MDF manufacturing in India will be a trigger for Greenply stock: Aviral Gupta, Indian Equities

Aviral Gupta, Fund Manager, Indian Equities, in a chat with ET Now talks about Greenply.

What is the capacity of Greenply? At what capacity utilisation are they running? Are they adding any new capacity and has the cost of the raw material gone up or down?

I will not be able to give you exact capacity but yes, they are running at around 85-90% capacity utilisation at this point of time. Yes, they are adding capacities of Uttarakhand both for plywood plus they are adding capacities for MDF. They will be the biggest manufactures of MDF in India as such.

As of now, 70% of the MDF is imported but once they start manufacturing MDF in India, this will be one of the biggest trigger for this stock. The most important point for this company is there is a very strong entry barrier. Because of the environmental issues, government does not allow you to set fresh capacities without existing licenses. So that is not very strong entry barrier plus they are very strong brand name in the industry.