Reliance Industries Ltd (RIL) has entered into a license agreement with Germany’s Resysta International GmbH giving RIL exclusive rights of production and marketing for RelWood, a natural fibre polymer composite (NFPC), in India. This compound will be the raw material for the production of sheets & various profiles used in a wide range of wood & plywood replacement applications.
“Through this strategic partnership with Resysta, RIL is looking forward to produce the RelWood compound exclusively in order to meet the fast-growing demand of real alternative to tropical wood. This agreement is further evidence of RIL’s commitment to sustainable initiatives based on innovative technology. Resysta is a leading German innovator, and together we will offer Indian consumers cutting edge technological product as an alternative to natural wood,” commented Vipul Shah, COO Petchem, Reliance Industries.
Resysta’s RelWood is made out of environmentally friendly resins comprising natural silicates, polymer & specialised blend of additives. It is an attractive, sustainable not plastic alternative to wood. Its unique properties like water resistant, fire retardant, UV & termite resistant, bend & moulding flexibility make it different and more user-friendly, attractive alternative to wood. One can nail & screw the material.
Bernd Duna, CEO of Resysta International, added, “We are currently licensing our technology across the world, and have found in Reliance Industries our perfect partner for India. By manufacturing the Resysta compound locally, the products become even more environment friendly and easily available. As a leading petrochemicals manufacturer in India, RIL is ideally poised to manufacture on a par with our high worldwide standard. We look forward to continuing Resysta’s success story in India in partnership with RIL.”
The market for medium-density fiberboard (MDF) - a high grade, composite material – is estimated at Rs 1,500 crores (550,000 MT) and is high capital intensive and thus have only organised segment operating, with Greenply having the largest share of 30 percent.
Total market for end use market for wood material is Rs 500,000 crore out of which 46 percent or Rs 200,000 crore is dominated by furniture, followed by Rs 150,000 crore or 36 percent by doors and windows, panelling has share of Rs 125,000 crore.
About 45 percent of the domestic demand for wood-plastic composites (WPCs) is met through imports, which is dominated by China. Imports for WPC profiles and panels have been growing at a CAGR of 15 percent over the last 5 years.
MDF, particle boards, and tropical wood are mostly used for interior applications; while WPC and treated plywood could also be used for exterior use. Of the organised plywood market, 50 percent is controlled by two national players Century Ply and Green Ply.
The construction sector has contributed around 8 percent to GDP constantly over past five years, and it is expected to become third largest construction market by 2025. Construction is expected to be key growth driver of Indian economy with GDP expected to grow at the rate of 7.5 to 10 percent between 2017 to 2021.
Increasing urbanisation and rising income coupled with increasing spending on construction & furniture are likely to be the major growth drivers for RelWood.
"RelWood can be used in decking, making of furniture and doors and windows. The growth of RelWood will be driven by sharp increase in the growth of Indian real estate market, which is expected to touch $ 180 billion mark by 2020. India would need to build 170 million houses by 2030, to meet urbanization demand. RelWood will be well poised to take advantage of government spending of Rs 500,000 crore earmarked for developing 100 smart cities. The investment in construction sector will also be driven by RBI’s recent permission to allow 100-percent FDI in construction sector," said RIL in the release.
