Greenlam Industries Limited (NSE: GREENLAM) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Saurabh Mittal — Managing Director & Chief Executive Officer
Ashok Sharma — Chief Financial Officer
Analysts:
Keshav Vijay Ratan Lauti — Analyst
Utkarsh Napani — Analyst
Sneha Talraja — Analyst
Bhavin Dopani — Analyst
Presentation:
operator
Sa.
operator
Ladies and gentlemen, good day and welcome to The Greenlab Industries Limited Q3 and 9 month FY26 earnings conference call. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on attached on phone.
Please note that this conference call is being recorded. I now hand the conference over to Mr. Sourabh Mittal, managing Director and Chief Executive Officer, Greenlam Industries India Ltd. Thank you. And over to you sir.
Saurabh Mittal — Managing Director & Chief Executive Officer
Good afternoon everybody and welcome to the quarter 3 and 9 months FY26 earnings call. I’m pleased to have all of you on the call and we’ll be discussing the performance and the business updates of Q3 nine months. I’m joined by our CFO Ashok and Samath from the finance team as well as the SGA team, our investment, our investor relations advisors. I’m sure you’ve had the opportunity to look at the results and the investor presentation which are available on the stock exchanges and on the company’s website. I’ll give you a small brief about some business updates of the last quarter and just take a little bit through the financial performance before I hand over the call to Ashok.
So on the business side, on the laminate side, the Brownfield expansion at the Nitro Beta plant is progressing more or less as on track and we should be up and running with our two additional lines in Q4 of FY27 on the laminates. In last quarter we were awarded the largest exporter of laminates for I think about 16 years now. And this clearly marks our performance in the category considering the quality, innovation dimensions, the global presence, the diverse markets we have and presence across categories of laminates. During the last quarter we also streamlined our brand architecture.
So now as we move ahead we’re going to work on two brands. The Green Lamp brand which will carry Green Lamp laminates, Green Lamp facades, Green Lamp sturdo, Merrimack chipboard, etc. And now the second brand is going to be Mikasa. So Mikasa brand will carry the laminates. The erstwhile new Mica becomes Mikasa Laminates. We have the Mikasa Plywood. We have the Mikasa Veneer. The erstwhile Deco becomes Mikasa Veneers. And obviously we have the Mikasa flooring indoor. So we have two brands in the market which we are going to push and promote and build. So I think that streamlines a lot of our operational issues on ground and also increases the value of every brand and the spend we do on brand and promotion.
On the chipboard business, I think chipboard business is also gradually improving. We improved our numbers and performance, reduced our losses there. In Q3 we also successfully launched a high moisture resistant chipboard which is the product comes with special moisture resistance properties and we’ve had good feedback on the product. And as I talked with you, we are in the process of building the network and the customer base. So broadly these were the large ticket business updates. On the revenue side we grew. Although we grew 17 odd percentage at 706 crores in Q3 from our expectations, the numbers were a bit lower.
One is that versus Q2 sequentially we obviously came down by nearly 100 crores of revenue. So Q3 usually has been a slow quarter for us considering the holiday season etc. Where there’s work disruption in India and for our exports too. In the last 10, 15 days of December, people postponed shipments. So I think that’s impacted the Q3 revenues. And also the domestic business has been a bit slower than our expectations. As we move ahead, I think Q4 we are driving to build the numbers well and as we talk things are going in a good direction.
So we hope the Q4 numbers will be in line with the 80 0% top line growth on the margin front. At the gross margin level, I think we improved in percent versus Q2 also. So I think pricing discipline, raw material, cost, value addition and that’s all going in a good direction. And I think we’ve had one of the highest gross margins in Q3 or 55.5%, slightly higher than Q2 also in terms of percent, not in terms of value. So at the gross margin level I think we’ve done reasonably well. Ebitda. Obviously we had a little bit of higher cost of operation.
