Greenply Industries proposes ₹125 crore plywood expansion in Uttar Pradesh

Guidance
Construction

Blacklitt Research29 October 20262 min read

Close-up of a plywood panel showing its layered wood grain in warm brown tones. — Riverswim16, via Wikimedia Commons (CC0). Illustrative image.

Greenply Industries (NSE: GREENPLY) proposes a 15.00 million sq. metre plywood capacity addition at its wholly owned subsidiary Greenply Sandila Private Limited, with an investment of approximately ₹125 crore, it said in a filing on 29 Oct 2026. The company's board discussed and noted the proposal at its meeting that day.

Key highlights

Proposed capacity addition: 15.00 million sq. metres
Investment required: approximately ₹125 crore
Completion target: by Q4 of FY 2028
Existing capacity: 52.80 million sq. metres, nearly 98% utilized

The capacity addition in numbers

Item	Detail
Subsidiary	Greenply Sandila Private Limited, wholly owned, at Sandila, District Hardoi, Uttar Pradesh
Proposed addition	15.00 million sq. metres
Existing capacity	52.80 million sq. metres per annum, including Greenply Industries Limited
Existing utilization	Nearly 98%
Under construction	13.50 million sq. metres in Koraput, Odisha, apart from existing capacity
Investment required	Approximately ₹125 crore
Financing	Term loan from a bank, equity from the holding company and internal accruals
Timeline	Capacity to be added by Q4 of FY 2028

Where the addition sits and how it is financed

The addition is at the plywood and allied products unit of Greenply Sandila Private Limited, a wholly owned subsidiary situated at Sandila in District Hardoi, Uttar Pradesh. The investment of approximately ₹125 crore is to be financed through a term loan from a bank, equity from the holding company and internal accruals.

Demand and capacity utilization behind the step

The company expects near-term demand for plywood and allied products to exceed the available capacity that the company, along with its subsidiaries, presently has, and the subsidiary decided to increase its production capacity. Existing capacity utilization is nearly 98% of 52.80 million sq. metres, including Greenply Industries Limited.

Separately, the filing gives 13.50 million sq. metres under construction in Koraput, Odisha, apart from the existing capacity.

What the capacity addition means for Greenply Industries' shareholders

The investment of approximately ₹125 crore compares with a market value of ₹3,757 crore at the 29 Oct 2026 close of ₹300.80 a share. The filing says the capacity is to be added by Q4 of FY 2028.

The filing does not state the revenue or profit the addition will bring, how the ₹125 crore splits between the bank term loan, holding company equity and internal accruals, or the demand figures behind the expectation. The next dated step is the Q4 of FY 2028 target for adding the capacity.

Reference: Original filing (PDF)

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