Rushil Decor announces strategic expansion into eco-friendly plywood

In a significant move to bolster its position in the modern interior infrastructure market, Rushil Decor Limited (RDL), recognized globally for its innovative and eco-friendly wood panels, has unveiled its plans to enter the eco-friendly plywood segment. With its rich legacy in sustainable Medium-Density Fibreboard (MDF) and laminates, the company is now setting its sights on revolutionizing the plywood industry through environmentally responsible practices.

The introduction of eco-friendly plywood by RDL marks a pivotal step towards environmental conservation. This new product line will utilize wood sourced from agroforestry, an approach that leverages wasteland for the cultivation of wood trees, thereby ensuring a renewable supply of wood without contributing to deforestation. This initiative is a testament to Rushil Decor’s commitment to an integrated green ecology approach, aiming to make a positive environmental impact.

Rushil Decor has announced a joint venture with an existing plant in Chikmanglur, Karnataka, and its promoters to establish Rush ii Modala Ply Limited, a subsidiary in which RDL will hold a 51% stake. This venture, which involves an initial investment of up to INR 20 crores, underscores Rushil’s ambition to become a comprehensive home decor solution provider. The new subsidiary will augment Rushil Decor’s extensive product portfolio, which already includes laminates, MDF boards, PVC, wooden flooring, and now, plywood.

Krupesh Thakkar, Chairman of Rushil Decor, expressed his enthusiasm for 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 Return on Capital Employed (ROCE).”

In addition to plywood, Rushil Decor is also venturing into the manufacture of jumbo laminates at a new plant, with an anticipated commercial production start in the first half of 2025. This project is expected to generate additional sales of approximately INR 150 crores in FY 2025-26.

With these initiatives, Rushil Decor aims to achieve a sales milestone of INR 1200 crores and an EBITDA of over INR 200 crores in FY25-26. The company’s extensive network of over 5000 dealers and distributors across India, combined with its focus on eco-friendly products and export strategy, positions RDL for significant growth in the coming years.