Greenlam Industries Ltd Management Discussions

Global economic review

Overview: Global economic growth declined marginally from 3.3% in 2023 to an estimated 3.2% in 2024. This was marked by a slowdown in global manufacturing, particularly in Europe and parts of Asia coupled with supply chain disruption and weak consumer sentiment. In contrast, the services sector performed more creditably. The growth in advanced economies remained steady at 1.7% from 2023 to 2024 as the emerging cum developing economies witnessed a growth decline at 4.2% in 2024 (4.4% in 2023). On the positive side, global in_ation was expected to decline from 6.1% in 2023 to 4.5% in 2024 (projected at 3.5% and 3.2% in 2025 and 2026 respectively). This decline was attributed to the declining impact of erstwhile economic shocks, and labour supply improvements. The monetary policies announced by governments the world over helped keep in_ation in check as well.

The newly-elected US government threatened to impose tari_s on countries exporting to the US unless those countries lowered tari_s for the US to export to their countries. This enhanced global trade and markets uncertainty and emerged as the largest singular uncertainty in 2025.

Regional growth (%)	2024	2023
World output	3.2	3.3
Advanced economies	1.7	1.7
Emerging and developing economies	4.2	4.4

(Source: IMF, KPMG, Press Information Bureau, BBC, India Today)

Performance of the major economies, 2024

United States: Reported GDP growth of 2.8% in 2024 compared to 2.9% in 2023.

China: GDP growth was 5.0% in 2024 compared to 5.2% in 2023.

United Kingdom: GDP growth was 0.8% in 2024 compared to 0.4% in 2023.

Japan: GDP growth was 0.1% in 2024 compared with 1.9% in 2023.

Germany: GDP contracted by 0.2% in 2024 compared to a 0.3% decline in 2023.

(Source: CNBC, China Brie_ng, ons.gov.uk, Trading Economics, Reuters)

Outlook: The global economy has entered a period of uncertainty following the imposition of tari_s of products imported into the USA and some countries announcing reciprocal tari_s on US exports to their countries. This is likely to stagger global economic growth, the full outcome of which cannot be currently estimated. This risk is supplemented by risks related to con_icts, geopolitical tensions, trade restrictions and climate risks. In view of this, World Bank projected global economic growth at 2.7 per cent for 2025 and 2026, factoring the various economic uncertainties. (Source: IMF, United Nations)

Indian economic review

Overview

The Indian economy was projected to grow at 6.5% in FY 2024-25, compared to a revised 9.2% in FY 2023-24. This represented a four-year low due to a moderate slowdown within the Indian economy (marked by slower manufacturing growth and a decline in net investments). Despite the slowdown, India retained its position as the worlds _fth-largest economy. Indias nominal GDP (at current prices) was H331 trillion in FY 2024-25 (H301.23 trillion in FY 2023-24). The nominal GDP per capita increased from H2,15,936 in FY 2023-24 to H2,35,108 in FY 2024-25, reffecting the impact of an economic expansion.

The Indian rupee weakened 2.12% against the US dollar in FY 2024-25, closing at H85.47 on the last trading day of FY25. In March 2025, the rupee recorded the highest monthly appreciation since November 2018, rising 2.39% (arising out a weakening US dollar). In_ationary pressures eased, with CPI in_ation averaging 4.63% in FY 2024-25, driven by moderating food in_ation and stable global commodity prices. Retail in_ation at 4.6% in FY 2024-25, was the lowest since the pandemic, catalysing savings creation. Indias foreign exchange reserves stood at a high of $676 billion as of April 04, 2025. This was the fourth consecutive year when rating upgrades outpaced downgrades on account of strong domestic growth, rural consumption, increased infrastructure investments and low corporate leverage (annualized rating upgrade rate 14.5% exceeded the decade-long average of 11%; downgrade rate was 5.3%, lower than the 10-year average of 6.5%).

Gross foreign direct investment (FDI) into India rose 13.6% to $81 billion during the last financial year, the fastest pace of expansion since 2019-20. The increase in the year was despite a contraction during the fourth quarter of 2024-25 when in_ows on a gross basis declined 6% to $17.9 billion due to the uncertainty caused by the new US governments assertions around getting investments back into the US.

Growth of the Indian economy

	FY22	FY23	FY24	FY25E
Real GDP growth (%)	8.7	7.2	9.2	6.5

E: Estimated

(Source: MoSPI, Financial Express)

Growth of the Indian economy quarter by quarter, FY 2024-25

	Q1	Q2	Q3	Q4
	FY25	FY25	FY25	FY25E
Real GDP growth (%)	6.5	5.6	6.2	7.6

E: Estimated

(Source: The Hindu, National Statistics OFFce)

Indias exports of goods and services are projected to reach $800 billion in FY 2024-25, up from $778 billion in the previous _scal year. The Red Sea crisis impacted shipping costs, a_ecting price-sensitive exports. Merchandise exports were expected to grow 2.2% YoY, reaching $446.5 billion.

