Greenlam South Limited

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 Greenlam Industries referred to as “Greenlam” is the largest laminate manufacturer in Asia and the third largest in the world. It has operating assets at Behror, Rajasthan and Nalagarh, Himachal Pradesh. Its products include decorative laminates and veneers, engineered wooden doors, and floorings. Greenlam proposes to expand its existing capacity in the laminate business and foray into the substrate business of particle board segments. It is establishing a greenfield processing plant with a capacity for 231,000 CBM per annum for particle board and 3,500,000 sheets/boards per annum for laminates along with 188.75 TPD captive resin plant at Naidupeta in Nellore District, Andhra Pradesh through its subsidiary Greenlam South (referred to as “GSL” or the “Company”).  The proposed IFC investment is A loan of up to US$25 million in GSL. The proceeds of the loan provided by IFC shall be used specifically for the construction, equipping, and placing into operations (including working capital requirements) of a greenfield manufacturing High-Pressure Laminate and Wood Based Particle Board Plant in Naidupeta Industrial Park managed by Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC). The Naidupeta plant has obtained Consent to Establish in February 2022 and other relevant applicable permits required for the start of construction. The EPC contract for the laminate unit, captive resin plant and common facilities like the Effluent Treatment Plant (ETP), Sewage Treatment Plant (STP) and boilers have been awarded. The construction is at a very early stage with foundations and earthwork activities going on at the site. The Company is in discussion with the equipment suppliers and a contractor for particle board units. The Company will continue to source kraft paper and chemicals from its existing suppliers of Greenlam for laminate production. For particle board, it intends to get into agroforestry operations through a farmer engagement model. The project envisages decentralized agroforestry in the catchment area (through open market, farmers and aggregators) of the manufacturing plant to meet majority of the core wood requirement for the particle wood segment. The remaining requirement of the wood supply will be sourced from existing private tree growers beyond the catchment area and Industrial Plantations of Andhra Pradesh Forest Development Corporation Ltd (APFDC). The Company envisages taking off the plantation development program from  2023 onward. It intends to develop the Centralized Clonal Production Center for mass propagation of the required quantum of quality planting stock and the Tree Improvement Program through applied R&D initiatives in collaboration with research institutes and agriculture universities to introduce new varieties and higher productivity in the agroforestry operations