Indiana Hardwood Industry Trade Mission to India
Developing Indiana’s Hardwoods Global Market
By Mike Seidl, Hardwood Economic Development Program Manager, ISDA
Photos by Dave Bramlage, Cole Hardwoods
Introduction
Representatives from Indiana’s hardwood industry were part of a multi-state trade mission that traveled to India from September 19-29, 2007, to explore and expand the hardwoods market into India. With a population of 1.3 billion, India continues to reach out globally for supplementary hardwood products to meet their ever increasing consumer demand. Currently the Indian furniture market is worth about $7.9 billion and is likely to grow to $16.9 billion by 2010. With this growing market in Southeast Asia, we all felt that Indiana has the opportunity capitalize in this area and increase Indiana’s $9 billion hardwoods industry significantly.
The primary objectives of the mission were for U.S. hardwood exporters to obtain knowledge of and meet with the members of the Indian hardwood trade and for the U.S. hardwood industry to deliver key information to potential buyers through a series of educational workshops. These workshops were held in New Delhi, Mumbai (Bombay), and Bangalore.
Indiana members of the delegation included Dave Bramlage, Cole Hardwood, Inc., and I. Other states represented included Pennsylvania, New York, Ohio, West Virginia, and Tennessee. This mission was sponsored by the Hardwood States Group with the support of the American Hardwood Export Council which is a part of the Foreign Agriculture Service.
India Delegation at Shubnen Veneers Pvt. Ltd. in Mumbai (Bombay)
Thursday, September 20, 2007
The day began in New Delhi with an orientation meeting sponsored by the U.S. Embassy. Counselor for Agriculture Affairs Holly S. Higgins began the meeting by welcoming everyone and gave a quick overview of India’s growing economy. Some of the highlights include:
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More than 650 million people depend on farming for a living but there are only 114 million farms.
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The McKenzie Report estimates there are 50 million people considered middle class with a disposable income of $4,400 - $22,000. The report expects this to increase to 583 million people by 2025.
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The average skilled furniture worker makes $120-$150 per month. Unskilled labor averages $50 per month.
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Teak imported from Burma and Southeast Asia is the predominate specie used in homes and furniture.
A consulting firm in India arranged for us to meet with 35 prospective clients at our New Delhi workshop. Dr. Sudipta Dasmohapatra, professor for Forest Products Marketing and Business from North Carolina State University, opened the workshop. After the workshop everyone enjoyed lunch and the opportunity to network.
Fourteen Indian companies remained to have one-on-one business meetings. Several of these companies wanted quotes on lumber but logs and veneer continue to be the priority. Thickness requirements for lumber were 2 – 4 inches which is difficult to kiln dry.
The companies we visited with expressed interest in a mission to the United States to visit sawmills and manufacturing plants. We would have excellent resources to share with the American Hardwood Export Group and the Hardwood States Export Group.
That evening Ms. Higgins hosted a reception in our honor with key Indian trade importers, followed by dinner at the Grand New Delhi Hotel.
Holly Higgins and Reggie Singh, Second Secretary of Economic Affairs receive cutting boards from Mike Seidl of ISDA at the reception at Ms. Higgin’s home.
Friday, September 21, 2007
Today we toured several sawmills and distribution centers in key wood markets in Nangloi and Kirti Nagar located in New Delhi. We visited several sawmills that were processing teak, the predominate specie imported from Southeast Asia. Teak has outstanding resistance to rot and termites, making it very applicable to India’s hot and humid climate. New construction requiring woodwork for doors, window frames, interior furniture, and millwork are the main uses.
Delegation tours one of the timber companies in New Delhi.
These companies sell to local businesses, including retail builders, construction companies, small furniture, and millwork shops. They carry a wide variety of tropical species. Several companies carry our temperate hardwoods (walnut, ash, white oak) as well. Pricing and logistics make the tropical woods a formidable challenge for importing U.S. hardwoods.