Indias net GST collections increased 8.6%, totalling H19.56 lakh crore in FY 2024-25. Gross GST collections in FY 2024-25 stood at H22.08 lakh crore, a 9.4% increase YoY.

Indias services sector grew an estimated 7.3% in FY25 (9.0% in FY24), driven by public administration, defence and other services (expanded at 8.8% as in the previous year). In the infrastructure and utilities sector, electricity, gas, water supply and other utility services grew a projected 6.0% in FY25, compared to 8.6% in FY24. Meanwhile, the construction sector expanded at ~8.6% in FY25, slowing from 10.4% in the previous year.

Manufacturing activity was subdued in FY25, with growth projected at 4.3%, which was lower than 12.3% in FY24. Moreover, due to lower public spending in the early part of the year, government final consumption expenditure (GFCE) is anticipated to have slowed to 3.8% in FY25, compared to 8.1% in FY24.

From a demand perspective, private final consumption expenditure at constant prices was forecast to grow 7.3%, indicating a rebound in rural demand and stronger consumer con_dence.

Outlook

India is expected to remain the fastest-growing major economy. Initial Reserve Bank of India estimates have forecast Indias GDP growth downwards from 6.7% to 6.5% based on risks arising from US tari_ levies on India and other countries. The following are some key growth catalysts for India in FY26.

Tari_-based competitiveness: India identi_ed at least 10 sectors such as apparel and clothing accessories, chemicals, plastics and rubber where the

US high tari_s give India competitive advantage in the American market over other suppliers.

Union Budget FY 2024-25: The Union Budget 2025-26 laid a strong foundation for Indias economic trajectory, emphasizing agriculture, MSMEs, investment, and exports as the four primary growth engines. With a _scal de_cit target of 4.4% of GDP, the government reinforced _scal prudence while allocating H11.21 lakh crore for capital expenditure (3.1% of GDP) to drive infrastructure development. The February 2025 budget marked a shift in approach, with the government proposing substantial personal tax cuts. Effective April 01, 2025, individuals earning up to H12 lakh annually will be fully exempt from income tax. Economists estimate that the resulting H1 lakh crore in tax savings could boost consumption by H3-3.5 lakh crore, potentially increasing the nominal private final consumption Expenditure (PFCE) by 1.5-2% of its current H200 lakh crore.

Free trade agreement: In a post-Balance Sheet development, India and the United Kingdom announced a free trade agreement to boost strategic and economic ties. This could lead to a significant increase in the export competitiveness of Indian shipments in the UK across the textiles, toys, leather, marine products, footwear, and gems & jewellery sectors. Under the proposed trade agreement between India and the UK, about 99% of Indian exports to the UK will be allowed entry without paying any import duties, making Indian goods more competitive in the UK market. In return, India will reduce tari_s on 90% of goods imported from the UK, and around 85% of these could become completely duty-free over the next 10 years. This deal aims to boost trade by lowering costs and improving market access on both sides.

Pay Commission impact: The 8^th Pay Commissions awards could lead to a significant salary revision for nearly ten million central government employees. Historically, Pay Commissions have granted substantial pay hikes along with generous arrears. For instance, the 7^th Pay Commission more than tripled its monthly salaries, raising the minimum basic pay from H7,000 to H18,000 per month, and the maximum pay from H90,000 to H2.5 lakh per month, triggering a widespread ripple effect.

Monsoons: The India Meteorological Department predicted an ‘above normal monsoon in 2025. This augurs well for the countrys farm sector and a moderated food in_ation outlook.

Easing in_ation: Indias consumer price index-based retail in_ation in March 2025 eased to 3.34 %, the lowest since August 2019, raising hopes of further repo rate cuts by the Reserve Bank of India.

Deeper rate cuts: In its February 2025 meeting, the Monetary Policy Committee (MPC) reduced policy rates by 25 basis points, reducing it to 6% in its first meeting of FY 2025-26. Besides, Indias CPI in_ation is forecasted at 4% for the _scal year 2025-26.

Lifting credit restrictions: In November 2023, the RBI increased risk weights on bank loans to retail borrowers and NBFCs, significantly tightening credit availability. This led to a sharp slowdown in retail credit growth from 20-30% to 9-13% between September 2023 and 2024. However, under its new leadership, the RBI has prioritized restoring credit _ow. Recent policy shifts have removed restrictions on consumer credit, postponed higher liquidity requirements for banks, and are expected to rejuvenate retail lending.

(Source: CNBC, Press Information Bureau, Business Standard, Economic Times, World Gold Council, Indian Express, Ministry of External Affairs, Times of India, Business Today, Hindustan Times, Statistics Times, Staff Corner)

Global furniture market

The global furniture market was valued at USD 568.60 billion in 2024 and is expected to grow to USD 878.14 billion by 2032, rising from USD 597.71 billion in 2025. This reffects a compound annual growth rate (CAGR) of 5.65% during the 2024–2032 period. This upward trajectory is driven by increasing disposable incomes, expansion in the housing and hospitality sectors, and continuous advancements in commercial construction. Rising demand for premium and luxury furniture, alongside greater investments in offce infrastructure, is also playing a key role in propelling market growth. Additionally, the surge in real estate development and the growing popularity of home renovation and interior design are expected to further accelerate demand.

