Greenply Industries enters MDF business with Rs 548 cr investment

Plywood manufacturing company Green Industries has marked its entry into the Medium Density Fiber (MDF) boards business. The company will be setting up a greenfield manufacturing plant at an estimated price of Rs 548 crore in Vadodara, Gujarat. The company's board of directors announced the acquisition of Baahu Panels as an entirely-owned subsidiary for this purpose. The plant would have a revenue potential of Rs 600-650 crore per annum with an installed capacity of 800 cubic meters (CBM) per day at its peak utilisation. The plant is predicted to commence operations by Q4FY23. The company plans to produce all products sub-categories of MDF, covering thick and thin, pre-lam and other value-added products in a phased manner. Manoj Tulsian, CEO & JMD, told the media that with the change in consumer demand in the current scenario, the MDF industry is anticipated to multiply due to its versatile application, and that this trend is here to continue and that this investment would help them capitalise on this long-term opportunity and establish our leadership in the untapped western market. The company recorded a combined net profit of Rs 4 crore in Q1 FY22, unlike a loss of Rs 11.3 crore in a similar quarter last year. Its overall revenue stands at Rs 262.85 crore in the quarter of April-June 2021. Its combined debt to the equity ratio is at 0.42 as of June 30, 2021. Image Source