Century Plyboards India on Tuesday said it will pump in Rs 200 crore to expand the medium density fiber (MDF) board unit located at Hoshiarpur in Punjab, following rising demand in domestic and international markets.
"After the COVID-19 pandemic, demand for furniture has jumped sharply. MDF requirement is also robust. The existing operating capacity of the plant is 600 cbm per day, which is expected to be 1,000 cbm after the expansion," Century Plyboards MD Sanjay Agarwal told PTI.
"We are aiming to commission the expanded capacity within a year," he added.
Meanwhile, the company reported a huge rise in consolidated net profit to Rs 65.79 crore during the quarter ended December as against a profit of Rs 37 lakh in the corresponding period a year ago.
Revived market conditions, affordable commodity prices and better sales volume have led to significant margin improvement, it said.
"This has been the best quarter in our company's history. All of our product divisions including plywood, MDF, particle boards have performed well.
"This quarter is the beginning of the economic recovery, and we are optimistic that we will be able to build on this performance and improve it in the near future," Chairman Sajjan Bhajanka said.
Century Plyboards also said its board has approved a proposal to acquire 39.94 per cent equity of subsidiary company Century Infotech Ltd, following which it would become a wholly-owned subsidiary.