Uniply Industries Ltd, a South-based plywood maker with a plant near Chennai, is on course to making two acquisitions, one in the West and another in the North, to expand its presence in these markets.
Keshav Kantamneni, Chief Executive Officer of Uniply Industries, said these acquisitions were likely to be concluded over the next few months, enabling the company to lay special focus on the North and West, where it has a smaller presence.
An investment banker and consultant, Kantamneni acquired the Chennai-based plywood-maker a couple of months ago by picking up 36 per cent of the promoters’ equity for Rs 138 crore. An open offer is now underway to acquire an additional 26 per cent stake in the company, which closed the last financial year with a turnover of Rs 170 crore.
“Uniply is a national brand and a leading player in South India and also No.2 in Punjab and Chandigarh. Uniply products have been received well in the Delhi and NCR markets. With regular wood beyond the reach of the common man, the demand for quality plywood is on the upswing in households and commercial spaces,” he said.
The Rs 20,000-crore plywood market is growing at 5-6 per cent per annum and the share of the organised sector in this space is likely to go up substantially, he said.
While further strengthening its presence in South India and expanding its network of retail outlets in Andhra Pradesh and Telangana, the company is keen to expand its presence in the North and West. The proposed acquisitions, already identified and at advanced stage of negotiations, would help further consolidate the business, he said.