Century Ply to hike prices in June

Century Ply to hike prices in June

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Century Plyboard, a leading manufacturer of plywood and laminates in the country, is planning to hike prices of plywood products from Jun’18. It is learnt that though the market condition is not that conducive, the company is going for price increase to accommodate  raw material cost pressures. It is believed that the company may hike price by 3-5% from June onwards.

Century Ply’s plywood margins were hit by lack of raw material availability during the last quarter of the FY 2018 at the Guwahati plant, which led to price pressure.  Raw material from Meghalaya was abruptly reduced, leading to increase in cost. Situation since then has improved and normalcy in supply from Meghalaya has returned.

Century sees good scope for growth in laminates in the coming years. It recently increased its laminates capacity by 25% and is planning to increase it further by 25%. Last year the company commissioned its MDF plant and production in the plant has stabilized since then. The company is aiming for 8% capacity utilization during the year. 

Century Ply is also planning to increase the capacity of its MDF plant at Hoshiarpur (Punjab) plant from 600 cbm/day to 1,000 cbm/day. The company which commissioned its MDF plant last year in October, is optimistic about its prospects in the coming years. The company is expected to spend Rs 110-120 crore on expansion.