Archidply Industries Limited, manufacturers of comprehensive engineered interior products which include Plywood, Block Board, Plain and Pre Laminated Particle Board, Decorative Laminates and Decorative Veneers, has chalked out an expansion-cum-modernization plan with a capital investment of Rs 83 crore.

The company plans spend Rs 36 crore on its greenfield particle board and decorative plywood plant at Chintamani, Karnataka with a capacity of 45,000 cubic meters and 10,000 cubic meters respectively, for which it has already acquired 12.5 acre of land. The plant is set to begin production in September this year.

The company also plans to set up an MDF plant in its existing location at Rudrapur, Uttaranchal with a capacity of 60,000 cubic meters at an investment of Rs 26 crore. This plant is likely to commence commercial production in August 2009.

Recently, the company has received clearance from the market regulator SEBI, for its initial public offers of 66, 15,720-equity shares. The company would enter the capital market to raise Rs 55 crore to part fund the expansion projects.

However, the balance amount of Rs 28 crore would be obtained through term loan, for which the company has tied-up with Union Bank and Oriental Bank of Commerce.