CPIL to acquire two companies to expand capacity

Kolkata, May 16 (UNI) Century Plyboards India Limited's(CPIL) will acquire two companies--Chennai based Sharon Veneers and Century Panel Pvt Ltd of Haryana, increasing the company's capacity manifold to 50,000 square meters per day in plywood and 4.30 lakh per day in veneer segments.

Speaking at a press conferenece here today, CPIL MD Sajjan Bhajjanka said the two companies would be merged to Century Plyboard following the due diligence, which has been approved in today's board meeting.

'' We will appoint a consultant to start the due diligence. The date of merger will be finalised following the due diligence process,'' he said.

Sharon Venears is a leading brand in Chennai, with a turnover of Rs 50 crore, and following the merger, the company's commercial plywood and veneer manufacturing capacity would be increased from 20,000 square meters to 50,000 square meters per day. Currently, the company has manufacturing agreement with Century Ply.

Haryana based Century Panel Pvt Ltd manufactures flashboards and blockboards under "Bonus" brand and also has manufacturing agreement with CPIL. Century Panel's turnover was Rs 30 crore in 2006-07.

Following the acquisition, the veneer of the company, including commercial and decorative, would reach 4.30 lakh square meters per day. The company currently produces 1.5 lakh veneers per day.

''With various expansion plans and acquisitions, we will increase our consolidated turnover to Rs1000 crore in this fiscal,'' he said.

In 2006-07, Century Ply's net profit was Rs 20 crore, compared to Rs 10 crore, in the previous year. In the current fiscal, the company's turnover would be Rs 30 crore.

The turnver of the company has gone up to Rs 716 crore in 2006-07 compared Rs 452 crore last year.

UNI