Century mulling acquisition in Thailand

Plywood maker Century Plyboards plans to acquire a Thailand-based medium-density fiberboard (MDF) making company at Rs 350-400 crore.

“We are contemplating acquisition of a medium-sized MDF manufacturing company in Thailand. We have already visited Thailand, but no decision has been taken so far,” Sanjay Agarwal, Joint Managing Director, Century Plyboards told PTI.

MDF is an engineered wood product formed by breaking down softwood into wood fibres, combining it with wax and a resin binder and forming panels by applying high temperature and pressure.

The market for MDF in India is nascent, but has the potential to go up further, Agarwal said, adding that only a few home-grown companies manufacture MDF on a small-scale, though many, including Century Plyboards, import it to cater to the domestic market.

“There are only few MDF makers in India and they are small-sized. It does not make sense for us to acquire a company of that size. So, overseas acquisition is the only option,” Agarwal said. The Kolkata-based Century Plyboards had planned to set up two plants in Punjab and Uttarkhand with an outlay of Rs 300 crore to manufacture MDF and received the requisite licences as well.