Greenlam South Limited (IFC-45943)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Specific Location
Naidupeta, Nellore, Andhra Pradesh
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Borrower
GREENLAM SOUTH LIMITED
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 111.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 26, 2022

Disclosed by Bank Oct 24, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC, the proposed investment is a loan to support Greenlam South Limitied in establishing a greenfield processing plant with a capacity for 231,000 CBM per annum for particle board and 3,500,000 sheets/boards per annum for laminates along with 188.75 TPD captive resin plant at Naidupeta in Nellore District, Andhra Pradesh.

The proceeds of the loan provided by IFC shall be used specifically for the construction, equipping, and placing into operations (including working capital requirements) of a greenfield manufacturing High-Pressure Laminate and Wood Based Particle Board Plant in Naidupeta Industrial Park managed by Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC). The Naidupeta plant has obtained Consent to Establish in February 2022 and other relevant applicable permits required for the start of construction. The EPC contract for the laminate unit, captive resin plant and common facilities like the Effluent Treatment Plant (ETP), Sewage Treatment Plant (STP) and boilers have been awarded. The construction is at a very early stage with foundations and earthwork activities going on at the site. The Company is in discussion with the equipment suppliers and a contractor for particle board units. The Company will continue to source kraft paper and chemicals from its existing suppliers of Greenlam for laminate production. For particle board, it intends to get into agroforestry operations through a farmer engagement model. The project envisages decentralized agroforestry in the catchment area (through open market, farmers and aggregators) of the manufacturing plant to meet majority of the core wood requirement for the particle wood segment. The remaining requirement of the wood supply will be sourced from existing private tree growers beyond the catchment area and Industrial Plantations of Andhra Pradesh Forest Development Corporation Ltd (APFDC). The Company envisages taking off the plantation development program from  2023 onward. It intends to develop the Centralized Clonal Production Center for mass propagation of the required quantum of quality planting stock and the Tree Improvement Program through applied R&D initiatives in collaboration with research institutes and agriculture universities to introduce new varieties and higher productivity in the agroforestry operations.                            

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total cost of setting up the greenfield manufacturing facilities for high-pressure laminates and particleboard (the Project) is US$111 million, of which US$39 million will be financed via equity from Greenlam. The balance will be funded through debt from IFC (up to US$25 million), Export Credit Agency Financing (EUR 25.459 million), and other local and international lenders in India.

Private Actor Relationship
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Greenlam is headed by Mr. Saurabh Mittal (Sponsor), the Managing Director and CEO, who possesses more than two decades of experience in the wood panel industry. The Company is a listed on the Bombay and National Stock exchanges of India and has a market capitalization of US$ 510 million as of October 07, 2022. As of June 30, 2022. the Sponsor and his family members own 53.8965% of Greenlam and the balance is owned by public shareholders.   

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Greenlam Industries Limited (“Greenlam”) is one of the leading decorative laminates brands in Asia. Greenlam is also India’s leading decorative-veneer brand and the only manufacturer of engineered wooden flooring and doors. It currently has two laminates manufacturing plants in Northern India (Rajasthan & Himachal Pradesh) with a total capacity of 15.6 million sheets/boards per annum. 

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Greenlam Industries Limited Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Greenlam South Limited
Mr. Ashok Sharma
Director
+91 11 4279 1399
ashok.sharma@greenlam.com
Aerocity, IGI Airport Hospitality District, New Delhi – 110 037, India
www.greenlamindustries.com

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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