Rushil Decor Limited (“RDL”) (BSE: 533470, NSE: RUSHIL), a global leader in modern interior infrastructure and eco-friendly wood panels, announces its expansion into the eco-friendly plywood segment. The company, known for its sustainable MDF and laminates, is committed to environmentally responsible practices and aims to revolutionize the plywood industry with its latest venture.
The eco-friendly plywood, made from wood sourced through agroforestry, is a sustainable alternative that promotes environmental conservation. Agroforestry utilizes wasteland for growing wood trees, providing a renewable source of wood while preventing deforestation. Rushil Decor’s commitment to green practices extends to its integrated green ecology approach, ensuring a positive impact on the environment.
Rushil Decor, upon receiving prior approvals, will form a joint venture with an existing plant in Chikmanglur, Karnataka and its promoters to establish Rush ii Modala Ply Limited, a 51% subsidiary of Rushil Decor. The proposed new subsidiary company will have initial investment upto INR 20 crores in the proportion of 51 :49 by RDL and Joint venture partner respectively. With this strategic venture, Rushil has solidified its position as a comprehensive solution provider in the home decor segment by catering to existing customers the multiple products, boasting an extensive product portfolio that now includes:
1. Laminates
2. MDF Boards
3. PVC
4. Wooden Flooring
5. Plywood
Mr. Krupesh Thakkar, Chairman of Rushil Decor, expressed confidence in the venture, stating, “The incremental turnover post-expansion of our eco-friendly plywood capacity is projected to be about INR 60 crores in FY24-25 & around INR 150 crores in FY25-26. We expect to commence commercial production immediately upon completion of company incorporation formalities in the current financial year i.e. 2023-24, with a positive impact on Rushil’s ROCE.”
In addition to the eco-friendly plywood venture, Rushil Decor is progressing with its plans to manufacture jumbo laminates, a value-added product, at a new plant, scheduled to start commercial production in H1’25, the project has the potentia to generate additional sales of approximately INR 150 crores in FY 2025-26 with an EBITDA margin in the mid to high teens.
Collectively, these two new project initiatives are expected to contribute approximate INR 300 crores of incremental turnover with incremental EBITDA in excess of INR 40 crores in FY25-26. Rushil Decor aims to achieve sales of INR 1200 crores and EBITDA in excess of INR 200 crores in FY25-26.
RDL has 5000+ dealers and distributors across India. The advantage of distribution of Eco Ply will be huge as the existing network is available and no additional investments are needed in building the supply chain. RDL exports almost 30% of its revenue. With new laminates (specifically 14 x 6 & 12 x 5 / 6) set to start production, and its thrust on exports will yield a high margin with a significant contribution to the sales and profits of the company. With ecofriendly products in MDF and Ply and accreditation as BIS product suppliers under 3-star export status, RDL’s products are fetching better margins.
Shares of Rushil Decor Limited was last trading in BSE at Rs. 335.40 as compared to the previous close of Rs. 340.35. The total number of shares traded during the day was 10085 in over 622 trades. Courtesy: https://www.equitybulls.com/category.php?id=343576