The Board of Directors of Greenlam (formerly Greenlam South), a wholly-owned subsidiary of Greenlam Industries, has approved the increase in estimated capex from Rs 775 crore to Rs 875 crore for its greenfield particle board project at Naidupeta, Andhra Pradesh.
The installed capacity is expected to increase from the project's initial estimated capacity of 2,31,000 cubic mtrs. to 2,92,380 cubic mtrs. The enhanced capex requirement is attributed to cost escalation, addition of value-added equipment, and increase in pre operating expenses due to time overruns.
The project is expected to commence commercial production by Q3 of FY25.
The additional capex will be funded through internal accruals and financial support from Greenlam Industries, to be spent over a period of next 15 months.