Greenlam soars 15% as plywood facility begins operations in Tamil Nadu

Shares of Greenlam Industries surged 15 per cent to hit a new high of Rs 462.20 on the BSE in Friday’s intra-day trade after its plywood and allied products unit at Tindivanam in Tamil Nadu began commercial production. 

Greenlam, in exchange filing, said that the manufacturing facility with installed capacity of 18.9 million square meter per annum has started commercial production from June 09, 2023. The said facility has the potential to generate revenue of Rs 400 crore per annum on full capacity utilization. The total capex incurred for the project stands at Rs 130 crore approx till commencement of the commercial production.

The greenfield project to manufacture plywood and allied products has began via the company's subsidiary HG Industries with an estimated investment of Rs 125 crore, it said.

The company added the greenfield laminate plant and particle board plant at Naidupeta, Andhra Pradesh is expected to start production by Q2FY24 and Q4FY24 respectively.

Greenlam is among the world’s top 3 laminate manufacturers with its flagship brands Greenlam Laminates, NewMika Laminates, Decowood Veneers, Mikasa Floors & Mikasa Doors & Frames.

Meanwhile, in the past three weeks, the stock has zoomed 51 per cent after the company reported a strong 79.7 per cent year-on-year (YoY) growth in net profit to Rs 46.10 crore in the March quarter (Q4FY23). Net revenues grew 15.2 per cent YoY to Rs 533.80 crore. The laminate business witnessed overall value and volume growth of 16 per cent and 16.8 per cent, respectively.