Century Ply plans Rs 1,000 crore expansion betting on real estate cycle
The company is approaching peak capacity utilization in three major segments, which requires expansion.
“In plywood we are at 75-80% capacity utilization. In laminates, where we have commissioned a new line, we are at 75-80% utilization. medium density and particle board, we’re at over 100% utilization, where most of our capital expenditure takes place.”
The plywood segment remains largely unorganized, which could provide a potential opportunity, he said.
The company’s Rs 250 crore MDF expansion in Hoshiarpur, Punjab is set to go live in October-November this year. The new laminate expansion in Andhra Pradesh will start in the third quarter of next year, and the MDF expansion in Andhra Pradesh in the second half of next year.
Starting in 2023, the company will add new capacity every six months, he said.
“Our goal has been to grow over 20% and we are well positioned to achieve this. In plywood and laminates we are targeting 15-20% growth, while in MDF we are targeting over 20%,” Bhajanka said.