India's leading plywood and laminates manufacturer Greenply anticipates a turnover of Rs 450-500 crore within the next 4-5 years from its joint venture with Turkiye-based furniture hardware firm Samet, according to Joint Managing Director and CEO Manoj Tulsian. The company expects an 8-10% volume growth in its core plywood business and a 50-60% increase in its new medium-density fiberboard (MDF) business this fiscal year.

Investment Plans and New Ventures
Greenply plans to establish another plywood factory, which may require an investment of approximately Rs 125 crore. Additionally, the company intends to expand into new adjacent products through brand extension. The Greenply-Samet joint venture has already begun manufacturing activities and commercial production at its Vadodara plant in Gujarat. This facility aims to serve both the growing domestic market and explore export opportunities.

The joint venture will manufacture and market premium furniture hardware, including slide systems for wooden and metallic drawer systems, hinge systems, lift-up systems, and other products. Initially, it will leverage Greenply's existing sales and distribution channels for the domestic market. "We have planned an investment of close to Rs 250 crore," Tulsian said. "The investment will be done in phases, with the first phase completed on March 30, 2024."

Growth Projections and Export Potential
Tulsian mentioned that phases two and three are scheduled for 2025 and 2026. "There is a ramp-up plan, and we believe that in the next 4-5 years, we should achieve around Rs 400-500 crore of turnover in this business," he added. The segment is predominantly dominated by Chinese players, but Tulsian expects the JV to be very competitive due to its domestic manufacturing capabilities.

Regarding export potential, Tulsian noted that Samet has a presence in 80 countries. "It will depend on the cost matrix... they will look at their cost of production versus the cost of production here," he said. "If it is beneficial for them, they will start exporting to many countries from the Indian JV."

Source: goodreturns.in