Greenlam to invest ₹1,147 crore in Andhra for South's largest laminate unit

Andhra government will provide incentives of around Rs 329 cr to the company

Greenlam Industries will invest Rs 1,147 crore to set up South India’s largest laminate factory in Naidupeta, Andhra Pradesh, said a state government source aware of the development.

 

The factory will have an annual production capacity of 7 million sheets of high-pressure laminate and 290,000 cubic metres of wood-based particle board sheets – both of which are used in home décor items. According to the source, the Andhra Pradesh government will provide incentives of around Rs 329 crore, which will be more than 30 per cent of the project capital cost.

 

“Greenlam is eligible for tailor-made incentives according to the state’s Industrial Development Policy (4.0) 2024-29. Under the policy, the government may provide 35 per cent capital subsidy, 2.25 per cent of annual turnover, power tariff subsidy of Rs 1 per unit, and subsidies on state duties,” he said.

 

Greenlam plans to set up an advanced German continuous press system for the factory. “The entire machinery and equipment are proposed to adhere to the global standards of excellence in manufacturing, safety, and environment. This will be the only plant utilising the German continuous press system in South India.” 

 

The factory will come up at a time when the Indian engineered wood market is growing, driven by rising living standards and increased consumer expenditure on home decor items. The India home decor market was worth $33.45 billion in 2023 and is expected to reach $40.98 billion by 2028, growing at a compound annual growth rate of 4.14 per cent in 2023-28.

 

Greenlam is among the top two laminate manufacturers in the country’s organised segment and commands an established position in the organised laminate and veneer segments, according to a report by CareEdge Ratings.

 

Greenlam, New Mika, and Decowood are the company’s brands in laminate and veneer segments. The company’s export revenue (on a consolidated level) stood at Rs 1,178 crore (comprising 45.85 per cent of gross sales) in FY25 as against Rs 1,026 crore (44.5 per cent of gross sales) in FY24. It is India’s largest exporter of laminate. The company’s strength in domestic and export markets makes it well placed to withstand downturns, said CareEdge Ratings.