A worker arranges sheets of veneer at a plywood manufacturing workshop in Muzaffarpur, Bihar. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Greenply Plans To Finalise Medium Density Fibreboard Division Demerger In 3 Months

Greenply Industries Ltd. plans to finalise the various details of demerging its medium density fibreboard division into a wholly-owned subsidiary in the next two to three months, its Chief Financial Officer V Venkataramani said.

The board of Greenply Industries has given an approval to demerge the company’s MDF division into its wholly-owned subsidiary Greenpanel Industries.

The company expects the MDF division to grow much faster than the plywood segment, and hence it is focusing on the business through the demerger process, Venkataramani told BloombergQuint in an interview, explaining the rationale behind the demerger.

The MDF division is likely to get better valuation going forward from the third quarter of financial year 2018-19, as the business environment is not too conducive for strong top line growth at the moment, he said.

Also, the e-way bill implementation under the Goods and Services Tax will aid a steady growth in the second half of next financial year, he added.

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