Greenply Industries, India’s largest plywood manufacturer, has lost about Rs 60 crore of sales in March quarter due to nationwide lockdown. India went into total lockdown on 25th March to prevent spread of COVID in the country. Though lockdown was there hardly for week in March business had started feeling the pinch of COVID right from the beginning of the month itself with malls and theatres closed for public much earlier in various parts of the country.
Due to lockdown Greenply reported negative growth of 13.5% in sales for the last quarter of FY20. According to the company, if there was no lockdown the company would have achieved sales growth of 3-5% in the last quarter.
The lockdown continued in April and though factories have been opened since then they are operating at 50-70% capacity utilisation. Due to reverse migration and social distancing norms availability of carpenters has reduced in some market which in turn is affecting the demand for wood panel. The company has seen relatively better demand traction in North, Central and East India post easing of the lockdown.
Company’s Gabon operations were affected for 7-10 days owing to a Covid-led lockdown in that country besides facing logistical issues. Meanwhile, the Gabon subsidiary has begun exports to Europe and is now exploring the US markets.