One of the most significant trends transforming the industry is the heightened focus on sustainability. With consumers becoming more eco-conscious, there is a noticeable shift toward furniture made from sustainable materials such as bamboo and recycled wood.

The home furniture market is driven by rising disposable incomes, rapid urbanization, and a surge in realestateandhospitalitydevelopments.E-commerce has significantly expanded the markets reach, making it easier for consumers to shop for furniture online. There is growing demand for multifunctional and customizable pieces that cater to smaller living spaces and individual tastes. Sustainability has become a major focus, with consumers preferring eco-friendly materials and manufacturers adopting greener practices. Advancements in technology are giving rise to smart furniture solutions that integrate convenience and connectivity.

The growth of the global offce furniture market is driven by several key factors such as the rise in commercial development projects across developing nations, an increasing preference for contemporary offce environments, and the proliferation of small-scale enterprises—particularly in regions like Asia Pacific, where supportive government initiatives are fostering entrepreneurial growth. Startups and small businesses are fueling demand for modern, modular, and movable furniture solutions that cater to _exible workspaces. Additionally, the need for dedicated workstations to ensure employee health and safety has become a priority, further contributing to market expansion. Customer-focused organizations are also redesigning offce layouts to enhance client service experiences, which is boosting the demand for innovative offce furnishings. Moreover, sectors such as banking, retail, and distribution are undergoing operational transformations, leading to increased adoption of modern furniture. Rapid urbanization and the global increase in offce establishments are expected to create further growth opportunities in the coming years.

(Source: Global newswire, PR Newswire, Fortune Business Insights, Zion Market Research )

Indian furniture market

The Indian furniture market witnessed significant growth during the year under review. The markets growth is largely driven by a rapidly expanding middle class with higher disposable incomes. This demographic shift has spurred increased demand for space-saving, stylish furniture, particularly in urban areas with modern living spaces. The fast-paced growth of the real estate sector, particularly in residential and commercial spaces, is further fueling the demand for home, offce, and outdoor furniture. The rise of e-commerce platforms has also been a key factor, offering consumers a wide variety of furniture options at competitive prices, which has accelerated the adoption of furniture products. Additionally, customization has become a significant growth driver as consumers seek personalized, functional, and aesthetically pleasing furniture solutions.

A growing focus on sustainability and eco-friendly practices is also pushing demand for furniture made from renewable or recycled materials. Government initiatives, such as the Make in India campaign, have promoted domestic manufacturing, improving the availability of a_ordable, high-quality furniture and contributing to market growth.

Although India is currently a small player in the global furniture market, with exports valued at only approximately $3.5 billion in 2023 (accounting for just 1.5% of global exports), the country is poised to become a major manufacturing hub in the future. As Indias infrastructure improves and it benefits from demographic shifts, it is expected to gradually replace China as a dominant player in the furniture manufacturing industry. The export value of Indian furniture is projected to grow at a CAGR of 11.9% from 2024 to 2033, reaching $12.09 billion by 2033.

(Source: globalnewsire.com)

Global laminates market

The global market for decorative laminates was valued at USD 8.47 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 2.9% from 2024 to 2030.

Decorative laminates are widely favored by furniture manufacturers due to their versatility, durability, and a_ordability. These laminates are used to cover a variety of furniture items, including tables, desks, cabinets, shelves, wardrobes, and storage units. The extensive range of colors, patterns, and textures available in laminates enables furniture designers to craft aesthetically pleasing and functional pieces for residential, commercial, and hospitality environments. As environmental awareness and sustainability concerns grow, eco-friendly decorative laminates made from recycled materials, renewable resources, or certi_ed sustainable sources are gaining popularity. Consumers are increasingly seeking sustainable, eco-conscious products for their interiors, fueling demand for laminates with green credentials. Manufacturers are also investing in sustainable production methods, materials, and Certifications to cater to this demand, contributing to the market growth of eco-friendly decorative laminates.

The global decorative laminates market is witnessing steady growth, driven by increasing demand for cost-effective and aesthetically appealing interior solutions across both residential and commercial spaces. Rapid urbanization and rising construction activities—particularly in developing regions—are significantly boosting demand, especially as the need for commercial spaces in sectors such as IT, banking, financial services, insurance (BFSI), and telecommunications continues to grow. This surge in construction is further supported by the rising middle-income population and increasing disposable incomes, which enhance consumer purchasing power. Technological advancements, including digital printing, have broadened design possibilities and customization, making laminates more attractive and accessible. Additionally, the _ourishing furniture and cabinetry sectors, combined with the easy availability of raw materials like resins and adhesives, are contributing to market expansion. The multiple benefits of high-pressure laminates, along with a strong global interest in home renovation and interior design, are expected to accelerate demand and support sustained growth of the decorative laminates market in the years ahead.

