This document provides an analysis of Greenply Industries, a leading manufacturer of plywood, MDF boards, and other wood products in India. It discusses the growth opportunities in the Indian wood panel industry due to rising urbanization, affordable housing initiatives, and a young population. Greenply has a strong market presence with brands like Greenply and Green Panelmax. It has a large production and distribution network across India. While sales growth has slowed due to economic factors, Greenply has maintained profitability through cost controls. The document performs a SWOT analysis and compares Greenply to competitors in the industry.

1. ANALYSIS OF GREENPLY
INDUSTRIES
SUBMITTED BY: 1. Abhijeet Agarwal
PGDM-5(2017-2019)
pc
10/3/2017

2. Contents
ABOUT THE SECTOR............................................................................................................................4
INDIAN FURNITURE INDUSTRY.........................................................................................................4
INDIA’S WOOD PANEL INDUSTRY.........................................................................................................4
PLYWOOD SECTOR IS HIGHLY UNORGANISED...................................................................................5
IMPACT OF GST ON PLYWOOD INDUSTRY ........................................................................................5
Medium Density Fibreboard (MDF)..................................................................................................6
MDF fast catching-up......................................................................................................................6
GROWTH DRIVERS-OPPORTUNITIES.....................................................................................................7
RISING URBANIZATION:...................................................................................................................7
IMPROVING AFFORDABILITY:...........................................................................................................7
INCREASE IN REPLACEMENT DEMAND: ............................................................................................7
GOVERNMENT INITIATIVES:.............................................................................................................7
RISING DISPOSABLE INCOMES AND YOUNG POPULATION:................................................................7
GROWTH IN REAL ESTATE TO REVIVE:..............................................................................................7
RISING POPULARITY OF ONLINE FURNITURE MARKET: ......................................................................8
MAJOR MATERIAL MANUFACTURE FOR SECTOR...................................................................................8
SKILL REQURIMENT IN SECTOR............................................................Error! Bookmark not defined.
ABOUT THE COMPANY........................................................................................................................9
INTRODUCTION ..............................................................................................................................9
BOARD OF DIRECTORS ....................................................................................................................9
CORE BRANDS................................................................................................................................9
PRODUCT SEGMENTS......................................................................................................................9
MARKET PENETRATION.................................................................................................................10
PERFORMANCE OF COMPANY.............................................................Error! Bookmark not defined.
REVENUE ANALYSIS.......................................................................................................................10
SALES & PROFIT ANALYSIS OF COMPANY........................................................................................10
SWOT ANALYSIS ...............................................................................................................................11
STRENGTHS..................................................................................................................................11
WEAKNESS ...................................................................................................................................12
OPPORTUNITIES............................................................................................................................12
THREATS ......................................................................................................................................12

3. VARIOUS ACTS FOLLOWED BY THE COMPANY....................................................................................12
COMPETITORS ANALYSIS...................................................................................................................12
CENTURY PLYBOARD(I) LTD. ..........................................................................................................12
ABOUT THE COMPANY ..............................................................................................................12
KITPLY INDUSTRIES LTD.................................................................................................................13
ABOUT COMPANY.....................................................................................................................13
ARCHIDPLY INDUSTRIESLTD...........................................................................................................14
ABOUT COMPANY.....................................................................................................................14
FUTURE PROSPECTS OF THE COMPANY..............................................................................................15

4. ABOUT THE SECTOR
INDIAN FURNITURE INDUSTRY
The Indian furniture industry is one of the fastest growing markets in the world. Steady growth
of the Indian economy, a booming realty and hospitality sector, an increased spending power
coupled with lifestyle changes have fuelled the industry. The Indian furniture market is
characterised by numerous small players, accounting for nearly 80% of the domestic
production. However, with the growing popularity of online furniture buying, the industry is
likely to witness consolidation. E-tailing furniture has increased options for consumers and
opened a range of opportunities for small players to sell their products. Moreover, e-tailing
furniture will let more small players enter the organised furniture market. The furniture market
is primarily concentrated in the metropolitan cities, followed by Tier I and Tier II cities with
major user segments being residential, office, commercial and institutional.
INDIA’S WOOD PANEL INDUSTRY
India’s plywood and panel industry is extremely fragmented and unorganised given the low
technical and capital requirements. The overall industry is estimated to be 285 bn in FY16. The
market is primarily driven by higher disposable incomes, rising urbanisation and the thriving
real estate sector, particularly in Tier II and Tier III cities. Further, a shift from unbranded to
branded products and the fast-growing replacement market are helping the industry to expand.
Plywood constitutes almost 180 bn or ~63% of the entire industry. Organised players account
for only 25% of the plywood segment. Low organized penetration offers multi-year growth
opportunities as consumers become more brand conscious with rising disposable incomes and
aspiration levels. GST would further narrow the price between organized and unorganised
players.
63%
31%
6%
INDIA PLYWWOD AND PANEL INDUSTRY BREAK-UP
PLYWOOD
MDF
OTHERS

