AHMEDABAD, India, Nov. 4, 2024 – Rushil Decor Limited (BSE: 533470) (NSE: RUSHIL) announces a strong positive outlook for the upcoming financial year, with a focus on the strategic roll-out of its Jumbo Laminate Project and expansion into the plywood market. These projects reflect the company’s commitment to broadening its product offerings and exploring growth potential within new market segments.
Jumbo Laminate Project – Expanding Product Range and Market Reach:
The Jumbo Laminate Project in Gandhinagar is a pivotal initiative that will enable Rushil Decor to tap into the growing demand for thicker-format decorative laminates. Despite temporary delays in the project due to supply chain challenges and inclement weather, the Gandhinagar facility is now on track to commence operations by Q4 FY2025. This facility is projected to produce 2.8 million sheets annually, strengthening the company’s position in the expanding jumbo laminate market. In its first full year of operations, the Jumbo Laminate Plant is expected to generate INR 60 to 80 crore in revenue on a conservative basis, with an EBITDA margin of 14% to 16%. The project’s IRR is forecasted at 10% to 12%, with an equity IRR of 14% to 16%.
This new facility is not only an expansion of Rushil Decor’s production capabilities but also a testament to its vision of meeting market needs with quality products. The jumbo-sized laminates are aimed primarily at export markets, especially the USA and Europe. To ensure that this new product has an immediate foothold, the company has already started to set up sales and marketing networks. This includes appointing staff and distributors to drive market penetration across Europe and the USA. This strategic initiative is expected to enable Rushil Decor to capture the expanding market demand for jumbo laminate formats.
Strategic Entry into the Plywood Segment:
Rushil Decor’s foray into the plywood segment is a natural progression in its product diversification strategy. Although faced with minor delays, this joint venture is expected to generate revenues of INR 12 to 14 crore in its initial phase, scaling up to INR 45 to 50 crore in subsequent years with EBITDA margins estimated at 9% to 11%. Expansion into the plywood market is focused on offering a complete range of wood panel products to distributors, enabling opportunities for cross-selling across the product line and will focus solely on the Indian market.
Commenting on the outlook, Managing Director Rushil Thakkar said:
“With strategic expansions, the Jumbo Laminate Project’s imminent launch and growing international demand, Rushil Decor is positioned to deliver sustained growth and value creation in FY2026. Our focus on market-driven initiatives, expanding capacity and fostering long-term sustainability remains at the core of our mission. The company’s commitment to excellence in product quality, market expansion and sustainable growth serves as the foundation for its long-term commitment to stakeholders as it pursues new growth prospects in the dynamic MDF, Laminates and Plywood markets.”