(Source: grandreviewresearch, globalnewswire.com, Transparency Market Research)

Indian laminates market

The Indian decorative laminates market is estimated to be valued at H12,400 crore in FY25.

The decorative laminates market in India is witnessing steady growth, fueled by rising living standards and increasing consumer spending on home d?cor. The growing preference for ready-to-assemble (RTA) furniture, cabinets, and _ooring solutions has further driven the shift toward contemporary interior design styles. Additionally, rapid expansion in the commercial infrastructure sector—particularly in spaces such as gyms, convention centers, indoor sports facilities, and auditoriums—is boosting demand for stylish and durable interior solutions like laminates. Their ease of installation, which eliminates the need for nails or staples, has further enhanced their appeal among Indian consumers.

Global chipboard market

Chipboard is an engineered wood product composed of sawmill shavings, wood chips, sawdust, and synthetic resins. Known for its a_ordability, lightweight nature, ease of installation, and eco-friendliness, chipboard also offers high density and uniformity, making it a popular choice for furniture applications. It is widely used in the production of kitchen cabinets, bookcases, doors, windows, as well as wall and _oor coverings across both residential and commercial sectors.

In 2024, the global chipboard market was valued at USD 23.8 billion and is projected to grow at a CAGR of 3.2% between 2025 and 2033, reaching USD 31.7 billion by 2033. This growth is primarily driven by rapid urbanization, increasing housing construction, and a growing global population. Additionally, chipboards are easily customizable through laminating, painting, or wallpapering, which enhances their visual appeal. The rising demand for modern, aesthetically pleasing offce spaces and a growing working population are also contributing to increased adoption in commercial environments.

The pre-laminated chipboard market was valued at USD 10.2 billion in 2024 and is projected to reach USD 15.3 billion by 2033, growing at a CAGR of 5.2% between 2026 and 2033.

A key segment within the engineered wood products industry, pre-laminated chipboards are chipboards overlaid with decorative laminates, valued for their a_ordability, versatility, and aesthetic appeal. Widely used in furniture, cabinetry, and interior d?cor, their demand is rising due to a growing preference for sustainable, cost-effective materials in construction and furniture manufacturing. The demand for pre-laminated chipboards is driven by rapid urbanization, increased home renovation activities, and the materials lightweight, user-friendly nature—making it suitable for both residential and commercial use. Technological advancements are also enhancing product durability and lowering production costs. Moreover, as sustainability becomes a central focus, the adoption of eco-friendly adhesives and recycled inputs is shaping consumer choices and boosting the market outlook.

(Source: IMARC group, Veri_ed Markets Reports)

Indian chipboard market

The chipboard market in India is estimated to be valued at H5,000 crore in FY25. This growth is

primarily driven by rising demand for furniture across the offce and hospitality sectors, spurred by the expansion of these industries and the increasing need for cost-effective and functional furniture solutions. The lightweight and easy-to-transport nature of chipboard also makes it a preferred material in infrastructure and construction projects, further supporting market growth. The ongoing rise in infrastructural and construction activities across the country enhances this potential. Overall, the market is set for consistent growth, supported by chipboards a_ordability, versatility, and broadening demand across key industries.

Global plywood market

The global plywood market was valued at USD 50.2 billion in 2024, and is projected to grow to USD 74.5 billion by 2033, with a compound annual growth rate (CAGR) of 4.5% from 2025 to 2033. Key factors driving this growth include the increasing adoption of versatile products, rapid urbanization, and a rising number of residential and commercial construction projects.

The growing number of residential and commercial developments is a major driver of demand for plywood. There is an increasing need for plywood in the production of furniture and construction materials worldwide. Plywoods widespread use in both residential and commercial spaces is driven by its stability, strength, and superior impact resistance. It is also commonly used in the construction of walls and _oor coverings in homes. The rising adoption of plywood in these sectors, coupled with improving living standards and higher income levels, is further fueling market growth.

Plywoods versatility—providing stability, strength, and impact resistance—makes it a go-to material for furniture manufacturing and construction. It is particularly popular in residential and commercial settings, where it is used in the production of cupboards, ceiling treatments, decorative beams, distinctive wall features, and other furniture pieces. The plywood market is highly competitive and fragmented, with numerous small, medium, and large players.

