New Delhi, Jun 22 (PTI) Leading laminate manufacturer Greenlam Industries on Wednesday announced the acquisition of a laminate manufacturing facility of Gujarat-based Bloom Dekor Ltd in a Rs 36-crore deal.

This acquisition will help Greenlam to reinforce its leading position in the laminate industry in the country with an overall capacity of 24.521 mn sheets.

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"The total consideration to be paid for the deal is Rs 36 crore and we expect to operationalize the plant by Q2FY23. Greenlam will further be upgrading the plant and expanding its capacity. This upgradation will complete will take the current plant production from 3.4 mn laminate sheets to 5.4 mn sheets annually," said a statement from Greenlam.

This acquisition will open new horizons for Greenlam to expand its offerings to the market by entering mass market segment of laminates, it said adding it also allow expansion of network in semi-urban and rural areas.

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The location of this plant offers a demographic advantage as Gujarat is a hub for raw materials and being closer to port cuts down on logistics cost and time.

"With this acquisition, Greenlam will now have four strategically located laminate manufacturing facilities in India, situated at Behror (Rajasthan), Nalagarh (Himachal Pradesh), Naidupeta (Andhra Pradesh – Under Construction) and now Prantij (Gujarat)," it said.

The deal encompasses the acquisition of the entire land, building, plant, and machinery of the laminate division of Bloom Dekor Ltd and the facility is having an installed capacity of 3.4 mn sheets per annum.

Commenting on the development Greenlam Industries Managing Director & CEO Saurabh Mittal said: "With the acquisition of Bloom Dekor's manufacturing facility, we will further strengthen our market leadership in laminates and penetrate into the mass market segment which forms a significant share of the overall category."

Earlier on June 20, 2022, Greenlam Industries had announced the issuance of fresh equity shares on a preferential basis to the extent of Rs. 195 crore.

"With the earlier announcement of capex to invest Rs 950 crore over a period of 2-3 years, towards setting up of third Laminate plant and entry into Plywood and Particle Board business along with fundraise and this acquisition, Greenlam is well poised to embark on the journey to the Next Orbit,” said Mittal.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)