CenturyPly hires BCG to support growth and production ambitions

Boston Consulting Group (BCG) is set to help Century Ply cut costs and boost production for its laminates business – building on a successful partnership so far. 

Plywood manufacturer CenturyPly is in the midst of a phased optimisation drive – aimed at cutting costs, boosting productivity and upping revenues across its entire operation. Business transformation experts from BCG were earlier roped in for phase one of the project – focused on the company’s medium density fireboard (MDF) division, as well as wider improvements to logistics, power and procurement. 

According to CenturyPly executive director Keshav Bhajanka, the partnership has been successful so far. “In the first phase, BCG worked on the cost side and we are expecting annualised savings of ₹30 crore plus,” he told BusinessLine. Encouraged, the company has now extended the collaboration with the strategy consulting firm to phase two. 

“In the second phase, it is on the laminates side that they will work on enhancing production, cost reduction and increasing sales/turnover of the vertical,” he added. The goal is for CenturyPly to reach its current capacity potential, although Bhajanka hinted at expansion too. 

“I think there is more scope and the engagement with BCG will enable us to unlock further capacities in the existing lines. But definitely, by next year onwards, we will be looking to expand our laminates capacity as well.” 

Among the company’s known plans is a greenfield MDF production plant in Andhra Pradesh – a market with which BCG is well versed, having previously charted a development plan for the state. Bhajanka left the option of external financing open for the new plant – to be topped off with a ₹200 crore MDF unit to be opened in Punjab in early 2023. 

“We are looking at close to 35 per cent to 40 per cent the last year’s expansion in plywood with the new unit, and the balancing equipment being added in the existing units,” explained Bhajanka.