The Hindu Business Line : Century Plyboards plans Rs 100-cr investment in timber plantation

CENTURY Plyboards (India) Ltd, the largest plywood producer in the country, is planning to integrate into timber plantation with Rs 100-crore worth of investment. Subsequently, the company might set up either a medium density fine board unit or a particle board plant.

According to Mr Sajjan Bhajjanka, Managing Director, the company has submitted a proposal to the State Government regarding this about three weeks ago.

Century Plyboards had asked for 3,000 hectares of wasteland in the Sunderban region. The Rs 100-crore investment would be spread over seven years. However, as the Sunderban region has high salinity, the timber available from the proposed plantation might not be suitable for plywood production.

So, the company is contemplating setting up either a medium density fine board plant or a particle board unit. Mr Bhajjanka is hopeful that the West Bengal Government would give the green signal for the plantation project soon.

Currently, Century Plyboards is importing timber from Malaysia and Burma. The company's monthly timber consumption is 3,000 cubic metres and the imported cost is approximately Rs 3.5 crore.

On Saturday, the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, inaugurated the company's new pre-laminated boards plant. The capacity of this plant is around 30,000 boards per month. The cost of setting up this unit was Rs 35 crore and it was funded through debt and internal accruals.

In 2003-04, Century Plyboards registered a turnover of Rs 130 crore and a net profit of Rs 9 crore.

In the current financial year, it is expecting a turnover of Rs 165 crore. Net profit is likely to remain at around Rs 9 crore. In 2005-06, the turnover is likely to jump up to Rs 250 crore.

From July 2004, the company has started exporting laminates to the US-based Wilsonart International Inc, which is the world's largest manufacturer of surfaces. Century Plyboards has entered into a similar sort of agreement with a Singapore based marketing company.

Mr Bhajjanka said that at present 20 per cent of revenue was generated by exports and that the target was to increase it to 50 per cent said.

The company recently got its scrip listed in the BSE. According to Mr Sanjay Agarwal, Deputy Managing Director, the company is hoping to get its shares listed in the NSE by the end of next month.

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