5. PLYWOOD SECTOR IS HIGHLY UNORGANISED
Over the last five years, the plywood industry has posted a CAGR of 6-7%; whereas the
organized players have grown at above 12%, clearly gaining share from the unorganised
players. This is expected to continue as:
 Organised players continue to invest in brand building (2.5-3% of revenue) and creating
awareness about quality.
 Organised players have volume and supply chain advantages
 Organised players offer product innovation, wider choice and warranty
 Price differential between organised and unorganised players will drop substantially
when GST is implemented, thereby inducing customers to buy branded products at a
slight premium
 GST would ease the movement of goods for the organised players (as they comply with
all interstate regulations) and ‘reach time’ to markets would improve considerably
IMPACT OF GST ON PLYWOOD INDUSTRY
Earlier there was no excise duty on wood which is the main raw material for plywood. So, if
there is no input duty on the raw material, and manufacturer was evading excise duty on
plywood the savings were substantial. Under GST, rate for wood in the normal shape has been
fixed at 18%. So, even if somebody is evading excise duty on the final product and if he is paying
GST on the raw material, the savings will be substantially lower compared to the earlier
75%
25%
Plywood industry highly unorganised in %
UNORGANISED
ORGANISED

6. taxation structure. This will act as a great disincentive to evade tax. However, it is not yet clear
whether GST is applicable on plantation timber too. Plywood manufacturers are little confused
about the real impact of GST on the final price of the product. Industry in general was expecting
a rate of 18% but the government has fixed the rate at 28% which is almost at par with the
current rate
Medium Density Fibreboard (MDF)
MDF is currently the smallest segment of the Indian plywood and panel industry with FY16
revenues of ` 16 bn or 6% of the overall market. MDF is made by breaking down hardwood and
softwood residuals into wood fibres; wood fibres are combined using resin and heat pressing
them. Globally, the ‘MDF: Plywood’ consumption ratio is 65:35, whereas in India it is skewed in
favour of plywood at 10:90. Given MDF’s low cost (almost ~50% cheaper than premium
plywood) and better utility (can be easily molded, painted and machined), its consumption
continues to increase in India, offering tremendous opportunities to organised players to ramp
up capacity and capture this growing market.
MDF fast catching-up
As MDF is the preferred choice of ready-made furniture manufacturers, its demand is slated to
grow with a rise in demand for ready-made furniture. Moreover, as the Indian furniture
industry evolves from an unorganized market to an organised one, it is driving the market for
ready-made furniture. Given MDF’s low cost (almost ~50% cheaper than premium plywood)
and better utility (can be easily moulded, painted and machined), its consumption continues to
rise in India and offers good opportunities to organised players to ramp up capacity and capture
this growing market. India’s MDF capacity is expected to double over the next three years to
1.06 m cbm. South India remains the largest consumer of MDF, accounting for 45% of India’s
MDF consumption, followed by the North with 30%. As MDF is a bulky product, transportation
costs are high.
35%
90%
65%
10%
0%
20%
40%
60%
80%
100%
120%
GLOBAL MDF
INDIA IS VERY LOW IN TERMS OF MDF
CONSUMPTION
MDF
PLYWOOD

