Greenply Industries, largest plywood maker in the country, is undertaking a significant expansion in its face veneer capacity at Gabon. The company plans to ramp up its capacity from 36,000 cu.mtrs. to 96,000 cu mtrs. The company will be incurring a capex of Rs 65 crore during FY19 and 20 for this purpose. The expanded capacity is expected to be operational from Q1 of FY20. The expanded veneer capacity will enable the company to effect significant saving in raw material cost.
The decorative veneer manufacturing facility of the company in Gujarat, set up at an estimated cost of Rs 45 crore, commenced commercial production in Q1FY19. This plant is expected to take care of the demand from Western region. In Uttar Pradesh, the company has made an investment of Rs30 crores in FY18 for manufacturing of plywood and its allied products. The company plans to invest Rs85-90crs in FY19.
Company’s new MDF plant with 360000 CBM capacity is under construction in Chittoor, Andhra Pradesh. This facility is expected to be commissioned in June 2018. From new plant, the company is planning to export nearly 30-40% of production.
During the just concluded financial year, the company’s plywood division operated at 106% of its installed capacity. Greenply has also entered the lower segment of plywood through the outsourcing route with introduction of two new brands Bharosa and Jansathi.