Greenlam Industries, laminates maker and exporter, aims to complete its Greenfield expansion project in the third quarter of next financial year (FY23). According to the company, it has already bought 66.5 acres of land and has been able to obtain last leg of approvals required for the project execution. According to the company it takes about 12 months to complete the project since the commencement of construction work.
The company is setting up 1.5 million sheet Greenfield project at an estimated cost of Rs 175 crore. According to the company, it may keep adding new line of facility depending upon the demand trends. Since the land bought by the company is much more than what is needed for single line, it can keep adding new lines as and when needed. However, due to steep increase in the prices of construction materials like cement and steel, the cost of construction has gone up from Rs 25-30 crore earlier for single line to Rs 30-35 crore.
For, Greenlam, capacity addition has become necessary as the company is operating at 110% of its existing capacity. According to the company, unorganised sector is faced with numerous challenges and is losing market share as a consequence. This has resulted in organised sector players like Greenlam gaining market share in the recent months.