & Erectors 55/2, Raigarh Niwas, D L Path, Kala Chowki, Mumbai 400 033 Tel: +91-22-2470 0713, 2470 1143 Fax: +91-22-24702717 Email: [email protected]

Mr. Hemal C Sheth, Director Camp Master Infrastructure Services Pvt. Ltd, 106, Damji Shamji Udyog, Veera Desai Road, Andheri West, Mumbai Tel: +91-22-2673 5001 E-mail: [email protected]

Mr. Arvind Jolly, CEO & Managing Director Jollyboard Limited 501, Rewa Chambers 31 Sir Vithaldas Thackersey Marg, Mumbai-400 020 Tel: +91-22- 22078531-34 Fax: +91-22-22069533 E-mail: [email protected] Website: www.jollyboard.com

Mr. Sudhir Kulkarni, Vice President – Business Development & Projects Mahindra Gesco Developers Ltd. Mahindra Towers, 5th Floor P.K. Kurne Marg, Worli, Mumbai Tel: +91-22-24929353/54 Fax: 91-22-2497 5084 E-mail: [email protected] Website: www.mahindragesco.com



Mr. Anil Rathi - Chairman Target Hardwood Floorings GCD Trading Pvt. Ltd. 21/22, 4th Floor, Volkart House, Westfield Estate Lane, Breach Candy, Mumbai-400026 Tel: +91-22-39479123, 23683215 Email: [email protected] Website: www.woodnfloor.com

H.C Vissanji, Chief Executive The Indian Plywood Mfg. Co. Ltd. 61, Ghorudeo Cross Road No. 1, Reay Road, Mumbai- 400010 Tel: +91-22-23759214, / 15 / 16 Fax: +91-22-23734863 Email: [email protected] Website: www.anchorplywood.com

Mr. Suresh Kumar Jajodia, Director Tirupati Tradelink (P) Ltd Plot No 393, Sector 5 Gandhidham (Kutch), Gujarat Tel: +91-2836-238750, 227819 Fax: +91-2836-227819 Mobile: +91-9825225231 E- mail : [email protected]

Mr. Lakshmi Narayan Dokania Durian Industries Ltd 22, "Abhishek:, Church Rd., Vile Parle (W), Mumbai 400056. Fax: (91-22) 26112261 Email: [email protected] Website:www.duriandecor.net

Godrej & Boyce Mfg Co Ltd Plant 1, 1st Floor Pirojshanagar Vikhroli, Mumbai 400079 Phone: +91-22-5596 5656 / 5959 Fax: 91-22-5596 1518 Email: [email protected] Website: www.godrej.com



South

Mr. Manohar Gopal, Director – Sales & Marketing Featherlite Products Pvt. Ltd., No.2, Timber Yard Layout Mysore Road, Bangalore-560 026 Tel: +91-80-26745002/1006/0553 Fax : +91-80-26740449 E-mail: [email protected] Website: www.featherliteindia.com

Mr. Thommen Jacob, Managing Director Jacsons Veneer and Panels Pvt. Ltd., Atlantis Junction, M.G. Road Kochi-682 011 Tel: +91-484-2355314, 2355419 Fax : +91-484-3013500 E-Mail: [email protected] Website: www.jacsonsveneers.com

Mr. M.S. Vagh Hunsur Plywood Works Pvt. Ltd. Post Box No.2, Bangalore-Mangalore Road Hunsur-571105 Tel: +91-8222- 252025, 252860 Fax: +91-8222- 252140 E-mail: [email protected]

Mr. S.P. Bhasin, Vice President - Marketing Novopan Industries Ltd. Suryodaya 1-10-60/3, Begumpet Hyderabad-500 016 Tel: +91-40-27760128, 27763129, 27763657, 27762465 Fax: +91-40-27762210 E-mail: [email protected]; [email protected]

Mr. Vishnu Khemani, Managing Director Sharon Veneers Private Limited Old No.12, (New No.60), Sriman Srinivasan Road, Alwarpet, Chennai-600 018 Tel: +91-44-24353620, 24357184, 24358269 Fax: 91-44-24346216 E-mail: [email protected] Website: www.sharonply.com