Many in the group were surprised to see very antiquated manufacturing equipment with little, if any, safeguards to prevent injury. We also noticed a large number of employees at each facility giving us the impression of inefficiency by our U.S. standards. However, it was explained to us that current Indian law restricts overtime to no more than two hours per week. If plants were more up-to-date, producing ply-products and flooring for office buildings and the housing industry. Office construction continues to be very active in India.
Navigating throughout New Delhi in a bus was indeed a sight to see…organized chaos would best describe it.
Sawmill in New Delhi with teak flithes.
Gene Walters and Stephen Servies inspect logs.
Workers in wood district transport log to sawmill.
Saturday – Sunday, September 22-23, 2007
Saturday the group went on a tour to see Old and New Delhi. Old Delhi is more than 300 years old and was built by the Mughal Emperor Shah Jehan in the Mid-17th Century as his capital. He called it Shahjahanabad, meaning City of Shah Jahan. At its center stood the Red Fort, given the name because of the red sandstone used in construction. It was a vast, walled complex of beautiful palaces and meeting halls. The Red Fort represented the pinnacle of Mughal palace-fort building and symbolized political and economic power.
Dave Bramlage, Steve Servies, Gene Walters, David Hagedorn, Mike Seidl, Terry Thompson and Dave Hunter at the Red Fort.
New Delhi, the current capitol and the seat of the Government of India and the government of the National Capitol Territory of Delphi, was designed by Sir Edward Lutyens, a leading 20th Century British architect. Driving down the main avenue, we came to Rajpath, the central avenue of Delhi that extends from India Gate to Rashtrapati Bhavan, the official residence of the President of India. The India Gate (originally called the All India War Memorial) is a monument built by Lutyens to commemorate the Indian soldiers who died in World War I and the Afghan Wars.
The Red Fort in New Delhi
Sunday, September 23, 2007
Taj Mahal looking from entrance gate
The group left the hotel at 6 a.m. for Agra to visit the Taj Mahal. Known as one of the Seven Wonders of the World, the Taj Mahal is a mausoleum built under Mughal Emperor Shah Jahan in memory of his beloved wife, Mumtaz Mahal. The principal mausoleum was completed in 1648. It took the labor of 20,000 men and more than 17 years to complete.
Sunday evening, we took a motor coach to the Delhi airport to catch a flight to Mumbai (Bombay).
Monday September 24, 2007
Today we hosted another workshop for the wood traders and manufacturers in the Mumbai area. Dr. Sudipta Dasmohapatra led the seminar, “American Hardwoods, Advantage for the Indian Market.” Thirty-eight company officials attended. Dr. Dasmohapatra’s overview started with several graphs showing the United States as the leading lumber exporter in the world, its top six global destinations and Indian imports of U.S. hardwoods. She then compared the tropical species to temperate hardwoods along with forest ownership and U.S. sustainability. The program also covered manufacturing facilities, wood applications, grading rules, and species.
Our delegation received many questions covering a variety of topics including sustainability, logs purchases verses manufactured lumber, and lumber grade interpretation. After a working lunch the delegates had one-on-one meetings with 15 companies, all wanting to import hardwood products.
The Jawahar Sawmill, a part of the Associated Group,hosted an evening dinner. Managing Director Mohamed Farouk Suleman Darvesh gave a very impressive presentation on the Associated Group background and current businesses. During dinner we discussed our mutual business and shared success stories creating a very positive atmosphere for future business.
Tuesday – Wednesday, September 25-26, 2007
The next two days were spent visiting several key wood manufactures and traders in the Mumbai area. These visits offered the delegates an enhanced picture of the products manufactured and their production processes along with current and future needs for our temperate hardwoods.
An especially productive visit was to Shubnen Veneers Pvt. Limited, which is part of the Uro Group, a large conglomerate with many manufacturing facilities. They produce vitrified tiles, mica, veneers, plywood, furniture, wood flooring, aluminum panel sheets, and other products.
We were welcomed by Chairman Nanji Mehta at their corporate office. Dheeraj Nandu, Director, presented five different programs describing the different facets of their business. They are one of the major brands in the Mumbai area and are importing very high quality veneer for plywood panels in furniture manufacturing. The Shubnen group hosted lunch for us at their headquarters.
