Kolkata: Century Plyboards (India) Ltd (CPIL) will commission its 25,000 sq metres a day plywood unit in March in Myanmar capital Yangon.
“We are setting up the unit on 11 acres in an industrial estate on a 30-year renewable lease. Work on putting up the units is currently on,” Sajjan Bhajanka, Managing Director, told Business Line here on Saturday.
Subsidiary Floated
The company has floated a Myanmar-incorporated wholly owned subsidiary - Century Plyboards Myanmar Ltd - for the export-oriented project, which is among a few from India.
The company will fund the Rs 30-crore project by its internal resources. CPIL has also secured raw material (1.8 cubic metre stumps) availability through a quota system as well as auctions.
“Our plan is to bring veneers or plywoods to India,” he said. This project is important for the company as it would replace its import of timber from Myanmar.
“Currently, we import around 35,000 Hopus tonnes of timber from the country. But this source would dry out in 2014 because of a pre-announced timber export ban by the Myanmar Government,” he explained.
In 2011-12, total imports from Myanmar to India, mostly forest and agriculture product, were worth $1,046 million. At present, six Indian companies have made investments in Myanmar and 70 others are looking to invest in the country.
Kandla Project
Century Plyboards, he said, hoped to achieve the financial closure for the proposed Greenfield project at Kandla in Gujarat next month. This project would also have a capacity of producing 25,000 sq metres of plywood a day and will cost Rs 50 crore. “Two thirds of the project cost will be financed by bank borrowings,” he added. CPIL has bought 20 acres for the project.
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