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Greenlam Industries, amongst the largest laminate-makers in India, will invest ₹950 crore over a two-to-three year period as it sets up a third laminate plant and forays into plywood and particle board verticals.
Nearly ₹600 core of the proposed investments will go towards setting up the particle-board unit with an annual capacity of 231,000 CBM; another ₹225 crore will go for setting up the laminates unit; and the remaining ₹125 crore will be used for setting up the plywood unit with a capacity of 18.9 million sq metre per annum.
The investments in the third laminate plant and particle board will be done under in Andhra Pradesh-based fully-owned subsidiary, Greenlam South Ltd. The plywood manufacturing facility will come up under the newly acquired subsidiary HG Industries, based out of Tamil Nadu.
The portfolio expansion in plywood and particle board will position Greenlam from a decorative surfacing company to a leading integrated wood panel player, it said in a statement.
According to Surabh Mittal, Managing Director and CEO, Greenlam Industries, commercial production of plywood & laminates are expected to commence by the fourth quarter of FY23; while the particle board unit is likely to go on stream by Q4 of FY24.
“The greenfield manufacturing projects will involve a capital outlay of ₹950 crore over the next 2-3 years. Our entry into the plywood and particle board business and laminates capacity expansion, reinforces our commitment to becoming a one-stop destination for all surfacing and substrate needs,” he said.
Share split
The company board has also approved a split in its equity share with face value of ₹5 each into five equity shares of face value of ₹1 each and consequential alteration of Clause V (Capital Clause) of the Memorandum of Association of the Company, subject to the approval of shareholders of the company and such other approvals, if required.
In a stock market notification, the company said, the share split would “encourage wider participation of retail investors by making the equity shares more affordable and to enhance the liquidity of equity shares of the company in the stock markets.”
Post the split the authorised share capital of the company will increase to 15,00,00,000; from 3,00,00,000.
Shares of Greenlam Industries closed at ₹1,688, up 0.07 per cent, on the BSE on Monday.
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