Eying East Asia, Middle East for imports: Rushil Decor

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Eying East Asia, Middle East for imports: Rushil Decor

In an interview with CNBC-TV18, Krupesh Thakkar, managing director of Rushil Décor, said that company plans to foray in medium density fireboard (MDF) manufacturing and the project stands at around Rs 73 crore. He further added that the company has 2000 dealers as of now in India.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show »

Rushil Decor , which manufactures decorative laminated sheets and plain particle board, has planned to raise around Rs 39 crore through its initial public offer (IPO). The opened for subscription on Monday and will close on June 23, 2011.

In an interview with CNBC-TV18, Krupesh Thakkar, managing director of Rushil Décor, said that company plans to foray in medium density fireboard (MDF) manufacturing and the project stands at around Rs 73 crore. He further added that the company has 2000 dealers as of now in India. 

Below is the verbatim transcript of his interview with CNBC-TV 18's Gautam Broker and Mitali Mukherjee. Also watch the accompanying video.

Q: Tell us a little bit about your company, and what kind of financial profile you have been working with in terms of sales and profit that you have been generating?

A: Our company is engaged in manufacturing of decorative laminate sheets and plain particle board. We are going to enter into a medium density fiberboard (MDF) manufacturing. For now, the MDF project stands at around Rs 73 crore and we have proposed to issue total equity of 56, 43,750. Out of which the promoter contribution is 2, 43,750 equity share.

Q: You did about Rs 95 crore of sales in FY10, out of that Rs 50 crore came from exports. You seem to be having a dependence on export markets and with developed markets not doing too well, is the outlook continuing to be good or are you facing some headwinds?

A: These are diversifications of MDF. Imports from Far East Asia, Europe, Sri Lanka and India are very good for MDF. So, this is for domestic market not for a particular diversification for our export market.

Q: Your operating margins also for the first nine months till the period ending December have gone down from about Rs 13.83 crore in FY10 to about Rs 12.92 crore. Are you witnessing any kind of margin pressures? What is this stable state margin that we are looking?

A: No. That is up to December, not for entire FY11.

Q: Who are your key clients from the foreign front?

A: We are exporting mostly in Far East Asia, Middle East Asia. In India, we have more than 2,000 dealers. So that's our client ratio.

Also read: Subscription begins for Rushil Decor IPO