CenturyPly is planning to invest around ₹200 crore in capital expenditure during FY27, followed by another ₹250–350 crore in the subsequent period, primarily to expand its plywood manufacturing capacity. The company has outlined a broader five-year investment plan of around ₹2,500 crore across plywood, MDF, and other product categories. According to Nikita Agarwal Bansal, Executive Director, CenturyPly, the company is targeting revenue of ₹10,000–12,000 crore by 2031. The investment program is aimed at expanding manufacturing capacity and supporting growth across plywood, MDF, particle board, and other product segments. The company plans to spend approximately ₹200 crore in FY27, with a further ₹250–350 crore planned primarily for plywood expansion. A plywood project in Uttar Pradesh is currently under development, with the company awaiting land handover. The proposed project is expected to have a capacity of around 1 lakh CBM per annum at full utilisation. CenturyPly is also undertaking expansion activities at its existing facilities in Chennai and Kandla and evaluating a land parcel in Odisha, where the availability of plantation timber and proximity to Visakhapatnam port could support manufacturing operations. Plywood remains a major part of CenturyPly's business, contributing around 55% of its revenue. The company estimates that its share of the overall plywood market has increased to around 9–10%, compared with approximately 3.5–4% before Covid. CenturyPly aims to increase its plywood market share to 15% over the next four years, with a longer-term objective of reaching around 25%. The company plans to target both premium and economy segments while expanding its distribution network and converting demand from the unorganised market to branded products. CenturyPly recently increased MDF capacity at its Badvel plant by around 67,000 CBM per year. Its particle board facility has a capacity of approximately 2.4 lakh CBM annually, with utilisation increasing as the new capacity ramps up. CenturyPly currently has debt of around ₹1,700 crore, largely linked to investments in its MDF and particle board businesses. The company expects its term loans to be repaid by 2030, while continuing to maintain some level of debt to fund future growth investments. The company has set a longer-term target of investing around ₹2,500 crore over five years, with the objective of doubling capacity and reaching ₹10,000–12,000 crore in revenue by 2031.CenturyPly Outlines Major Capacity Expansion Plans
Focus on Plywood Market Expansion
MDF and Particle Board Capacity
The company is currently not planning immediate capex for additional MDF or particle board capacity. However, the longer-term investment plan includes further expansion in these segments as demand develops.
The company is also increasing the share of higher-value products in its MDF and particle board portfolio. For MDF, CenturyPly aims for premium products to eventually account for around 65% of its portfolio. Revenue and Debt Targets
Capacity Utilisation
During Q1, CenturyPly's plywood facilities operated at approximately 101% utilisation, while laminates were at around 85%, MDF at nearly 75% on a combined basis and particle board at around 65%. The company expects higher utilisation at newer facilities to improve operating leverage as fixed costs are spread across greater production volumes.
Conclusion
CenturyPly's planned ₹200 crore FY27 capex and subsequent ₹250–350 crore investment are expected to focus largely on plywood capacity expansion. Alongside its wider ₹2,500 crore five-year investment programme, the company is seeking to expand manufacturing capacity, increase plywood market share and support its ₹10,000–12,000 crore revenue target by 2031.
FAQs
1. How much does CenturyPly plan to invest in FY27?
CenturyPly plans to invest around ₹200 crore in capital expenditure during FY27, mainly to support capacity expansion.
2. How much additional capex is planned after FY27?
The company plans to invest around ₹250–350 crore in the following period, with a major focus on expanding its plywood business.
3. What is CenturyPly’s five-year investment target?
CenturyPly has outlined an investment plan of approximately ₹2,500 crore over five years across plywood, MDF, particle board and other businesses.
4. What revenue target has CenturyPly set for 2031?
CenturyPly is targeting revenue of approximately ₹10,000–12,000 crore by 2031.
5. Where is CenturyPly planning new plywood capacity?
The company is developing a plywood project in Uttar Pradesh, with the proposed facility expected to have capacity of around 1 lakh CBM per year at full utilisation.
6. Which other locations are seeing capacity expansion?
CenturyPly is expanding existing facilities in Chennai and Kandla and is also evaluating a land parcel in Odisha for potential manufacturing operations.
