With a capacity of 24.521 million sheets
altogether, this acquisition would help Greenlam maintain its top spot in
India’s laminate market.
Gujarati laminate manufacturer Bloom Dekor
was purchased by Greenlam Industries. The installed capacity of this laminate
production facility is 3.4 million sheets annually. The agreement includes
buying the whole property, building, plant, and equipment of Bloom Dekor’s
laminate division. The company anticipates having the plant operational by Q2
of FY23, and the total price to be paid for the contract is Rs 36 crore.
With this acquisition, Greenlam will now
have four strategically located laminate manufacturing facilities in India,
situated at Behror (Rajasthan), Nalagarh (Himachal Pradesh), Naidupeta (Andhra
Pradesh – Under Construction) and now Prantij (Gujarat).
This acquisition will open new horizons for
Greenlam to expand its offerings to the market by entering mass market segment
of laminates. It will also allow expansion of network in semi-urban and rural
areas and give leverage to its current offerings. The location of this plant
offers a demographic advantage as Gujarat is a hub for the raw materials and
being closer to port cuts down on logistics cost and time.
This segment will have fewer stock keeping
units (SKU), which shall result in lower working capital requirements albeit at
similar return on capital employed as for the existing business.
Greenlam will further be upgrading the
plant and expanding its capacity. This upgradation will take the current plant
production from 3.4 million laminate sheets to 5.4 million sheets annually.
Saurabh Mittal, managing director & CEO
of Greenlam Industries said, “With the acquisition of Bloom Dekor’s
manufacturing facility, we will further strengthen our market leadership in
laminates and penetrate into the mass market segment which forms a significant
share of the overall category. In addition to this, we also announced issuance
of fresh equity shares on preferential basis to the extent of Rs 195 crore, on
June 20, 2022. With the earlier announcement of capex to invest Rs 950 crore
over a period of 2-3 years, towards setting up of third laminate plant and entry
into plywood and particle board business along with fund raise and this
acquisition, Greenlam is well poised to embark on the journey to the Next
Orbit.”
Greenlam Industries provides high-quality
surface solutions that are designed to transform and beautify residential and
commercial spaces. Its brands include Decowood, Mikasa, NewMika, Greenlam
Clads, Greenlam Sturdo and Greenlam. Courtesy: www.business-standard.com
