All details of the company

1. Analysis of Indian Wood
Panel Industry
Company analysis of Greenply Industries
Submitted by-
Abhijeet Agarwal

2. INDIAN FURNITURE INDUSTRY
 The Indian furniture industry is one of the fastest growing markets in the
world.
 The Indian furniture market is characterized by numerous small players,
accounting for nearly 80% of the domestic production.
 E-tailing furniture has increased options for consumers and opened a
range of opportunities for small players to sell their products.
 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.

3. INDIAN WOOD PANEL INDUSTRY
 The history of plywood industry in India is recent about 75 years ago.
 Plywood industry claims bright future like other manufacturing industries in the
country.
 The overall industry is estimated to be 285 bn in FY16.
 Over the last five years, the plywood industry has posted a CAGR of 6-7%.
 India’s plywood and panel industry is extremely fragmented and unorganized
given the low technical and capital requirements.
 Plywood constitutes almost 180 bn or 63% of the entire industry.
 Organized players account for only 25% of the plywood segment.
 GST would further narrow the price between organized and unorganised
players.

4. 63%
31%
6%
INDIA PLYWWOD AND PANEL
INDUSTRY BREAK-UP
PLYWOOD
MDF
OTHERS

5. PLYWOOD SECTOR IS HIGHLY
UNORGANISED
 The organized players have grown at
above 12%, clearly gaining share from
the unorganized players.
 Organised players continue to invest
in brand building (2.5-3% of revenue)
and creating awareness about quality.
75%
25%
UNORGANISED
ORGANISED

6. IMPACT OF GST ON PLYWOOD
INDUSTRY
 Earlier there was no excise duty on wood which is the main raw material for
plywood.
 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
taxation structure. This will act as a great disincentive to evade tax.
 Plywood 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

7. Medium Density Fibreboard (MDF)
 The smallest segment of the Indian plywood and
panel industry with FY16 revenues of 16 bn or
6% of the overall market.
 INDIA IS VERY LOW IN TERMS OF MDF
CONSUMPTION.
 MDF (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 In India10:90.
 opportunities to organised players to ramp up
capacity and capture this growing market
35%
90%
65%
10%
0%
20%
40%
60%
80%
100%
120%
GLOBAL MDF
MDF
PLYWOOD

8. GREENPLY INDUSTRIES Ltd.
 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.)
 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.

9. CEO & BOARD OF DIRECTORS
 Joint Managing Director & CEO- Shobhan Mittal
 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

10. PRODUCTS SEGMENTS OF THE
COMPANY
Greenply
Plywood and
Block Board
Medium Density
Fibreboard (MDF)
Wood Floors
Green Doors
Decorative
Veneers and
Reconstituted
Wall Covers

11. REVENUE ANALYSIS OF
THE COMPANY
PRODUCTS REVENUE
Plywood &
Allied products
70.58%
MDF 28.81%
Others 0.61%
70.58%
28.81%
0.61%
Plywood and
allied Products
MDF
Others

12. SALES & PROFIT ANALYSIS
OF GREENPLY
114.16 114.47 121.82 130.59 135.07
1997.69
2158.02
1560.58
1656.09 1654.9
5.71
5.30
7.81 7.89
8.16
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
0
500
1000
1500
2000
2500
2013 2014 2015 2016 2017
PROFI
T
Sales

13. FUTURE PROSPECTS OF GREENPLY
 Focus on growing their capacities across both their business.
 They are setting up their new state-of-the-art MDF plant in Chittoor, Andhra
Pradesh.
 They are setting up their new state-of-the-art MDF plant in Chittoor, Andhra
Pradesh and aim to aim to export 30-40% of the MDF manufactured in the
new plant in countries like Bangladesh, Sri Lanka and Singapore to create
a good export market.
 They are also planning to set up a Decorative Veneer/ Decorative Plywood
unit in Bamanbore, Gujarat and a Plywood unit in Sandila, Uttar Pradesh.

14. SWOT ANALYSIS OF GREENPLY
SWOT
ANALYSIS
STRENGTHS
•Barriers of market entry
• Existing distribution &
sales network
•High profitability & Revenue
OPPORTUNITIES
• Growing Economy
• New markets
THREATS
• Govt. Regulations
• Tax changes
• Increasing costs
• Price changes
WEAKNESS
•Competitive market
•Tax structure

15. Revenue Analysis of company with
competitors
YEAR Archidply
industries
Century
Plyboards
Greenply
Industries
2013 201.12 1124.33 1997.69
2014 225.29 1276.04 2158.02
2015 259.29 1552.47 1560.58
2016 277.63 1646.86 1656.09
2017 268.96 1773.13 1654.9

16. Revenue Analysis of company with
competitors
201.12 225.29 259.29 277.63 268.96
1124.33
1276.04
1552.47
1646.86
1773.13
1997.69
2158.02
1560.58
1656.09 1654.9
0
500
1000
1500
2000
2500
2013 2014 2015 2016 2017
Archidply Industries
Century Plyboards
Greenply Industries

17. EPS
0
2
4
6
8
10
12
2013 2014 2015 2016 2017
6.87 6.4
10.09
10.87 11.08
EPS

18. a.)
Analysis of the Statement of
Profit&Loss
Overall Performance (in crore)
Particulars 2016-2017 2015-2016 Growth
Net Sales 1654.9 1645.7 0.60%
Gross Profit 775.1 725.2 6.90%
EBIDTA 257.6 250.5 2.80%
Cash Profit 183.6 180.18 1.90%
Profit After Tax 135.1 131.2 3.00%
Earnings Per Share(Rs) 11.08 10.87 1.93%

19. Sources Of Funds
Particulars 2016-2017(crores)
% of Capital
Employed 2015-16(cr)
% of Capital
Employed2
Equity share capital 12.26 1.04 12.07 1.39
Reserve & Surplus 774.76 65.74 601.43 68.99
Net worth 787.02 66.78 613.5 70.38
Loan Funds 377.52 32.03 258.51 29.66
Deferred tax liability 14.02 1.19 -0.28 -0.04
Capital Employed 1178.56 100 871.73 100
ANALYSIS OF THE
BALANCE SHEET

20. THANK YOU