Talking about the possibilities of a plant in Gujarat, Shyam Daga, joint managing director of Archidply Industries said, "We are open to the possibility of setting up a timber processing plant in Gujarat since the state imports high-end timber from Burma and Malaysia."
The flagship company of Archidply Group is also mulling franchised exclusive brand outlets of Archidply in metro cities, said Daga. Currently, Archidply has a distribution network and operates through 16 marketing offices and 61 distributors and stockists who maintain around 5,000 stock keeping units (SKUs) under 25 product categories.
In Gujarat, the company is expecting to double its monthly sales from Rs 1 crore by end of March 2009.
On its way to expand capacity from 22 million sq mt per annum of products to 45 million sq mt per annum, the company is planning to raise around Rs 53 crore at upper band of Rs 80 per equity share through initial public offering (IPO) of 66,15,720 equity shares at price band of Rs 70 to Rs 80 per equity share.
Archidply intends to utilise the proceeds of the IPO to set up a new manufacturing facility of plain particle board (PPB), pre-laminated board (PLB) and decorative plywood at Chintamani in Karnataka and medium density fibreboard (MDF) at Rudrapur in Uttarakhand. Post-issue, the company intends to raise its share of eight per cent of the Rs 2,400 crore organised market to over 15 per cent by next year, added Daga.
