Under Sanidhya’s leadership, Greenply Industries Ltd. has made significant progress, from entry-level into new product categories such as MDF to the advancement of manufacturing processes & facilities, multilevel digital interventions, customer-centric product innovation, the latest technology adoption, and effective marketing strategies that have helped the business grow many folds. Greenply is the brand leader in this category. His flawless and acumen business nature has contributed to his success, making him a new-age entrepreneur. Mr Sanidhya Mittal's contribution to the Greenply MDF line is that it has been put right from conceptualization to direction and now to production in the shortest time taken (just 15 months) by any company to come into operation. Mr. Sanidhya Mittal, JMD, Greenply Industries Ltd., was talking one to one with Mr Pragath Dvivedi, Founder and Editor in Chief, Ply Reporter, on 8th April, 2023. The programme was live broadcast on the PLY reporter's Facebook page. Here is a brief summary of the discussion.
Q. What was the force behind this fastest execution of work for the plant operation?
The efforts made were commendable at all stages. The machine suppliers helped by giving us machines on time, thanks to the hard work of the entire Greenply team, who worked day and night. Other than that, the Gujarat authority also helped us in terms of the fast execution of work in handing over the land. Gujarat is one of the best states in India as far as setting up industries is concerned. Yes, it was great support from the government for the early shipment of machines. All these factors helped us start operations in just 15 months.
Q. What are the specialties of the plant, besides being one of the biggest plants in India?
This is the latest generation 9 Siempelkamp press from Germany, which is 28.8 metres long and can produce any thickness of MDF from 1.5mm to 35mm. The top speed of the press is 2000 sq m/sec. Siempelkamp is a global active technology supplier with a focus on three main divisions: machine and plant engineering, foundry technology, and engineering and services. I can proudly say that all the ancillary machines at the plant are European and not Chinese.
Q. What is the production capacity per day?
It’s a fact that we have got the production capacity up to 600 cbm/day at this time, including different thicknesses. As far as the machine capacity is concerned, its peak capacity is 800 cbm/day, obviously varying in sizes. It will be approximately 50 trucks (16 tonnes) a day.
Q. Which of the markets will you be targeting first with this huge capacity?
Our target market is definitely the west, which is number one, and obviously we will be focusing on the other parts as well. We will be focusing on South, NCR, and obviously East and North, which are still small markets, but yes, we will be focusing on them as well because we are a pan-India brand. So, we will have markets across the country. Eventually, as MDF grows, we will have to market it well.
Q. When did the material hit the market for commercial sales?
By the end of April, it will hit the market for commercial sales. Yes, we have started producing and running the plant every day, but these are trial productions, and by the end of April we will start dispatching to the market. Hopefully, in the first fortnight of May, the material will be visible in the market that is the target.
Q. What would be the brand name?
We are trying to keep it very simple; that will be Greenply MDF interior grade, Greenply MDF exterior grade, Greenply HDMR 710, and Greenply Boilpro. These are the four categories. The name of the product has been spelled out with the name of the company, as we started as a plywood company, which has always grown in plywood, so that is the base, and thinking also starts from there. Today, in MDF, we are also trying to imply our learnings from plywood.
Calling HDMR 710 for the carpenter does not explain much about MDF today. There are carpenters who are using MDF correctly, but not as many carpenters
Our target market is definitely the west, which is number one, and obviously we will be focusing on the other parts as well. We will be focusing on South, NCR, and obviously East and North, which are still small markets, but yes, we will be focusing on them as well because we are a panIndia brand. So, we will have markets across the country. Eventually, as MDF grows, we will have to market it well.
who are using plywood, so to help those carpenters understand very easily, we put this brand name, HDMR 710.
Q. HDMR 710 is clearly different and very relatable to plywood. What is it indicating?
This is in competition with all the other HDFs available on the market. We purposely kept the name 710 to try and educate the carpenter, but this is equivalent to water-proof plywood. So, if you are hesitating about MDF, you can easily choose this one.
Q. The MDF and particle board sellers adopt specialized sales practices with big go-downs. Their focus remains more on particle board and less on plywood. Will you follow the same path or be different?
I think Greenply will have to grow rapidly to complete our portfolio and have all the products that we can offer to our consumers under our brand. So, we will continue to grow in plywood, which will be a separate area of focus, and we will definitely try to grow in this new age of panels, for example, MDF, which is a beginning for us.
