Greenlam Industries stated the move was in light of an observed spiral demand in the wood panel segment.
Laminate manufacturer Greenlam Industries announced on Monday that it aims to invest Rs 950 crore in the next 2-3 years to fuel its ambition of setting up a third laminate plant and foray into the Plywood and Particle Board business. The company reasoned that move is in light of an observed spiral demand in the wood panel segment.
It added the expansion would position the company from being a decorative surfacing company to a leading integrated wood panel player.
The company expects to commence the commercial production of plywood and laminate business by the fourth quarter of the financial year 2023, and the particle board business by the fourth quarter of FY2024.
"...the Laminate, Plywood and Particle Board offerings will accelerate Greenlam Industries market opportunity and will add new revenue engines to its growth," the company stated.
Greenlam informed that the third laminate plant and particle board would be done towards its subsidiary, Greenlam South Limited based at Naidupeta in Andhra Pradesh. "The company will invest in the latest technology, equipment and new generation machinery to manufacture Particle Boards with a capacity of 231000 CBM per annum at an investment of Rs.600 crores," the company stated. Additionally, the subsidiary would set up a plant with the capacity to produce 3.5 million sheets and boards per annum with an investment of Rs 225 crore.
Further, the dedicated plywood manufacturing facility would come under its newly acquired subsidiary HG Industries Limited at Tindivanam in Tamil Nadu. According to the company, the facility would have a capacity to produce 18.9 million sqm per annum with a capital expenditure of Rs 125 crore.
In a separate development on Monday, the company's board approved a 5-for-1 stock split. The move splits each equity share with a face value of Rs 5 each into five equity shares with a face value of Re 1 each.
The company's stock closed nearly flat at Rs 1,688.50 on the BSE. On the NSE, it closed 0.14 per cent higher at Rs 1,684.95.