The board also approved setting-up of a new unit in Sandila Industrial Area, Hardoi, Uttar Pradesh, for manufacturing plywood and its allied products by the said proposed wholly owned subsidiary.

For plywood and its allied products, the company's existing capacity is 24.90 million square meter per annum. The capacity utilization of the same was 142% for year ended March 2020.

The capacity addition by the company's proposed wholly owned subsidiary would be 13.50 million square meter per annum. The capacity is expected to be operational by Q4 FY22.

The company said that the investment required to set up the plant is approximately Rs 75 crore (excluding cost of land and licence of approximately Rs 40 crore). The new project would be financed through debt and equity.

Offering the rationale for the said capacity expansion, Greenply said it decided to set up the plant at Hardoi considering the proximity of principal raw materials such as agro forestry timber and availability of workers, along with growing demand in northern and central markets of India.

Greenply Industries is one of India's largest interior infrastructure companies. It is engaged in the manufacturing of plywood and allied products.

The company's consolidated net profit rose 17.21% to Rs 24.99 crore on a 1.61% fall in net sales to Rs 340.40 crore in Q3 FY21 over Q3 FY20.

The scrip rose 2.24% to end at Rs 205.20 on Monday.