Greenply Industries on Wednesday announced its foray into medium density fibreboards business and said it will set up a plant in Gujarat's Vadodara with capital expenditure (capex) of Rs 548 crore for the purpose.
The greenfield facility is likely to commence operations in the last quarter of the 2022-23 fiscal, a company official said.
"The plant with an installed capacity of 800 cubic metre (CBM) per day will have a revenue potential of Rs 600-650 crore per annum at its peak utilisation," Greenply Industries CEO and joint MD Manoj Tulsian said.
It has plans to produce all categories of MDF and other value-added products in a phased manner, he said.
The Kolkata-headquartered company also announced the acquisition of an entity for this purpose.
"With the change in consumer demand in the current scenario, the MDF sector is expected to grow rapidly. This investment will help us to capitalise on this long-term opportunity and establish our leadership in the untapped markets of western states," Tulsian said.
The plant will be in the agricultural belt that ensures easy procurement of raw materials and will have quick access to seaports and highways, the company added.