(Source: IMARC.com)

Indian plywood market

The Indian plywood market is estimated to be valued INR 30,000 crore approx and is growing attractively. The India plywood market is experiencing robust growth, driven by rising demand across both residential and commercial sectors. One of the key factors fueling this growth is the expansion of distribution networks and the establishment of exclusive outlets by premium furniture brands. Advancements in manufacturing technologies have enabled the production of innovative variants, such as

_exible plywood, which are gaining popularity for their versatility. The increasing use of plywood for creating partitions and false ceilings in homes and offce spaces is enhancing its market appeal. Additionally, plywoods suitability for crafting lightweight, modular, and easy-to-assemble furniture is contributing to its widespread adoption. The materials ease of customization—ideal for DIY enthusiasts who prefer drilling, shaping, and cutting—further supports its popularity. Government-backed housing initiatives, large-scale infrastructure projects, and accelerating urbanization are adding momentum to market growth. Moreover, the growing consumer focus on distinctive interior design elements, spurred by rising renovation activity, continues to drive demand for plywood across India.

(Source: Blueweave Consulting)

Global decorative veneers market

Veneer sheets are thin layers of wood used extensively in furnishing, renovation, and refurbishing of both residential and commercial spaces. They are commonly applied in furniture, interior wall paneling, and various decorative elements. In 2023, the global veneer sheets market was valued at USD 46 billion and is projected to grow at a CAGR of 3.4% from 2024 to 2033, reaching an estimated USD 64.26 billion by the end of the forecast period. The Asia-Pacific (APAC) region held the largest market share at 32.3%, driven by strong demand from the construction industry, particularly in residential and commercial building projects. Meanwhile, North America emerged as the fastest-growing regional market due to increasing demand for infrastructure developments such as hotels, parks, and recreational areas.

Growth in the global veneer sheets market is primarily fueled by rising construction activity, growing consumer preference for interiors with a premium look and feel and the growing need for aesthetically appealing and functional interiors in homes and commercial establishments. emerging choice as a premium product.

(Source: brainyinsights.com)

Indian decorative veneers market

The Indian decorative veneer market is estimated to be valued at H2,000 crore in FY25. The decorative veneer market in India is expected to witness significant growth in the long-term fueled by the diverse range of wood species available and the ongoing exploration of innovative applications, creating a dynamic and evolving market landscape. The booming residential sector in India is expected to be a key driver of decorative veneer sales, as these veneers are commonly used to enhance the elegance, style, and sophistication of residential spaces. Decorative veneers are widely applied to furniture such as cabinets, and dressers, transforming basic pieces into attractive, visually appealing furniture.

For example, they can elevate the appearance of dining tables, creating stylish settings for meals and gatherings.

Shifting design preferences and changing consumer behaviors within the residential sector will further boost demand for decorative veneers in India. These veneers are used in a variety of applications, including wall paneling and furniture.

The industry shows strong resilience and a focus on innovation. By adapting to environmental challenges and evolving consumer preferences, the decorative veneer market is positioned for sustained growth. Ongoing research and sustainable practices highlight the sectors commitment to staying ahead of design trends and addressing shifting consumer needs. Leading companies are likely to continue introducing new products to maximize Profitability.

Global engineered wooden _oor market

The global wooden _ooring market size was USD 87.70 billion in 2024. The market is expected to grow at a CAGR of 5.70% between 2025 and 2034, reaching a value of USD 144.43 billion by 2034.

This growth is driven by the advantages of engineered wood _ooring, such as its extensive selection, dimensional stability, polished and appealing look, and its ability to handle high foot traffic in both residential and commercial spaces. The increasing demand from the construction and interior design sectors, alongside rising urbanization and a preference for sustainable building practices, has significantly boosted the market. Engineered wood _ooring offers enhanced stability, making it ideal for a variety of settings. Innovations in manufacturing techniques have led to products with better durability and lower maintenance needs.

(Source: Business Research Insights, openpr.com, Precedence Research, Expert Market Research)

Indian engineered wooden _oor market

The Indian wood _ooring market is expected to witness significant growth, driven by the rapidly expanding construction industry across the country, which increases _ooring opportunities. Government initiatives to promote tourism are boosting the hospitality industry, leading to the construction of hotels and premium accommodations such as villas and resorts. Additionally, the entertainment sector is experiencing growth due to rapid population increase and urbanization, which supports the expansion of shopping malls, family entertainment centers and other related facilities.

Globalengineeredwoodendoorsmarket

Engineered wood doors offer several advantages over traditional solid wood doors, including enhanced dimensional stability, resistance to warping and shrinking, and cost-effectiveness. These doors are constructed using layers of wood veneers or _bers bonded together, resulting in a product that combines the natural beauty of wood with improved performance characteristics. These doors are factory manufactured and are easy to install, making them ideal for real estate projects. The markets expansion is fueled by factors such as rising construction activities, urbanization, and consumer preference for eco-friendly products. Advancement in manufacturing technologies have enabled the production of engineered wooden doors with superior _nishes and designs, catering to diverse architectural styles and consumer preferences. The integration of engineered wood in door manufacturing not only enhances product quality but also contributes to sustainable forestry practices by maximizing the use of wood resources.

(Source: Globalnewswire)

Indian engineered wooden door market

The demand for engineered wooden doors is on the rise, fueled by its increasing popularity as cost-effective alternative to hardwood options coupled with durability and low maintenance requirements. Apart from this, macroeconomic factors such as the expanding population and the increasing need for housing are expected to further drive the demand for wooden doors. In the Indian wooden doors segment, factors like ease of installation, long-lasting shine and durability and aesthetic appeal make them highly suitable for the hospitality industry.

