Greenlam to build South India's largest laminate plant in Andhra Pradesh with Rs 1,147 cr investment

The Andhra Pradesh government will provide incentives worth Rs 329 crore, accounting for over 30 percent of the project cost, under its Industrial Development Policy (4.0) 2024–29.

Greenlam Industries Ltd is setting up South India’s largest wood laminate manufacturing facility in Naidupeta, Andhra Pradesh, with an investment commitment of Rs 1,147 crore. The new facility will include high-pressure laminate (HPL) and particle board production lines, positioning the company as a key player in India’s engineered wood segment.

The Andhra Pradesh government will provide incentives worth Rs 329 crore, accounting for over 30 percent of the project cost, under its Industrial Development Policy (4.0) 2024–29.

The upcoming plant is expected to have a production capacity of 7 million HPL sheets and 2.9 lakh cubic meters of wood-based particle boards annually. Once operational, this will be the largest such unit in South India.

Greenlam will install a state-of-the-art Continuous Press System from Dieffenbacher GmbH, Germany, making it the only facility in South India to deploy this advanced technology. The equipment will adhere to global benchmarks on safety, sustainability, and manufacturing excellence.

As per Clause 8.3 of the AP Industrial Policy, Greenlam is eligible for tailor-made incentives, including: 35 percent capital subsidy, 2.25 percent of annual turnover as performance-linked incentive, power tariff subsidy of Rs 1/unit, reimbursement of state duties and levies.

These benefits are expected to significantly boost the project’s cost efficiency and long-term competitiveness.

India’s engineered wood and home decor markets are witnessing strong growth. The country’s home decor market stood at USD 33.45 billion in 2023, and is projected to grow to $40.98 billion by 2028, at a CAGR of 4.14 percent, driven by rising disposable income and increased spending on interiors.