Rushil Décor sees 18% mkt share in TS

Hyderabad: Rushil Décor Limited, an engineered interior products manufacturer, on Thursday said a mature consumer market in the South is driving their medium density fiberboard's (MDF) sale, as the Gujarat-based company witnessed 18 per cent of their overall sales in MDF coming from the State of Telangana.

To serve a growing demand from the South's OEM market, the company in 2021 had commissioned MDF manufacturing facility at Visakhapatnam, for which Rushil Décor informed it had invested Rs 500 crore. Currently, the company is utilising 71 per cent of the plants manufacturing capacity, wherein the installed capacity of its Vizag plant is 2.4 lakh CBM per year. "After the launch of Vizag facility, the pandemic led to slowdown in utilisation of the unit to its fullest capacity. However, by FY 2024-25, we are looking to reach 100 per cent manufacturing capacity," Director of Rushil Décor Ltd, K Rushil Thakkar said.

Speaking about its market share for MDF in India, Thakkar said that growth in the real estate sector combined with modernization of furniture industry and mature consumers in the South is getting them better sales compared to the rest of India. "We hold about 24 per cent of market share in the total MDF market in India, of which, 18 per cent of the sales come from Telangana alone. Having a manufacturing plant in the South has helped us to cater to a growing MDF demand from these States," the Director added.

The market size of MDF industry in India is pegged to reach Rs 6,000 crore in 2026, from the current Rs 3,000 crore in 2021, thereby growing at a CAGR of 15 -20 per cent, informed Thakkar. Rushil Décor Ltd, a NSE listed company reported y-o-y growth of 86.1 per cent in revenues, from Rs 333.4 crore in FY 21 to Rs 624.2 crore in FY 22. The official said that Vizag plant alone contributed Rs 250 crore towards their total earnings.