Greenlam Industries expects Rs 850 cr revenue this fiscal

MUMBAI, Mar 8:  Greenply Group company Greenlam Industries, which is into surface decorative business, is eyeing a 10 per cent growth this fiscal and a revenue of about Rs 850 crore.
Last year, Greenply Industries had announced the demerger of its collective business and formed Greenlam Industries to manage the group’s decorative business with all its assets and liabilities.
In FY 2014, the decorative business had registered a turnover of Rs 770 crore.
“This year we should clock in a revenue of Rs 840-850 crore. Moving ahead we should look at a growth of 15-18 per cent because of new products and capacity expansion. Approximately Rs 1,350-1,400 crore in the next three years,” Greenlam Industries Managing Director and Chief Executive Saurabh Mittal told PTI.
Greenlam is into laminates, decorative veneer and engineered wood floors.
The company is planning to get into the engineered door solutions from the first quarter of next fiscal.
“We are building 120,000 doors per annum capacity, which we are going to start from Q1 of FY 2016,” he said.
The company has two manufacturing facilities at Behror in Rajasthan and Nalagarh in Himachal.
It is planning to expand its laminates capacity by 20 per cent.
“We have a capacity for 10 million laminates sheets per annum, which so far this fiscal has been operating at 110 percent utilisation. We are adding 20 per cent capacity in our Himachal plant which should go stream from the third quarter,” he said.
It manufactures 1 million square metres of flooring and 4.2 million square metres of decorative veneer.
The company has earmarked a capex of Rs 35 crore for FY 2016 and had undertaken a capex of nearly Rs 100 crore in FY 2015 as it set up the engineered wood flooring plant, the melamine faced chip board plant and finished doors and started working on 20 per cent laminate expansion.
Greenlam enjoys a market share of 10-11 per cent in the total laminates market which is pegged at Rs 3,500 crore.
The total laminates exported from India is valued at Rs 800 crore and the company’s share is 40 per cent of this.
The veneer market is Rs 800 crore and Greenlam has 10 per cent of the market.
Laminates dominate the major part of the business as nearly 90 per cent of the company’s business come from it.
“Laminates comprises of 85-90 per cent of business.
The Veneer business will not cross Rs 100 crore and it would take some time to build up,” Mittal said. (PTI)


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