The Chennai-based wood panel manufacturer Uniply Industries Ltd is streamlining its capital structure and consolidating its retail presence.
Keshav Kantamneni, who acquired the company and took over its reins in January, brought the company back in the black. For the year 2014-15, it registered a net profit of ₹40 lakh against ₹3 crore loss in the previous year.
“We will make profits in the current quarter also, which we believe will be sustainable,” he said. In the beginning of the fourth quarter of 2014-15, the company had bank debt of ₹55 crore and other liabilities of ₹60 crore.
After he took over, he brought down other liabilities to ₹30 crore through better realisation of inventory and reducing working capital cycle by quicker collection.
According to Kantamneni, the company’s focus will be on consolidation and stabilisation of the business and then on growth. “But to get there, we need to be in the optimal level of capital structure in terms of debts, and that’s what we are working on now,” he said. Uniply is a national brand with a significant presence in the South.
“We are a leading player in the NCR markets, Punjab and Chandigarh too, and we want to spread our wings further to cover other pockets in the North and West.” Uniply currently has three facilities in Chennai. It has identified a couple of manufacturing facilities to acquire at Yamuna Nagar in Haryana and Gandhidham in Gujarat.