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Greenply announces foray in MDF business

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Greenply Industries on Wednesday, 4 August 2021 announced its foray into the Medium Density Fiber (MDF) boards business.

For this purpose, the board of directors of the company announced the acquisition of M/S Baahu Panels Pvt Ltd as a wholly owned subsidiary. The greenfield manufacturing plant would be setup in Vadodara, Gujarat with an estimated cost of Rs 548 crore.

The plant with an installed capacity of 800 cubic meter (CBM) per day would have the revenue potential of Rs. 600-650 crore per annum at its peak utilisation. The plant is expected to commence operations by Q4FY23. The company has plans to produce all products sub-categories of MDF including thin & thick, prelam and other value-added products in phased manner.

Commenting on the announcement, Mr. Manoj Tulsian, CEO & JMD, said, With the change in consumers demand in the current scenario, MDF industry is expected to grow rapidly due to its versatile application and this trend is here to persist. This investment will help us to capitalize on this long-term opportunity and establish our leadership in western untapped market. The plant is strategically located in the agricultural belt that ensures easy procurement of raw materials and has proximity to seaports and highways.

The announcement was made after market hours yesterday, 4 August 2021. Shares of Greenply Industries fell 2.75% to settle at Rs 203.10 yesterday.

Greenply Industries has leadership position in plywood industry. The company provides world class interior products for the domestic and global markets including Plywood, Block board, Flush doors, Decorative Veneers and PVC products.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, August 05 2021. 08:37 IST