Manufacturing Unit of Medium Density Fiberboard (MDF). Investment Opportunities in Wood and Wood Based Products.

MDF, or Medium Density Fibreboard, as it's more often called, is a very popular and well-known timber product. MDF is a wood product made by breaking down both hardwood and softwood into wood fibres, which are then mixed with wax and resin to produce panels when temperature and pressure are applied at extremes. MDF is very much a modern-day material, having been mass-produced on a vast and commercial basis.

Related Project: Medium Density Fiberboard (MDF Board)

MDF is made of compressed wood fibre and binder and can have a very fine, smooth painted or veneered surface on both sides. MDF has a fine-grained, homogeneous structure that is denser than plywood when cut. MDF can be bonded, laminated, and dowelled, but cutting and sanding - both of which should be done outside rather than inside – produce a thick, invasive dust that requires the use of a mask and probably additional safety measures.

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Advantages of Medium Density Fiberboard:

1. MDF offers economic value for ordinary people because it is less expensive. As a result, they are affordable to everyone.

2. MDF is environmentally friendly because it is made from recycled wood.

3. It is simple to apply any colour, however staining different colours on wood takes a long time.

4. There are no knots or kinks in MDF, which disrupts the flat surface.

5. Because MDF is processed with chemicals, it is resistant to some insects.

6. It can be painted or stained to replicate the look of real wood. As a result, it can take the place of wooden furniture.

7. MDF is easier to depict than wood.

8. Laminators may be simply mounted to MDF to give it the appearance of real wood veneers.

9. MDF is a fantastic alternative to wood since it is sturdy, dense, flat, and strong.

10. Because MDF is not a natural product, it has no grain and is easy to cut and drill without causing damage.

11. Because of its appropriate density, it offers excellent machining characteristics.

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Market Outlook:

The global market for medium density fiberboard was worth USD 61.3 billion in 2019 and is predicted to increase at a CAGR of 6.6 percent from 2020 to 2027. The growing use of the product in furniture and building applications is projected to drive demand. The MDF market is being driven by an increase in demand for MDF for furniture, as well as the widespread usage of these boards in building materials.

Because of expanding product application in furniture and building applications, as well as technical breakthroughs and improvements in production, the global medium density fiberboard (MDF) market is predicted to rise rapidly. One of the key factors contributing to the global MDF market's growth is the increasing building and construction industry, particularly in emerging countries. In 2019, Asia Pacific dominated the MDF market, accounting for 61.0 percent of total market share.

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In the construction industry, increased construction investment in emerging nations to fulfil rising residential housing demand is predicted to be a major factor boosting demand for MDF panels. The rising usage of recycled wood fibres in MDF production has also helped to propel the medium density fiberboard industry forward. Growing manufacture of environmentally friendly MDF products will provide new market prospects. All of these reasons are expected to boost demand for medium density fiberboard in the future years.

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Major Key Players:

1. Amazon Wood Pvt. Ltd.

2. Aryan Enterprises Pvt. Ltd.

3. Asian Pre-Lam Inds. Pvt. Ltd.

4. Associate Decor Ltd.

5. Bajaj Eco-Tec Products Ltd.

6. Best Board Ltd.

7. Darshan Boardlam Ltd.

8. Divine Board Pvt. Ltd.

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Introduction

Project Introduction
Project Objective and Strategy
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Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

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Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

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Detailed Process of Manufacture with Formulation
Packaging Required
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Infrastructure and Utilities

Project Location
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Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR