Greenlam Industries soared 12.11% to Rs 1,892.95 after the company said it aims to invest Rs 950 crore over a period of 2-3 years, towards setting up of third laminate plant and foray into plywood and particle board business.
The company currently offers products ranging from decorative laminates, compact laminates, exterior & interior clads, decorative veneers, engineered wooden floors & doors for residential and commercial spaces. It has now decided to expand its portfolio by venturing into two adjacent categories - plywood and particle board and also setting up third laminate plant. This expansion will position Greenlam from a decorative surfacing company to a leading integrated wood panel player.The investments in third laminate plant and particle board will be done under Greenlam South, a 100% subsidiary of Greenlam Industries based in Andhra Pradesh. The company will invest in latest technology, equipment and new generation machinery to manufacture particle boards with a capacity of 231000 CBM per annum at an investment of Rs 600 crore. The company shall set up laminate capacity of 3.5 million sheets & boards per annum at an investment of Rs 225 crore.
The company expects to commence the commercial production of plywood & laminate by Q4FY23 and particle board by Q4FY24.
On a consolidated basis, net profit of Greenlam Industries rose 11.6% to Rs 20.70 crore on 57% rise in net sales to Rs 454.17 crore in Q2 September 2021 over Q2 September 2020.
Greenlam Industries provides high-quality surface solutions that are designed to transform and beautify residential and commercial spaces. Its brands include Decowood, Mikasa, NewMika, Greenlam Clads, Greenlam Sturdo and Greenlam.
The scrip hit an all-time record high of Rs 1,999 in intraday today.
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