Published On:May 16 2018
Story Viewed 2587 Times
Responsive Industries to invest $100 m in vinyl flooring plant abroad.
Responsive Industries, one of the largest vinyl flooring and cloth rexine manufacturing company, plans to invest about $100 million ( Rs. 670 crore) in setting up a vinyl floor manufacturing unit abroad to serve the US and European market.
The almost zero-debt company, which is scouting for suitable location in West Asia, Europe and the US, plans to raise 50 per cent for the project through a new subsidiary to be floated abroad and use internal accrual for the rest. The vinyl manufacturing plant will have capacity to 6,000 tonnes per month of high-end vinyl flooring for the export market.
Rishabh Agarwal, Managing Director, told BusinessLine that the company will have enough room for expansion as it will repay the last two instalment of $86 million ECB loan by September.
Given the low-cost of production and competitive market advantage, it may zero-in on a location in the UAE, said sources. The company sees fresh opportunity in low-cost housing projects promoted with government support.
“We have vinyl flooring starting from Rs. 40 per sq ft to Rs. 150 sq ft that can serve low-cost housing projects and the flooring can withstand for at least 20 years. A flooring of 5,000 sq ft can be laid with a labour of five people in a day,' said Agarwal.