Rushil Décor (RDL), a leading laminates and Medium Density Fibreboard (MDF) manufacturer, is likely to complete its new MDF plant by April next year. RDL is setting up a new plant to manufacture MDF at Visakhapatnam with an installed capacity of 800 CBM/day with latest German technology. The company is spending Rs 340 crore on this project which is funded through external borrowings, rupee loans, preferential issue to promoter and internal accruals. At 80% of capacity utilisation, the company will be generating a revenue of Rs 400 crore from this plant.
RDL already has one plant to manufacture MDF in Karnataka which is operating at 90% capacity utilisation. The company mainly uses dealer/distributor network to sell its MDF with institutional sales accounting for just 34% of the total MDF sales. RDL has 80 distributors, 850 dealers, 3 stockiest and 50 institutional buyers.
RDL also has a laminates division which presently contributes more than half of its total revenue. The company has a capacity of 3.95mn sheet/pa, spread across 3 plants within 6 km radius in Gujarat. RDL’s laminates division exports to 35 countries Gulf being a key market. In fact, exports account for 60% of division’s sales.