From a single sawmill in 1897, Romania’s Kronospan grew to 45 production sites in 24 countries, 16 distribution centers in 29 countries and more than 15,000 co-workers around the world. For over a century, Kronospan has been meeting its customers’ needs with an unbeatable combination of great design, quality products, value for money, respect for the environment and outstanding service. On the sidelines of IndiaWood 2022, Amit Tekale, Editor of Modern Woodwork interacted with Dr. Oana Bodea, CEO of Kronospan – world’s leading manufacturer of wood-based panels and value-added products.
Modern Woodwork: Kronospan entered India in 2014-15, almost 117 years after its existence. What was the reason behind the late entry into the market of the world?
Oana Bodea: We wanted to enter and develop Indian market since the beginning of the last decade. Our initial research revealed that India has its own producers with a long history. India is not only producing furniture for local needs, but also exporting around the globe.
We entered the market silently in 2014-15 and appointed a pan-India distributor in 2018-19 and soon thereafter the COVID crisis hit the world. Everything was blocked for almost two years. The way of living, generally in the world, drastically changed in these two years. Though Kronospan is a late entrant, we know we are the biggest producer of wood-based panels in the world. These panels for are largely used in construction, furniture industry and for interior design. We are exporting to over 150 countries around the globe. And therefore, we have different products that can answer the needs of Indian market. We believe that we have a good chance to develop in India in the coming decades.
MW: How do you see the Indian market post-COVID?
OB: Kronospan’s product mix is based upon our prime motive of improving the way of living.
We always look to find a solution for smart, healthy, and affordable living. And we have arrived with all these solutions here in India which is better placed at this point of time for business. The response that we got during IndiaWood 2022, which was the first full-fledged fair after 2019 is an indication that Indian market is alive, and this is still not the case at many places across the world. Our idea is that we want to develop a network of partners in India. I am very positive about India market in general.
MW: As you rightly pointed out that the living across the world has changed after the COVID-19 pandemic. How do you compare this transformation with respect to India?
OB: India is a massive country having varied societal strata. One needs to make offerings according to local economy and culture. If we take affordable housing, the definition is different in India than what is in European countries. In India, maybe around EUR 20,000 is what the affordable house comes for. And then the budget is too short for that house to implement the advanced furniture.
We have a mix of products and solutions for all types of buyers. We do have expensive products for luxurious homes and have a range of products for everybody else. However, we never compromise on the quality, design, and technical specifications. Each market has its own roots and own environment, and we believe that we have the right solution for each one of them.
MW: So how do you classify these products? Which products are expensive and which ones are affordable?
OB: Melamine, HPL (High Pressure Laminate), SPC (Stone Plastic Composite), Moisture resistant and fire-retardant products, and some other specific quality products are expensive. For us, White Lacquer Board, OSB (Oriented Strand Board), MDF (Medium Density Fiberboard) are the commodities meaning affordable products. We generally offer the mix of the products.
MW: And are you coming up with the entire range in India or with some specific products?
OB: Yes, we are coming up with the entire range of products in India. It is primarily a plywood market, and we have different solutions to replace the plywood. Some of these replacements are already available in the market. We produce HDF (High Density Fiberboard), High Moisture Resistant (HMR) HDF as alternative to plywood. We also have melamine boards and raw wood. This is a product that you can route, you can lock it, you can paint, you can foil, you can do many things.
Apart from these, we have also range of laminated products that are designed by international designers. We have a huge capacity in lamination we prefer to offer laminated products than the raw products.
MW: Where do you see Kronospan in India by 2030?
OB: We will be following different paths. One of them is that we will find different partners in the market and we will grow with them. Another path maybe we will have our own office in India. But, as I said, it is very important to understand the local culture. So, we currently have tied up with Pune-based Sleekboards India LLP (lead by Mr. Nitin Vaze), which has over two and a half decades experience in managing the boards business. So, our goal for 2030 would be to have a significant presence in all states of India. The next target will be to sell as much as possible the OSB for construction and packaging.
MW: What will be your message to a probable distributor, dealer or a buyer who happens to read this interview?
OB: I would like Indian distributors, traders, and buyers to know that we are the biggest producers of the wood-based panels in the world. Every year we produce one million cubic meters of particle boards; 8,00,000 cubic meters of OSB and another 4,00,000 cubic meters of MDF out of our Romanian facilities. We have three advantages –
First – we have a mix of products and solutions. We have a solution for construction industry, products for interior designers and variety for furniture manufacturers. We are not confined to one type of product; we offer everything in the wood-based panels.
Second – we can ensure quantities and service. We are having 45 factories across the world. If we are not able to deliver the committed quantity from Romania, for some reason, we can deliver it from Germany or from Poland or from United States.
Third – Distributors don’t like to make big stocks and We know how to produce and deliver in no time. We have our own port, vessels, and containers.
Also, the most important thing is that each year we come with new products, with new technologies, with new designs. We are keeping a tab on the trend of the market and we offer answers for our customers. We listen to the customer’s voice and develop products in tandem with the customer.
On Russia-Ukraine War
We have a six manufacturing sites in Russia and two in Ukraine. After the initial closures arising out of war, our Ukrainian factories were able to re-start the production by May 2022. However, our imports from Russia got stalled. I believe that the world is changing and all of us need to assess our logistic channels and find new solutions.
New generation upbeat about new designs
”The post-pandemic growth in real estate in India is a major booster for the furniture industry. It goes without saying that an integral part of the furniture manufacturing today is coming from the mechanized furniture units and they inter alia require the pre-laminated particle boards. What is more important is that the new generation is looking for modern designs. They are fed up with seeing the same old designs in the market which have been dormant for a long time. So, everybody is upbeat about the new concept, new designs, sleeker models, and I think the new generation has a lot of potential to grow the business of partners like Kronospan.”
– Mr. Nitin Vaze, CEO, Sleekboards India LLP (Partner of Kronospan for India Operations)
Kronospan’s manufacturing sites
Established in 1897 as an Austrian family company, Kronospan is a leading wood-based panel manufacturer. Headquartered in Brașov – Romania, Kronospan has 45 manufacturing facilities across the world.
- Poland —————7
- Russia —————-6
- Belarus —————6
- Germany ————3
- Bulgaria, France, Romania, Ukraine, Spain, USA, Hungary, and Austria ——— 2 Each
- Latvia, Slovakia, Luxembourg, Denmark, Croatia, United Kingdom, Czech Republic, Serbia, and Italy ———– 1 Each
Product range of Kronospan
- Wood-based panels
- Particleboard (PB)
- Medium Density Fibreboard (MDF) and High Density Fibreboard (HDF)
- Oriented Strand Board (OSB)
- Plywood
- Melamine-faced panels
- Lacquered panels
- Paper
- Flooring
- Chemicals
- Worktops and window-sills
- Wall and ceiling panels
- Veneer-faced panels
- Finger-joint panels
- Betonyp building boards
