Shares of Greenlam Industries soared 15% in intraday trade on Friday to hit a fresh high of Rs 462.20 on the BSE after the plywood and related products unit in Tindivanam in Tamil Nadu state started commercial production.

The manufacturing facility has an installed annual capacity of 18.9 million square meters and started commercial production on June 9, 2023, Greenlam said in the exchange. The plant has the potential to generate revenue of Rs 400 crore per annum at full capacity utilization. The total capex for the project is around Rs 130 crore before commercial production commences.

The company said that the greenfield project to manufacture plywood and related products has started through the company’s subsidiary HG Industries, with an estimated investment of Rs 1.25 billion.

The company added a new greenfield laminate and particleboard plant in Naidupeta, Andhra Pradesh, expected to come on stream in Q2FY24 and Q4FY24, respectively.

Greenlam is one of the top three laminate manufacturers in the world with flagship brands Greenlam Laminates, NewMika Laminates, Decowood Veneers, Mikasa Floors and Mikasa Doors & Frames.

Meanwhile, the stock has soared 51% in the past three weeks after the company reported a strong 79.7% year-on-year growth in net profit for the third quarter (Q4FY23) to Rs 46.1 crore. Net revenue rose 15.2% year-on-year to Rs 533.8 crore. The overall value and volume of the laminate business increased by 16% and 16.8%, respectively.