Deesawala Rubber Ind launches Rs 40-crore 4th mfg unit in Hyd
The new facility will create 200 jobs initially, with plans to reach 500 employees at full capacity
image for illustrative purpose
The company will come up with a fifth facility adjacent to the new facility by 2025; increasing the production capacity from eight to 25 tonnes per day
Hyderabad: City-based Deesawala Rubber Industries, a manufacturer of EPDM synthetic rubber products on Thursday announced the launch of their fourth manufacturing facility in Hyderabad. The 40,000 sqft mfg unit set up on 1.50 acre of land consists of machineries and a testing lab facility. A fully operational unit will triple the production capacity from the current eight tonnes to 25 tonnes per day.
The Company has three manufacturing units in the city, employing 200 people. For the new facility, the manufacturers informed that recruitment will take place in a phased manner, wherein 200 will be employed now, whereas headcount of fully operational unit will be 500.
Huned Deesawala, Co-Founder and MD, Deesawala Rubber Industries, said: “We manufacture elastomeric bearing pads for road and bridge projects, rubber speed breakers for real estate, rail pads, and pipe gaskets. When operational in a phased manner, the fourth and fifth manufacturing unit will have a consolidated production capacity of 25 tonnes per day. But, we feel that after two years these facilities will fall short on production capacity because of the scope for growth and demand for EPDM rubber products across industries.”
With the enhanced production capacity in place, the Company is looking at expanding its product portfolio by entering new segments such as adhesive, rubber extrusion profiles for automobile, silicon products for pharmaceuticals.
Murtaza Deesawala, Executive Director, Deesawala Rubber Industries, said: “We have invested about Rs 40 crore for setting up infrastructure and new machinery, excluding the testing lab. A similar amount will be invested on the fifth unit. As it is a competitive market, only by diversifying product portfolio we can balance margins. Our turnover in the last fiscal was Rs 100 crore, within two years we are aiming to garner more than double.”
The manufacturer sources its raw material from distributers who import EPDM synthetic rubber from countries such as the US, Saudi Arabia, and Japan. Deesawala, currently exporting its products to pipe manufacturers in African countries, and Australia, will soon be exporting to Europe and the Middle East, besides setting up an office in Dubai. In the overall sales, 15 to 20 per cent share is registered from exports, Deesawala informed adding that with them entering new geographies, their sales share from exports will go up to 25 to 30 per cent.
