Greenlam Industries shares rally as unit with Rs 400 crore revenue potential kicks off production

Shares of Greenlam Industries, a laminate manufacturer, jumped 11 per cent in Friday's trade after its subsidiary HG Industries commenced production at a newly built manufacturing facility at Tindivanam, Tamil Nadu, with an potential revenue of Rs 400 crore per annum at full capacity. The facility will manufacture plywood and allied products.

Following the development, the stock rose 10.72 per cent to hit a high of Rs 446.40 on BSE. The greenfield project was set up with an estimated investment of Rs 125 crore. The said manufacturing facility has installed capacity of 18.9 million square meter per annum. It has a potential to generate revenue of Rs 400 crore per annum on full capacity utilisation.

The total capex incurred for the project stands at Rs 130 crore till commencement of the commercial production. The plywood product will be marketed by the company under the brand MikisaPly.

To recall, in December 2021, the company had announced its intent to foray into plywood and particle board business and to set up third laminate plant will a total investment of Rs 950 crore over a period of 2-3 years.

Greenlam had expected to commence the commercial production of plywood & laminate by Q4FY23 and Particle Board by Q4FY24.

Also read: Reliance Industries shares at Rs 2,900? Debt concerns overdone, says JM Financial

Also read: YES Bank shares: Resistance seen at Rs 18; stock may climb up to Rs 40 in long term, say technical analysts