CenturyPly launches comprehensive warranty on plywood; plans doubling turnover to ₹12,000 cr in five years via ₹2700 cr capex

Domestic wood products major CenturyPly today launched India’s first comprehensive warranty commitment on plywood and said the company plans to invest ₹2700 crore to double its turnover to ₹12,000 crore by 2031.

Under the comprehensive warranty, Total Cover, if a defect in Club Prime or Architect Ply—two of the company’s premium offerings—is confirmed within ten years of the purchase, CenturyPly will reimburse the furniture cost as well as the cost of making of the product.

“For the first time in India, a commitment like this is being provided in our industry. Such a commitment is not easy to provide,” said Nikita Bansal, executive director, CenturyPly, adding the reimbursement in case of defect will be done at the current cost of the manufacturing of the product, including plywood, labour, transportation etc.

It may be noted that the standard warranty will kick in after a period of ten years. The company said the assurance will not affect the margins as the claim ratio is extremely miniscule at 0.06% of the turnover.    

The company has lined up investment plans and is looking at doubling its turnover in the next five years. “Today our total revenue potential from my current asset pool would be ₹8,000 crore. To achieve ₹12000 crore, I would need about ₹4,000 crore of revenue. For that ₹4,000 crore, assuming asset turnover ratio of 1:1.5, we will need to invest anywhere between ₹2,500 crore to 2,700 crore in the course of the next five years,” said Keshav Bhajanka, executive director, CenturyPly.

In FY26, the company’s revenues stood at ₹5407 crore.

The company will commission a new plywood plant in Hoshiarpur in Punjab in October this year. It is also planning investments in Odisha and Uttar Pradesh. In UP, land procurement is going on for a plywood facility, and the company will also invest in an MDF or particle board facility in Odisha.

In Q1, FY 27, the company reported a 57% YoY increase in profit after tax to ₹83.3 crore, compared with from ₹52.9 crore in the same period of the previous financial year.

It reported a record quarterly revenue of ₹1,561 crore in Q1 FY27. “Revenue grew 33.5% YoY, reflecting strong business momentum across key segments. EBITDA margin (excluding forex losses) improved to 13.0%, compared with 12.5% in Q1 FY 2025-26,” the company said in a release.

“Plywood Continued to deliver sustainable growth on both QoQ and YoY basis, supported by healthy margin expansion. Revenue grew 8.9% QoQ and 32.4% YoY. On laminates, it maintained the strong momentum established in the previous quarter, delivering another robust performance.

The company said that on MDF, it reported sequential decline due to a planned shutdown at one of the two plants for capacity expansion, but it maintained strong year-on-year growth.