7. GROWTH DRIVERS-OPPORTUNITIES
RISING URBANIZATION:
India is now urbanizing faster than the global average. Disposable incomes and penetration of
retail finance are higher in urban areas. Hence, the increase in urbanization coupled with the
growing number of nuclear families is a key driver of plywood and panel products demand.
IMPROVING AFFORDABILITY:
Over the past decade, increase in real estate prices (cost of ownership of a house) has far
outstripped rise in retail prices of plywood. Thus, the cost of plywood or MDF is now less than
1% the cost of a house, compared with 2-3% a decade ago, making them more affordable.
INCREASE IN REPLACEMENT DEMAND:
Replacement cycles are shortening given better income levels, availability of better designs and
innovative products, coupled with rising aspirations levels. Currently, almost 15-16% of overall
plywood demand in India is replacement demand, which is much lower than the 35-40% in
developed countries. We expect replacement demand to contribute ~20% of overall demand by
FY2020, for plywood.
GOVERNMENT INITIATIVES:
The government’s flagship programs such as the Swachh Bharat Abhiyan, Housing for all smart
cities, will help accelerate demand for building materials in general. Other key government
initiatives such as the real estate bill – Real Estate (Regulation and Development Act-RERA,
relaxing foreign direct investments (FDI) in the sector and easing affordable housing financing
will strengthen demand for home infrastructure materials. These, in turn, will intensify demand
for plywood and MDF.
RISING DISPOSABLE INCOMES AND YOUNG POPULATION:
The median age of India’s population is estimated to be 28 years, making it one of the youngest
populations in the world. In addition, India’s disposable income has posted a CAGR of 12% over
the past three decades. These augur well for the plywood and MDF industry as this age group
generally has higher aspirations levels and disposable incomes. This should help stimulate home
improvement (plywood and MDF) demand.
GROWTH IN REAL ESTATE TO REVIVE:
Demand for both plywood and MDF products are a derivate of real estate demand which
continues to be lackluster, currently. However, increasing trend of nuclear families, improving
income tables and falling age of first-time home buyers are likely to have a positive effect in the

8. real-estate sector. Moreover, Government initiatives such as RERA and others which have led
to lower interest rate scenario and sustained commercial demand should improve the medium-
term outlook of the realty industry. This, in turn, will improve the medium-to-long-term future
of India’s home improvement industry.
RISING POPULARITY OF ONLINE FURNITURE MARKET:
The online Indian furniture industry space is evolving fast. Superior personalization,
consultation services and faster delivery time is driving growth for furniture e-tailers.
MAJOR MATERIALMANUFACTURE FOR SECTOR
 Greenply Industries ltd
 Century Ply boards (India) ltd
 ACC Limited
 Ambuja Cement Ltd.
 Asian Paints
 Berger Paints
 Hindalco
 Saint-Gobain
 Tata Steel
 Jindal saw

9. ABOUT THE COMPANY
INTRODUCTION
 Greenply is one of India’s most trusted premier interior infrastructure brands with a
whooping turnover of Rs. 1655 cr.
 Greenply Industries Ltd. (GIL), incorporated in the year 1990, is a Mid Cap company
(having a market cap of Rs2661.04 Cr.)
 Greenply delivers products under various brand names like Greenply Plywood, Optima
G, Ecotec etc. Green Panelmax and Green Floormax, among others.
 They stand on top when it comes to plywood and MDF boards.
 30% market share in domestic MDF market.
 With a strong retail network, 48 branches across India and presence in over 300 cities
across 21 states.
 More than 12000 distributors, dealers, sub dealers and retailers.
 The company has fire state of the art manufacture facilities across the country,
manufacture of global standards.
BOARD OF DIRECTORS
 Mr. Shiv Prakash Mittal, Executive chairman
 Mr. Rajesh Mittal, Managing Director
 Mr. Shabhan Mittal, Joint Managing Directors&CEO
 Mr. MoinaYomethKonyak
 Mr. Susil Kumar Pal
 Mr. Vinod Kumar Kothari
 Mr. Aunpanm Kumar
 Ms. SonaliBhagwatiDalal
 Mr. UpendraNathChallu
CORE BRANDS
 GREENPLY- PLYWOOD
 GREEN PANELMAX- MEDIUM DENSITY FIBREBOARDS (MDF)
 GREEN FLOORMAX- WOOD FLOORS
 GREENTERIORS- WALLCOVERS
PRODUCT SEGMENTS
 Plywood and Block Board
 Medium Density Fibreboard (MDF)
 Wood Floors
 Green Doors

10.  Decorative Veneers and Reconstituted
 Wall Covers
MARKET PENETRATION
With a strong retail network, 46 branches across India and presence in over 300 cities across 21
states, Greenply Industries Limited is committed to provide international quality products to its
customers through more than 12,000 distributors, dealers, sub-dealer and retailers. It also
exports its products to Thailand, Indonesia, Taiwan, Canada, Bahrain, Hong Kong, Malaysia,
Singapore, Kenya, Dubai, Russia, Syria, the United States, Australia, Mexico, Saudi Arabia, China,
Israel, and Europe.
REVENUE ANALYSIS
Products Revenue %
Plywood and Allied Products 70.58
MDF 28.81
Others 0.61
It is showing that company getting revenue mostly from its plywood and allied product around
71 % means it is very popular product in its market as well MDF as contribute around 29%
revenue.
SALES & PROFIT ANALYSIS OF COMPANY
Greenply Industries Ltd. key Products/Revenue Segments include a higher net sale of ‘1654.90
Cr.’ in 2016-17, compared to ‘1645.73 Cr’. In 2015-16.Simultaneously, EBIDTA increased to
‘257.60 Cr’. in 2016-17 against ‘250.50 Cr.’ in 2015-16, net profit stood at ‘135.07 Cr.’ in 2016-
70.58%
28.81%
0.61%
Revenue by division
Plywood and allied Products
MDF
Others

