Greenlam Industries to foray into plywood and particle board business
Greenlam Industries, an Indian laminate manufacturer, has announced its foray into the plywood and particle board business.
The company will look to make an investment of INR 950 crores over a period of two-three years in installing a third laminate plant for implementing its new business plan.
Greenlam Industries’ decision to venture into the adjacent categories of plywood and particle board is said to have been driven by the spiralling demand in the wood panel segment.
The company expects its business expansion to position it from a decorative surfacing firm to a major integrated wood panel player.
Greenlam Industries will invest in the third laminate plant and particle board under a fully-owned subsidiary called Greenlam South Limited, based in Naidupeta, Andhra Pradesh.
The firm will invest in equipment, the latest technology, and new generation machinery for manufacturing particle boards with an annual capacity of 2,31,000 CBM at an investment of INR 600 crores.
Greenlam Industries will install laminate capacity of 3.5mn sheets and boards per annum at an investment of INR 225 crores. The new integrated facility will provide matching decors for laminates, post forming laminate, compacts, and prelam particle boards in order to offer customers with holistic surfacing and substrate solutions.
The company’s plywood manufacturing facility will operate under the newly acquired subsidiary HG Industries, which is based in Tindivanam, Tamil Nadu. The plywood plant will have an annual capacity of 18.9mn sqm and will involve a Capex of INR 125 crores.
Greenlam Industries anticipates starting the commercial production of plywood and laminate by Q4FY23 and particle board by Q4FY24.
Saurabh Mittal — Managing Director and CEO of Greenlam Industries said: “Over the years, we have come a long way in establishing a leadership position for Greenlam Industries, both in India and International markets. As a front-runner in the category, we have always been motivated to break-barriers and seek opportunities for disruptive growth. These Greenfield manufacturing projects will involve a capital outlay of Rs.950 crores over a period of 2-3 years.
“Our entry into the Plywood and Particle Board business and Laminate capacity expansion, reinforces our commitment to becoming a one-stop destination for all surfacing and substrate needs.”