We then proceeded to Myanmar Timber Company and were greeted by the owner, Vimal Hemnani. Myanmar Timber is a family owned business and a leading supplier of American hardwoods in Mumbai. Mr. Hemnani gave us a tour and explained that most of their business is with furniture and construction firms. The tour was very interesting, and we learned that American hardwoods are making inroads into this tropical market.
Our third visit was to the showroom of Eurowood Lumbers Pvt. Ltd. a primary manufacturer of wooden flooring. The Chairman, Khimji Shah, met us and gave the group a brief overview of their products. Mr. Shah pointed out that they were using several American species in their flooring line including ash, walnut, hard maple, and white oak. The delegation was very impressed with the craftsmanship of the flooring and motivated to augment sales by the displays made from U.S. hardwoods.
Showroom at Eurowood Lumbers Pvt. Ltd. in Mumbai (Bombay)
Eurowood showroom demonstrates Eurowood Lumbers unique skill in inlaid veneers.
The final destination was the local timber market located on Reay Road in Mumbai. Here we saw more than 20 different distribution centers all competing, yet in a very friendly manner toward one another almost like one community. Our guide led us on an extended tour where we met many of the owners and workers who were very open and friendly. We had several key opportunities to host worthwhile conversations on the advantages of importing lumber as a better value and cost savings to their particular companies. All in all it was a very productive time with one of the more influential trading groups in Mumbai.
Mike Seidl and Paul Dow look on as Mr. Navin Tolia of Vimal Timbers describes the distribution yard business in Mumbai (Bombay).
The return trip to the hotel was one of great excitement and anticipation as we were caught up in the Ganeshu (elephant god) celebration! Millions of people from Mumbai and the outlying areas paraded through the city to immerse an elephant representing Ganeshu into the ocean. The atmosphere was very similar to like Mardi Gras
Traffic in Mumbai (Bombay)
Some of the Ganeshu celebration parade
More of the Ganeshu celebration parade
End of Ganeshu parade at Queensgate in Mumbai (Bombay)
That afternoon we left Mumbai for the flight to Bangalore leaving the Ganashu festivities behind.
Thursday, September 27, 2007
Bangalore is the last major city on our trade mission and is considered India’s “Silicone Valley.” Our last hardwood workshop was held today. David Venables, European Director of the American Hardwood Export Council, gave the presentation.
David Venables presented the “American Hardwoods – Advantage for the Indian Market” seminar in Bangalore.
The round table was attended by 44 guests who, as in past workshops, wanted to learn more about our temperate hardwoods. Mr. Venables presented the “American Hardwoods – Advantage for the Indian Market” seminar. There were very spirited discussions among the guests expressing concerns on issues like logistics, lumber pricing, and tariffs applied to lumber; however, overall the delegates thought Bangalore had the greatest potential for lumber sales and the meeting a great success. After lunch the group conducted one-on-one meetings with prospective traders and manufacturers.
Our last appointment of the day was a visit to one of the largest woodworking plants in India, Sobha Interiors. The parent company, Sobha Developers Limited, is a large construction company that primarily builds large apartment complexes. Upon our arrival we received a warm greeting by Srikanth Srinivasan, Sobha’s CEO and Sujit C., Assistant Manager. Mr. Srinivasan gave a very informative explanation and background on why Sobha Interiors was formed, thus creating Sobha Developers Limited into a vertically integrated company. The tour included two manufacturing plants, furniture and plywood. These plants were very modern and impressive, much like what you would find in the United States.
Mr. S. Srinivasan of Sobha Interiors receives a cutting board from Wayne Bender of the Hardwood States Group.
Friday, September 28, 2007
Today was our last site visit before leaving to travel back to Bangalore and the long flight home. After an early breakfast, we once again embarked on the bus to tour six plants owned by the Vagh family in Mysore. We saw a furniture plant, veneer mill, plywood manufacturer, sawmill, molded plywood seating manufacturer, and a door plant.
