Century Ply to invest Rs282 crore to fund expansion in two years
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Mumbai: Century Plyboards (India) on Sunday said it has chalked out capex plan of Rs282 crore in next two years for its various expansion projects. The company had drawn up Rs751 crore capex plan, of which it had already spent Rs154.63 crore in FY16 and Rs313.92 crore in FY17.
It is now investing Rs222.63 crore in the current fiscal and remaining Rs60 crore in FY19. “The company’s MDF plant is in the final stage of completion and likely to commence production by July this year. The company has already invested Rs380 crore in the said project,” the company said in its investor’s presentation here.
The expansion of additional 2 lines in its laminates unit to be operational within current financial year. It is also investing Rs64 crore in plywood project in Punjab, Rs60 crore in particle board, Rs62.50 crore in laminate unit, Rs20 crore in Guwahati unit and Rs16.65 crore in Gandhidham unit, it said. The company plans to set up a door unit in collaboration with a world renowned Chinese company at an estimated cost of Rs50 crore.
The company expects substantial growth in the revenue in the next financial year. Implementation of MDF and laminates units will give an additional revenue of around Rs350 crore and it sees huge demand for plywood, the company officials said. The company’s net sales increased by 9 per cent to Rs1,782.46 crore, and net profit rose from Rs169.8 to Rs185.6 crore in financial year 2016-17.
The total income for the fourth quarter of 2016-17 fiscal stood at Rs539.98 crore as compared to Rs483.75 crore in the same period previous year. The PAT also increased from 41.59 crore to Rs55.90 crore in the period under review.
The company said that the GST rates for Plywood is slated at 28%, which is almost at the current level of taxes. The GST rates for laminates and commercial veneer is fixed at 18%. PTI AP NRB BAL SBT