Century Plyboards India is planning to set up a Greenfield medium density fibreboard manufacturing unit in the South with 700 CBM per day capacity. The unit is expected to come up in Andhra Pradesh and it would take 18 months to begin commercial operations from the date of finalisation of the site.
Meanwhile, the company’s expansion plan of the MDF Board unit in Hoshiarpur, Punjab is in progress for which the company will be spending about Rs 200 crore. The unit is likely to get commissioned during the current financial year itself with commercial production expected from the first quarter of next financial year. The existing operating capacity of the plant is 600 cbm per day which is expected to increase to 1000 cbm per day after the expansion.
It may be recalled here that the company was planning a Greenfield MDF unit in Uttar Pradesh for which the state government had given a permission. However, with the NGT objecting to anymore wood based industries in the state the company had to change its plans.
Interestingly, Andhra is becoming a new MDF hub in the South with major manufacturers like Rushil Décor and Greenpanel already having manufacturing units in Andhra.
MDF suppliers in South India expect pricing scenario to remain stable on the back of robust demand and low MDF imports. They expect South Indian MDF industry to grow at 15% CAGR over FY20-23, and which should help the industry to absorb the upcoming capacities.