Century Plyboards Plans ₹140 Crore Expansion to Boost Plywood Output by 30%

Century Plyboards, India’s leading plywood manufacturer, is set to expand its production capacity by 30% over the next 12-15 months with a ₹140 crore investment. This expansion includes greenfield and brownfield projects, with ₹100 crore earmarked for a new facility, potentially in Punjab, Uttar Pradesh, Odisha, or Andhra Pradesh, based on commercial viability. Existing facilities will also be upgraded with advanced machinery.

Currently, Century Plyboards operates at 339,600 CBM per annum capacity, with 75% utilisation in Q1 FY24. The company holds an 8% share in the ₹27,500 crore plywood market and commands 25-30% in the organised segment, which is growing at a high single-digit rate annually. The company aims to exceed the industry growth rate, targeting a 10% increase in market share.

In response to rising input costs, Century Plyboards raised plywood prices by 2% in Q1 and Q2 and laminate prices by 3% in Q2. With domestic agroforest supply unable to meet demand, the company is importing core veneer from Vietnam and Brazil.

The ₹8,000 crore laminate market contributes 17% to Century Plyboards’ revenue, with the company holding an 8% market share. Laminate exports, currently at ₹150 crore annually, are projected to double to ₹300 crore within three years.

Century Plyboards remains optimistic about the plywood industry’s growth, projecting a doubling in market size over the next six to seven years, supported by increasing demand and its strategic expansions.