Uniply to set up new unit; eyes 18% market share by FY14

Plywood maker Uniply Industries today said it will set up a veneer slicing unit at Chennai and open its own retail outlets, as it gears up to grow market share in the domestic market by nearly 6 per cent by FY 2014.

The firm will set plans to up the slicing unit at its existing plant in Chennai at an investment of Rs 18 crore. Besides, it also plans to start manufacturing of construction building materials before next fiscal-end.

"We expect our market share in the organised sector to grow from the present 12 per cent to nearly 18 per cent by FY14," Uniply Industries MD BL Bengani told PTI.

The organised sector accounts for only 40 per cent of the total plywood market in India, which is estimated to be over Rs 5,000 crore annually.

Bengani said the company has already launched decorative plywood and plan to launch various other value added products in the coming days.

"With the new unit getting operational in FY 2012-13, our capacity would increase by 20,000 cubic meters per annum," he said. The company's current wood slicing capacity stands at 50,000 cubic meters per annum.

The company will raise funds through debt and equity for to finance the investment in the new unit.

Uniply, which suffered loss of Rs 6 crore last fiscal due to diversification in none core businesses and currency fluctuations, is hoping to stabilise in the current fiscal.

It expects its revenues to close at nearly Rs 100 crore in the current fiscal, compared to Rs 90 crore in the 2009-10 fiscal.

The company, today announced the launch of 'Elementz',an exclusive company owned showroom in Delhi for wooden floorings and decorative veneers.

"This is the second company owned showroom, the first being in Chennai. We plan to add 10 more such showrooms in FY 2011-12 with an investment of nearly Rs 4.5 crore," Bengani said.

Shares of Uniply Industries were today trading at Rs 14.40 on Bombay Stock Exchange in late afternoon trade, up 0.70 per cent from its previous close.