Century Plyboards plans new UP unit for Plywood and MDF, about Rs 1,130 Cr investment
CENTURYPLY · price
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On the reaction day the stock moved 6.6 pts less than Nifty Microcap 250 and 5.4 pts less than its Plywood Boards/ Laminates peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Century Plyboards board has approved a new greenfield manufacturing unit in Uttar Pradesh for Plywood and MDF boards. Plywood capacity addition is planned in two phases: 60,000 CBM by Q3 FY28 and 30,000 CBM by Q2 FY29. MDF capacity addition of 330,000 CBM is targeted by Q2 FY29. Total investment is about Rs 1,130 Crores (around Rs 330 Cr for plywood, around Rs 800 Cr for MDF), to be funded through a mix of debt and equity. Current capacity utilization is 93% for plywood and 85% for MDF, signalling strong demand. Rationale cited includes rising demand, raw material access, and proximity to customers.
Large capacity expansion may lift future revenue and market share, but heavy capex could pressure near-term margins and may involve debt or equity dilution.