Greenply Eyes 7% Furniture Hardware Market Share With Upcoming Vadodara Unit

Greenply Industries Ltd. aims to capture 6–7% market share of the furniture hardware market with its new manufacturing facility set to turn operational soon, the company’s Joint Managing Director and Chief Executive Officer Manoj Tulsian said. 

The new unit, which will come up at Vadodara in Gujarat, is a Rs 250-crore joint venture with Turkey-based Samet BV.

The manufacturing facility will help the furniture hardware business of Greenply Industries to grow to Rs 400–500 crore in the next four to five years, Tulsian told NDTV Profit.

“If you look at the market size today, it is close to around $2 billion. In this business, 20% is organised and 80% is almost unorganised. Our addressable market is the organised market, and maybe 10% or 15% out of the unorganised market. This joint venture, which will have a total investment of Rs 250 crore in three phases, gives us a capacity of Rs 750–800 crore when all the three phases are implemented. The way it looks, we will be able to ramp up this business to a size of between Rs 400 to 500 crore in the next 4–5 years. This means that in the addressable market, we should be around 6–7% of market share,” he said.

The new facility will produce functional furniture hardware such as slide systems for wooden and metallic drawers, hinge systems, lift-up systems, other connection fittings, etc. The first phase of manufacturing at the new facility in Vadodara is almost completed, according to Tulsian.  

“We started to set up the manufacturing facility at Vadodara in October last year and the first phase of manufacturing is almost in place. We are expecting a few machines this month and we will be done with in terms of ‘go live’ of our first phase. We have also done a soft launch this month and did some trial runs in the month of March. First phase will almost get operational now,” he said.

The revenue stream from the business will start coming in from this financial year itself, during H2, the Greenply CEO said. The company will initially import most products from Turkey and then discontinue that as the next phases get implemented.

“What we are not producing in India, we will not sell those products. There is a Turkish facility and we are introducing those products but they will not initially be made in India. We will complete the line in terms of product portfolio but many of those things will get imported initially as per the demand requirement. As we complete phase II and phase III, we will discontinue importing those products from Turkey,” he said. 

Out of Rs 250 crore, investments worth at least Rs 150 crore have already been made.

“Since we know what machines are going to come in phase II and phase III, the entire civil architecture has been designed accordingly. The investment on the civil side is complete. We just need to get the machines in place for phase II and phase III. We have almost invested around Rs 150–160 crore as of today. The balance investment will come in the next two phases,” Tulsian said.