Greenply Industries to explore demerger of its MDF division into Greenpanel Industries

Greenply Industries’ board gave its approval for the demerger of company's MDF division into Greenpanel Industries. In an interview to CNBC-TV18, V Venkatramani, CFO of the company spoke about the latest happenings in his company and sector.

This nod is to explore the possibility of demerging the MDF business, he said.

Total debt of the company is Rs 609 crore of which Rs 380 crore is the MDF share and the balanced Rs 229 crore is for plywood. As and when the demerger happens, all debt taken on account of MDF would be transferred to the new entity, he added.

Explaining the rationale behind this demerger, he mentioned that we expect MDF to grow at a far more rapid pace than plywood and we want to have more focus on the MDF business.