Bangalore, 19th October 2022 : Rushil Décor (NSE: RUSHIL), a global leader in smarter living solutions, transforming contemporary residential and commercial spaces expanded its global operations with the setting up of a first-of-a-kind, world-class, state-of-the-art, agroforestry-based, sustainable, environment-friendly future boards (medium density fiberboard or MDF) making plant in Achutapuram, Andhra Pradesh, India.
Driven by smart manufacturing, and fully-automated robotic production, the technologically advanced plant is strategically located close to raw material sourcing agroforestry-plantations, creating sustainable livelihood, reducing the transportation impact, and lower emissions.
The investment in the fully-integrated plant is significant and amounts to over Rs.500 crores. The investment illustrates Rushil Décor’s long-term vision to boost indigenous production capacity and operational efficiency, expanding the range of value-added solutions and strengthening its commitment to sustainability of the business and the planet.
Krupesh G Thakkar, CMD, Rushil Décor Ltd, India, says “Rushil Décor’s automated, intelligent, integrated, and innovative plant represents a drive to steward resources well and contribute to a better future for the local communities, the nation, and the planet. Strategically located to deliver faster deliveries to global markets, RDL’s world-class, make-in-India plant will further boost the nation’s existing capacity to produce MDF, reduce costly imports, and save the country’s foreign exchange reserves – shaping a better planet.”
This automated plant with an annual full capacity of about 2,40,000 CBM is amongst the largest, most sophisticated, safest and smartest manufacturing plants in the world entailing substantial investment in the industry of engineered fiberboards. With the help of this plant RDL has the potential to generate a revenue of Rs. 1000 crore topline in MDF segment on full capacity utilization.
According to industry insights, growing consumer awareness and a wide range of application is driving increased adoption and consumption of MDF in India, as the industry is expected to grow at a CAGR of 15%-20% from an estimated Rs. 3,000 crore in 2021 to Rs. 6,000 crore by 2026.
India is a significant player of MDF, being used as a leading interior infrastructure materials. Discerning consumers and modern offices who look for responsible products that reduces carbon footprint, rapid urbanization, rebound in realty and rising nuclear families will boost MDF growth. Driving this growth will be Indian work from home (WFH) furniture market which is expected to be US$ 3.49 billion by FY2026. About 60% of the consumption of MDF is for commercial use, though the residential segment is gaining momentum. Compared to 70 % market share in developed nations, MDF has just 30% market share in India reflecting high potential for MDF.
MDF is an engineered product made of wood fibers bonded under high pressure using thermosetting resins and wax, forming beautiful panels by applying high temperature and pressure, for strength. Many MDF qualities make it an ideal replacement for wood, plywood and particle boards.