There’s been some exceptional losses on the wage code matter and obviously we still have high depreciation and interest due to the recent capitalizations of the plants over the last three years. So I think the revenues need to kind of pull along and we hope that Q4 is better than what we did in Q3. And usually Q4 and Q2 are better quarters as we’ve seen in the past. And we’re fairly confident that business will move in that direction itself. So I think that’s it for me at the moment. So I’ll hand over the call to Ashok and Ashok will take you through all the numbers and post which we can address your questions and queries if any.
Thank you sir.
Ashok Sharma — Chief Financial Officer
Good afternoon everyone. Let me take you through the financial performance for the quarter and for the nine months. First, coming on to the quarterly performance on a console basis, our net Revenue grew by 17.3% on year on year basis to 706 crore as compared to 602 crore in Q3 last year. Gross margin grew by 60 basis points and stood at 55.6% in this quarter from 55% in Q3 last year. Gross profit in absolute term also grew by 18.6% on YoY basis to 393 crore as compared to 331 crore in quarter three last year. EBITDA margin before forex fluctuations and exceptional Items was declined by 170 basis point to 9.2% in this quarter as compared to 10.9% in Q3 last year mainly on account of higher operating cost and the Naidu PETA chipboard unit.
EBITDA before forex fluctuation and exceptional item in absolute terms remain flat at 65 crore in this quarter as compared to last year. We incurred a Net loss of 0.6 crore for the quarter on account of forex fluctuations. Exceptional item, higher operation cost, higher interest and depreciation for chipboard businesses moving on to nine months. Net revenue for the nine months grew by 15.9% on year on year basis and stood at 21. 88 crore as compared to 1, 1888 crore. Gross margin was up by 160 basis point to 54.4% for the nine months in comparison to 52.8% in nine months last year.
Gross profit in absolute term grew by 19.4% to 1191 crore as compared to 997 crore in nine months last year. EBITDA Margin Before Forex Fluctuations before forex fluctuations an exceptional item was down by 80 basis points at 10.4% in comparison to 11.2% in nine months last year. EBITDA before Forex fluctuation an exceptional item grew by 7.5% to 227 crore in nine months as compared to 211 crores last year. Net profit was down by 77% to 15.5 crores in nine months as against 66.9 crore in nine months last year. Now I’ll move on to the segmental performance first.
The laminate and allied segment in the quarter three. Revenue grew by 8.1% on year on year basis to 562 crore in this quarter from 520 crore in quarter three last year. EBITDA margin before forex fluctuations an exceptional Item stood at 14.5%, a growth of 100 basis points on year on year basis production volume stood at 5.08 million seats at a utilization level of 83%. Sales volume for the quarter stood at 4.75 million seats, a decline of 0.4% on year on year basis. Our average realization for the quarter was 1143 per seats. Moving on to nine months.
Laminate revenue grew by 7.5% and stood at 1,775 crore from 1651 crore in nine months last year. EBITDA margin before forex fluctuation stood at 15.4%, a growth of 150 basis point on year on year basis. Production volume were at 16.14 million sheets and at a utilization of 88%. Sales volume for the nine months stood at 15.48 million sheets grew by 4.4% on year on year basis. Our average realization of laminate for nine months was at 1,112 per sheet. Moving on to another segment, Plywood and allied which consists of plywood, decorative veneer, engineered doors and engineered floors.
Revenue for the quarter grew by 9.5% to 90 crore in this quarter in comparison to 82 crore in Q3 last year. EBITDA loss before forex fluctuation stood at 13.3 crore for the nine month. Revenue grew by 18.6% on year on year basis to 281 crore from 236 crore in nine months last year. EBITDA loss before forex fluctuation for the nine month stood at 25.8 crore. I’ll move on to the next segment which is panel and allied segment which consists of chipboard for this quarter Chipboard revenue grew by 13.3% on quarter on quarter basis to 54.2 crore since there was no sales since we have started our business in quarter four so there is no comparison figure for the last year.
EBITDA loss for the forex before forex fluctuation Is stood at 3.2 crore. Production volume stood at 30,028 cubic meter and at a utilization level of 41%. Sales volume for the quarter stood at 28,954 cubic meter, a growth of 10% on year on year quarter on quarter basis and average realization for the quarter stood at 18,668 cubic meters for the nine months. Chipboard revenue stood at 133 crore. EBITDA loss before forex fluctuation stood at 20.9 crore. The production volume were at 78,146 cubic meter. And at a utilization level of 36%. Sales volume for the nine months stood at 69,851 cubic meters.