11. 17 against ‘131.17 Cr.’ in 2015-16 and earnings per share stood at to ‘11.08 ‘ in 2016-17
compared to ‘10.87 ‘in 2015-16.
Company has D Dhandaria& Co. as its auditors. As on 31-Mar-2017, the company has a total of
120,681,870 shares outstanding.
There is downfall in sales in 2015 (2158.02cr.) than 2014 (1560.58) because demerged the
decorative business (comprising of laminates and allied products and accounting for 37.2% of
FY14 consolidated sales) of the company with all its assets and liabilities into Greenlam
Industries but in 2016 it has increased but again its sales slightly decreased in 2017 because of
slowdown in India’s economic progress may affect the company’s growth opportunities cause
of Demonetization happened in this year. Indian economy will continue to grow more than
7.1% in 2017-18 making it one of the fastest growing economics, owing to strong government
reforms. Demonetization also led to an increase in bank deposits enabling banks to cut lending
rates. Hence, it pushed demand for real-estate, leading to an increased demand for wood panel
products. The Goods and Services Tax (GST) likely to lead to spurring growth, competitiveness,
indirect tax simplification and greater transparency. Fall in disposable income could dent
growth mitigations India is witnessing a rise in household incomes across urban and rural
landscape. Moreover, there has been a growth in the number of nuclear families. These factors
drive growth of plywood and MDF products. Rising discretionary income and surging middle-
class population in India has resulted into increasing the affordability of the branded and
better-quality plywood and MDF.
As profits of last five year has been increasing even though sales in decreased because they
have been able to control and decreased the cost of material consumed, finance cost, Changes
In Inventories of finished goods ,WIP And Stock-In Trade by which full utilization of their
resources.
SWOT ANALYSIS
SWOT stands for Strength, Weakness, Opportunities and Threats. Strengths and Weakness are
the internal factors of the company, whereas Opportunities and Threats are the external
factors. SWOT Analysis is the tool for auditing an organization and its environment.
STRENGTHS
 barriers of market entry
 existing distribution and sales networks
 experienced business units
 skilled workforce
 high profitability and revenue
 monetary assistance provided
 Investments in research and development

12. WEAKNESS
 Cost structure
 Future debt rating
 Competitive market
 Tax structure
OPPORTUNITIES
 Growing economy
 new markets
 new products and services
 venture capital
 new acquisitions
THREATS
 government regulations
 tax changes
 increase in labor costs
 unexpected problems
 financial capacity
 increasing costs
 rising cost of raw materials
 price changes
VARIOUS ACTS FOLLOWED BY THE COMPANY
 The Companies Act, 1956
 The Factories Act, 1948
 Industrial Disputes Act, 1947
 Minimum Wages Act,1948
 Payment Of Wages Act, 1936
 The Contract Labor (Regulation And Abolition) Act, 1970
 Employees State Insurance Act, 1940
COMPETITORS ANALYSIS
CENTURY PLYBOARD(I) LTD.
ABOUT THE COMPANY
Century Ply boards is one of the largest manufacturers of ply boards in India (with a capacity of
210k cubic metres). It has a market share of25% in the organized market and a market share of
7.5% in the overall market. Against the ply board industry growth rates of 12%over the last 6

