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Kolkata, Jun 12: Bangalore based plywood manufacturing company, Archidply plans to venture into branded furniture business as part of a forward integration.
Rajiv Daga, executive director, said, "we have plans to enter into the branded furniture business. But that will happen after our expansion plans take shape and not in the immediate future."
While plywood has a share of almost 70% in the Rs 10,000 crore woodbased market, pre-laminated boards (PLB) and medium density fibreboard (MDF) covers the rest.
"It is a forward integration for us. It should give more margins, as we would be using our own raw material," he said.
Earlier Kitply had entered into branded furniture business, but so far no other plywood maker has entered into the segment.
He said modular furniture is the future as people are switching more to standard furnitures.
"Whether to enter into the modular furniture market or not is a decision to be taken later on, but definitely it makes more sense to enter modular segment," he said.
Shyam Daga, joint managing director of the company said, with the two new units at Chintamani in Karnataka and Rudrapur in Uttarakhand in place the production capacity of the company would be increased from 22.7 million square metres at present to 42-mn sqmt.
The company, which has clocked a total income of Rs 142.82 crore, plans to raise Rs 52.9 crore from the market through an initial public offering (IPO) to fund set up a new manufacturing facility of plain particle board (PPB), PLB and decorative plywood at Chintamani.It would also set up a new manufacturing capacity for MDF at Rudrapur.
The IPO of 66,15,720 equity shares at a price band of Rs 70 -80 has opened for subscription on June 11.
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