The consulting firm provided a brief overview of Abuli Vagh, CEO of the family-owned businesses, and each company’s product line. The Vagh family truly defines the meaning “family business” with each facility managed by one of the brothers.
Rotary veneer mill in Mysore
Veneers from the United States
Mr. Moiz watches as teak logs enter the yard.
Hunsur Plywood Works Pvt. Ltd. was our first stop and Shabbir Vagh, Mr. Abuli Vagh’s son, welcomed us. Shabbir’s Uncle Moiz Vagh began the tour in the log yard then on to the veneer plant where we saw several horizontal and one rotary veneer slicers all in service. Tropical woods were in production at the time, but we did see walnut, ash, and white oak from the United States. Mr. Vagh did confirm they are beginning to incorporate more temperate hardwoods into their product line.
After a short visit to the sawmill, we were all pleasantly surprised to be invited to lunch at the home of Mr. Moiz Vagh. Everyone enjoyed the warm hospitality that reminded us all of home.
The delegation enjoyed lunch at the home of the Vahn family. First row: David Hagedorn, President of The Frank A. Conkling Company; Dr. Sudipta Dasmohapatra, Professor North Carolina State University; the wife of Mr. Ali Abbas Vagh; Paul Dow, Sales Representative with Yoder Lumber. Second Row: Abbas Vagh, family friend; Wayne Bender, Pennsylvania Hardwood Council; Ali Abbas Vagh, CEO The Decorative Laminates (India) Pvt. Ltd.; Darlene Cyphert, Marketing and Sales Manager of Babcock Lumber Company; Mike Seidl, Hardwood Economic Development Program Manager with the Indiana State Department of Agriculture and Bob Mohr, Export Sales Manager of Allegheny Wood Products, Inc. Third Row: Shabbir Vah, Mas Furniture; Dave Bramlage of Cole Hardwoods; Terry Thompson, Timber Trad Ltd. and Gene Walters, General Manager of Rolling Ridge Woods, Ltd.
After a delicious lunch we said our good-byes and Shabbir accompanied us on the remaining visits to the Vagh family plants.
Our next stop took us to the Pyramid Timber Associates Pvt. Ltd. managed by Mohammedi T. Vagh. This facility manufactures several different types of plywood using tropical hardwoods due to their low cost. However they are currently using some temperate hardwood veneer (burl walnut, birdseye maple, quartered white oak) at the high-end of their product line. In the showroom we were able to view these beautiful displays.
(Left to right) Mike Seidl, Bob Moore of Allegheny Wood Products, Inc., Paul Dow, Yoder Lumber Co Inc. and Wayne Bender of Hardwoods States Group talk with Shabbir Vagh of Mas furniture and Ali Abbas Vagh, CEO. In the background Professor Sudipta Dasmohapatra of North Carolina University talks with one of the Vagh family sons.
Next we met Shabbir Vagh, Manager of Mas Furniture, who took us on a tour of the furniture factory. The majority of the furniture was made from plywood and sold to office buildings and apartment complexes. We had an extremely good conversation with Mr. Vagh about using several of our hardwood species in their product line. He agreed to discuss this with his staff.
Decorative Laminates Pvt. Ltd. was our last visit of the day and combined two plants, plywood seating and doors. Ali Abbas Vagh, CEO, described each facility on our tour. First we saw the plywood seating plant, which was quite interesting, then the door facility. The manufacturing included both solid and plywood doors for a variety of uses internally and externally. At the end of our visit we were able to have a productive conversation with Mr. Vagh about future growth plans and a possible visit to the United States.
Workers placing dowel pins at Laminates Pvt. Ltd. in Mysore.
After an enjoyable day, we went back to Bangalore for a brief rest and then onto the Hyderabad airport for the trip home. Dave and I look forward to the return trip home to share our experiences and information with the hardwood industry. We also look to building a long-term business relationship with our new industry friends from India.
Ali Abbas, CEO looks on as Terry Thompson, Dave Hagedorn, Gene Walters, Sudipa Dasmohapatra enjoy coconut milk.
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