Q. Do the distributors intend to be open to all ranges of products?
Definitely! And we try to grow in every category.
I feel Indian companies, especially those with big facilities; have a lot of competition. So, I think we are in India offering world-class products for our brands. I think Indian consumers, on a longterm basis, will move for the Indian brand with world-class products. In the short term, import might be a challenge, and for that, we have to work hard. But when the time turns right, less effort will be made to achieve the same results.
Q. When Green Ply comes into the market, what opportunities do you see for the sellers?
A lot of traders are associated with Greenply, and there we are today because of the trader community. I am sure we are already getting an overwhelming response. Last week, we had traders from all over India visiting us at our facility in Badodara, where we not only had our existing plywood dealers but also a lot of unique dealers who are very big in the MDF segment. So, we are already getting an overwhelming response from the trade.
Without much experience, we couldn’t tumble into MDF so fast because we had the confidence in the brand and in the network that we would definitely get a good response that would make this plan a success.
Q. We would like to know what the price points are for these four categories of MDF you are offering under the Greenply brand. Is it competitive, similar, lesser, or are you going to open a whole new thing?
I think pricing will be very similar to others in all categories. We will not be very cheap or much more expensive. It will be very close to everybody else’s prices. But we would definitely have policies that would be trade-friendly, along with the price, which also makes a big difference to the trade. We will also try to offer better service, as today they have to wait for up to five days. So, the service will also improve.
Q. Greenply's image is that of a very flexible company in terms of pricing and the management supports it a lot. I think a similar trend will be there in MDF as well!
Our DNA is the same, and MDF has such set rules in the market in terms of saleble days and the way MDF operates as a category. We will not want to re-invent that, but at the same time, we will maintain our DNA. We are a very trade-friendly company, and we will continue to be so.
Q. Today, it is being said that imports are at their peak and are first impacting the western market at the same time your production is coming. How are you going to counter that?
The MDF industry, I believe, is unilaterally cyclic, so there will be times when imports go up and down, and then there will be times when there are no imports because of freights, currency fluctuations, etc. But, on a longterm basis, I feel Indian companies, especially those with big facilities; have a lot of competition. So, I think we are in India offering world-class products for our brands. I think Indian consumers, on a long-term basis, will move for the Indian brand with world-class products. In the short term, import might be a challenge, and for that, we have to work hard. But when the time turns right, less effort will be made to achieve the same results.
Q. The timber availability in proximity to the Greenply MDF plant location in Gujarat is challenging. What is your view on that?
When we decided that we are going to Gujarat, a lot of surveying had been done, and I physically went there during the second web of COVID. I spent almost two and a half weeks there meeting farmers and also going through the plantation in Gujarat, which is owned by the forest department. They plant trees and do online auctions. The companies can participate in these auctions and buy timber directly from the government.
After going through all our surveys and seeing the trend in that area, we realised that this is a very good area where we can put up our plant. We also took some satellite images and took out the number of standing trees. And in the last two years, when the team was busy building up plants, getting permissions, and taking up land and buying it, the plantation team was busy planting trees. I am very proud to say that in the last two years we planted 21 million saplings in a 150-squaremile area of the plant location.
And not only have we, as there is much closed competition in terms of buying timber in that area. There are many players in the vicinity who run plantation programmes. We can make sure that there will be no problem down the line, and for that, we have to plant more than we need.
Q. If you plan to make 50 trucks of MDF per day, you need at least 70 trucks of timber. Is that available today, or are you looking at it gradually?
At present, also, that is available, but at a higher price, and in the future, we will make the availability even better. With enough plantations and sustainable availability of wood, we will be able to control the prices as well.
Q. Will Greenply focus on MDF, HDF, etc., or is flooring also a target area?
We would definitely love to offer design products. Our design portfolio is not very big today. Currently, it is in the only veneer category. We will definitely have more offerings. In this segment, our pre-lam range will also be on the market in the first week of May. But, definitely, we will have more design products in the portfolio and add products like flooring. We can’t say when it will come, but it will definitely be in our portfolio.
Q. If a customer comes to the shop and finds Greenply MDF and Greenply Plywood for making a kitchen, which product would you recommend to him/her?
The consumer's needs are much more specific today, so by adding MDF, we are completing our panel portfolio and range. According to their needs, we will offer the product. For example, OEMs presence in our plywood business is very small because OEMs hardly ask for plywood in place of MDF. When Greenply MDF comes into play, we will have a much greater presence among OEMs. It will help us push plywood consumption among OEMs, which is currently very low.
