Century Ply, one of the leading plywood manufacturers in India, has shelved its plans to set up door manufacturing unit. The company has not given any reasons for shelving the project. It may be recalled here that in 2017, the company had announced its plans to set up a door manufacturing unit in collaboration with a Chinese manufacturer. However, the company had not disclosed the name of the collaborator.
In the meantime, the company has decided to spend Rs. 100 crore for its planned 400 cubic metre per day capacity particle board project in U.P. However, the company is not yet decided about the brownfield expansion of its MDF plant. The company has 600 cu.mt/day MDF manufacturing unit in Punjab and can add 400 cu.mt./day capacity at a cost of Rs. 130 crore. However, excess capacity and intense competition in the segment have forced the company to go slow on the project for the time being. Also, the company will decide in due course about the Greenfield MDF plant at U.P.
The company has also made some changes in its marketing strategy. The company will be more focusing on mid-market products where it finds demand is growing rapidly. Earlier, premium products used to constitute 35-40% of its ply sales. It should be noted that mid-segment products are 25% cheaper than premium products. Century will also be aligning its distribution channels accordingly in order to penetrate into deeper regions to cater to the affordable segment. Through this new strategy, Century will try to corner more market share in the coming months.