Novopan Industries Ltd - Stock Valuation and Financial Performance

Novopan Industries Limited, is the flagship company of ever growing GVK Group. This group started with their first industrial venture in the year 1979 by launching the country’s first prelaminated particle board. Thereby, the group diversified into hotel and infrastructure industry and has set-up prestigious 5-star hotels in Hyderabad.

The company stands out among wood based industries in the country to have pioneered the concept of Prelaminated Particle Board. The particle boards, at that time, were not acceptable as a substitute for plywood or block board due to it’s poor quality and sustainability to the practices of Indian carpentry. Novopan started by bringing the best available technology from Fahrni Institute of Switzerland into the country by being their exclusive Licensee. The company was instrumental in developing the product tailor made to the Indian furniture and carpentry needs to make it an equivalent substitute for plywood laminate combination.

Within few years of commencing the commercial production, the company launched backward and forward integration by setting-up their own resin manufacturing facility as well as mechanized furniture factory. The key to the acceptability of particle board is quality of synthetic resin used specially for lamination as the abrasion resistance, scratch resistance, resistance of stains depend on it. To achieve the same, the company entered into long term technical collaboration with the world leaders from Austria.

Although, in the beginning, the growth of particle board Industry was slow, mainly, due to inertia from the carpentry segment, the usage of particle board by more and more mechanized furniture manufacturing companies is increased. During the year 2001-2002, the demand for particle board increased beyond it’s capacity. This led to the setting-up of another particle board manufacturing plant with a higher capacity at Shadnagar, in the district of Mahaboobnagar. They have taken care of modern concept of manufacturing activity in the new plant.

During the last year, the demand for particle board has increased so high that imports from South East Asia have become a major factor. To cater to this demand, the company increased its laminating capacity and is importing plain boards from selected manufacturers of South East Asia, who can guarantee good quality and timely delivery. In the filed of developing new products with latest technology, its R & D department is continuously working on the same and will announce to the markets as and when it develops new products.

Product range of the company includes:

• Novopan - Novopan is a medium density pre-lamninated particle board that passes German Standards DIN 68765. It is also marked with the ISI mark.
• Plain Wood Particle Board (PPB)
• Exterior Plain Wood Particle Board (PBX)
• Pre-laminated wood particle board single and double sided (PLB & PLT)
• Pre-laminated Exterior wood particleboard single and double sided (PLX and PTX)
• Special Surface Pre-laminated Particle Board (SFB).