(Source: Mordor Intelligence, Grandview Research)

Growth drivers

Population Growth: In April 2023, India surpassed China to become the worlds most populous nation, with an estimated population of 1.4286 billion. This demographic expansion is anticipated to escalate demand in the construction sector, necessitating the development of additional residential and public infrastructure.

Urbanization: The urban population in India has been steadily increasing, reaching approximately 519 million in 2023. Projections indicate that by 2030, over 40% of Indias populace will reside in urban areas, contributing significantly to the nations income. Expanding middle class: Indias middle class has experienced substantial growth, now comprising 31% of the population. This segment is projected to expand to 38% by 2031 and 60% by 2047, leading to an increase in households with annual earnings between USD 10,000 and USD 50,000. This rise enhances consumer spending capacity, particularly in home and offce interiors.

Demographic dividend: As of 2025, Indias median age is approximately 28.8 years, reffecting a youthful population. With over half of its citizens under 25 years of age, there is a burgeoning demand for furniture and related products tailored to younger demographics.

Consumer market expansion: Indias consumer market is on track to become the worlds third-largest by 2027, driven by a 29% growth in real household spending. This surge is indicative of heightened consumerism and an increased appetite for diverse products and services.

Housing demand: The Indian real estate sector is poised for significant growth, with projections estimating its value to reach USD 1 trillion by 2030. This expansion is expected to stimulate demand for furniture and home d?cor items.

Medical tourism: Indias medical tourism industry is experiencing robust growth, with projections estimating the market will reach $18 billion by 2027, growing at a Compound Annual Growth Rate (CAGR) of 19%. This in_ux of international patients is bolstering the healthcare and hospitality sectors.

Hospitality sector growth: The travel market in India is projected to reach $125 billion by FY27, with the hotel market expanding from $32 billion in FY20 to $52 billion in FY27. International tourist arrivals are expected to reach 30.5 million by 2028, indicating a thriving hospitality industry.

Commercial space utilization: Indias offce market is anticipated to witness accelerated growth, with significant occupancy in both metro and non-metro cities. Key sectors driving this demand include consulting, e-commerce, business process management, and IT. (Source: Macrotrends, Press Information Bureau, Skift, Tourism Breaking News)

Growing preference for branded products: There is an increasing shift of customers from unbranded to branded products. With rising awareness around quality, aesthetics, safety, and sustainability, consumers are placing greater trust in established brands that offer consistency and reliability. This transition is being further fueled by urbanization, improved access to information, and growing aspirations for premium living spaces, creating strong tailwinds for branded players in the market.

Company overview

Greenlam Industries Limited is a leading integrated wood panel solutions provider, renowned as the largest laminate producer in Asia and one of the top three globally. It is Indias foremost decorative veneer brand. Moreover, it holds the distinction of being the exclusive manufacturer of engineered wooden _ooring and the pioneering organized producer of engineered wooden doors in India. The Company has entered chipboard business by establishing Indias largest fully automated manufacturing facility in Andhra Pradesh under its subsidiary Greenlam Limited. With group level annual production capacity of 24.52 million sheets for laminates, 2.92 lakhs cubic meter for chipboard, 4.2 million square meters for decorative veneers, 1.0 million square meters for engineered wooden _ooring, 18.9 million square meters for plywood and 0.12 million units of doors and frames, the company operates state-of-the-art manufacturing facilities located in Behror, Rajasthan, Nalagarh, Himachal Pradesh, Tindivanam, Tamil Nadu, and Prantij, Gujarat and Naidupeta, Andhra Pradesh. Greenlams diverse range of products not only enhances spaces but also elevates lifestyles.

Laminates & allied business*

Manufacturing facilities: Behror, Rajasthan, Nalagarh, Himachal Pradesh and Prantij, Gujarat Installed capacity: 21.02 million sheets per annum. Leading brands: Greenlam, New Mika, Greenlam Clads and Greenlam Sturdo.

Production during FY2024-25: 19.99 million sheets Production growth over FY2023-24: 3.5% Capacity utilisation: 82% Sales volume, FY2024-25: 19.85 million sheets Sales volume growth over FY2023-24: 5.9% Revenues, FY2024-25: H1869.6 crore Segment contribution to total revenues, FY2024-25: 84.7% Revenue growth, FY2024-25: 0.7%

*information on standalone basis

9,000

RS cr, total size of tRse domestic market in India

3,400

RS cr, total exports from India

6,200

RS cr, sRsare of tRse organized market in India

2,800

RS cr, sRsare of tRse unorganized market in India

Overview

Greenlam maintained its leadership in the decorative laminates segment, renowned for consistently delivering a diverse range of premium laminates to the market. The Companys commitment to design innovation, quality, and sustainability has strengthened its appeal across residential, commercial, and institutional spaces. Its expansive product portfolio and global presence continue to set industry benchmarks, reinforcing Greenlams position as a trusted name in surface solutions.