And our average realization for the nine months was at 18,992 cubic meters. Moving on to balance sheet item. In this quarter our working capital cycle improved by 9 days to 58 days as compared to 67 days in Q3 last year. And net debt as on 31st December stood at 1,010 crore. That’s all from my side. Now we will open the floor for the questionnaire. Thank you.
operator
We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue, you may press star and 2. Participants are requested to use hands up for asking the question. Ladies and gentlemen will wait for a moment while the question queue assembles. The first question is from the line of Keshav Vijay Ratan Lauti from HDFC securities. Please go ahead.
Keshav Vijay Ratan Lauti — Analyst
Hi. Thank you for the opportunity. Personally on your guidance which you have given top line 18 to 20% for this year. Still that holds true in light of you know, challenging demand environment. And secondly the lion particle board shipboard should break even EBITDA break even next. Year.
Saurabh Mittal — Managing Director & Chief Executive Officer
For the sales growth nine months we had about 15.9% precisely growth. So depending on how Q4 goes, maybe we’ll probably end up instead of 18, 20, maybe a percent lower maybe somewhere on an annualized basis. So plus minus a little bit here. But I think we’re not so way off despite the ground challenges of demand. And in terms of breakeven of plywood and chipboard, we expect that this will break even in the next next year.
Keshav Vijay Ratan Lauti — Analyst
Got it. And how are things evolving on the US tariff side for laminate? Is it you know, customer and you both are taking the hit of the tariff?
Saurabh Mittal — Managing Director & Chief Executive Officer
Yeah. So as of now since there is no end of the light in terms of when it will come kind of a thing. So as of now the tariff is applicable on our product. So we have done and we have increased some of the prices to the market. So some of the hit has been taken by the taken by the customer and rest is taken hit by subsidiary and as well as India office. Some of this has Got offset in terms of when the depreciation in inr so some is this getting depreciated compensated from that.
Keshav Vijay Ratan Lauti — Analyst
Got it. Last question from my side. How are the laminates pricing trending domestic and export market and lastly how is the cost is moving?
Saurabh Mittal — Managing Director & Chief Executive Officer
Sorry, will you come again?
Keshav Vijay Ratan Lauti — Analyst
So, so my question is how is the is there has been any change in laminate present in domestic or international market? And secondly, is there any changes in raw material cost?
Saurabh Mittal — Managing Director & Chief Executive Officer
Laminate pricing in tubestic is by and large stable. International pricing is also more stable in few cases due to the currency depreciation. We’ve had to kind of, you know, agree on certain discounts due to competitive pressures on the raw material cost side also by and large things are stable despite the rupee depreciation. Chemical costs are more or less in a similar range. Deco paper where we import the paper from Europe and from Asia they obviously cost have gone up because of the currency depreciation. Otherwise the base prices more or less remain similar. So net net you can assume that both sales prices and precaution prices are in a similar like a range or not much movements there.
Keshav Vijay Ratan Lauti — Analyst
Got it. Thank you so much.
operator
Thank you. A reminder to all the participants, you may press Star in one to ask question. The next question is from the line of Utkarsh Napani from Anandradi. Please go ahead.
Utkarsh Napani — Analyst
Yeah, hi, Good afternoon sir. So my first question is regarding your particle border division. So sir, just wanted to know like rupee has weakened quite a lot over the past few months. So whether the industry is planning to take a good price hike in this category due to the impact of weakening rupee or particle Good prices are likely to remain stable due to the supply overhang in the domestic market for the next few quarters. So I just wanted your view on this. Right.
