Aluminium Composite Panels in India To Witness A Robust Growth Post GST
aluminium composite panels in India is valued to be close to INR 2200 Crore. Though the share of
branded players was experiencing downward trend for last few years, the enactment of GST has
given a level playing field which was very much essential for better business practises, infrastructure
growth and fostering economy. The players are now moving towards organized way of doing
business by following ‘brand formula’ and enhance the value of supply by providing superior quality
material and innovative products. Thus, for large players like Eurobond, GST will bring wide smiles
and double digit profits.
ACP attracts 18% GST and is one of the product categories that shall witness large growth and
greater transparency. Small players who had been spoiling market by providing inferior quality
material or creating price wars including unfair billing practises will now have to go to the backyard.
For production of ACP, plastic granules, and aluminium coil are the key raw materials; both of which
attract full input credit. This maximises benefits for the manufacturers. Since this segment is
dominated by few major players, they can now increase their market share by opening new area
leveraging the uniform taxation system nationwide which will help them grow further.
The alternate materials used for cladding like marble, tiles, wood etc. have become costlier, where
as ACP being on same level makes it the preferred choice. Leading brands now have the playing field
for themselves and can out market the small unorganised players.
Further the usage of ACP is increasing everyday with requirement of modern infrastructure
amenities like commercial spaces, metros, buildings, airports etc. The innovations in products will
further fuel this demand and build confidence amongst architects, interior designers, and builders.
Now organized, ACP segment will grow owing to availability of quality products and retail driven
marketing efforts that also promotes various applications of ACP like residential facade, shop facade,
interior panelling and more. Thus, there is no doubt in claiming that with implementation of GST,
happy days are here for ACP Industry.
Do share your views on GST with us.