Outlook

In FY26, the company plans to launch a range of new products and updated shade cards across its laminates and related product categories. It also remains con_dent about expanding its footprint in international markets.

Decorative veneers business

Manufacturing facilities: BeRsror, RajastRsan

Installed capacity: 4.20 million square meters per annum Brand: Decowood

Production during FY2024-25: 1.33 million square meters

Production growtRs over FY2023-24: -6.0% Capacity utilisation: 31.0 %

SalesVolume,FY2024-25: 1.22 million square meters

Sales volume growtRs over FY2023-24: -12.7% Revenues, FY2024-25: RS113.5 crore Segment contribution to total revenues, FY2024-25: 5.1 % Revenue growtRs, FY2024-25: -9.6 %

Overview

Greenlam maintained its leadership position as Indias foremost veneer manufacturer, with an installed capacity of 4.20 million square meters annually. The markets growth is primarily driven by rising income and a_uence, along with increasing demand from the residential and hospitality sectors, which continues to fuel momentum in this space.

Outlook

The Company will continue to capitalize on the growing premiumization demand for strengthen its veneers segment

Engineered wooden floors business

Manufacturing facilities: BeRsror, RajastRsan

Installed capacity: 1.00 million square meters per annum

Brand: Mikasa

Production during FY2024-25: 0.13 million square meters

Production growtRs over FY2023-24: 6.8% Capacity utilisation: 13%

SalesVolume,FY2024-25:0.14 million square meters

Sales volume growtRs over FY2023-24: 12% Revenues, FY2024-25: RS55.4 crore Segment contribution to total revenues, FY2024-25: 2.5% Revenue growtRs, FY2024-25: 8.7%

Overview

Engineered wooden _ooring provides numerous benefits, including a sophisticated appearance and straightforward installation. Greenlam is the only manufacturer of engineered wooden _oors in India, with an annual production capacity of 1.00 million square meters. Its products are specially designed to endure Indias diverse climatic conditions. Under the Mikasa brand, the company offers customers a distinct advantage through an extensive product range, comprehensive installation support, and warranties of up to 30 years, ensuring lasting con_dence and satisfaction.

Outlook

The Indian wooden _ooring market is expected to experience significant growth, driven largely by the expanding hospitality sector. Greenlam plans to introduce new products and collections, with a strong focus on maintaining consistent engagement and communication about its offerings.

Engineered wooden doors business

Manufacturing facilities: Behror, Rajasthan

Installed capacity: 120000 doors per annum

Brand: Mikasa

Production during FY2024-25: 29427 units Production growtRs over FY2023-24: 56.3% Capacity utilisation: 25.0% Sales Volume, FY2024-25: 32675 units Sales volume growtRs over FY2023-24: 65.4% Revenues, FY2024-25: RS46.1 crore Segment contribution to total revenues, FY2024-25: 2.1% Revenue growtRs, FY2024-25: 44.0 %

Overview

The demand for engineered wooden doors is steadily increasing, fueled by their cost-efficiency compared to traditional hardwood doors, as well as their durability and minimal maintenance requirements. In India, these doors are particularly popular in the hospitality sector, valued for their easy installation, long-lasting _nish, robust strength, and attractive appearance.

Outlook

The robust growth momentum in the real estate sector is expected to significantly accelerate demand within this segment. As new residential and commercial projects multiply, the need for high-quality, durable, and aesthetically pleasing engineered wooden doors is rising sharply. This expansion is further supported by increasing urbanization, rising disposable incomes, and a growing preference for modern and sustainable building materials, all of which are driving widespread adoption across the market.

Plywood

Manufacturing facilities: Tindivanam, Tamil Nadu

Installed capacity: 18.9 million square meters per annum Brand: MikasaPly

Production during FY2024-25: 4.82 million square meters

Production growtRs over FY2023-24: 88.8 % Capacity utilisation: 26%

SalesVolume,FY2024-25: 4.83 million square meters

Sales volume growtRs over FY2023-24: 98.8 % Revenues, FY2024-25: RS122.3 crore Segment contribution to total revenues, FY2024-25: 5.5 % Revenue growtRs, FY2024-25: 111.2 %

Overview

Greenlam entered the Indian plywood market in June 2023 with the launch of the MikasaPly brand. The Indian plywood market is rapidly growing, fueled by rising demand in residential and commercial sectors, expanded distribution channels, and premium brand showrooms.

Outlook

The company seeks to broaden its reach and position itself among the top three national plywood brands by strengthening its market presence throughout India.

Financial overview

Revenue from operations of tRse Company grew 3.9% from RS2,123.5 crore in FY 2023-24 to RS2206.9 crore in FY 2024-25. TRse EBITDA margin of tRse Company declined by 120 basis point from 12.5% in FY2023-24 to 11.3 % in FY2024-25.

