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The Rs 2,000-crore Greenply Industries Ltd expects to start construction of its new plant for medium density fibreboard (MDF) in Andhra Pradesh by January 2014. Commercial production is likely to commence in March 2017.
“We have acquired nearly 104 acres of land in Chittoor district of Andhra Pradesh. We are waiting for the necessary clearances from the Ministry of Environment and Forests. This might take about 8-9 months,” V. Venkatramani, chief financial officer of Greenply told Business Line .
Brownfield Project
Though Venkatramani did not divulge the project details, sources said the proposed facility at Chittoor may have an installed capacity to produce 600 cubic metres of MDF a day. The project is expected to entail an estimated investment of Rs 300-350 crore.
“We are yet to firm up the size and capacity of the plant. We are in talks with some German vendors for machinery,” Venkatramani said.
Meanwhile the company is likely to start commercial production of value-added products, including high-density and high-gloss MDF laminated boards and flooring from its Pantnagar facility in Uttarakhand, in August this year.
Overseas subsidiary
Greenply has submitted an application to the Myanmar Investment Commission for setting up a veneer or a veneer-cum-plywood unit in the country through a subsidiary.
Myanmar, which has so far been exporting wood, now plans to export value-added products. About 12-15 per cent of Greenply’s raw material requirements are met through imports from Myanmar.
“The subsidiary will ensure steady supply of raw material. We are hopeful of setting the unit up by September 2014,” he said.
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