Saurabh Mittal — Managing Director & Chief Executive Officer
So. So chipboard because imports of chipboard into India was anyway quite small and post the QCO implementation, you know, in 2025 I think it further, you know, shrunk a bit because Indian capacities came up high quality and availability of better dimensions and local availability, et cetera. So unfortunately there’s not much impact of the rupee depreciation in terms of making imports more expensive and us more competitive on the pricing side. As we see things now with the demand and supply, we are not seeing much room for price increases in chipboard. What we are trying to do is improve the value mix by promoting melamine faced chipboard which is preliminary particle board.
And I also said earlier in the call we launched high moisture resistant grade in particle board which earlier was not so available in the market. Now two or three companies have launched that where the realization per cubic meter is higher than the plain board. So I think steps are being taken to kind of upsell and also introduce superior product variants in the chipboard range. So I think that might lead to certain price per cubic meter price relation improvements.
Utkarsh Napani — Analyst
Okay, answer like what is our targeted capacity utilization for the particle board project for FY27 and on the capex side sir, if you can give some idea how much capex we have already spent till December 25 and how much is remaining and by what time frame we would spend the remaining amount.
Saurabh Mittal — Managing Director & Chief Executive Officer
So in terms of for the next year we have targeted around 55 60% of the capacity utilization for the chipboard. And in terms of the, in the, in terms of what is your next question sir?
Utkarsh Napani — Analyst
Capex, how much we have spent till date and how much it is capex.
Saurabh Mittal — Managing Director & Chief Executive Officer
In terms of that most of the capex has been, has been done. In terms of that roughly around 50 to 75 crore rupees is pending with some of this which may be spent in this quarter if if at all anything is remaining that will be done in the quarter one of next year.
Utkarsh Napani — Analyst
Okay. And sir, my next question is on the plywood segment. So earlier we were targeting to reach the breakeven point in plywood by Q4 of FY26. But in Q3 of FY26 what we saw that our operating losses has gone up. So just wanted to know whether we would now like to revise our timeline of reaching the breakeven point which we were earlier targeting. Q4 of FY26.
Saurabh Mittal — Managing Director & Chief Executive Officer
So Q3 in the plywood segment actually if you see, you know we slipped versus Q2 in terms of revenue. Gross margins also in that segment came down a bit because in that entire segment a lot of raw material is imported. So in rupee term the currency impact was there. So I think operational deleverage and some RM cost increase in rupee term because of the currency movement has happened in the ply and allied category. We are hoping that Q4 will be a better period across all those sub segments in the ply business. And we remain optimistic that things will improve in that segment also.
Utkarsh Napani — Analyst
And sir, what would be our targeted capacity utilization for plywood plant for FY27?
Saurabh Mittal — Managing Director & Chief Executive Officer
You see as of now, as of now on a nine month basis we are at a capacity utilization of around 34%, 35%, close to 35% kind of a thing. So there also our expectation is that we should be in the range of around 55 60%.
Utkarsh Napani — Analyst
Okay. And sir, lastly on the laminate side sir, like you have mentioned in the press release that we have seen modest volume growth in the domestic market while our volume was relatively flat on a bio Y basis. So it implies that our export volume has gone down. So can you please specify the reason for the decline in our export volume and how the export is shaping up in the current March quarter. And on the realization front sir, there has been a sharp improvement in laminate realization in December quarter. Is it majorly because of the weakening rupee effect and whether such higher realization is likely to be sustained going forward or we will have to pass on the benefit of weak rupee to the consumer to push our volume in the export market going ahead.
So these are my two questions on volume.
Saurabh Mittal — Managing Director & Chief Executive Officer
So I’ll take the question the volume part. So in exports like I said earlier also in the call that in the month of December we’ve had postponement of shipments for our European and UK market postponed shipments to Jan from let’s say December. So our inventory in transit actually has increased substantially and so those sales should show up in Q4 as far as exports is concerned on the price realization improvement. So you’re right. Largely price duration improvement has happened due to the weakening of the rupee and some value mix improvement in the export business. And last question was.
So in terms of. The. Volume if you see for the export the nine month volume is higher so. But in this quarter SR is mentioned in terms of that only. Otherwise we are on track in terms of that there will be value growth in volume growth in both the segment will be there.
