Greenlam Industries yesterday evening announced plans for a fast-tracked expansion of the company. The company aims to invest Rs.950 crores over a period of 2-3 years, towards setting up of third Laminate plant and foray into Plywood and Particle Board business.

Witnessing a spiral demand in the wood panel segment, the company has taken the next leap and decided to expand its portfolio by venturing into two adjacent categories - Plywood and Particle Board and also setting up third Laminate plant.

The investments in third Laminate plant and Particle Board will be done under Greenlam South, a 100% subsidiary of Greenlam Industries based at Naidupeta, in Andhra Pradesh. The company will invest in latest technology, equipment and new generation machinery to manufacture Particle Boards with a capacity of 231000 CBM per annum at an investment of Rs.600 crore. The company shall set up laminate capacity of 3.5 mn sheets & boards per annum at an investment of Rs.225 crore.

The dedicated Plywood manufacturing facility will come under the newly acquired subsidiary HG Industries Limited based at Tindivanam, Tamil Nadu, having a capacity of 18.9 mn sqm. per annum with a Capex of Rs.125 crores.

Greenlam expects to commence the commercial production of Plywood & Laminate by Q4FY23 and Particle Board by Q4FY24.

The stock price has reacted positively to this news; the stock went on to hit a new high at Rs.1999 with an almost 5-times rise in volumes.