In an interview to CNBC-TV18, Shobhan Mittal, Joint MD of Greenply Industries spoke about the goods and services tax (GST) and their plans in the medium density fiberboard (MDF) segment.
Mittal expects a substantial shift from unorganised to organised market. Pure organised market is around 50 percent of total market.
He also expects a major shift of market share to organised segment due to GST.
On business front, he expects new plant to run at 50 percent utilisation initially.
According to him, the new MDF plant will contribute Rs 1,100-1,200 crore on full year basis.
"This year we are targeting about 50-60 bps improvement. Going forward, we should see better improvements when the new MDF line comes in and starts breaking even and contributing," said Mittal.
Watch accompanying video for more details.
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