Utkarsh Napani — Analyst
Okay, got it sir, thanks.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next question is from the line of Sneha Talraja from Nuama. Please go ahead.
Sneha Talraja — Analyst
Hi team, good afternoon and thanks a lot for the opportunity. Just two to three questions from mine. Firstly on the call you mentioned that there were a couple of one off impact like the case of wage impact. You also mentioned I think there was some forex loss. Could you quantify all the one off impact in this particular quarter?
Saurabh Mittal — Managing Director & Chief Executive Officer
So so those one of impact those like forex detail is already there in a already there One of is the exceptional which is on account of. Which is on account of wage code kind of a thing that is 6.2 crore. Some additional higher operating costs you know versus like let’s say Q3 or Q2. So no specific one off cases which we can mention right now. But yeah.
Sneha Talraja — Analyst
And secondly with respect to demand, what we could see is of course there is quarter on quarter dip which is seasonally there. But even in case of newer segments like plywood and all, we have not seen any particular improvement, you know, in a strong way this particular quarter. Even your doors and flooring businesses, you know, again making losses in this particular. Was it any demand issue in quarter three as such or you would just mention the seasonality impact in quarter three.
Saurabh Mittal — Managing Director & Chief Executive Officer
So if you see Q3 and Q3, yes, obviously we’ve grown at 70% but in some segments the growth’s not what it should be and we said that earlier. So one, there is a seasonality impact because typically Q3 is a bit weaker, at least in our case traditionally also has been a bit weaker than Q2. So Q2 and Q4 are the better quarters. But on the demand side also feedback we have from our teams on ground and from our partners is demand is just generally a bit slow and there are cash flow challenges. So that’s just more like a general feedback.
I can’t quantify to put a data to it, but that’s a feedback we receive from people. But our domestic business also has grown at 17%. But yes, it could be because when you see it in light of Q2, sequential Q3 looks a bit weak in terms of the revenue growth and it is weak actually versus Q2. So yes, people do say that demand has been a bit low on ground, seasonality, Delhi, NCR graph issues. I think there are so many issues people keep talking about but I can’t put a finger on it actually.
Sneha Talraja — Analyst
So in that case we should see a bounce back in terms of profitability and revenue growth for all these divisions like decorative veneer, doors and floors, everything moving back to profitability by Q4.
Ashok Sharma — Chief Financial Officer
So if you see Q2 performance at additional 100 crore revenues, our EBITDA was 106, 107. So fixed costs are more or less done, GP is being maintained, price points are maintained, product quality, supply chain, factories are all doing well. So I think if revenues go up, I don’t see a reason why that won’t happen actually. And we are pretty hopeful that revenues in Q4 should be decent. Traditionally also we’ve done really similar numbers in Q4 and Q2, maybe at times slightly higher than Q2. Also.
Sneha Talraja — Analyst
Lastly on the plywood front, our utilization is still hovering at about 3035 odd percent. It’s been roughly around two and a half years of operations. What would you actually would want to know what is lagging in this particular segment. Is it as per the track that the company would have anticipated or are we facing delays? If yes, this is on account of what. What’s your reading on this?
Ashok Sharma — Chief Financial Officer
So it’s been slower than we expected. I think we’re doing reasonably well in South India and you know the other markets which we opened over, let’s say this fi and some in last year, I think that they’re still yet to kind of mature. We also have now in last like towards the end of Q3 done a soft launch of a variant below the marine grade variant called BWP which is at a 5,6% lower variant. So I think that offering was missing from our house. So we’ve done that also. So we still are hopeful that this number should improve.
Feedback on product quality and secondary working is pretty good. And I think with this brand architecture which we’ve streamlined with Mikasa brand carrying plywood, laminates, veneers, flooring, door and that also give it a bit of a more branding portion help in better demand creation. So we remain positive on the segment. But yes, it’s been a bit slower than we expected.
Sneha Talraja — Analyst
Noted. And one last one in case I may. You also mentioned that you streamlined brands and you have launched, you know, even laminates under Mikasa and you know plywood was always there. Just want to understand what would be the difference between the Green Lamb brand and Mikasa brand. What would be the price change between both, let’s say laminates of Green Lamb is sold at what pricing range and what would be that for Mikasa and similarly for maybe one or two other product in case you can give some color there.
Ashok Sharma — Chief Financial Officer
So we didn’t launch a brand new collection of Mikasa. We already had a brand called New mica in that 1 millimeter segment. So that’s been rebranded, repositioned as Mikasa. So at one point we had four brands, Greenlam, Mikasa, Deckerwood and New Mica. So Deckerwood, the supply businesses moved together, was rebranded as Mikasa Veneer sometime earlier in FY26. And now with the new launch, new range launch of New Mica, we rebranded New Mica as Mikasa. So it was already existing. We just corrected the whole program and put it under one brand. So Mikasa brand now is nearly a thousand crore potential portfolio with all these categories.
As far as the difference is concerned, there are two different brands which have two different product programs and ranges. So from a price point difference it’s not much. Greenlab and Mikasa on the main category would be maybe 3 to 5% lower. Mikasa is probably 3 to 5% lower than Prelab laminates. But it’s not a price point driven program. It’s more of a range catalog. Common dealers, common specifications. I think that’s the model of Mikasa Laminates as we move ahead. And that’s the only product which has an overlap. Otherwise chipboard and plywood flooring, doors, vineyards are all.
We don’t have multiple brands. It’s only in laminates we have this a two brand strategy.
Sneha Talraja — Analyst
No, I think that was pretty clear. And you also mentioned that this brand has potential of thousand crore revenue. If we may ask what it what would be in FY26 estimated or FY25, what that would have been?
Saurabh Mittal — Managing Director & Chief Executive Officer
I don’t have that math right in front of me. And Ashok is smiling. So I think we’ll have to deal with Ashok on the separately please.
Sneha Talraja — Analyst
Sure, sure. We take it one on one. Sure, sure, sure, sure. Thanks. Thanks a lot team and all the very best.
operator
Thank you. The next question is from the line of Bhavin Dopani from Investech. Please go ahead.
Bhavin Dopani — Analyst
Hi sir. Thanks for the opportunity. First question is related to chipboards. Are any indication of India level supply in terms of CBM as of now and any gauges or any ideas on new capacities that are coming up.
Saurabh Mittal — Managing Director & Chief Executive Officer
So we have all this data but it’s not available right away on total installed capacity. Because chipboard capacities have to be seen as wood based, particle boards and bagasse based and then wood based there are continuous lines and multi lane lines. So I think we have all the data. It’s not right off available here. So I think maybe someone can help you with that at a later point. As far as new capacity is coming up, as far as I know, no new major capacities are coming up. We do hear of some Pagasse based boards plants coming up in some parts.
But on the wood based particle board, all board plants of our size, you know, I haven’t heard of anything as of now, but that’s what I know. But I’m not so sure on that. But with my understanding, not not many or not or literally none new capacities are coming up at this moment. Unless you have anything to add as.
Bhavin Dopani — Analyst
Okay.
Saurabh Mittal — Managing Director & Chief Executive Officer
Sorry, I was saying the capacity you put up, you know, was it a 85 rupee to euro rupee conversion? And now with the price points, you know, clearly I think the capex costs also go up with the depreciation in both the dollar and the euro. So this is going to be a bit harder in terms of capex costs, et cetera. But Sorry, Go ahead please.
Bhavin Dopani — Analyst
Yeah, I mean, so for raw materials or post bs, what we have seen is decline in production of plywood by unorganized players. And what we understand is that there is a case of shortfall of scrapped woods which is generally used as an input for making chipboard. Is it by any chance impacting us or have we seen any inflation over that in that part of the product or product chain, value chain?
Saurabh Mittal — Managing Director & Chief Executive Officer
As far as we are concerned, this is not because we were not using plywood like we were using our own generated waste of our plywood factory and the wood we were using. But from that point we haven’t seen much impact in our business. Maybe certain factories of Chipot were based on wood waste generated from sawmill and plywood mills. But that was not the case. That’s not the case in our factory. So we have our own chipper. So we are buying agroforestry wood from Andhra Pradesh and surrounding area. So that’s what impacted us in terms of supply chain of cost.
Bhavin Dopani — Analyst
All right. And in case of resin prices due to this ongoing political issues, how have you seen resin pricing reacting after December?
Saurabh Mittal — Managing Director & Chief Executive Officer
When you say politics. Geopolitical.
Bhavin Dopani — Analyst
Right? Geopolitical.
Saurabh Mittal — Managing Director & Chief Executive Officer
Yes, yes, yes, yes.
Bhavin Dopani — Analyst
Yeah.
Saurabh Mittal — Managing Director & Chief Executive Officer
So I said that earlier to somebody. I think the chemical costs have more or less been chemical and the output of resin more or less being stable despite the rupee depreciation. Maybe there’s lack of demand or something of that sort. So actually despite the rupee depreciation, resin costs or chemical costs, by and large, some have gone down a bit, some have gone up a bit, but at an overall level as cost of chemicals in raw material, it’s been about the same.
Bhavin Dopani — Analyst
All right. And one last question. So in case of chipboards, there is obviously higher presence of unorganized players. So what I understand is their quality is subpar versus our product. Right. So to compete with them, do we have any product which is a parity or comparable to them or we don’t produce such quality or mass end of the product.
Saurabh Mittal — Managing Director & Chief Executive Officer
So as for the board quality, we have just one board quality. So we don’t have a B grade board quality. But in terms of the decor range. So we have two decor range in melamine face chipboard. One is a studio which is more premium only European papers. And one is called universal which is a bit lower than the studio where the deco papers are most suited to residential usages of people who make furniture for residential purposes which are from Chinese origin or Indian origin. So that’s priced at a slightly lower point. But the absolutely local market bagasse based model that’s really, really cheap quality.
So we can’t even end up producing that in our factory. We can’t even imagine producing that. So yes we are in that space. But you do appreciate with better quality chipboard. I think the market is also moving up with the offering and earlier there were not too many companies who were focused on this category. Now we have two, three companies who are focus and they have meaningful capacities, they have a pretty good range, they have teams on ground. So I think the category will itself kind of get get uplifted.
Bhavin Dopani — Analyst
Sir, how should one understand the pricing differential between our product versus unorganized players in chipboard? Yes.
Saurabh Mittal — Managing Director & Chief Executive Officer
So one is for the local companies. Or unorganized guys won’t produce. So unorganized would again need to see in two parts. One is the bagasmit producers, the others. Are wood based producers. So many of the local companies are limited by the dimension they can produce or the thicknesses they can produce. So the flexibility of the equipments or the technology can’t produce 6 by 8, 6ft by 8ft, 6ft by 9ft. Some can only produce some sizes. So it’s a bit more longish discussion. But clearly I think with the quality of board they will not have magnetic controls. The boards would consume more blades of the OEM producer. The finishing will not be nice, the undulations, the texture product will not be good. You know the resin emissions could be high.
So I think there’s so many parameters, you know on that.
Bhavin Dopani — Analyst
A point taken sir, but how should one understand the pricing differential?
Saurabh Mittal — Managing Director & Chief Executive Officer
So I understand that the pricing again would vary. So it depends on what you compare with. We could assume that local players would be what, 15, 20% lower in some cases. Some could be 7 to 10%. So can’t put one number to it. But yeah, that can be arranged.
Bhavin Dopani — Analyst
Fair enough. All right, perfect. Thank you so much.
operator
Thank you. A reminder to all the participants. You may press star and one to ask question. Participants are requested to please press Star and one to ask question. Is. There are no further questions from the participants. I would now hand the conference over to the management for, for the closing comments. Over to you sir.
Saurabh Mittal — Managing Director & Chief Executive Officer
Thank you everyone. Thank you for joining in for the call. In case you have any other questions, you can reach out to us or to SGA for any further clarifications. Thank you. Looking forward. Thank you. Thank you everyone.
operator
Thank you on behalf of Greenlam Industries Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.