Greenply Industries Ltd, one of the largest plywood producers in India, is likely to announce a price hike in April to offset the rise in input costs. The company had earlier this month had revised its product prices by three per cent .<\/p>\n
According to Manoj Tulsian, Joint Managing Director and CEO, Greenply Industries, the ongoing geo-political tensions had led to volatility in raw material costs. The price of timber and certain chemicals have already increased by nearly 15 percent over the last 10-12 months and the current conflict has further affected the supplies.<\/p>\n
\u201cIt is a volatile situation. There is a cost side pressure, we took a price hike of around three percent in March and we will again evaluate the situation in April. If raw material prices do not come down then we may have to go in for another round of price hike,\u201d\u00a0 Tulsian said.<\/p>\n
To maintain a margin, the company passed on a large portion of the input cost increase to its customers over the last 10-12 months.<\/p>\n
\u201cThough there is a time lag between the increase in input cost and the resultant price hike, overall we have been able to maintain our margins. Our margin was close to 9 percent last year, and this year we expect it to be around 10 percent,\u201d he said.<\/p>\n
Enhancing production<\/strong><\/p>\n Greenply has earmarked \u20b9200 crore (EUR 23 million) to scale up plywood and allied products production in Uttar Pradesh. The company is setting up its own manufacturing facility in Hardoi in UP at an estimated investment of \u20b9110 crore (EUR 13 million). It also planning an additional \u20b980 crore (EUR 9.4 million) investment on a joint venture basis across three units (one in Hapur and two in Bareilly). The combined annual capacities of these units would be 31 million square meter.<\/p>\n Of these, two are already operational, and the one in Hardoi would commence production by Q1FY23 and the other at Hapur by Q3 of the next fiscal.<\/p>\n MDF business<\/strong><\/p>\n The company is also investing around \u20b9550 crore (EUR 65 million) into the medium density fibre (MDF) boards business. The greenfield manufacturing plant, with a capacity of 800 cubic meters per day, will come-up at Vadodara in Gujarat and is likely to be operational by the Q4 of FY23.<\/p>","protected":false},"excerpt":{"rendered":" Greenply Industries Ltd, one of the largest plywood producers in India, is likely to announce a price hike in April to offset the rise in input costs. The company had earlier this month had revised its product prices by three … Continue reading