City-based playboard major Greenply Industries on Monday said it will be investing a total of Rs 115 crore for setting up of greenfield plywood and its allied products manufacturing plant in Uttar Pradesh and the plant was expected to be operational by March-April quarter of 2022.
The new plant will increase the total capacity by 13.50 million sq metres and the project will be executed by a new subsidiary company.
The plant will come up in Sandila Industrial Area, Hardoi district, Uttar Pradesh.
“Even after the first Covid wave our volume had grown. I think we will have a similar demand trend even after the second wave. So we are going ahead with the expansion project,” Greenply CMD Rajesh Mittal said.
“Project investment will be around Rs 75 crore but including land-related costs total outgo is Rs 115 crore. The capex will be funded with a mix of debt and equity,” he said.
He said the expansion was on the radar for the last few years. Hardoi is at the proximity of principal raw materials such as agro-forestry timber and availability of workers, along with growing demand in northern and central markets of India.
The existing total capacity of the company is 29 million sq metres of plywood and its allied products. It has manufacturing facilities in Nagaland, West Bengal, Uttarakhand and Gujarat.
