Shobhan Mittal, Greenply Industries CEO and Joint MD Anticipates a Growth of 8 to 10 Percent in FY’17

Business News
(Last Updated On: January 30, 2017)

Shobhan Mittal of Greenply Industries recently stated that he is anticipating a growth of 8 to 10 percent in the revenues of the company by end of financial year 2017. Being the joint MD as well as the CEO of the company, he has been spearheading the company for quite a period of time and his company has carved a niche in the market by producing international standard plywood products.

Shobhan Mittal agrees with the fact that, the plywood market is extremely challenging but his company has managed to beat the odds every now and then. According to him, pricing is definitely one big challenge but through their clever combination of capacity utilisations and better product mix, they have been able to maintain a steady growth. He also added that, the company is presently keeping its focus on minimizing working capital investments which also affects sales volumes. Apart from that, he feels that 2016 remained quite flattish when it comes to pricing and there was a dip of rupees 2 per sq meter.

For quarter two of financial year 2016, Greenply Industries Ltd plywood division’s capacity utilisation was recorded at 116 percent whereas for MDF or medium density fireboard it was 109 percent. Mr. Mittal thinks that the growth resulted from higher utilisations and higher volume as pricing posed a difficulty because of increasing competition and capacities. After the demonetisation move was introduced by the government, the company had to face certain challenges and also had to reduce its production rate. GIL Purchase Head, D. N. Sahu stated that following demonetisation, the company was forced to lessen its production rate by forty percent as shortage of cash led to lower purchase of luxury goods like plywood. GIL management is also of the opinion that demonetisation is adversely going to affect demands over the next 2 to 3 quarters and working capital pressure will be a big issue.

Shobhan Mittal who is an innovator in his field and constantly searches for new ideas to expand the business happens to be the key person behind the demerger of Greenply’s core business from its decorative business. The Greenply Green Strategy Group, whose primary aim is to raise environmental awareness and direct green efforts, was also formed by him in 2015. Certifications like IDO-9001, ISO-14001, OHSAS-180001 as well as international quality standards like NEMA and BS of the UK has been awarded to Greenply Industries Limited based on their attentive focus on best business practices, customer loyalty, security accreditations and well being.

Shobhan Mittal who presently resides in Singapore is also a United Nations advisory committee member on Sustainable Forest Industries as well as a member of Association of Indian Panel Manufacturers (AIPM). He is targeting to triple their MDF plant’s capacity by the third quarter start of 2019. Presently exporting its productions to more than fifteen countries, GIL is all set to further explore available overseas opportunities. GIL has also started spreading its influence throughout south-east Asian markets after acquiring Greenlam Asia pacific Private Limited as its fully owned subsidiary. GIL has also acquired Greenlam America to help with its distribution and marketing of laminates in North America. Apart from all these developments, Greenply is also looking forward to open a manufacturing unit of veneer, panel and lumber products at Gabon SEZ, West Africa which will help them to exploit the African market as well.

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