Greenlam shares gain after board approves 5-for-1 stock split

Separately, the company informed that the board of its wholly-owned subsidiary Greenlam South has approved setting up a greenfield project for manufacturing of Particle Board at Nellore

Greenlam Industries rose 1.34% to Rs 1,710 on Monday after the company's board approved a proposal of splitting each equity share of face value of Rs 5 into five equity shares of face value of Re 1 each.

Separately, the company informed that the board of its wholly-owned subsidiary Greenlam South (GSL) has approved setting up a greenfield project for manufacturing of Particle Board and allied products at Naidupeta, Nellore in Andhra Pradesh. The investment required for this project is Rs 600 crore and the plant would be operational by the fourth quarter of financial year 2023-24.

It has also approved enhancing the capacity of the greenfield laminate project being set-up at Naidupeta, Nellore in Andhra Pradesh from 1.5 million laminate sheets/board per annum to 3.5 million laminate sheets/board per annum. The investment required for the said capacity addition is Rs 225 crore and the plant would be operational by the fourth quarter of financial year 2022-23.

GSL would finance the aforementioned projects via a mix of debt and financial support from Greenlam Industries. The said investments are being done to cater to the growing demands in the domestic and international market.

Further, the board of directors of HG Industries (formerly Himalaya Granites) (HGIL), a subsidiary of Greenlam Industries, has approved to set up a greenfield project for manufacturing of Plywood and allied products at Tindivanam, Tamil Nadu. The investment required for this project is Rs 125 crore and the plant would be operational by the fourth quarter of financial year 2022-23.

HGIL would finance the above-stated project via a mix of debt and financial support from Greenlam Industries. The company is undertaking the said investment to cater to the growing demands in the domestic market.

Greenlam Industries provides high-quality surface solutions including brands like Decowood, Mikasa, NewMika, Greenlam Clads, Greenlam Sturdo and Greenlam.

On a consolidated basis, net profit of Greenlam Industries rose 12.14% to Rs 20.79 crore on 56.98% rise in net sales to Rs 454.17 crore in Q2FY21 over Q2FY20.