Key ratios

Particulars	FY25	FY24
Gross Debt-equity ratio	0.40	0.40
Net Debt-equity ratio	0.34	0.24
Return on net worth (%)	9.9	13.9
Book value per share (H)	44.57*	82.02
Debtors Turnover (days)	25	26
Inventory Turnover (days)	80	82
Interest Coverage Ratio	5.39	8.92
Current Ratio	1.17	1.24
Operating Profit Margin (%)	11.3	12.5
Net Profit Margin (%)	5.1	6.9

*Adjusted book value pursuant to bonus Issue, hence not comparable

Note:

1. Increase in Net Debt-equity ratio was largely due to decrease in cash and cash equivalent which was deployed in the capex/projects.

2. Return on Net Worth was decreased due to a lower Profit after tax in FY25.

3. Interest Coverage Ratio was declined due to higher debt exposure and a reduction in EBITDA during FY25.

4. The decline in Net Profit Margin was largely on account of lower EBITDA margin, higher depreciation and higher interest expenses during the year.

Risks and concerns

Competition risk

Risk: Intensifying market competition may challenge Greenlams market share.

Mitigation: Greenlam leverages its expansive distribution network and diversi_ed product portfolio—spanning laminates, veneers, engineered wood _ooring, and doors—to strengthen market presence. Continued emphasis on product innovation and uncompromising quality helps sustain competitive advantage and support growth throughout market cycles.

Product obsolescence risk

Risk: Changing consumer preferences could lead to product obsolescence, resulting in excess inventory and potential revenue decline.

Mitigation: Greenlam integrates emerging trends and consumer insights into its product development process, ensuring offerings remain relevant, functional, and aesthetically appealing. Its broad range of solutions positions the brand as a one-stop provider for home d?cor, enhancing resilience to changing demands.

Financial risk

Risk: Ineffective debt and liquidity management could a_ect long-term financial sustainability. Mitigation: The company follows disciplined receivables and payables practices, maintaining healthy liquidity levels, with cash and liquid investments amounting to H75.7 crore as of March 31, 2025. Greenlam also sustains a strong debt-service coverage ratio of 3.38 and an interest coverage ratio of 5.39 times, supporting operational stability.

Quality risk

Risk: Poor product quality may damage brand credibility and adversely a_ect sales.

Mitigation: Greenlam operates advanced, world-class manufacturing facilities that emphasize precision, quality assurance, and e_cient resource utilization, helping to uphold product integrity and minimize production waste.

Distribution risk

Risk: Ineffective distribution could limit reach and slow expansion into new geographies.

Mitigation: Greenlam has established a robust distribution framework comprising nearly 40000 plus dealers, distributors, and retailers across India. A strong logistics network ensures timely service delivery, while an international footprint in over 120 countries supports a diversi_ed and global customer base.

Technology risk

Risk: Lagging technological capabilities may reduce operational efficiency and market competitiveness. Mitigation: The company has invested in state-of-the-art IT systems, including the latest SAP S/4HANA platform, along with CRM and DMS tools, to enhance operational efficiency, data-driven decision-making, and real-time business visibility.

Human resources

Greenlam Industries Limiteds human resource strategies have played a pivotal role in reinforcing its market leadership. During the year under review, the company strengthened its regional HR capabilities to enhance employee outreach and engagement. It also advanced its People Development Strategy by forming dedicated teams focused on both technical and soft skills training, emphasizing holistic skill enhancement. These teams implemented a structured, calendar-driven training framework to ensure ongoing workforce development. As a result, employees gained from a well-rounded program that nurtured both their technical competencies and interpersonal abilities. Greenlam continues to foster an engaged, high-performing workplace and is committed to building an aspirational employer brand by continuously re_ning its HR processes and adopting contemporary best practices. As of March 31, 2025, the company employed a total of 2680 personnel on its payroll.

Opportunities

Greenlam Industries Limited stands to gain from the evolving consumer trend that increasingly values quality over mere a_ordability. This transition is likely to drive a faster shift from the unorganized to the organized sector. Backed by its unwavering commitment to quality, innovation, and customer-centricity, Greenlam is well-placed to reinforce its leadership position both domestically and internationally.

Threats

Reliance on raw material imports from neighbouring countries could be challenged by regulatory restrictions, especially in a highly price-sensitive market. Moreover, the ability to fully pass on increased input costs to consumers may be limited, which could exert pressure on Profit margins.

Internal control systems and their adequacy

The Company has implemented robust internal control systems tailored to its scale and operations. The Board of Directors oversees these systems, ensuring their adequacy, effectiveness, and consistent application. The controls aim to enhance operational efficiency, ensure accurate and veri_able reporting, comply with relevant laws and regulations, and safeguard Company assets — all while proactively identifying and mitigating business risks.

Cautionary statement

Statements in this section, describing the Companys objectives, projections, expectations, or estimates, may be ‘forward-looking statements under applicable securities laws and regulations.