Introduction: A Question Every Dealer Should Ask Before Restocking
In the world of shuttering plywood, there’s an ongoing debate, i.e., should dealers focus on MR or PF grade plywood? At first glance, the answer seems straightforward: stock what sells. But when we at United Timber Works decided to look deeper, we discovered that the real answer depends on location, market type, and long-term business goals.
To understand the real scenario on the ground, we surveyed over 65 dealers across 14 states and 46 cities. The insights we gathered reveal patterns that could help every dealer make smarter stocking decisions and, more importantly, build a stronger, more credible brand.
Understanding the Basics: MR vs. PF
Before we dive into the findings, let’s quickly revisit what these two grades mean.
- MR (Moisture Resistant) Shuttering Plywood:
Made using Urea Formaldehyde (UF) resin, the MR grade is designed for light-duty applications. It’s more affordable but less durable, making it ideal for Tier 2 and Tier 3 markets, where project budgets and moisture exposure are relatively moderate.
- PF (Phenol Formaldehyde) Shuttering Plywood:
Known as Waterproof or WBP Plywood, PF grade is made using high-quality resin that offers excellent water and weather resistance. It’s a premium option suitable for demanding construction environments and repeated use.
Both serve important roles in the construction ecosystem, but as our survey reveals, the right balance between the two can significantly impact a dealer’s business.
Survey 1: What Are Dealers Actually Selling?
When we asked 65 dealers about their primary business focus, the results were telling:
- 64% (42 dealers) regularly deal in MR-grade plywood.
- 36% (23 dealers) actively deal in PF-grade plywood.
But the numbers only tell part of the story. Among the 42 MR dealers, 22 said that more than half of their revenue comes from MR plywood, and 84% of these dealers operate in Tier 2 and Tier 3 cities.
Insight 1: The Market Split
- In Tier 2 and Tier 3 cities, MR plywood dominates, typically in a 60:40 ratio (MR: PF).
- In Tier 1 cities, this ratio reverses, i.e., 40:60 (MR: PF), with contractors increasingly demanding premium PF-grade plywood for high-rise and commercial projects.
This clearly shows that MR brings in volume, especially in smaller markets, while PF drives value in larger urban centers.
Survey 2: What Dealers Want Brands to Produce
During our discussions, we asked dealers a simple question: Which grade should we focus on producing more, MR or PF?
A majority said:
“Don’t make MR. It reduces brand value and doesn’t justify the production cost.”
Many also pointed out that the main market for MR lies in the southern regions of India, and brands aiming for long-term growth should focus on PF.
At United Timber Works (UTW), this aligns perfectly with our philosophy as we are a PF-exclusive brand, dedicated to producing high-performing, waterproof shuttering plywood built for durability and strength.
However, this survey also revealed a fascinating truth:
Even in markets where MR sells more, displaying PF-grade plywood in your shop builds credibility. Contractors may not always buy PF immediately, but they notice it. And once they associate a dealer with premium products, they begin to trust that dealer more deeply.
Insight 2: PF Builds Brand Credibility, Even Where MR Dominates
- In Tier 2 and Tier 3 markets, PF sales may currently be 30–40%, but once contractors experience the quality, repeat orders increase dramatically.
- PF customers show twice the lifetime value of MR customers.
- Showcasing PF creates trust, awareness, and higher margins over time.
So while MR may keep sales steady, PF builds your shop’s reputation and future growth.
Survey 3: The Market Is Divided, And That’s an Opportunity
Our final survey question asked dealers which grade, MR or PF, will grow faster in the coming years. Here’s what they said:
- 33% believe MR will grow faster.
- 31% believe PF will grow faster.
- 36% believe both will grow equally.
This mixed response reveals something important: the market isn’t leaning entirely in one direction. Instead, both grades are growing at different speeds and in different regions.
Insight 3: The Future Lies in Balance
Dealers need to adapt their stocking strategy based on their geography and clientele:
- In Tier 2 and Tier 3 cities, MR is for volume, while PF is for brand positioning.
- In Tier 1 cities, PF is the lead product, while MR is a secondary option.
By striking this balance, dealers can cater to current demand while positioning themselves for the premium shift that’s slowly taking hold across all regions.
So What Does This Mean for Dealers?
The results from these three surveys provide a clear direction for dealers planning their next stock cycle:
- Don’t ignore MR, as it brings consistent sales in smaller markets.
- Don’t neglect PF, as it builds long-term brand value and customer loyalty.
- Balance your stock according to your city’s demand pattern.
- Use PF as a display product, even if its sales volume is initially low, but it enhances credibility and attracts serious contractors.
Final Takeaways: MR Sells Fast, But PF Builds Futures
The shuttering plywood market in India is evolving. While MR-grade plywood remains the bread and butter of Tier 2 and Tier 3 markets, PF-grade plywood is steadily redefining dealer credibility and customer loyalty.
At United Timber Works, we’ve taken a firm stand as a pure PF-grade brand, focusing on long-lasting quality, consistency, and performance. Yet, our survey findings show that every dealer, regardless of market type, should recognise the strategic importance of both grades.
Because in the end, MR may bring quick sales, but PF builds brands, trust, and sustainable business growth, and that’s what truly defines success in the modern construction market.
Blog Source: https://www.instagram.com/reel/DKmW_czgiw3/
