HomeBrand UpdatesGreenlam charts out Rs 950 crore expansion plan

Greenlam charts out Rs 950 crore expansion plan

Greenlam Industries, world’s third leading laminates brand, has chalked out Rs 950 crore expansion plan which will result in the company venturing into two new fields, viz., plywood and particle board manufacturing. By setting up plants of plywood and particleboards the company intends to increase its total addressable market and capture the market share from smaller unorganized players.

Of the total capex, Rs600 crore will be spent on particleboards, Rs225 crore on expanding laminates capacity and remaining Rs125 crore on plywood. Laminates and plywood expansion are expected to be complete by end of 4QFY23 and particleboard by end of 4QFY24.

Smaller unorganized players in wood panel industry have struggled during the pandemic. Sharp rise in raw material prices have put pressure on their working capital requirements. Many of them have found it difficult to pass on the increase in raw material prices onto their customers. Importantly regulatory compliances have increased in the industry, especially after the introduction of GST, making it tough for the unorganized segment operate. Apart from this, during the pandemic, there is visible shift in consumer behavior. Aspiration to live and work in better surroundings, a greater willingness to buy based on superior long-term price value proposition, greater convenience are willingness to buy ESG compliant brand are some of the consumer trends which are expected to benefit stronger brands such as Greenlam over a medium term.

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