Laminate manufacturer Greenlam Industries Ltd on Monday announced plans for a fast-tracked expansion of the firm. This includes an investment of Rs 950 crore over a period of 2-3 years towards setting up of third laminate plant, and foray into plywood and particle board business.
The expansion will position Greenlam from a decorative surfacing company to a leading integrated wood panel player, the firm said in a statement. The company has decided to take this leap after witnessing a spiral demand in the wood panel segment, it added.
The investments in the firm's third laminate plant and particle board will be done under Greenlam South Limited, a 100 per cent subsidiary of Greenlam Industries Limited based at Naidupeta, in Andhra Pradesh.
The company added that it will invest in latest technology, equipment and new generation machinery to manufacture particle boards with a capacity of 2,31,000 CBM per annum at an investment of Rs 600 crore.
Greenlam Industries will also set up a laminate capacity of 3.5 million sheets and boards per annum at an investment of Rs 225 crore. The facility will be the first-of-its-kind in the industry, providing matching decors for laminates, compacts, post forming laminate and prelam particle boards, thereby providing holistic surfacing and substrate solution to customers, the statement said.
The dedicated plywood manufacturing facility will come under the newly acquired subsidiary HG Industries Limited, based at Tindivanam in Tamil Nadu, having a capacity of 18.9 million sqm. per annum with a capex of Rs 125 crore. The firm expects to commence the commercial production of plywood and laminate by Q4FY23 and particle board by Q4FY24.
Greenlam Industries said the laminate, plywood and particle board offerings will accelerate its market opportunity and add new revenue engines to its growth.
"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," the company's MD and CEO Saurabh Mittal on the announcement, adding that the entry into the plywood and particle board business and laminate capacity expansion reinforces its commitment to becoming a one-stop destination for all surfacing and substrate needs
Meanwhile, the company, in its board meeting, also approved splitting its equity share with face value of Rs 5 each into five equity shares of face value of Re 1 each and consequential alteration of Clause V (Capital Clause) of the Memorandum of Association of the company, subject to the approval of shareholders of the company and such other approvals, if required.
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