Mr. D. Daga, Chairman The Mysore Chipboards Ltd., Swastik Manadi Arcade 402/2, S.C. Road, T-3 Block Sheshadripuram, Bangalore-560 020 Tel: +91-80-22196043, 23445607 Fax: +91-80-23348463 E-mail: [email protected] Website: www.archidply.com

Mr. P.K. Mohamed, Managing Director The Western India Plywoods Ltd. Baliapatam, Cannanore-670 019 Tel: + 91-497-2778151 Fax: +91-497-2778181 Email: [email protected] Website: www.wipltd.com

Mr. Sunil Kumar Bothra, Director Uniply Industries Limited 52, Harleys Road, Kilpauk Chennai-600 010 Tel: +91-44-26605995 E-mail: [email protected] Website: www.uniply.com

Mr. Sandeep A. Jain, (Business Development) Woodlines #344/2-3, Behind Suman Plastics Near Sundar Engineering Industries Alavahalli, New Timber Yard Layout Mysore Road, Banglore-560 026 Karnataka, India Tel: +91-80-2675 2511 Fax: +91-80-26752505 E-Mail: [email protected], [email protected] Website: www.woodlinesindia.com

Kutty Flush Doors & Furniture Co Pvt Ltd., 1167 (Old No. 37) Poonamallee High Road, Koyambedu, Chennai, Tamil Nadu 600107 Telephone:+ 91-44-24871424/1716 Fax : +91-44-24871434 Email : [email protected]



Shree Mahalaxmi Timber Traders 4/1, Old Madras Road, Opp. to Church Byapanahalli Extension Bangalore, Karnataka 560038

Rubberwood India Pvt. Ltd. (Rubber Board, Govt. of India) P.B. No. 1425, Philadelphia IPC Building, K.K. Road, Kanjikuzhy Kottayam 686004, Kerala. Tel: +91-481-572967 Fax: +91-481-576097

Style Spa Furniture Limited 41, Montieth Lane, Egmore,Chennai 600 008 Tel:+91-44-28528731 Fax:+91-44-28545343 Email: [email protected] Website: www.stylespafurniture.com

East

Mr. Harish Khaitan, Managing Director Andamans Timber Industries Ltd. Circular Court, 7th Floor, 8, Acharya Jagadish Chandra Bose Road, Kolkata-700 017 Tel: +91-33 22475704 Fax +91-33-2400833 E-mail: [email protected] Website: www.andamans.com

Mr. Sanjay Agarwal Century Plyboards (India) Ltd. 6, Lyons Range, Kolkata-700 001 Tel: +91- 33- 2210-4321 E-mail: [email protected]; [email protected], [email protected] Website: www.centuryply.com

Mr. M.M. Jalan, Managing Director Arunachal Plywood Industries Ltd. 4th Floor Poddar Point, 113, Park Street, Kolkata-700 016 Tel: +91-33-22294910/12 22454911 Fax +91-33-22454748 E-mail: [email protected]

Mr. S.P. Goenka, Chairman Kitply Industries Ltd. “White House” 119, Park Street, (A-Block, 4th Floor) Kolkata-700 016 Tel: +91-33- 2229-3340/42/43/44 Fax: +91-33-22495009 E-mail: [email protected] Website: www.kitply.com

Mr. H.S. Kumbhat Arunachal Woodbased & Chemical Industries Pvt. Ltd. NIFD Campus, Opp. Goswami Service Station Silpukhuri, Guwahati-781 003 Tel: +91-361-2661521/2868/7610 Fax: +91-361-2664572 E-mail: [email protected]

Mr. P.K.More Mayur Veneer & Plywood Industries 46C, Rafi Ahmed Kidwai Road 5th Floor, Kolkata-700 016 Tel: +91-33-22262395/96, 22166784 E-mail: [email protected]



M/s. Mangalam Timber Products Ltd., 9/1 R.N. Mukherjee Road, 7TH FLOOR Birla Building, 7th Floor Kolkata-700 001 Tel : +91-33-22438706/8707, 30939131/9132/9210 Fax : +91-33-2243 8709 E-mail: [email protected] Website: www.mangalamtimber.com

