The Century Ply's board is due to consider proposals for a medium density fibre (MDF) plant in Andhra Pradesh & a plywood, veneer plant in Punjab.
The company is in advanced discussions with Andhra Pradesh to raise capex for the same.
Keshav Bhajanka, Executive Director of Century Plyboards told CNBC-TV18, “We are and I am sure that you will be hearing about us finalising the plan in the near future.”
“The timeline has been delayed. The second wave has impacted all of us including the state governments so the pace with which we were working earlier cannot be replicated at this point in time. But we are still very hopeful that we will have the new plant operational by Q4 FY23 or latest by Q1 FY24,” he updated.
The company says that its internal cash flows are quite strong and therefore majority capex required for the new plant will be internally funded.
"We might take on negligible debt in the interim but it will be nothing substantial,” said Bhajanka.
“We are a debt-free company. There will be negligible debt maybe to the tune of Rs 100-150 crore in the interim and this is going to be short-term debt,” he added.
For full management commentary, watch the video.
(Edited by : Abhishek Jha)