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Greenply Industries is preparing to set up a new medium-density fibreboard (MDF) plant with an estimated investment of around INR 500 crore, targeting completion and operations by FY28. The company is close to full utilisation of its existing MDF capacity, which has increased from about 70% to nearly maximum levels in recent months. Multiple site options are being assessed, including Odisha, Baroda and Sandila. Greenply expects stronger growth in the organised plywood and MDF market as mandatory quality norms come into effect in early 2026, reducing low-quality imports and lifting demand for compliant products.
Greenply Industries is moving ahead with plans to establish a new MDF manufacturing facility, with the investment estimated at around INR 500 crore. The company aims to bring the unit into operation by FY28. Management has indicated that missing the timeline could affect future growth, as its current MDF plant is expected to reach full capacity soon. The existing unit has shown steady improvement, rising from roughly 70% utilisation to near-maximum output. Advertisement
The company is evaluating three potential locations for the new facility. One option is the upcoming plywood unit in Odisha, another is land available at its Baroda site, and the third is space at the Sandila plant in northern India. Greenply's last MDF expansion required around INR 600 crore, and the current project is expected to fall within a similar range.
The organised plywood and wood panel market continues to grow, and Greenply expects this trend to strengthen once mandatory BIS quality standards come into force in early 2026. These norms are likely to curb low-quality imports entering the Indian market, especially from Southeast Asia and Nepal. Over the past few years, India's plywood imports have increased notably, widening the trade deficit and putting pressure on domestic manufacturers. The new standards are expected to bring a significant portion of the unorganised segment into the formal ecosystem, potentially shifting nearly half of the INR 30,000 crore plywood market toward organised players.
As prices in the plywood segment adjust to quality compliance, Greenply expects its mass-market brand to grow faster than its premium offerings. The company also sees continued double-digit revenue growth supported by the shift toward factory-made furniture, rising demand from e-commerce platforms and stricter rules on on-site carpentry in large cities. With updated labour codes likely to raise operating costs for smaller unorganised players, organised companies expect some competitive advantage.
Alongside domestic expansion, Greenply is exploring export opportunities for plywood products in Europe, where demand for stable, compliant wood panels has increased. The company views exports as an additional long-term driver while it strengthens its position in India's growing MDF and plywood markets.
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