Greenply Industries plans 15m sq m Sandila capacity by Q4 FY2028

Greenply Industries Limited plans to add 15.00 million square metres of annual plywood and allied-products capacity at Sandila, Uttar Pradesh, by Q4 of FY2028. The project is estimated to require about Rs 125 crore, following nearly 98% utilisation of the existing 52.80 million square metres of annual capacity reported by Greenply Industries.

What capacity will Greenply Industries add at Sandila?

Greenply Industries plans to add 15.00 million square metres of plywood and allied-products capacity at the Sandila unit in Hardoi district, Uttar Pradesh, by Q4 of FY2028. Greenply Industries disclosed the plan on 29 October 2026 after its board discussed and noted the proposed expansion at Greenply Sandila Private Limited, its wholly owned subsidiary. The stated addition is separate from the group’s existing 52.80 million square metres of annual capacity, which includes Greenply Industries, the holding company.

Greenply Industries also has 13.50 million square metres of capacity under construction at Koraput, Odisha, separate from the 52.80 million square metres described as existing capacity. On the disclosed figures, the Sandila addition and Koraput project total 28.50 million square metres of capacity that is planned or under construction. The filing does not specify Sandila’s present individual capacity, the product-wise split of the 15.00 million square metres, or the commissioning sequence within Q4 of FY2028.

Why is Greenply Industries expanding plywood production?

Greenply Industries is expanding because it expects near-term demand for plywood and allied products to exceed capacity available to Greenply Industries and its subsidiaries. Greenply Industries reported nearly 98% utilisation of 52.80 million square metres of existing annual capacity. That measure covers Greenply Industries and its subsidiaries, rather than a standalone utilisation rate for the Sandila facility.

The stated rationale covers plywood and allied products, while Greenply Sandila Private Limited manufactures, trades and markets plywood, doors, block boards, veneer and allied products. Greenply Industries’ 29 October 2026 filing does not provide demand-volume forecasts, market-share assumptions, pricing estimates or the product mix for the expanded Sandila unit. It identifies expected demand exceeding available group capacity as the basis for the 15.00 million-square-metre project.

How will Greenply Industries finance the Sandila project?

Greenply Industries expects to finance the approximately Rs 125 crore Sandila expansion through a bank term loan, equity from the holding company and internal accruals. The filing does not state the amount to be drawn under the term loan, the equity portion beyond the separately approved ceiling, or the internal-accrual amount allocated to the project. It therefore identifies the financing mechanisms but not their proportions within the approximate Rs 125 crore requirement.

Greenply Industries separately approved an investment of up to Rs 30 crore in cash in Greenply Sandila Private Limited, in one or more tranches, by Q4 of FY2028. The proposed subscription covers up to 30 crore equity shares with a face value of Rs 1 each. Greenply Sandila Private Limited will remain wholly owned after the infusion, with Greenply Industries retaining 100% shareholding and control, according to the filing.

What do Greenply Industries’ Sandila subsidiary figures show?

Greenply Industries’ Sandila subsidiary reported total income of Rs 289.76 crore in FY2026, compared with Rs 249.13 crore in FY2025 and Rs 195.37 crore in FY2024. Profit after tax, or PAT, rose to Rs 18.51 crore in FY2026 from Rs 11.28 crore in FY2025 and Rs 8.45 crore in FY2024. These are audited historical figures for Greenply Sandila Private Limited and are not a forecast for the Sandila expansion.

Greenply Industries disclosed net worth of Rs 132.24 crore for the subsidiary in FY2026, compared with Rs 59.67 crore in FY2025 and Rs 48.31 crore in FY2024. Greenply Sandila Private Limited was incorporated in India on 24 May 2021. Its business lines include manufacturing, trading and marketing of plywood, doors, block boards, veneer and allied products, which are the operating categories relevant to the Sandila expansion.

When will Greenply Industries complete the expansion and equity infusion?

Greenply Industries has identified Q4 of FY2028 as the period for adding the 15.00 million square metres of Sandila capacity and completing the up-to-Rs 30 crore equity investment in its subsidiary. The equity acquisition may occur in one or more tranches rather than in a single contribution. The announcement provides no month-specific commissioning date, construction milestones, production ramp-up schedule or deadline for the bank financing.

Greenply Industries stated that no governmental or regulatory approvals were applicable to the disclosed equity acquisition. That statement concerns the purchase of additional shares in the wholly owned subsidiary, rather than every approval that may relate to construction or manufacturing operations. Greenply Industries said cash proceeds from the equity-share issue would fund the planned expansion of the plywood and allied-products unit at Sandila in Hardoi district.

Conclusion

Greenply Industries is pairing a 15.00 million-square-metre Sandila expansion with up to Rs 30 crore of additional parent equity, while identifying bank debt and internal accruals as funding sources for a project estimated at about Rs 125 crore. The plan follows nearly 98% utilisation across 52.80 million square metres of existing annual capacity and sits alongside 13.50 million square metres under construction at Koraput.

The next disclosed milestone is Q4 of FY2028, when Greenply Industries expects both the Sandila capacity addition and the equity-share acquisition in Greenply Sandila Private Limited to be completed. Items to watch are the allocation between term loan, parent equity and internal accruals, the timing of equity tranches, and any later disclosure of commissioning milestones or the product mix within the new 15.00 million-square-metre capacity.