Century Plyboards (I) said that the that the board of directors of the company has approved a proposal for setting up a new unit in the state of Punjab for manufacturing of veneer and plywood.

The company's existing production capacity for plywood production is 3,00,000 cubic metre (CBM) per year. The capacity utilization level for year ended March 2021 was 54%. The utilization level was at 77% in Q4 FY21.

The company has proposed a capacity addition of 60,000 CBM per year. The capacity would be added by Q1 FY 2022-23. Being financed by internal accruals, the total cost of the project would be Rs 75 crore.

The company cited increasing demand, proximity to principal source of raw material and availability of man-power as the reasons for the said capacity expansion.

Separately, Century Plyboards that the board of its wholly owned subsidiary Century Panels has passed a proposal for setting up a new unit in the state of Andhra Pradesh for manufacturing of Medium Density Fiber boards (MDF).

Centuryply's existing consolidated capacity for MDF production is 1,98,000 CBM per year. The capacity utilization level for year ended March 2021 was 72%. The utilization level was at 92% in Q4 FY21.

The proposed capacity addition would be 2,31,000 CBM per year. The proposed capacity would be added by Q1- FY 2023-24. The project requires an investment of approximately Rs 500 crore and would be finance by a mix of debt and equity.

Increasing demand for MDF, proximity to principal source of raw material, availability of man-power and tax benefits under Section 115BAB of the Income Tax Act are the reasons cited by Centuryply for the proposed MDF capex plan.

Century Plyboards India manufactures plywood, veneer, laminates, medium density fibre (MDF), particle board and allied products.

The company's consolidated net profit surged to Rs 86.63 crore in Q4 FY21, higher than Rs 37 crore in Q4 FY20. Revenue from operations increased by 40.51% year-on-year (YoY) to Rs 745 crore during the quarter.