Shobhan Mittal – Greenply Industries to list demerged entity Greenpanel

Shobhan Mittal, CEO & JMD, Greenply Industries says, “We have decided to demerge the two business verticals into separate legal entities and the MDF division will demerge into a new listed entity subject to all approvals and statutory regulations and we are hoping that by the end of this (fiscal) year, this will be a separate legal entity and form into Greenpanel Industries.”

The Greenply Company, which closed last financial year with a turnover of ₹1,655 crore, has spun off the MDF business Greenpanel Industries into a separate business unit.

Greenply Industries is primarily into the manufacture of wood-based panels, with two divisions, plywood manufacture and MDF. The company has four manufacturing locations of plywood and one manufacturing location of MDF. The MDF unit is integrated with the plywood manufacturing unit in Rudrapur, Uttarakhand. Apart from these, a new ₹800-crore manufacturing plant for MDF located near Tirupati in Andhra Pradesh has begun commercial production.

Shobhan Mittal Biography

Greenply Industries, a leading manufacturer of plywood, is likely to see the demerged MDF business listing in the fourth quarter of this fiscal.

The company expects a gradual shift towards the use of MDF (medium density fibreboard) in the country.

Pursuant to the scheme, all shareholders of the demerged company as on the record date will receive equity shares in the resulting company (Greenpanel Industries Limited), Greenply had said in a notice to the stock exchanges in May. “It will give such shareholders of the demerged company (Greenply Industries) the ability to continue to remain invested in both or either of the companies, giving them greater flexibility in managing and/or dealing with their investments,” the notice further added.

Largest Wood Panel Unit in India:

“We launched the Greenpanel brand about two months ago and the entire MDF business will operate under this; this includes the new plant at Srikalahasti. This will be the largest wood panel manufacturing brand in the country in terms of volume and will have close to 2,200 cubic metres of capacity per day,” Shobhan Mittal said.

MDF is growing at a rapid pace in India and most plants are located in North India. While the demand is high in the South, it is dependent on imports. “Our plant, set up on a 200-acre plot, will be able to capture this market,” he said.

Shobhan Mittal says,“With the MDF plant, we will become a strong contender for supplying to IKEA.”

Globally 80 per cent of wood panels consumed are between MDF and particle board; plywood accounts for only 15-20 per cent. In India, it is vice-versa. This is expected to change in favour of MDF, which is cheaper.

“Between the two plants at Uttarakhand and Andhra Pradesh, we are looking at a business of ₹1,500-1,600 crore by FY 2021, when we reach full capacity,” he explained.

Greenply Orders from Dieffenbacher Again: Shobhan Mittal

The MDF Line with the Longest Press in Asia

Indian wood-based panel manufacturer Greenply Industries Limited has remained loyal to Dieffenbacher as its equipment supplier, choosing to order its second MDF line in December 2015. Thanks to the Greenply order, Dieffenbacher has been able to consolidate its leading position in the Indian market. Greenply has been successfully operating an MDF line from Dieffenbacher since 2009. The new line, which has a capacity of 1300 m³ per day, is being set up in the Chittoor district in the state of Andhra Pradesh in southeast India.

shobhan mittal and tilman helmer
Shobhan Mittal Greenply Industries, Joint Managing Director and CEO and Tilman Helmer, Area Sales Manager for Dieffenbacher during the signing of the contract.

The line will be used to manufacture HDF/MDF boards with a thickness ranging from 2.5 mm to 40 mm and a variable width of 1830 mm to 2440 mm. Fast-growing types of wood such as eucalyptus are generally used as the raw material. Production with the new line is scheduled to begin in autumn 2017. “In our opinion, Dieffenbacher offers the best technology for processing eucalyptus wood. And due to our positive experience with the first project, selecting anyone other than Dieffenbacher to supply a modern and efficient machine was out of the question”, says Shobhan Mittal, Joint MD and CEO of Greenply Industries Limited about the company’s decision.

The delivery scope includes a fiber dryer and two SGF sifters, a gluing system, a forming station that includes a scalper with a correction module and a forming line, a CPS 265 – 56 continuous press, a finishing line with two Lukki storage systems, diagonal, trimming and splitting saws, a sanding line and an exhaust system. At 56 meters long, this CPS is the longest continuous press ever sold in Asia.