GIL lays foundation of its Medium Density Fibre (MDF) factory

Greenply Industries Ltd, (GIL) a leader in plywood and laminate industry in India, today laid the foundation stone of its MDF factory in Rudrapur, Uttarakhand next to its existing plant. The plant, which will be set up at an estimated cost of Rs 250 crore, is expected to start commercial production by end of Q4, FY 09-10. The plant and technology have been sourced from M/s Dieffenbacher of Germany, world leader in MDF plants having more than 100 installations world over.

Speaking on the occasion, Mr. Shobhan Mittal, Executive Director, Greenply industries Limited (GIL) said, “The MDF market in India is growing at a rate of 30% per annum. The present demand for MDF is 4,00,000 cbm / year out of which 30-40% is domestic production and 60-70% is imported. It is a matter of pride for us at GIL that this plant aims to be the largest MDF plant in the country. It will also result in doubling India’s exiting production capacity and reduce the market’s dependence on imports. The line will be the first continuous press line in India, which incorporates the most modern and state of the art technology available today.”

 

“As for the benefits that this plant proposes for the State, we are committed with 70% local employment. Currently, 395 persons are employed with GIL. By end of September, we plan to raise this figure to 1000 persons. The MDF plant will add 100 more persons to the total. There will be generation of Rs. 8.75 crore of revenue for farmers per month through supply of raw materials and bio-mass fuel for this plant. The local transportation sector will also see a substantial increase in demand as raw materials and finished goods will need to be transported. The proposed plant is based on utilization of plantation wood and waste wood only. The additional demand would entail increased plantations in the state resulting in higher area of land under forest cover. Fuel requirement would be met by 100% utilization of bio-mass fuels and waste generated from the production, resulting in lower carbon emissions, generally associated with burning of fossil fuels. At the same time, the energy generation plant, to be supplied by Thermax Industries, Pune will be the first of its kind to be used in the wood based industry and would result in 95% energy utilization efficiency, against standard industry norms of 70%”, Mr. Mittal added.

According to BIS Shrapnel and Robert Higham, two international experts on MDF, the ‘New Growth Economies' namely India and China will decide the future of MDF. Considering that MDF was developed internationally just 40 years ago, at present, the MDF industry worldwide has reached a production capacity of 54,000,000 cbm/ yr. with an annual growth rate of 10 to 25% for past 10 years. Medium Density Fibre (MDF) board is an engineered panel made from the fibres of lignocellulosic material which is next only to natural wood. It is a third generation wood substitute after plywood and particle board. The properties of screw holding, bonding, edge cutting, and moisture resistance are better in MDF. It provides raw material utilization to the extent of 95%, against 65-70 % as is the case with plywood; making it an eco-friendly product.

Excellent machining and application properties makes MDF an economic and future-oriented substitute of solid timber. Versatility comes through design creativity and homogeneous construction of MDF board. With depleting forests and increasing scarcity of wood, MDF is a product of the future. Its usage ranges from furniture components such as ready cabinets etc; gift items such as boxes, cigarette and cigar boxes, photo frames can be made through a single machine. Other uses would be for educational toys, floorings and lower thickness lamination.

According to the Asia Pacific outlook study on wood based panels, the regional demand in Asia Pacific for MDF is forecasted to increase to 14 million CBM by 2010. Additional production capacity equivalent to 6 million m3 will be required by 2010 at an average annual increase of 5, 00,000 CBM per year.

In India, the panel market accounts for nearly Rs 9000 Crores. Plywood commands nearly 75% of this market size. Furniture market industry in India is of 35000 to 40000 Crores per annum and has a growth rate of 40%. Government restrictions on capacity expansions, as well as scarcity of available wood will reduce dependability on plywood. Availability of plantation wood, bamboo and bagasse will increase dependability on engineered panels. The Indian Government has announced an infrastructural outlay of 15,00,000 Crores in the next 7 years. Government strongly propagates the use of MDF & Particle Boards, and has also initiated an anti-dumping investigation into import of MDF from China, Malaysia, New Zealand, Sri Lanka and Thailand. The above scenarios indicate a forthcoming strong surge in demand for engineered panels in India.

About Greenply Industries Ltd.:
Greenply Industries Limited (GIL), a Rs 630 crore, dynamic, professionally managed Interior Infrastructure Company, is the leader in the plywood and laminate industry in India. Greenply is a one-stop manufacturer of all products related to interior infrastructure from plywood & boards, flush doors, decorative veneers, decorative laminates to prelam MDF and particleboard. The company accounts for 25 per cent of organized plywood and 15 per cent of organized laminate market. The company has, over the years, grown as an interior infrastructure solutions provider that currently manufactures a host of renowned brands such as Greenply Plywood, Green Club Premium Ply, which comes with a life time guarantee; Greenlam Laminates, and Green Decowood decorative veneers. The company has more than 28 branches across the country with a strong network of over 8,360 dealers, distributors, sub-dealers and retailers. Greenply exports its laminate products to more than 25 countries such as the US, Australia, Malaysia, Singapore, the UAE, Russia, Israel, and New Zealand among others. Pioneering the concept of branding for various products and brand building as its core, the company’s track record is impeccable as a profit-making dividend paying company over the last decade with 61 % CAGR growth in bottom-line over the last five years leading to 2007-8.