“With a clear roadmap in place, including plans to establish manufacturing plants across various regions of India and to penetrate the export market within the next three to four years, we are positioned for strategic growth.”
April 2024 : ‘As we anticipate a robust performance, we forecast a remarkable 20 percent revenue growth in the forthcoming fiscal year compared to the previous one,’ states Jay Deepak Shah, CEO & Managing Partner, M/s Jay Wood Industry, in this exclusive interaction with Niranjan Mudholkar, Editorial Director, Pro MFG Media.
It’s been 30 years since M/s Jay Wood Industry was established in 1993. What have been the highlights of the journey so far?
Since its establishment in 1993, M/s Jay Wood Industry has experienced remarkable growth. From our humble beginnings with a manufacturing capacity of 200 pallets per day, we have expanded exponentially, now boasting the capability to produce over 4,500 pallets daily.
We take pride in being the first manufacturer in India to obtain the Programme for the Endorsement of Forest Certification (PEFC), demonstrating our unwavering commitment to environmental sustainability, we exclusively source wood from forests meticulously cultivated for the purpose of wood production, adhering to rigorous standards set by the PEFC. These forests are specifically grown to cultivate wood, ensuring that every tree cut down is part of a sustainable practice, aligning with our dedication to responsible sourcing. Additionally, our Forest Stewardship Council (FSC) certification underscores our dedication to responsible wood sourcing practices.
Looking ahead, M/s Jay Wood Industry is poised for further expansion and success. With a clear roadmap in place, including plans to establish manufacturing plants across various regions of India and to penetrate the export market within the next three to four years, we are positioned for strategic growth. Moreover, our aim to elevate our annual production to six lakh wooden pallets reflects our commitment to meeting and exceeding market expectations amidst escalating customer demand.
Taking forward my father’s vision and legacy, we remain resolute in our ambition to emerge as a preeminent leader in the industry. By prioritising sustainability, innovation, and strategic expansion, we are well-positioned to achieve our vision and make a lasting impact on the global marketplace.
What kind of manufacturing footprint does M/s Jay Wood Industry have with regard to its capabilities and capacities?
We have two cutting-edge manufacturing facilities situated in Mumbai (Taloja) and Gujarat (Kosamba), totalling a vast 2-acre expanse. These state-of-the-art plants not only signify our commitment to top-notch production but also underline our potential for scaling operations to meet global demands for premium pallets. With world-class equipment at our disposal, we ensure unparalleled quality in every pallet we manufacture.
Furthermore, our in-house logistics fleet strengthens our ability to drive the pallet manufacturing industry forward by enabling smooth and timely deliveries. At M/s Jay Wood Industry, we are committed to surpassing customer expectations, ensuring that our products reach them conveniently and promptly, without fail in a closed container type vehicle.
Adhering to sustainable manufacturing practices is not only good from the business point of view but is also a matter of compliance today. What is M/s Jay Wood Industry doing on that front?
We at M/s Jay Wood Industry prioritise sustainable practices throughout our supply chain. We carefully source wood with certifications like FSC and PEFC, ensuring it comes from responsibly managed forests. This commitment is our way of combating deforestation and promoting environmental well-being. Additionally, as the first PEFC-certified wooden pallet manufacturer in India, we set a high bar for the industry. We also have a dedicated goal to reduce our carbon footprint by 2035, further solidifying our commitment to environmental stewardship and sustainability. Moreover, our Taloja facility operates on solar energy, boasting 97.5 kWh solar panels. These panels generate renewable energy covering about 100 percent of our daily electricity needs. This approach not only conforms to circular economy principles but also establishes us as an environmentally aware and innovative entity in the market. Utilising solar power to drive the production of wooden pallets enables us to substantially diminish our carbon footprint and emerge as an eco-friendly choice. This strategic move perfectly aligns with circular economy principles, showcasing our unwavering commitment to sustainable practices across all facets of our operations. By prioritising sustainability, we not only exhibit environmental stewardship but also position ourselves favourably in an increasingly eco-conscious future.
Tell us something about the wooden pallets industry in India in terms of the market size, key challenges as well as the focus on quality control.
The Indian wooden pallet sector is on a consistent upward trajectory, poised to expand with a projected market increase of US$806.29 million between 2024 and 2028. This growth is driven by factors like the expanding warehousing sector and rising emphasis on efficient supply chains. However, the industry faces challenges. Sourcing good quality wood at competitive prices can be difficult. Additionally, a lack of standardisation can lead to inconsistencies in pallet design and durability.
Despite these challenges, there’s an increasing focus on quality control. As India exports more goods, adherence to international standards for pallet strength and durability becomes crucial. This is leading to a rise in manufacturers implementing quality control measures to ensure that their pallets meet export requirements.
Which are the key industry sectors that you cater to? In which geographical regions do you have a strong presence?
We specialise in supplying wooden pallets to top-tier niche chemical manufacturers, multinational corporations, glass packaging producers, surfactant manufacturers, Agro Industries and exporters, among others. Our primary market focus lies in India, where we have established a strong presence and cater extensively to various industries. Our commitment to quality and reliability has solidified our position as a key supplier in the region, ensuring efficient logistics and dependable service for our diverse clientele.
Organisations across industries are today looking at implementing new-age technologies to bring about a digital transformation to their overall operations and business. What is M/s Jay Wood Industry doing on that front?
M/s Jay Wood Industry has already implemented state-of-the-art equipment in its manufacturing operations, including a fully automated pallet machine. Additionally, we are actively exploring the latest automation technologies to enhance our production capabilities further.
How has been the ongoing financial year in terms of business growth for the company? How would you analyse it in terms of the set targets?
This financial year has been robust for our company, with a steady 20 percent year-on-year growth. Our strategic focus on sustainability is evident in our emphasis on selling refurbished pallets, aligning well with our set targets. Overall, we’ve effectively balanced growth with our commitment to environmental responsibility.
Where do you see the company in the next two years in terms of market position as well as business growth?
In the next few years, we will be focusing on expanding our capabilities. Over the next 3-5 years, we are poised to establish two additional units in southern India, strategically positioning ourselves to meet the evolving needs of our valued customers in that region. We are also actively exploring opportunities for backward integration and preparing to incorporate planks into our operations, enhancing efficiency and sustainability. As we anticipate a robust performance, we forecast a remarkable 20 percent revenue growth in the forthcoming fiscal year compared to the previous one.
ABOUT JAY SHAH
Jay Shah is the CEO and a third-generation entrepreneur at the helm of his family-run business, M/s Jay Wood Industry, a pioneer and market leader in the wood manufacturing and supply sector. He took over the family business in 2014 and has been the force behind the scale and diversification of the M/s Jay Wood Industry. Today, Jay Wood is the leading wooden pallet supplier for some of the globally top niche chemical manufacturers, chemical MNCs, glass packaging manufacturers, surfactant manufacturers and exporters, among others. Under Mr. Shah’s leadership, the company has reached an annual production capacity of five million plus pallets and a growing base of 100+ customers. He has also led the diversification of the company by entering the field of supplying packaging materials and tools as well as palletization container lashing and choking services addressing contemporary customer demands.
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