Q. The traders’ community, which is deeply attached to plywood sales, does not wish to opt for MDF due to the lower margin. You came in that segment. How will you convince them?
The traders’ community knows Greenply very well, and we are here because of the traders’ community. So, they know that we are offering a product and that we are not offering anything wrong, whether it is their margin or prices. They will not lose out by dealing with Greenply. If the MDF category has a low margin, we need to educate the traders that if the margin with MDF is low, the number of transactions with MDF is much higher. At the end of the year, the take home is the same.
Q. What do you think about the discussion about the slowdown in the market?
This is just sentiment; if the market sentiment turns bad, people start talking slowdown. But, I would say the business will face all times, some low and some high. The players who survive during slow times and thrive will definitely do much better. I think the time for organised players has started now and will continue. You can see that during COVID times, the organised players came out to be much stronger.
Q. If we talk about organised players, what specifically are we talking about? Whether it is size or overall operations of a company?
It is related to mindsets. There are lots of small companies whose mindset is very good, and they are like big companies or even better. If the mindset is right, people will fulfil, comply, and compete with one another in a level-to-level environment. If the mindset is bad, it goes in a different direction.
The consumer's needs are much more specific today, so by adding MDF, we are completing our panel portfolio and range. According to their needs, we will offer the product. For example, OEMs presence in our plywood business is very small because OEMs hardly ask for plywood in place of MDF. When Greenply MDF comes into play, we will have a much greater presence among OEMs. It will help us push plywood consumption among OEMs, which is currently very low.
Q. How was the last financial year, and how much revenue do you see in MDF in 2023–24?
I think the last financial year was very good, and the coming financial year will be very good. Our internal target is to achieve 350 crore in MDF. It is healthy growth, and we want to continue in the same way.
Q. In this thrilling journey, which was the most breathtaking time?
It was a very interesting journey, right from buying the land to converting it into industrial use. Obtaining the forest license to order machines and structuring them. The electric supply that was 15 km away from the plant was much more challenging to bring as the land was not part of an industrial estate. In many places, we got stuck, but we worked hard and did not miss the target because we did not give up the fight.
Q. How long were you in Badodara in these 400 days?
Our senior people are sitting in Mumbai today, and the plant was in Badodara, so all the support functions, including sales and marketing, Honestly, 50% of the time was spent in Mumbai and Badodara in the last two years.
At Greenply, we are really focusing on sustainability, so we have made sure that most of our electricity needs from day one will come from renewable resources. We have our own overhead solar power plant, which is close to one megawatt. Besides, we have also done a joint venture with Review Power, where they will be supplying us electricity from renewable sources. We have coinvested in a facility for hybrid renewable technology; we will be using wind as well as solar energy to produce MDF.
Q. Sustainability in the environment is much talked about these days, and MDF is a very energy-intensive affair. What have you done to ensure continuous fuel support for the plant?
At Greenply, we are really focusing on sustainability, so we have made sure that most of our electricity needs from day one will come from renewable resources. We have our own overhead solar power plant, which is close to one megawatt. Besides, we have also done a joint venture with Review Power, where they will be supplying us electricity from renewable sources. We have co-invested in a facility for hybrid renewable technology; we will be using wind as well as solar energy to produce MDF.
Q. Has it reduced the cost of the ready-made products?
100%, it has kept us at a reduced cost. As far as the timber cost is concerned, we are trying to reduce it as much as possible.
Q. Do you think the Greenply MDF sales team will be a separate entity, or will the existing team work for that also?
It will be a totally separate team sharing common infrastructure like IT, HR, marketing, and many others, but the sales vertical from top to bottom will be separate. They are already in place, and most of the time they are meeting people. The senior management is all set to start recruiting people and discussing strategies in the market.
Q. Any suggestions for the Ply Reporter for its efforts towards the growth of the industry?
I think the Ply Reporter is doing excellent work. It's great to have your team and always have conversation with them. You are very kind to invite me and talk on the phone during METECIA. The only suggestion is that you need to promote plantation and see all the players from plywood, MDF, or particle board take the initiative for plantation.
Taking a sustainable approach is not a costly affair, but it improves the situation many folds. Everyone needs to do it in and around their plants, so that their plants get longevity and have a sustainable future for sure. I think no one other than the Ply Reporter can convince the whole industry. So, it is your responsibility to educate the entire industry.