The Hindu Business Line : Century Ply's laminate unit breaks even

THE new laminate factory of Century Plyboards (I) Ltd, which was commissioned a few months ago, has already broken even and reached the 50-per cent capacity utilisation mark.

The unit produces two lakh sheets a month, out of which 30 per cent is exported to the US and Singapore.

According to Mr Sajjan Bhajanka, Managing Director, the company will focus more on domestic sales.

The plant is expected to touch 100 per cent capacity utilisation by the end of this year, helping the company improve both total sales and profitability.

Century Plyboards has ruled out any addition to plywood capacity in the recent future. "We are the outsourcing agents for laminates for two foreign companies. These are the US-based Wilsonart and Singapore-based Tak. For laminates, we would focus on the domestic market owing to higher sales realisation," Mr Bhajanka told a press conference here on Friday.

Net rises marginally: Meanwhile, for the year ended March 31, 2005, Century Plyboards has recorded a nearly 31 per cent growth in turnover at Rs 167.06 crore from Rs 128 crore in 2003-04. Net profit increased marginally to Rs 7.77 crore from Rs 7.28 crore in the previous fiscal.

The company has recommended a dividend of Rs 2 per share of Rs 10 face value. Earlier, it had declared a bonus issue of one share for every two held.

"In the current financial year, we hope to increase our turnover to Rs 200 crore, and net profit to around Rs 10 crore," he said.

During 2004-05, the company produced 54 lakh sq.m of plywood but sold approximately 1 crore sq.m. The excess material was outsourced. In the current fiscal, the company expects to increase the outsourcing.

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