Greenlam, the country’s leader in laminates, said it decided to enter the category of plywood and particle boards by setting up new factories in Tamil Nadu and Andhra Pradesh.
Plywood and particle boards are used alongside laminates — the multi-colored and shiny boards — in aluminium-based constructions in offices and commercial buildings.
“Witnessing a spiral demand in the wood panel segment, the company has taken the next leap and decided to expand its portfolio by venturing into two adjacent categories – Plywood and Particle Board and also setting up third Laminate plant. This expansion will position Greenlam from a decorative surfacing company to a leading integrated wood panel player,” the company said.
At present, Greenlam focuses on decorative laminates, compact laminates, exterior & interior clads, decorative veneers and engineered wooden floors & doors.
Particle boards, also known as powder boards, will be made at the third laminate plant, which will come up in Naidupeta in Andhra Pradesh, while the dedicated plywood factory will come up in Tindivanam in Tamil Nadu.
The total investment in the these ventures will be Rs.950 crores over a period of 2-3 years, Greenlam said.
Greenlam expects to start the plywood factory and the third laminate factory by Jan-Mar 2023, and the particle board factory to be operational by Jan-Mar 2024.
The Andhra Pradesh factory, which will produce particle boards, will have a capacity of 2.31 lakh cubic meters of particle boards per year and cost Rs.600 crores.
At the same site, the company will set up laminate capacity of 3.5 mn sheets & boards per year at an investment of Rs.225 crores.
The plywood manufacturing facility will come under the newly acquired subsidiary HG Industries Limited based at Tindivanam and have a capacity of 18.9 mn square meters per annum with a capital expenditure of Rs.125 crores.
The company, which exports to nearly 100 countries, also decided to split its equity shares in the ratio of 5:1.
