HomeBrand UpdatesCentury hopes to complete Hoshiarpur expansion by July 22

Century hopes to complete Hoshiarpur expansion by July 22

Century Plyboard hopes to commission its Brownfield MDF expansion project at Hoshiarpur by July next year. The work on the project is in full swing and the company will add new capacity of 132,000cbm after the completion of the expansion project. The company’s MDF division with an installed capacity of 198,000cbm is already functioning at its full capacity due to strong demand for medium density fibreboard in the market.

Meanwhile, company’s plans to set up Greenfield project in Andhra Pradesh is seeing slower progress and now the company hopes to complete this project only in the second half of FY24. The company is planning to invest Rs 650 crore on this project.

The company has planned to incur capex of Rs 1230 crore over the next five years, of which Rs 850 crore will be for MDF capacity expansion, both Brownfield and Greenfield. The company will be spending Rs 200 crore on Hoshiarpur expansion project and the balance will be spent on Greenfield project in the South India.

Earlier Century Plyboard was planning to invest Rs 400-500 crore in Uttar Pradesh in Greenfield MDF (600 CBM per day) and particle board (900 CBM per day) manufacturing units. The company expected certain benefits in setting up units in UP like a tax holiday by the state government and low transportation cost in the region. In addition to this, there is huge market available in the state. Though the state government had given go ahead for the project, the green bench had later on quashed all recently issued licences by the UP government for wood-based industries. As a result, the company decided to revert back to its original plan of Brownfield expansion of Hoshiarpur unit.

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