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Medium Density Fiberboard (mdf) Manufacturing Business

Fiberboard (MDF) is a dry-formed panel product constructed from lignocellulosic fibers combined with a synthetic resin or other suitable binder. The panels are compressed using a hot press to achieve a density of 496 to 801 kilograms per cubic meter (kg/m3) (31 to 50 pounds per cubic foot [lb/ft3]). The entire interfiber bond is formed by a synthetic glue or other appropriate organic binder. Due to its smooth, tight edges, MDF can be machined and has a more even density throughout the board. Because it can be completed with a smooth surface and printed with a grain pattern, veneers or laminates are not necessary. Most of the heavier MDF panels used for furniture have a thickness of 1.27 to 1.91 centimeters (1/2 to 3/4 inch). Panels of medium density fiberboard that are thinner than 1.27 cm (1/2 in) are frequently used for siding. One of these is MDF, a product made of man-made wood similar to particleboard. Particleboard, which is merely a mixture of wood chunks and shavings bound together with resin, is a much less sophisticated material than MDF. To produce denser, stronger panels, finer materials can also be crushed more firmly. There are many benefits to turning wood into a fibrous material. It has absolutely no grain. According to this, MDF is remarkably stable and unaffected by changes in humidity. Additionally, the finer material creates a uniform, flat, smooth surface that is the best base for wood veneer and plastic laminate. MDF may be worked like any other sort of wood product as long as carbide cutters are used. MDF is often not polished or stained spontaneously. It is typically painted, covered in wood veneer, or laminated with plastic. MDF accepts paint well. MDF looks good after applying primer and several coats of paint, unlike particleboard or plywood where the surface grain is obvious. Uses and Application Due to the high level of consistency across MDF, cut edges will be smooth and free of voids and splinters. Because the edges are smooth, decorative edges can be made with a router. MDF's uniformity and smoothness make it simple to cut intricate designs with a scroll saw, band saw, or jigsaw. These designs might include scrolled or scalloped designs. MDF has an extremely flat surface, which makes it a fantastic surface for painting. Advantage Store fixtures, office and residential furniture, paneling, doors, jambs, millwork, edge shaping and machining, embossing, laminate flooring, laminating and finishing, kitchen cabinets Market Outlook The MDF market in India has grown at a CAGR of 5-8 percent during the preceding five years, and it is estimated to be worth H35 billion. The Central Government's decision to refuse new permits for the manufacturing of plywood has increased the gap between supply and demand. This is a positive development for the MDF market since it will increase the adoption of engineered panel materials. The primary raw material used to create MDF and particle boards is wood. The FAO estimates that the Indian wood-based panel industry's demand for wood has increased at a CAGR of 5.5% over the past 10 years and will continue to grow at a CAGR of 5% through 2020. Wood prices have been continuously rising over the past 10 years as a result of growing demand from the wood and paper sectors as well as strict Central Government forest preservation rules. Rising wood prices could have an impact on the company's profitability because it has no long-term agreements for the supply of raw materials. The demand for pre-assembled furniture consisting of engineered panels like MDF is increasing due to rapid urbanization. Compared to the global average of 80%, MDF penetration in India is quite low at only 7% of the total wood substrate market. The entry of significant, specialized players to the market, growing uses, and expanding awareness have all contributed to the MDF sector's 20 percent CAGR growth over the preceding five years. Given the high cost of plywood and the rising demand for MDF, we predict that the MDF market will rise at a CAGR of 15-20% over the next few years. Industry Major Market Players: • Arauco (Chile) • Centuryply (India) • Daiken Corporation (Japan) • Duratex (Brazil) • Fantoni Spa (Italy) • Greenpanel (India) • M. Kaindl KG (Austria) • Roseburg Forest Products (U.S.) • Rushil Décor (India) • Swiss Krono Group (Switzerland) • Uniboard (Canada) • Unilin (Belgium) • VRG Dongwha (Vietnam) • West Fraser Timber Co. Ltd. (Canada) • Weyerhaeuser (U.S.) • Kronospan (Switzerland) • Egger (Austria)
Plant capacity: 100 CBM per DayPlant & machinery: 18 Cr
Working capital: -T.C.I: Cost of Project:31 Cr
Return: 25.00%Break even: 47.00%
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  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
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