With wood panel industry posting robust growth quarter after quarter, Century Ply has become aggressive in chalking out its future expansion plans. The company which has become almost debt free will be spending Rs 650-700 crore in the coming years on both Brownfield and Greenfield projects.
After a wait of more than a year, the company has now decided to go for a Brownfield expansion of its Hoshiarpur MDF manufacturing facility instead of setting up a Greenfield project in Uttar Pradesh. The project is expected to come up within a year. The company will be expanding its capacity from 600 CBM to 1,000 CBM at an estimated cost of Rs 200 crore.
The company is also planning Greenfield expansion in South India for MDF with 700cbm/day plus capacity. “We are aggressively working on the Greenfield project. We are focusing on the South at this point in time. I think the capacity, once we announce the same, once our decision is firmed up, which is likely to take place in the next few months itself, within the space of 18 months, we should be operational with the capacity. This is not going to be a fungible capacity. It is going to be a dedicated MDF plant of 700-plus cubic meters,” said Keshav Bhajanka, Executive Director of the company.
In addition to capacity expansion of MDF, the company is planning brownfield expansions in particle board, laminates and plywood through equipment re-balancing. In totality, the company would be incurring Rs. 650-700 crore capex over the next two years.