The company plans spend Rs 36 crore on its greenfield particle board and decorative plywood plant at Chintamani, Karnataka with a capacity of 45,000 cubic metres and 10,000 cubic metres respectively for which it has already acquired 12.5 acre of land.
The plant is set to begin production in September this year.
It also plans to set up an MDF plant in its existing location at Rudrapur, Uttaranchal with a capacity of 60,000 cubic metres at an investment of Rs 26 crore. This plant is likely to commence commercial production in August 2009.
Archidply is planning to enter the capital market soon to raise Rs 55 crore to part fund the expansion projects while the remaining 28 crore would be sourced through term loan for which the company has tied-up with Union Bank and Oriental Bank of Commerce.
Currently, it has capacity to produce particle board with a capacity of 45,000 cubic metres and decorative playwood of 30,000 cubic metres at its Mysore plant while Archidply has decoarative laminates production capacity of 12 lakh sheets and decorative laminates capacity of 30,000 cubic metres at its Uttaranchal plant.
