Greenlam Industries Ltd is investing ₹1,147 crore to establish South India’s largest laminate manufacturing plant in Andhra Pradesh. The facility will produce HPL sheets and particle boards using cutting-edge German technology, with government support totaling ₹329 crore under the state’s Industrial Development Policy.
In a major boost to the engineered wood industry, Greenlam Industries Ltd, a leading name in surface and wood panel solutions, has announced the construction of South India’s largest wood laminate manufacturing facility in Naidupeta, Andhra Pradesh. With an investment of ₹1,147 crore (approx. USD 137.6 million), this project underscores Greenlam’s strategic expansion in India’s booming home decor and engineered wood segment.
The facility will house production lines for high-pressure laminates (HPL) and particle boards, significantly increasing Greenlam’s domestic manufacturing capacity. It will be equipped with the Continuous Press System from Dieffenbacher GmbH, Germany—renowned for its cutting-edge, sustainable manufacturing technologies. This makes the Naidupeta facility the only one in South India to use such advanced technology, adhering to global benchmarks in safety, sustainability, and production efficiency.
The Andhra Pradesh government will support the initiative with incentives worth ₹329 crore, making up over 30% of the total investment. Under the state’s Industrial Development Policy (4.0) 2024–29, the benefits include:
- 35% capital subsidy
- 2.25% of annual turnover as performance-linked incentives
- ₹1/unit power tariff subsidy
- Reimbursement of state duties and levies
These provisions are tailored as per Clause 8.3 of the policy and are expected to significantly enhance the project’s cost competitiveness.
Once operational, the facility will have an annual production capacity of 7 million HPL sheets and 2.9 lakh cubic meters of particle boards, positioning Greenlam as a major player in the Indian engineered wood and home décor markets.
According to market estimates, India’s home décor sector was valued at USD 33.45 billion in 2023 and is projected to grow to USD 40.98 billion by 2028, at a CAGR of 4.14%, driven by urbanization, rising incomes, and growing interior design trends.
