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Greenlam’s Andhra project will be delayed

Greenlam’s Andhra project will be e commissioned by H1FY23 instead of FY22 as had been planned before the outbreak of COVID-19. Greenlam Industries was planning to set up a new plant at Nellore in Andhra Pradesh at an estimated capex of Rs 175 crore. The new unit would add 1.50 million laminate sheets/boards per annum of the company. The new unit would cater to the growing demands in the domestic and international markets. The company has acquired from Andhra Pradesh Industrial Infrastructural Corporation (APIIC), land admeasuring 65 acres in Naidupeta, Nellore, Andhra Pradesh.

Due to lockdown measures in latter half of March ’20, Greenlam had lost Rs 40-50 crore of revenues for the quarter. Further, April 2020 was a complete washout month due to continued lockdown and operations have gradually ramped up in May and June. According to the company sources, domestic business has reached 40‐50% and exports business has reached 80% of pre‐COVID levels.

However, the company is finding opportunities in adversities. The company is now targeting incremental market share gains in domestic market as there is significant supply side disruption for smaller unorganized players with working capital management going to be a herculean task for them during the COVID scenario.

For the company exports appears to be very promising and is expected to partially compensate for the loss of business on the domestic front. Presently, the only risk is the emergence of second wave of COVID-19, which may disrupt all its revival plans.

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