Mr. P.N. Bhattacharya Ravi Timber & Allied Products Pvt. Ltd. Vasundhara, 5th Floor Suite # 2, 2/7, Sarat Bose Road Kolkata-700 020 Tel: +91-33-24760289, 24762790 FAX: +91-33-2474 5235 E-mail:[email protected] Website: www.narottamplywood.com

Mr. M. L. Periwal, Managing Director National Plywood Industries Ltd., 5, Fancy Lane, (8th Floor) Kolkata-700 001 Tel: +91-33 -22480116/17, 2430853/54 Fax: +91-33-22481246 E-Mail: [email protected]

Mr. Sudeep Chitlangia, Managing Director Sarda Plywood Industries Ltd., 113 Park Street, North Block Kolkata-700 016 Tel: +91-33 -22462274, Fax: +91-33-2493675 E-Mail: [email protected] Website: www.sardaplywood.com

Mr. Manoj Kumar Beria, Director Supreme Wood Products Pvt. Ltd. Krishna (710), 224 A.J.C. Bose Road Kolkata-700 017 Tel: +91-33-22405045, 22405392 Fax: 91-33-22406106 E-mail:[email protected]; [email protected]

Mr. Prakash Kumar More Timtech India Pvt. Ltd. 46C, Rafi Ahmed Kidwai Road 5th Floor, Kolkata-700 016 Tel: +91-33-22262395/96, 22166783 Fax: +91-33-22166784 E-mail: [email protected]

Building and Construction Trade Shows (2006-2008) - India Date Event Location Contact Information 2006 13-16 September, 2006

Index Wood + Machine

Mumbai Universal Expositions Ltd. 401, Sanskriti Park, 50B Mahakali Caves Road, Andheri East Mumbai 400 093 Tel: 022 - 2830 2870/71 Fax: 022 - 08216140 Email: [email protected] Website: http://www. ueindia.com

13-17 September, 2006

Index Furniture Mumbai Universal Expositions Ltd. 401, Sanskriti Park, 50B Mahakali Caves Road, Andheri East Mumbai 400 093 Tel: 022 - 2830 2870/71 Fax: 022 - 08216140 Email: [email protected] Website: http://www. ueindia.com



26-28 October, 2006

Interbuild India 2006

New Delhi Inter Ads Ltd. 2, Padmini Enclave, Hauz Khas New Delhi 110 016 Tel: 5165 6292/94, 2686 1113/1114 Fax: 2686 1112 Email: interads_delhi@ airtelbroadband.in Website: http://www. interbuild-india.com/

16-19 November, 2006

Inside Outside Megashow

Mumbai Business India Exhibitions 201/218, Dalamal Towers, B Wing, 2nd floor, Free Press Road, Nariman Point, Mumbai 400 021 Tel:022 - 22882536/37/38/39 Fax: 022 - 22882540 Contact person: Ms. Mohini Kewalramani, General Manager (Operations) E-mail: mohini.kewalramani@ biexh.com Website: http://www. iomegashow.com/

1-4 December, 2006

Index International Furniture Fair

New Delhi Universal Expositions Ltd. 401, Sanskriti Park, 50B Mahakali Caves Road, Andheri East Mumbai 400 093 Tel: 022 - 2830 2870/71 Fax: 022 - 08216140 Email: [email protected] Website: http://www. ueindia.com

7-9 December, 2006

Constru India 2006

Mumbai Winmark Services Pvt. Ltd. B-702, Dheeraj Heritage Residency - I, Shastri Nagar, Linking Road Extn. Santacruz (W), Mumbai 400 054 Tel: 022 - 2660 5550/7755 Direct: 022 - 5600 2987 Fax: 022 - 2660 3992/93 Email: [email protected] Website: http://www. construindia.com/

8-10 December, 2006

Facades & Roofing Solutions 2006

Hyderabad Conventions & Fairs (India) Pvt. Ltd. 157 Princess Street, Mumbai 400 002 Tel: 022 - 220 60808 /220 02255 Fax: 022 - 220 80171 / 220 02288 Email: [email protected] Website: http://frs.confairs.com/index.html

