Delhi-based laminates and plywood maker Greenlam Industries is aiming for a 15% revenue increase by the end of the financial year 2024, and 20% in the next financial year (FY25). Saurabh Mittal, MD & CEO of Greenlam Industries, shared these projections in an exclusive interview with CNBC-TV18.
Mittal said there are challenges in FY24 but he is confident of achieving the targeted growth aided by the addition of new production capacities. The surface decor company recently inaugurated a third production line in its Gujarat factory, initiated operations in a plywood plant in Tamil Nadu, and commenced laminate production in Andhra Pradesh. Plans are also underway to launch a particleboard line in Andhra Pradesh in the upcoming financial year.
The laminate segment faced challenges in exports, sales, booking, and closures due to the Red Sea crisis, amid the highest production in the third quarter. However, the domestic business thrived, with growth in gross margin and EBITDA (earnings before interest, tax, depreciation, and amortisation) margin. The company also capitalised on its new laminate plant, injecting ₹225-250 crore into the venture, which began operations on September 29, 2024.
Greenlam Industries' capacity utilisation has surpassed 80%, and Mittal expects further improvements.
In the plywood business, the break even is around 55-60% utilisation, and the company foresees reaching full capacity by FY26. At full capacity, the plywood business is expected to generate approximately ₹400 crore in revenue.
Greenlam Industries' current market capitalisation is ₹6,895 crore. The company competes with Century Plyboards, and others.
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(Edited by : Shweta Mungre)
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