One of India’s leading manufacturers of wooden pallets and boxes, Jay Wood Industry, plans to set up two manufacturing units in South India over the next 3-5 years, while the company is also working on backward integration. 

According to Jay Deepak Shah, MD and CEO of Jay Wood Industry, the company plans to scale up in the next 3-5 years, and the plants in South India are aimed at getting closer to its customers and meeting growing demand more efficiently.

“We are also working on backward integration by building our in-house plank manufacturing. It’ll give us better control over quality and costs — something that’s become increasingly important as we grow,” he told businessline in an online interaction. 

More automation

Sustainability is a big focus for the company, and its Taloja plant runs fully on solar power. Jay Wood is scaling it up across facilities. On the operations side, it is investing more in automation, traceability and data-driven planning. 

Stating that the Indian wooden pallet industry is witnessing strong and sustained growth, Shah said it is being fueled by rising demand across FMCG, automotive, pharmaceuticals, chemicals and agriculture. 

“The market is projected to grow from $935.6 million in 2025 to $1,656.5 million by 2032, registering a CAGR of 8.5 per cent. As sustainability takes centre stage, many businesses are moving away from plastic toward eco-certified wooden pallets,” he said. 

India, producing over 220 million units annually, ranks among the top three pallet markets in Asia, behind China and Japan. Key growth drivers include the expansion of manufacturing, e-commerce, and cold-chain logistics, along with rising export volumes, particularly in pharma and chemicals. “These trends are pushing demand for standardised, durable pallets that enable safer and more efficient transport,” said the MD and CEO of Jay Wood Industry.

Strengthening sustainability

With the industry advancing toward greater automation, traceability and circularity, aligned with evolving global compliance norms and ESG, the wooden pallet sector is set to play a pivotal role in strengthening sustainable, future-ready supply chains, he said.

Founded in 1966 by Shah’s grandfather, Jay Wood Industry today serves 100-plus clients across India and key global markets. “We were the first in India to manufacture CP (chemical pallets) and EPAL (Euro) pallets, establish a fully automated production line, and expand into packaging tools, container lashing, and other value-added services. Sustainability is not an add-on for us — it’s embedded into every process we run,” said Shah.

In 2023, Shah participated in the “Partnering in Business with Germany” programme, and this helped the company forge cross-border collaborations, and further positioned the company as a credible partner in global supply chains, he said.

Jay Wood’s pallets serve a broad spectrum of industries where strength, hygiene, and regulatory compliance are non-negotiable. “In the pharmaceutical and chemical industries, they support strict hygiene protocols. The automotive sector relies on our custom, heavy-duty designs for safe transport of high-load components. At the same time, FMCG and food processing industries value our pallets for their stackability and sanitation,” said the company’s MD and CEO.

Creating awareness

The company currently produces over 5.5 lakh pallets annually. These are used across eight major industries, including pharmaceuticals, chemicals, FMCG, food and beverage, automotive, e-commerce, glass and surfactants. The company’s manufacturing is supported by fully automated production lines, including innovations such as its Chamfering Machine, which enhances speed and precision.

“We source the majority of our wood from PEFC-certified forests in Europe. Our pallets are heat-treated to ISPM-15 global standards and are designed for reuse and circularity, making them compliant for both domestic and export applications,” said Shah.

Jay Wood Industry is creating more awareness about the benefits of standardised, sustainable wooden packaging. “A lot of businesses still see pallets as a one-time use, low-priority item. But when you use certified, reusable pallets, the long-term savings — in cost, time and efficiency — are real,” he said.

 “Ultimately, the goal is to build a smarter, more circular business that can move fast and stay future-ready,” he said.

This year, Jay Wood is aiming for a 20 per cent revenue growth, with momentum coming from higher production capacity, and strong demand across core sectors.

Published on June 25, 2025