CenturyPly targets Rs 12,000 crore revenue by FY31, sees housing demand and exports driving growth

Kolkata-based plywood and veneer manufacturer Century Plyboards (India) is betting big on India’s rising consumption and housing demand to drive its next phase of growth, as it expands capacity across plywood, laminates, medium-density fibreboard (MDF), and particle board. The company is targeting revenue of more than Rs 12,000 crore by FY31, backed by new manufacturing facilities, investments in branding and technology, and a renewed focus on export opportunities. In an interview with The Economic Times Digital, Keshav Bhajanka, Executive Director, Century Plyboards (India), discusses the company’s expansion plans, the growth prospects for India’s building-materials industry, export opportunities, the role of artificial intelligence (AI) in manufacturing, and more. Edited excerpts:

The Economic Times Digital (ET): CenturyPly is aiming to double its turnover by 2031. How is the company preparing itself for the next phase of expansion?

Keshav Bhajanka (KB): That 20% CAGR (compound annual growth rate) actually takes us totally beyond Rs 12,000 crore by FY31. The predominant reason is that in all four of our large segments—plywood, laminates, MDF, and particle board—we have a clear runway for growth, and we have the capacities in hand.


In plywood, we are focusing on capacity utilisation. Now, we have two new plants coming up; one in Hoshiarpur (Punjab) and the other in Uttar Pradesh. For MDF, particle board, and laminates, we have already created the necessary ability to expand as and when required. For instance, in Uttar Pradesh, we can set up a new MDF capacity when needed; in Andhra Pradesh, we have the ability to double the plywood capacity. So, production capacity is unlikely to be a constraint for us. That is the starting point because, as they say, you can’t sell what you don’t have.

Alongside that, we have invested substantially in both branding and team building because we believe that quality is now a hygiene factor. Sustained brand building for the past six or seven years has really helped us, and we envision continuing to do so for the foreseeable future.

There are also some other factors we are currently working on. In terms of digitisation, everyone uses AI as a buzzword, but for us it’s not a buzzword. We figured out several areas where technology could improve productivity. For instance, we did not have a sales-force automation tool. Salesforce automation is something that can help you increase productivity. Over the past five years, we have implemented a sales-force automation tool, which has helped us improve the productivity of our sales team.

There are a lot of different pivots. Of course, creating capacity is where the capital goes; hence, it is critical. But outside of that, there are a lot of things we are doing that will ensure that we reach where we are going.

ET: India has a lot of potential in plywood. What will it take for the industry to unlock this potential and drive further growth? And what opportunities do you see in other segments like MDF, laminates, etc.?

KB: In laminates, India is very uniquely positioned globally due to the labour-intensive nature of the industry. The labour-cost component of laminate is quite high, and that gives India a strategic advantage for the foreseeable future.

In addition, we are in a position to produce good-quality laminates. There are a lot of exporters from India who have now mastered how to do that.

So going forward, I firmly believe that laminates have a massive runway for growth. As far as plywood is concerned, China’s capacity would be over 160 million cubic metres, while India’s is 10 million cubic metres. China’s capacity for MDF would be approximately 60 million cubic metres, and India’s would be 3-4 million cubic metres. And in particle board, China's capacity would be more than 50 million cubic metres, while India's would be around 3 million cubic metres.

ET: So how can India scale up its capabilities in these categories, and are you seeing Indian companies making inroads in the market?

KB: Yes, definitely. Capacity is coming up, but demand has to be the starting point. As I was saying, there is roti, kapda, and makaan. As affluence increases, people would want to buy their own homes and better furniture. All of these factors will drive demand, which is why supply is ramping up; the expectation is that this demand will continue. So, going forward, I think it will form a virtuous cycle where supply keeps increasing to match that demand.

ET: Is India well placed to tap that demand?

KB: Yes, definitely. I think the industry is more than well poised to deal with the internal demand within India. India has certain quality norms and quality parameters that Indian companies can perhaps deal with better.

And in MDF and particle boards, the freight component is quite huge because they are not very expensive products. Considering all these things, I don’t think the Indian industry needs to be bothered too much with imports at this point in time.

ET: Amid geopolitical disruptions and evolving trends in the interior market, what impact have you seen on your business?

KB: I think the impact has predominantly been in the form of raw-material pricing. Due to volatility in raw-material pricing, margins might be slightly higher or lower for one or two quarters, depending on our ability to pass those cost increases on to the market.

Having said that, our demand is predominantly domestic, other than for laminate, which remains fairly robust.

ET: For exports, do you have plans for some of the other categories, including laminates?

KB: We have not actually pursued exports very aggressively in the past, but now we realise we have missed an opportunity.

So, now we have created a team for laminate exports, which is much larger than something we have ever done. We have also created three new large-size presses in Andhra Pradesh in our facility. The first two large-size presses became operational in January 2024, and the third press became operational earlier this month.

So, the roadmap is clear. We have potential, good customers, and an increasing portfolio. I think exports are likely to see quite good traction going forward.

ET: What investments are you planning through FY29 to strengthen your manufacturing capacities?

KB: The immediate plans are plywood facilities in Hoshiarpur (Punjab), Uttar Pradesh, and Odisha. Alongside those, in Uttar Pradesh we have the opportunity to set up an MDF plant, and in Odisha we’ll have the ability to set up a particle board plant at a later date, but we have not finalised those two yet. There is always a chance to increase our capacity in our existing plants. But as of now, the new capital expenditures (capex) are limited to these three projects.

ET: What role do AI and digitisation play in CenturyPly’s manufacturing operations, and to what extent are these technologies integrated into your processes?

KB: There are so many areas where AI can help. The way that one assesses and reacts to data is critical. In manufacturing, as far as MDF and particle boards are concerned, we have very smart machinery, and they are helping us to understand ideal usages, runtimes, consumption, and so on. But I think that the true potential of AI will only come once we are able to implement it a little holistically. There are multiple variables that go into producing a product at any point in time. It is impossible for the human eye to manually track all those variables and assess the impacts on quality or cost. AI can do that quite easily. So, we are already working with three companies on such objectives.