India’s Century Plyboards Plans to Increase Plywood Production Capacity by 30%

India-based Century Plyboards, a leading wood products manufacturer, plans to boost its plywood production capacity by approximately 30% over the next 12–15 months with an investment of around ₹140 crore (US$16.7 million), newsonprojects reported (9-12-24).

This expansion will include both greenfield and brownfield projects. The Kolkata-based company is setting up a new facility with an investment of about ₹100 crore (US$11.9 million), though the location will be chosen based on commercial viability (options include Punjab, Uttar Pradesh, Odisha, or Andhra Pradesh).

Executive Director Keshav Bhajanka explained that the new facility is part of a broader strategy that also involves expanding capacity at existing sites through the addition of new machinery and balancing equipment. Currently, Century Plyboards has a plywood production capacity of 339,600 m³ per year, with a capacity utilization rate of about 75% in the first quarter of this fiscal year.

The plywood market in India is valued at approximately ₹27,500 crore (US$3.3 billion), with organized players holding around 30% of the market. Century Plyboards commands about 8% of the overall market and 25–30% of the organized segment. The company anticipates that the organized plywood market will grow at a high single-digit rate annually and expects the industry to double in the next six to seven years.

“Our goal is to grow faster than the industry average, targeting over 10% growth,” Bhajanka said.

In response to rising input costs, Century Plyboards has increased plywood prices by 2% in both the first and second quarters of this fiscal year and raised laminate prices by 3% in the second quarter. Due to increasing demand and limited domestic supply, the company is exploring the import of core veneer from countries like Vietnam and Brazil.

In the laminates industry, Century Plyboards holds around 8% of the market share. The laminates segment contributed about 17% to the company’s total revenue last year. The company plans to double its laminate exports from ₹150 crore (US$17.9 million) to ₹300 crore (US$35.8 million) within the next three years.