Greenlam To Invest Rs 950 Cr On New Plant For Plywood, Particleboard Biz

Surfacing solutions brand Greenlam on Monday announced to invest Rs 950 crore in 2-3 years towards setting up of the third laminate plant and made a foray into the plywood and particle board business.

The investments in the new laminate plant and particleboard will be done by Greenlam South Ltd, a Naidupeta, in Andhra Pradesh-based fully owned subsidiary of Greenlam Industries, the company said in a statement.

It will invest Rs 600 crore on machinery and Rs 225 crore on the laminate capacity, the company said while sharing the investment details.

"The company will invest in the latest technology, equipment and new-generation machinery to manufacture particleboards with a capacity of 2,31,000 CBM per annum at an investment of Rs 600 crore. The company will set up laminate capacity of 3.5 mn sheets and boards per annum at an investment of Rs 225 crore," it said.

This state-of-the-art integrated facility will be the first of its kind in the industry, providing holistic surfacing and substrate solutions to its customers.

"The dedicated plywood manufacturing facility will come under the newly acquired subsidiary HG Industries Ltd, based at Tindivanam, Tamil Nadu, having a capacity of 18.9 million sqm per annum with a capex (capital expenditure) of Rs 125 crore," it added.

Greenlam Industries Managing Director and CEO Saurabh Mittal said, "These greenfield (fresh) manufacturing projects will involve a capital outlay of Rs 950 crore over a period of 2-3 years. Our entry into the plywood and particle board business and laminate capacity expansion reinforces our commitment to becoming a one-stop destination for all surfacing and substrate needs."

Meanwhile, Greenlam Industries also informed that its board has approved to split the equity share of the company into 1:5. It will split one equity share of the company having a face value of Rs 5 into five equity shares of the face value of Rs 1 each.

"The company in its board meeting approved to split its equity share with a face value of Rs 5 each into five equity shares of a face value of Re 1 each and a consequential alteration of Clause V (Capital Clause) of the Memorandum of Association of the company, subject to the approval of shareholders of the company and such other approvals, if required," it added.

Greenlam Industries is among the top-three surfacing solutions brand around the world, having a presence in over 100 countries.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor