V Venkatramani, CFO of Greenpanel Industries, in an interview with CNBC-TV18 talked about the impact of the surge in the COVID pandemic, ongoing restrictions on the company's production, demand, and supply.

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Venkatramani said, “There are 2-3 factors amidst the pandemic which is helping the growth of the medium-density fibreboard (MDF) business. One, people are reluctant to allow carpenters into their houses to do the furniture with plywood so they are shifting to MDF. Secondly, MDF is a low-cost product compared to premium plywood. MDF also gives a very stylish finish to the furniture.”

“India is now becoming a hub for furniture exports to the US and Europe which in turn is promoting the usage of MDF, which is basically a better raw material for MDF furniture, so all these factors are helping the growth of MDF,” he added.

Speaking about growth for MDF, Venkatramani said, “We have seen significant growth during the March quarter although we had done better in Q3 as compared to Q2. But Q4 was significantly better than Q3 both in terms of volumes, margins, and realisations.”

“The bulk of the increase in realisations came because we took price increases for meeting increases in raw material costs.”

On capacity expansion, he said, “During the current year we are going in for a capacity expansion, which will help us to scale up the capacity from 5,40,000 to 6,60,000, and then enhanced capacity should be available sometime October and November this year.”

For full management commentary, watch the video

(Edited by : Bivekananda Biswas)

First Published:Apr 13, 2021 9:08 PM IST