Sonear Industries Ltd. will enter the laminate and medium-density fibre (MDF) boards business. The company will set up two new factories at an estimated cost of Rs 150 crore to manufacture laminates and MDF boards in Yamunanagar in Haryana and near Bareilly in Uttar Pradesh. The new facilities will start in the first quarter of 2023 and the beginning of 2024 respectively.
The new factories will have a combined capacity of 300 cubic metre (CBM) per day and they would have an annual revenue potential of Rs 500 crore at their peak utilisation, according to company officials.
“Like most other industries, the plywood and construction sector in India had to suffer multiple setbacks during the first two years of the Covid-19 pandemic. However, owing to quick economic recovery and other favourable factors, this is the right time to expand operations,” said Jitendra Kejriwal, Founder, Sonear Group of Companies.
Kejriwal said that due to rapid urbanisation and improving infrastructure, the plywood and construction sector is going to witness unprecedented growth. “The demand for homes, offices, hospitals and other facilities with smart and cost-effective furniture is going to multiply in the near future. That’s why, we, at Sonear, have decided to expand our business operations to cater to this demand,” he said.
The factory in Haryana will produce matte-finish laminate, textured laminate, gloss-finish laminate, metallic laminate, PVC-finish laminate and exterior laminate. The Uttar Pradesh will produce all product subcategories of MDF, including thin and thick, pre-lam and other value-added products.
“Our objective is to strengthen our foothold in the Indian plywood and construction sector. We have a reputation of producing top-quality products and making sure that our customers are happy and satisfied. To live up to that reputation, we have decided to expand in a phased manner,” said Kejriwal.
Sonear, which has an annual turnover of around Rs 100 crore, has operations in Delhi-NCR, Haryana, Punjab, Uttar Pradesh, Bihar, Odisha, Telangana and Maharashtra. The company has a dealership and distributor network of more than 2,000 and employees more than 400 people.