Nepal’s plywood industry is a significant contributor to the nation’s manufacturing sector, particularly in construction and furniture production. With approximately 80 plywood manufacturing units operating across the country, the industry has seen substantial growth, especially in exports.
Market Overview
Export Growth: In the fiscal year 2023/24, Nepal’s plywood exports reached NPR 7.43 billion (approximately USD 56 million), a significant increase from NPR 350 million in FY 2021/22.
Domestic Market: Despite the export surge, the domestic plywood market contracted to USD 15 million in 2024, reflecting a decline of 13.4% compared to the previous year.
Export Dynamics
India has traditionally been a major export destination for Nepali plywood. However, in March 2025, India’s Bureau of Indian Standards halted plywood imports from Nepal due to quality certification issues. This development has affected major customs checkpoints like Biratnagar, Kakadbhitta, and Birgunj.
Industry Challenges
Raw Material Costs: A 40% increase in core veneer prices over the past year has raised production costs.
Certification Issues: The suspension of plywood exports to India due to certification problems has disrupted trade and affected revenue streams.
Future Outlook
Market Growth: The Nepal Hardwood Veneer and Plywood Market is projected to grow at a compound annual growth rate (CAGR) of 6.6% from 2025 to 2031, driven by increasing urbanization, infrastructure development, and a rising demand for eco-friendly and sustainable building materials.
Investment Opportunities: There is a growing interest in foreign direct investment (FDI) in the sector, especially in large-scale infrastructure projects.
Leading Manufacturers
BHAGWATI LAMINATES Pvt. Ltd(Neply): A prominent manufacturer supplying A-grade plywood to various sectors, including furniture and construction.
Shree Ganesh Plywood Industries: Recognized for producing high-quality plywood products catering to diverse market needs.
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