Greenply to invest in Medium Density Fiber boards business

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Greenply Industries, plywood manufacturing company enters the Medium Density Fiber (MDF) boards business. They will set up a greenfield manufacturing plant in Vadodara, Gujarat with an estimated cost of Rs. 548 crore.For this purpose, the board of directors of the company announced the acquisition of Baahu Panels as a wholly owned subsidiary.

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, pre-lam and other value-added products in phased manner.

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 company reported a net consolidated profit of Rs 4 crore in Q1 FY22 as against a loss of Rs 11.3 crore in corresponding quarter previous year. It’s total revenue stood at Rs 262.85 crore in Apri-June 2021 quarter.

Its consolidated debt to equity ratio is at 0.42 as on June 30, 2021.