The fresh capital will be deployed towards capacity expansions, product localisation, working capital, market development and deeper market penetration. The JV will issue shares with differential voting rights as part of the proposed restructuring.
Under the preliminary terms, Samet’s voting interest will increase from 50% to around 81%, while Greenply’s voting interest will dilute from 50% to around 19%. Greenply will initially retain an economic interest of around 43% in the JV, which will reduce over time. Its voting rights will remain fixed at around 19% until the economic and voting interests become equal.
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Following completion of the restructuring, the JV will cease to be an associate company of Greenply. The company will no longer be required to consolidate the JV’s financial results, and all further equity funding from Greenply will cease.
The restructuring transaction is expected to be completed by January 2027.
Despite moving to a minority voting position, Greenply will continue to support the alliance strategically as and when required. The company will continue participating in the long-term value creation of the alliance through its continuing minority economic stake.
The company said the restructuring will combine Samet’s technical expertise with the additional funding to support the alliance’s expansion and market penetration.
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Sanidhya Mittal, Joint Managing Director of Greenply Industries Ltd, said, “Our decision to restructure our stake in the joint venture marks a conscious and strategic shift to streamline our portfolio. By securing an additional investment from our partner Samet, the JV gains the power it needs to scale independently.
At the same time, it allows Greenply to hyper-focus on its thriving core Plywood and MDF portfolios. We will continue to support the alliance and are confident that this optimised structure will create meaningful long-term value for Greenply’s shareholders even as we hold a minority voting stake.”
By ceasing loss funding and capital expenditure (CAPEX) obligations toward the JV, Greenply frees up critical financial bandwidth to deploy into expansion opportunities within its dominant plywood and MDF portfolios.
Shares of Greenply Industries Ltd ended at ₹291.60, down by ₹5.45, or 1.83%, on the BSE.
