Wooden merchandise maker Century Plyboards plans to broaden its plywood manufacturing capability by round 30 per cent within the subsequent 12-15 months, with a capital expenditure of round ₹140 crore.
The deliberate manufacturing capability enlargement will contain each greenfield and brownfield initiatives. The Kolkata-based firm, which is the market chief within the nation’s plywood trade, is engaged on establishing a brand new facility with an funding of round ₹100 crore.
“At present, we’re engaged on establishing one new facility. It is going to be both in Punjab, or in Uttar Pradesh, or in Odisha, or in Andhra Pradesh. The choice on the situation of the brand new facility might be made on business viability. Alongside that in all our current amenities, we’re going for brownfield expansions. We’re augmenting our capability at current amenities by including balancing gear and new equipment,” Century Plyboards (India) Government Director Keshav Bhajanka instructed businessline.
Within the Plywood phase, the corporate at the moment has a manufacturing capability of 339,600 CBM every year. Within the first quarter of this fiscal, capability utilisation stood at round 75 per cent.
The plywood market is presently estimated at round Rs 27,500 crore with round 30 per cent of it being operated by organised gamers. Within the general plywood market, Century Plyboards garners round 8 per cent share. Within the organised phase, the corporate controls wherever between 25-30 per cent market share.
The organised plywood market is rising at a excessive single-digit charge yearly. The corporate expects the nation’s plywood trade to double inside the subsequent six to seven years.
“General our goal is that we’re going to develop quicker than the trade. So we’re focusing on greater than 10 per cent development. Positively, our market share is simply going to extend from right here,” mentioned Bhajanka.
As a result of sharp rise in enter prices, the corporate hiked costs within the Plywood phase twice throughout this fiscal 12 months –around 2 per cent in each the primary and second quarters. In Laminates, it hiked costs once– round 3 per cent within the second quarter.
“Two-three years in the past, the majority of the uncooked supplies used to come back from home agroforest. However in the course of the current previous calls for have outgrown provide. Due to that, costs have shot up within the home market. Due to this there’s extra viability to import core veneer from nations like Vietnam and Brazil,” the chief director identified.
Within the Rs 8000-crore Laminates trade, the corporate has a market share of round 8 per cent. Over the last monetary 12 months, the Laminate phase contributed round 17 per cent to Century Plyboards’ complete revenues. Amongst its product portfolio, the corporate exports its Laminates solely.
“Within the final monetary 12 months, the corporate’s exports of Laminates stood at round Rs 150 crore. And inside the subsequent three years, we’re going to double this to Rs 300 crore,” Bhajanka added.