Century Ply is planning to invest Rs 282 crore to fund its various expansion projects in the next two years. The expansions in the laminates unit are to get operational within the current financial year.
The company had drawn up Rs 751 crore capex plans, of which it had already spent Rs 154.63 crore in FY16 and Rs 313.92 crore in FY17. It is now investing Rs 222.63 crore in the current fiscal and remaining Rs 60 crore in FY19. “The company’s MDF plant is in the final stage of completion and likely to commence production by July this year. The company has already invested Rs 380 crore in the said project,” the company said in its investor’s presentation.
It is also investing Rs 64 crore in plywood project in Punjab, Rs 60 crore in particle board, Rs 62.50 crore in laminate unit, Rs 20 crore in Guwahati unit and Rs 16.65 crore in Gandhidham unit. The company plans to set up a door unit in collaboration with a world renowned Chinese company at an estimated cost of Rs 50 crore. Implementation of MDF and laminates units will give additional revenue of around Rs 350 crore and it sees huge demand for plywood, the company officials said. The company’s net sales increased by 9 per cent to Rs 1,782.46 crore, and net profit rose from Rs 169.8 to Rs 185.6 crore in financial year 2016-17. The total income for the fourth quarter of 2016-17 fiscal stood at Rs 539.98 crore as compared to Rs 483.75 crore in the same period previous year. The company said that the GST rates for Plywood are slated at 28%, which is almost at the current level of taxes.