13. years, Century Plyboard recorded a 17% CAGR led by market share gains from the unorganized
segment. Century has also established itself as one of the leading laminate brands in India
(third-largest manufacturer in India after Greenply and Merino). Its laminate revenue recorded
a 15% CAGR overFY09-14; the company plans to expand this segment and it has ramped up
capacities to 4.8mn sheets from 2.4mn sheets last year. Century also owns two container
freight stations in West Bengal, which comprise 4% of its overall revenues.
The Board of Directors at Century Plyboards (I) Ltd. constitutes the following:
 KeshavBhajanka
 ShriJoginder Pal Dua
 Mrs. MamtaBinani
 Mr. Asit Pal
 Sri ManindraNath Banerjee
 Mr. Samrendra Mitra
 Mr. Ajay Baldawa
 Mr. Santanu Roy
 Sri Prem Kumar Bhajanka
 Sri Vishnu Khemani
 Mr. Sanjay Agarwal
 Mr. Hari Prasad Agarwal
 Mr. SajjanBhajanka
STRENGTHS
 Capacity leader in plyboards; third-largest capacities in laminates
 Strong brand, with 10%/30% realization premium unorganized players
 Strong distribution reach with capacities located across India
 Backward integration and strong relationships for critical raw materials
WEAKNESSES
 No presence in MDF, which could be a major growth driver in the long-term
 Not a premium player in laminates; realizations lower than Royal Touché and Greenply
KITPLY INDUSTRIES LTD.
ABOUT COMPANY
Kitply Industries Limited is India's foremost manufacturer of Plywood and block board. Kitply’s
operations are spread throughout the country with 5 modern factories and 30 sales offices. It
has a workforce of about 10,000 persons and a countrywide distribution network of over 1,000
dealers. Since its inception in 1982, the company has been a trendsetter and important

14. benchmark for the plywood and block board industry in respect of its production processes. Its
commitment to environment-friendliness, its high ethical standards in business dealings and its
on-going efforts in community welfare programmes have won it acclaimas a responsible
corporate citizen. Kitply has included commitment to environmental protection as one of its
corporate objectives with the Kitply Agro Forestry Project. Kitply demonstrates the practices of
being a good corporate citizen undertaking a wide range of activities to improve the living
conditions of the under-privileged classes living near its factories.
The Boardof Directors at Kitply Industries Limited constitutes the following:
 Pawan Kumar Goenka
 SumitKar
 Sushil Kumar Sharma
 Mahesh Kumar Gupta
STRENGTH
 extended its services overseas to the Middle East, Nepal Bangladesh and Pakistan
 One of the oldest plywood brand and thus has created a good goodwill
WEAKNESSES
 Less popularity
ARCHIDPLY INDUSTRIESLTD.
ABOUT COMPANY
Archidply Industries Limited is the flagship company of the Archidply group. The Archidply
Group has been associated with plywood manufacturing for more than 37 years. The Group has
grown from a small saw mill in Assamto a modern state-of-the-art manufacturer of wood panel
products and decorative surfacing products in three locations, Rudrapur, Chintamani and
Assam, with a network of branches, distributors and dealers across India. The brand “Archidply”
has positioned itself in the premium segment of the wood panel and decorative surfacing
products and is well known amongst architects, interior designers and contractors for more
than two decades, making it one of the oldest active brands in its product category. The traders
across India, including dealers and distributors, have over a period of years recognized the
Archidply Group for its quality and fair policies. Our Company has set up a large distribution
network and operates through 20 marketing and representative offices and 70 distributors and

15. stockists. We have a network of 700 authorized dealers who in turn supply to more than 3000
sub dealers / retailers, giving a pan India presence for marketing of our products. This ensures
the availability of our products off-the-shelf in any corner of India.
The Board ofDirectors at Archidply Industries Limited constitutes the following:
 Mr. DeenDayalDaga
 Mr. ShyamDaga
 Mr. Rajiv Daga
 Mr. Mohammed ShahidAftab
 Mrs. ShanthiVaradarajMallar
 Mr. BharathkumarHukumchandRathi
STRENGTH
 comply with quality standards of BIS and International standards of BS of UK, NEMA of
USA and DIN of Germany
 awarded ISO 9001: 2000 for quality management systems to manufacture and
marketing of wood and agro based panel products
 products manufactured by the Company are regularly tested batch wise for mechanical
and chemical properties before the batch is approved
WEAKNESS
 Located in small scale
 Weak distribution channel
FUTURE PROSPECTS OFTHE COMPANY
They are constantly focusing on growing their capacities across both their businesses. They are
setting up their new state-of-the-art MDF plant in Chittoor, Andhra Pradesh. They are likely to
commence operations in FY 2019. A significant part of the production from this plant will cater
to export markets. They are also planning to set up a Decorative Veneer/ Decorative Plywood
unit in Bamanbore, Gujarat and a Plywood unit in Sandila, Uttar Pradesh.
During 2016-17, they raised 49.99 crore through issuance of equity shares under qualified
institutional placement (QIP). The amount raised has been utilized for part funding of our new
MDF unit in Andhra Pradesh. Greenply is building a MDF plant in the South to reach this market
effectively. Currently, 35% of India’s MDF requirement is imported; however, as India’s MDF
capacity doubles by FY20E, they expect the share of imports to drop to ~15%.