Greenply Industries Ltd

This reporting year has been transformative on many fronts. We have kick started the commercial production of MDF and have developed a wide range of MDF products tailored for all interior and exterior needs.

Dear Shareholders,

It is an exciting time for the Indian economy. With our GDP surging 8.2%, we have emerged as one of the fastest-growing major economies globally. This positive momentum is energising the real estate sector, where increasing demand from homeowners is driving consistent sales growth across all segments.

At Greenply, we are continuously working to capitalise on these opportunities created by India's rising economic development. with enthusiasm. Our credo to transform every house into a home inspires us to innovate and expand our product range. We have a dedicated team of researchers who constantly work on products that not only meet our customers' evolving needs but also set new benchmarks for quality and performance.

Exploring new horizons

This year has been transformative for greenply. We have kick started the commercial production of MDF and have developed a wide range of MDF products tailored for all interior and exterior needs.

Our strategic focus on premium offerings and operational excellence positions us well for continued growth and improved margins in the coming year.

By building on our collective strengths, we are set to deliver a more diverse product lineup, explore innovative designs and offer an exceptional experience to our valued customers.

Growing responsibly

Sustainability and environmental responsibility are at the heart of everything we do. With escalating climate change, we are more determined than ever to lead the way with eco-friendly practices. We are among the first in our sector to use sustainable resources harvested under a strict sustainable forest management plan. We are the first in the Indian interior infrastructure segment to have FSC?- FM certification. This certification guarantees that the products carrying the FSC? label come from an environmentally and socially responsible source. This achievement underscores our dedication to ecological balance and responsible sourcing.

Promising outlook

The future for Greenply is filled with exciting possibilities. The Indian government's push for affordable housing and infrastructure development, rising disposable incomes, growing preference for homeownership and upcoming BIS certification mandate paint a promising picture for the wood panel industry. At Greenply, we are geared to capture emerging opportunities through focused innovation, diverse manufacturing base, competent workforce and improved operational efficiency.

In the coming year, we will be launching a range of innovative, value-engineered products tailored to our diverse customer requirements. This emphasis on product development, coupled with our unyielding commitment to exceptional customer service, will not only enhance our business margins but also reinforce our position as India's leading Interior Infrastructure company.

JMD and CEO's Perspective

I am delighted to share with you our

Dear Shareholders, As we wrap up another eventful year,performance during FY 2023-24. This period has been pivotal for us as we marked our presence in the MDF space, entered into a related area of furniture fittings and solidified our position in India's Interior Infrastructure Industry.

The global economy faced several headwinds in the year gone by owing to prolonged geopolitical conflicts, which not only disrupted supply chains but also caused widespread uncertainty. However, the Indian economy, buoyed by its strong macroeconomic fundamentals, demonstrated remarkable resilience and maintained its position as the world's fastest-growing major economy. The country has now embarked on the journey to become a developed nation. Recognising the promising prospects that this strong economic momentum offers, we, at Greenply are poised to accelerate our development and ensure that we deliver on the growing demand in changing landscape and uphold our position as a leading interior infrastructure company in India.

I am delighted to share with you that the performance of the organisation has been nothing short of transformative this year. This period has been pivotal for us as we marked our presence in the MDF space, entered into a related area of furniture fittings and solidified our position internally and externally, which will enable us tap the opportunities that lie-ahead.

Sharing our performance during FY 2023-24

We have been able to achieve sustainable growth, by aligning our business objectives with market opportunities and customer needs. The result is testament to our strategic focus on product diversification, capacity expansion, enhancement of operational efficiencies, and brand building.

We have consolidated revenue of H 2180 crores in FY 2023-24 as against

H1663 crores in the previous year on a comparable basis. Our plywood segment registered a year-on-year growth of 8.9%. On the other hand, our MDF segment generated a revenue of 365 crore in its first year of operation, with a sales volume of approximately 1,25,000 cubic meters.

Business highlights

As a leading brand in the plywood sector, we made a natural progression into the MDF business. Our ambitious project in Vadodara, Gujarat, was completed in a record time of 15 months and we commenced commercial production on May 5, 2023. It is one of the most advanced manufacturing facilities in India and leverages the state-of-the-art PRODIQ-NEO technology.

In the year, we expanded our plywood production capacity by 4.4 million m2 through line balancing at our Rajkot Plant at a marginal cost. Moreover, we invested a sum of 25 crore in our hardware joint venture (JV), with commercial operations having begun in the month of March albeit in a small way. We expect to complete import and installation of the balance equipment in the second half of FY25 and start seeing meaningful revenue.

Factors fuelling our growth

Our prudent investments in upgrading manufacturing processes and facilities, driving customer-centric product innovation, adopting the latest technologies and implementing effective marketing strategies have strengthened our industry leadership.

We intensified our engagement and marketing efforts to augment our brand

By conducting a TV campaign with Junior NTR as our brand ambassador, we successfully disseminated our message of fostering healthy interiors with zero-emission products.

visibility. We embarked on another year of collaboration with IPL which gave the brand a widespread exposure on a national scale. By conducting a TV campaign with Junior NTR as our brand ambassador, we successfully disseminated our message of fostering healthy interiors with zero-emission products. Additionally, we launched the second season of the Hindustan Ki Shaan programme to honour the craftsmanship of India's carpenters and contractors and to promote the use of environment-friendly materials.

Our expansive distribution network, a competent sales team and pan-India branches remain key enablers of our growth strategy; and we continuously augment this network in response to changing market demands.

We recognise the vital role our employees play and cultivate a culture of inclusivity, learning, and innovation. We will continue to invest in strengthening our people's diversity and building on capabilities to make the organisation future ready.

Ready for the next

We are equipped to leverage on our core strengths in seizing the growth prospects that is being brought by shift towards organized players within the wood panel industry, consumer's changing preferences towards eco-friendly products, Government's focus on sustainable practices, upcoming regulatory changes which make BIS certifications mandatory, etc.

The company's aim is to plant 50 million saplings by 2025 and we are very close to that target. Our efforts on the plantation side will help us in nurturing the sustainability-led growth model. Although the volatility in raw material costs prevails, the Company is confident of managing the situation and maintain healthy growth trajectory with this plantation activity.

Looking ahead, we are dedicated to judiciously investing in diversifying our product portfolio, and delivering superior value to our consumers.

Before concluding, I would like to express my heartfelt gratitude to our esteemed stakeholders. We thank you for your continued support and trust in Greenply Industries. As we grow from strength to strength, we are confident in our ability to enable responsible growth in the years to come.