21-24 December, 2006

Inside Outside Megashow

New Delhi Business India Exhibitions 268, Masjid Moth Near Uday Park New Delhi-110049 Tel: 4164 3047/48/49/50/51, 4164 3052/53,3522 9310, 93136 29310 Fax: 5164 3047



Contact person: Mr. Mahesh Thakur, Asst. Manager (Operations) E-mail: [email protected] Website: http://www. iomegashow.com/

2007 25-29 January, 2007

Build Expo 2007 Coimbatore CODISSIA Trade Fair Complex Avinashi Road Coimbatore - 641 014., Tamilnadu Tel: 0422 - 259 3505/7 Fax: 0422 - 259 3506 Email: [email protected] Website: http://www. buildexpo.in

March 2007 BMCT 2007 New Delhi Builders Association of India (All-India Association of Engineering Construction Contractors) 101 Shivam House, Commercial Complex, Karampura New Delhi 110 015 Tel: 2592 0423, 2656 8763,3957 3257/3258, Fax: 2656 8763 Contact: Mr. Lokesh Kashyap, Mr. R. P. Arora Email: [email protected], Website: http://www. bmctexhib.com

5-8 April, 2007

Panelexpo 2007 New Delhi Fair Design India Pvt Ltd B - 5, Sector 60 Noida - 201301 Phone : 0120 - 2589473, 2584778, 9811355527, 9818856622 Fax : 0120 - 2589474 Email: [email protected] Website: http://www. panelexpo.com, http://www. fippi.org

3-5 May, 2007 ICON III 2005 India Expocentre, Greater Noida (Near New Delhi)

Expomedia Events India Pvt. Ltd. 2nd Floor, Somdutt Towers K-2, Sector - 18, Noida - 201 301 Tel:0120 - 251 6110/44 Fax:0120 - 251 6020 Email: [email protected] Website: http://www. icon-expo.com/

December 2007

Excon 2007 Bangalore Confederation Of Indian Industry(CII) Southern Region-Karnataka # 1086, 12th Main, HAL 2nd Stage Indiranagar, Bangalore, Karnataka 560 008 Phone : 080 - 2527 6544/45/6706 Fax : 080 - 2527 6709 Contact: Ms. Sandhya Satwadi, Director Head CII - Karnataka Office



Website: http://www. ciionline.org

2008 February 2008

Indiawood 2008 Bangalore PDA House #32/2, Spencer Road, Frazer Town, Bangalore - 560 005 Phone : 080 - 25547434 Fax : 080 - 25542258 Website : http://www. pdatradefairs.com



7 Appendix B: Survey Questions for Indian Firms 1. The existing or potential demand for engineered wood products (EWP): # Large; # Small; # No demand

2. The main purpose of the demand for EWP is: # Furniture; # Housing; # Floor; # Others

3. Main end-users for EWP locate in: # East; #West; #South; #North; #S-E; #S-W; #N-W;

#N-E; or #Central part of India

4. Current demand-supply situation for EWP is: #Demand > Supply; #Demand < Supply; #Demand = Supply

5. Main competitors come from: #Domestic; #Overseas

If from overseas, then:

#Europe; #North America; #South-East Asia; � Elsewhere

6. The awareness stage of Canadian EWP: # Known; # Some; # Little; # Few; # Unknown

7. In the future 5 years, the policies of India for importing wood product: # Open; # Stand; # Close

8. In the future 5 years, the duty of India for importing wood product: # Reduce; # Stand; # Increase

9. First concern of importing wood product: # Price; # Quality; # Others

10. Getting information on EWP # Interested; # Uninterested

11. The training of Canadian EWP knowledge: # Necessary; # Unnecessary

12. Would you or your organization like to create a network or partnerships with Canadian organizations? # Yes; # No



13. Would you or someone in your organization be interested in attending a program specialized in Engineering Wood Technique? # Yes; # No

14. Would financial assistance make it more likely for someone from your organization to attend the program? # Yes; # No

15. Is your company looking for a joint venture project with a Canadian organization in the near future? # Yes; # No

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