Greenply invests Rs 800 crore on new mfg units in Gujarat, UP

Hyderabad: Greenply Industries Ltd, one of the major interior infrastructure companies in India, has been investing heavily on its manufacturing capacity expansion. It has tied up with domestic as well as international players to enhance its production. It has recently entered into a joint venture agreement with Turkish brand Samet BV for manufacturing and selling functional furniture hardware.

“The joint venture company is incorporated on an equal shareholding basis (50:50). Greenply and Samet are together investing Rs 200 crore on a plant in Vadodara, Gujarat. The construction of the project started 3-4 months back,” Manoj Tulsian, Joint Managing Director and CEO of Greenply Industries, told Bizz Buzz.

“The plant will be operational within the next 12 months. We will manufacture highly engineered furniture hardware products such as slide systems for wooden and metallic drawers, hinge systems, lift-up systems, and other connection fittings,” he said, adding that the company has also formed joint ventures with some local companies to set up manufacturing units at Barachhi and Hapur in Uttar Pradesh.

Last year, Greenply Industries forayed into the Medium Density Fiber (MDF) boards business. It has invested around Rs 600 crore on setting up MDF factory in Vadodara. This plant has commenced its operations recently. It has invested another Rs 100 crore to establish a plywood factory at Sandila in Uttar Pradesh, which also started operations during this year.

Already, the Kolkata-based company has three plywood factories in India – each in Nagaland, West Bengal and Gujarat, as well as one global factory at Gabon Republic in West Africa. Committed to climate change mitigation through sustainable forest management, it has planted 2.5 crore saplings across 25,000 acres over the last three years. It plans to double the plantation activities to grow 5 crore saplings by 2025.

Speaking about the industry, Manoj said: “Indian plywood market size is estimated at Rs 208.5 million in FY23. The organised market has increased to 28-30 per cent this year when compared to only 20 per cent about 5-6 years ago. In the organised market, our company has a share of 25-30 per cent today. In Telangana and Andhra Pradesh, we have up to 30 per cent market share.”

“Last financial year, Greenply has achieved revenue of Rs 1,800 crore and it is anticipating a turnover of Rs 2,100-2,200 crore this fiscal. We spend almost one per cent of the revenues on research and development,” he informed. The company has launched an innovative Zero Emission (E-0) product range a couple of years back. This range is certified as eco friendly by California Air Resources Board (CARB).