After demerging its MDF biz, Greenply may cut costs and time to market

MDF is a high volume and low value product, so the cost of freight plays an important role in determining the profitability of the business

Greenply Industries, a leading manufacturer of wood panels is going big on its MDF (medium density fiberboard) business. In July this year, the company — which closed last financial year with a turnover of Rs 16.5 billion (profit of Rs 1.35 billion) — announced the demerger of its MDF division to its wholly owned subsidiary Greenpanel Industries Ltd. The company has now expanded capacity by setting up its second MDF plant in Chittoor, Andhra Pradesh. It already has an MDF plant in Uttarakhand which has been operating since 2010. With the addition of the new plant, Greenpanel has almost tripled