Rushil Decor , a leading player in the Indian decorative laminate and MDF panel board industry, has announced significant progress in its expansion plans. The company has commenced trial production at Phase 2 of its state-of-the-art Jumbo Laminate Plant, marking a crucial step towards achieving its ambitious revenue target.

Expansion Highlights

• Trial Production: Rushil Decor has initiated trial run production for Phase 2 of its Jumbo Size Laminates manufacturing facility.
• Location: The new plant is situated at Village Itla, Near Kalyanpura Patia, Gandhinagar-Mansa Road, Taluka Mansa, District Gandhinagar, Gujarat.
• Capacity Increase: Phase 2 adds approximately 1.60 million sheets per annum to the production capacity (based on 1 mm thickness).
• Total Capacity: With the completion of Phase 2, the combined production capacity from both phases reaches 2.80 million sheets per annum.

Financial Projections

Rushil Decor has set ambitious targets following this expansion:

Strategic Focus

Mr. Rushil K. Thakkar, Managing Director of Rushil Decor Limited, emphasized the company's strategic direction: "The expansion through Phase 2 not only strengthens our product portfolio but also enhances capacity, scale, and global competitiveness. Our strategic focus remains on innovation, capacity augmentation, and expanding our footprint in both domestic and international markets."

Market Outlook

• The company has secured export orders for a significant portion of its total Jumbo laminates capacity.
• Rushil Decor is poised to ramp up full-scale production in the upcoming quarters.
• The expansion aims to address the growing global demand for high-quality, value-added laminates.
• The company is reinforcing its position as a premium supplier in key international markets, including the USA, Europe, and other developed Western markets.

Project Timeline

The Phase 2 expansion aligns with Rushil Decor's commitment to complete the project by Q3 FY26, as previously outlined. This brownfield development is expected to positively contribute to both top-line and bottom-line performance during FY 2025-26.

Rushil Decor's strategic expansion and focus on high-growth international markets position it well to capitalize on the increasing demand for quality wood panel products. As the company progresses with its growth plans, investors and industry observers will be keenly watching its performance in the coming quarters.

Rushil Decor , a leading manufacturer of Medium Density Fiberboard (MDF) and laminates, reported a challenging first quarter, with consolidated revenue declining 20.4% year-on-year to ₹179.20 crores. The company's performance was significantly impacted by a fire incident at its Andhra Pradesh MDF facility in early April, which resulted in 43 days of production loss.

MDF Business Takes a Hit

The company's MDF business bore the brunt of the disruption, with revenue dropping 26.6% to ₹124.20 crores. MDF volumes declined by 30% due to the fire incident, which affected the Andhra Pradesh plant's utilization rate, bringing it down to just 43%. However, the Chikmagalur plant continued to operate at near-full capacity of 99%.

Despite the setback, Rushil Decor managed to improve its blended realization by 4.5% year-over-year, supported by disciplined pricing and an improved product mix.

Laminate Business Shows Resilience

The laminate segment demonstrated resilience, with revenue of ₹44.50 crores, down only 5.6% year-on-year. Notably, domestic market revenue for laminates grew by 9.3%. The segment's EBITDA increased by 5.9% to ₹4.50 crores, with a margin of 10.2%.

During the quarter, Phase-I of the new Jumbo Laminate facility in Gandhinagar commenced commercial production. However, dispatches were deferred pending key certifications required for exports to certain regions.

Financial Performance

The company reported negative EBITDA for the quarter. However, excluding a forex loss of ₹5.70 crores, the EBITDA would have been ₹3.50 crores with a 2% margin. Gross profit stood at ₹74.40 crores with a gross margin of 41.5%, compared to 45.4% in the same quarter of the previous fiscal year.

Future Outlook

Rushil Decor's management remains optimistic about the company's prospects:

1. The company targets revenue of ₹1,000.00 crores for the current fiscal year and ₹1,150.00-1,200.00 crores for the next fiscal year.
2. EBITDA margins are expected to reach 11-12% in the current fiscal year and 13-14% in the next fiscal year.
3. The MDF plant in Andhra Pradesh has resumed operations and is now running close to optimal levels.
4. Phase-II of the Jumbo Laminate project is progressing well and is expected to be operational by October.

Sustainability Initiatives

Rushil Decor continues its commitment to sustainability, having planted over 24 million saplings in Andhra Pradesh and Karnataka as part of its plantation program. This initiative works closely with local farmers and reinforces the company's dedication to responsible sourcing and environmental stewardship.

As Rushil Decor navigates through the challenges posed by the recent fire incident, the company remains focused on disciplined execution and strengthening its product offerings. With normalized production, improved capacity utilization, and contribution from the new Jumbo Laminate facility, management expects a strong performance in the upcoming quarters.