Greenlam Industries, the top laminate brand in India providing high-quality surface solutions, has announced the commercial production of plywood and allied products. They started the commercial production of plywood and allied products on June 9, 2023 at Tindivanam, Tamil Nadu, by the company, viz. HG Industries Limited.
The information has been revealed in the letter for the intimation given to SEBI under Regulations 30 & 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The letter mentioned that the said manufacturing facility, having an installed capacity of 18.9 million square metres per annum, has commenced commercial production w.e.f. June 09, 2023, which has the potential to generate revenue of Rs. 400 crores per annum on full capacity utilization.
“The total capex incurred for the project stands at Rs. 130 crores approx, till the commencement of commercial production," it said. The plywood product will be marketed by the company under the brand Mikasa Ply.
It is to be noted that HG Industries Ltd, a subsidiary company of Greenlam has been a greenfield project for manufacturing of plywood and allied products at Tindivanam, Tamil Nadu with an estimated investment of Rs. 125 crore.
Following the announcement, the shares of Greenlam Industries surged by 15 per cent to hit a new high of Rs 462.20 on the BSE. The company is also readying another greenfield laminate plant and particle board plant at Naidupeta, Andhra Pradesh, which is expected to start production by next year.
Greenlam Industries Ltd is a pioneer brand “Greenlam” in decorative laminate segment along with other brands such as Decowood, Mikasa, NewMika, Greenlam Clads, and Greenlam Sturdo. The new brand “Mikasa Ply” will be from the house of Greenlam aiming to premium quality plywood market segment.