Greenply buys two plywood makers in Gujarat
Greenply Industries has picked up controlling stake in two Gujarat-based plywood manufacturing companies - Galaxy Decor and Platinum Veneers.
By TNN |
KOLKATA: Greenply Industries has picked up controlling stake in two Gujarat-based plywood manufacturing companies — Galaxy Decor and Platinum Veneers. The board, which met in Kolkata on Tuesday, also cleared the company’s proposal to set up a new laminate-producing unit in Himachal Pradesh as well as an MDF (medium densified fibre board) production line within the premises of its existing Uttarakhand plant.
Addressing reporters after the board meeting, Greenply Industries’ joint managing director & CEO Saurabh Mittal said: “We have acquired the two companies which produce plywood and its allied products and are owned by the same promoter. The acquisition is in line with our growth strategy.”
He added: “The acquisition will enhance our presence in western India and help save logistical costs substantially. Post-acquisition, the company’s plywood manufacturing capacity will stand enhanced to 21 million square metre from 18 million square metre now.” Following this, the two companies will become wholly-owned subsidiaries of Greenply Industries.
Outlining future plans, Mr Mittal said that apart from shelling out Rs 3.85 crore to acquire the two companies, Greenply Industries will also repay the liabilities subject to a maximum limit of Rs 2 crore.
Around Rs 6 crore worth of new machinery and equipment will be installed in the two units and another Rs 8 crore has been set aside to meet their working capital requirements, he said.
Total outlay is estimated to be Rs 20 crore and will be funded by a mix of internal accruals and debts.
On the proposed greenfield laminate-producing unit in Himachal Pradesh and an MDF production line within the premises of its existing Uttarakhand plant, Mr Mittal said: “We are yet to work out the exact investment details.”
Currently, the company has manufacturing units in Rajasthan, Nagaland, Uttarakhand and Kolkata.
Meanwhile, Greenply Industries reported a higher net profit of Rs 11.2 crore for the second quarter ended September 30, 2007, compared to a Rs 4.8 crore net in the corresponding quarter previous year. The profit follows a 36.2% growth in gross sales revenue during the July-September quarter at Rs 158.9 crore (Rs 116.6 crore).
While net sales during the quarter under review stood at Rs 135.6 crore from Rs 97.2 crore in the corresponding quarter previous year, other income surged to Rs 2.3 crore in the said Q2 compared to Rs 40.3 lakh the previous corresponding year. Profit before tax in the said July-September quarter was Rs 15.6 crore (Rs 5.6 crore).
Addressing reporters after the board meeting, Greenply Industries’ joint managing director & CEO Saurabh Mittal said: “We have acquired the two companies which produce plywood and its allied products and are owned by the same promoter. The acquisition is in line with our growth strategy.”
He added: “The acquisition will enhance our presence in western India and help save logistical costs substantially. Post-acquisition, the company’s plywood manufacturing capacity will stand enhanced to 21 million square metre from 18 million square metre now.” Following this, the two companies will become wholly-owned subsidiaries of Greenply Industries.
Outlining future plans, Mr Mittal said that apart from shelling out Rs 3.85 crore to acquire the two companies, Greenply Industries will also repay the liabilities subject to a maximum limit of Rs 2 crore.
Around Rs 6 crore worth of new machinery and equipment will be installed in the two units and another Rs 8 crore has been set aside to meet their working capital requirements, he said.
Total outlay is estimated to be Rs 20 crore and will be funded by a mix of internal accruals and debts.
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On the proposed greenfield laminate-producing unit in Himachal Pradesh and an MDF production line within the premises of its existing Uttarakhand plant, Mr Mittal said: “We are yet to work out the exact investment details.”
Currently, the company has manufacturing units in Rajasthan, Nagaland, Uttarakhand and Kolkata.
Meanwhile, Greenply Industries reported a higher net profit of Rs 11.2 crore for the second quarter ended September 30, 2007, compared to a Rs 4.8 crore net in the corresponding quarter previous year. The profit follows a 36.2% growth in gross sales revenue during the July-September quarter at Rs 158.9 crore (Rs 116.6 crore).
While net sales during the quarter under review stood at Rs 135.6 crore from Rs 97.2 crore in the corresponding quarter previous year, other income surged to Rs 2.3 crore in the said Q2 compared to Rs 40.3 lakh the previous corresponding year. Profit before tax in the said July-September quarter was Rs 15.6 crore (Rs 5.6 crore).
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