Vinyl flooring maker Responsive Industries today said it is looking for a suitable location in the US, Europe or the UAE for setting up a USD 100-million plant to meet the global demand.
"We have received approval from the board for exploring possibilities to set up a vinyl floor manufacturing unit in the US, Europe or the UAE in the next three years to meet the rising demand in the western world," Responsive Industries' managing director Rishabh Agarwal told reporters here, adding, "The company may invest around around USD 100 million (Rs 680 crore) to set up the new unit."
The BSE-listed company's overseas plant will have a capacity to produce 6,000 tonnes per month of high-end vinyl flooring for the export market.
The firm said it may raise 50 per cent of funds for the overseas project through a new subsidiary to be floated abroad, and fund the remaining through internal accruals.
"The company has decided to set up new unit abroad as rising raw material cost here will make exports of vinyl flooring unviable," Agarwal said.
It has also enhanced its business model through discontinuing its low-margin segment of economical vinyl flooring post the June quarter of FY18 and increased the share of high margin value added products, he added.
The firm clocked revenues of Rs 1,098 crore in FY18, and aims to increase the same to Rs 1,800 crore in the next four years, Agarwal said, adding, the exports will also rise to Rs 1,000 crore by FY22, from Rs 400 crore at present.
"We are very optimistic on the long term outlook for PVC flooring industry as the strong growth is expected in the sectors where we serve like healthcare, hospitality, transportation, education and sports," he said.
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