| "There is no point in keeping two different companies of the same group, involved in a similar kind of business, when we can benefit from consolidating all the operations. The merger will enable us to command new heights in procurement, sales and our marketing expenditure will decline," said the joint managing director of Greenply Industries, Saurabh Mittal. |
| Mittal said the company was looking at a reasonably large expansion programme in near future, but declined to divulge the details. |
| He said the company had completed all formalities and the approval from the Guwahati High Court was expected by the end of November. The company has filed for a merger of the two entities with effect from April 1, 2005. |
| While Greenply Industries is listed on the Bombay Stock Exchange and the National Stock Exchange, Worthi Plywoods is a private company where the promoters of Greenply hold around 82 per cent. The merged entity is also expected to clock in a profit before tax at Rs 14-15 crore during the current year. |
| Greenply currently manufactures plywoods and laminates from its two facilities in Nagaland and Rajasthan. WPL is only into plywood manufacturing and its facility is at Joka near Kolkata. |
| Both the companies operate in a market which is largely dominated by unorganised players. Organised players account for only 10 per cent of the Rs 6,000-crore a year plywood market in the country. In the case of laminates their position is relatively good, where they corner over 60 per cent of the market share. |
| Greenply's plywood business is dependent mostly on the domestic market where it has a 1,500-big distributor network. It, however, exports 30-35 per cent of its laminates to countries like the US, Canada,Hong Kong , Taiwan and Australia, among others. |
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