Greenlam to invest Rs 950 cr over 2-3 years; to enter plywood, particleboard business

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.