Greenply Industries is targeting consolidated revenue of ₹3,300–3,500 crore in the current financial year and plans to nearly double its plywood manufacturing capacity over the next five to six years. The company reported ₹2,739 crore revenue in FY26, according to Joint Managing Director Sanidhya Mittal.
Greenply Plans Major Plywood Capacity Expansion
The company plans to add plywood capacity over the next five to six years equivalent to what it has built over its past 42 years. Greenply expects to benefit from the continuing shift from unorganised to organised manufacturers in the plywood and panel-products market.
According to Mittal, organised manufacturers account for around 25% of the plywood market and 65% of MDF. Industry growth is estimated at 5–6% annually for plywood and 15–20% for MDF.
Greenply is targeting more than 10% plywood volume growth and 20–30% MDF volume growth for the year and said it met these volume expectations in the first quarter.
Two Greenfield Plywood Projects Planned
Greenply plans to establish two greenfield plywood projects next year in Nagaland and Sandila. Land licenses for both locations are already in place. The company does not currently plan to add manufacturing locations in other states until these projects are completed.
In MDF, the second production line at Vadodara is under construction and is expected to start commercial production in Q2 FY28. The line will increase capacity by around 70%, from approximately 1,000 cubic meters per day to 1,700 cubic meters per day.
At current realizations, the additional MDF capacity could generate around ₹600 crore in revenue.
MDF Faces Discounting Pressure
According to Mittal, MDF manufacturers raised prices during April and May to offset higher costs but subsequently used discounts, giving back much of the increase.
Greenply, however, said it remains relatively insulated from the pressure. Mittal cited Greenply's MDF EBITDA margin of around 17%, compared with 7% and 10% for two unnamed leading players.
Greenply does not currently plan to increase MDF exports because excess capacity in Southeast Asia has pushed export realizations to around 30% below Indian levels.
New Technology Expected to Improve Plywood Margins
Greenply expects its new plywood manufacturing technology to be fully implemented by Q3, with benefits expected from Q4. The technology is expected to reduce material and manpower costs and improve plywood margins.
The company is also using an AI-based system in MDF manufacturing to monitor production parameters and improve process consistency. Greenply has introduced a patented termite treatment for plywood, which it describes as “termite-proof.”
GST and Premium Products
Plywood and MDF currently attract 18% GST. Mittal said a lower GST rate could narrow the price difference between organized and unorganized manufacturers, while clarifying that this was his personal view and not an industry position.
Around 60% of Greenply's sales come from premium products, while 40% comes from value offerings. Its premium portfolio includes Club 500 and Club 700 plywood ranges, which carry a seven-times money-back guarantee.
South India contributes around 36% of the company's business, while Greenply has a direct sales presence across more than 1,000 districts.
Greenply Sets ₹10,000 Crore Long-Term Ambition
Greenply's longer-term ambition is to reach ₹10,000 crore in revenue, primarily through plywood, MDF, and adjacent categories such as chipboard.
The company also expects its loss-making subsidiary to reach break-even in the middle of the next financial year, supported by localization of products that are currently partly imported. Its Singapore step-down subsidiary related to the Myanmar operations is also being closed.
FAQs
1. What revenue target has Greenply Industries set?
Greenply Industries is targeting consolidated revenue of ₹3,300–3,500 crore in the current financial year, compared with ₹2,739 crore in FY26.
2. What is Greenply's plywood capacity expansion plan?
Greenply plans to nearly double its plywood manufacturing capacity over the next five to six years, adding capacity equivalent to what it has built over the past 42 years.
3. Where will Greenply establish new plywood projects?
Greenply plans to establish two greenfield plywood projects in Nagaland and Sandila next year. Land licenses for both locations are already in place.
4. What is Greenply's MDF expansion plan?
The second production line at Greenply's Vadodara MDF facility is under construction and is expected to begin commercial production in Q2 FY28. It will increase capacity by around 70%.
5. How much revenue could the new MDF capacity generate?
At current realizations, the additional MDF capacity at Vadodara could generate approximately ₹600 crore in revenue.
